Kind of life insurance policies

Kind of life insurance policies

The principal types of life insurance policies which 
are ordinarily issued are as under:

(1) Whole life policy. The whole life policy runs for the
whole term of the life of the insured. the insured pays

premium throughout his life time. it is paid to the
beneficiary when the insured dies. there are there types
of whole life policies

(a) Straight life 
(b) Limited Payment life
(c) Single premium life

(a) straight life. straight life is the policy in which
the premiums are payable every year as long as the insured
lives in th world.

(b) Limited Payment life. If the insured is to pay the premium
for a stated number of years, the insurance is called
limited payment life.

(c) Single premium Life. Single premium life involves 
only one premium payment by insured.


(2) Endowment Life Policy. This policy runs for a 
particular period or upto a specified age. the payment
of the stated money becomes payable at the end of the
period mentioned in the policy. In case the insured dies
before the policy matures, the payment of stated sum of
money in the policy, becomes payable to the beneficiary.
However, the premium have to be paid till the time of
maturity. The advantage of this policy is that it combines
saving for old age and also gives protection to the insured
family in the event of premature death.

(3) Term life policy. Term policy as the name say maximum
for ten years Maximum signifies is an insurance policy 
for a specified period of time say maximum for ten years maximum.
if the assured person dies before a certain date or age,
the insurance company will pay the face value of policy 
to the beneficiary. Term policy can be compared to a fire
or marine policy which gives insurance coverage within the
time limit of the policy. if a provision is made in the
terms of the policy, the term policy can also be converted
into or wholo life or endowment policy.

(4) Annuity Insurance. In this type of insurance, the insured pays
premium over a number of years or in lump sum to the insurer. the
insurance company then promises to make a regular series of payment, usually monthly for the no dependents.

(5) Group life insurance. The purpose of group life insurance is to cover the employes of a business concern. group life insurance is usually written on or one year renewable term plan.

(6) Joint life insurance. This policy covers the lives of two persons e.g. husband and wife or two partners in a business. if any one of  the person or partner dies, the claim will be paid to the other person. this policy helps to save the family or other partner from financial worries atleast for a cartain period.

(7) Sinking Fund policy. This policy is taken by the  insured for making payment of a liability or replacement of an asset.

(8) Double Accidental indemnity policy. according to this policy, if the insured dies, due to an accident, his survivors will get double the amount of the policy.

(9) Children deferred insurance. This contract between the insurer and the insured provides insurance coverage to the children who needs protection. A father, for instance, gives insurance coverage to his children up to the complection of studies or marriage.

(10) With Profit's policy. in the case of with profit's policy, the assured or his beneficiary gets the claim along with profits declared by the company from time to time. if it is a non profit policy, then the holder gets only the actual amount assured.