Life Insurance Product and their Types


Temporary life insurance or term insurance is a type of insurance which provides you peace of mind in case you want to be sure your beloved family members will be given a certain amount of money in case you die. It is very helpful when considering expensive funeral bills, or leftover medical expenses. It usually belongs to the low cost insurances, as it covers a shorter period of time. The insurance company pays the beneficiaries the value established in the contract only if the insured passes away in the exact period laid down in the policy.

Whole life coverage: Life insurance which provides coverage for an individual’s whole life. The person starts to save over time & can use it later. This insurance is for the whole life and not for a specified period. As there is no fixed end date for the policy, only the death benefit exists and is paid to the named beneficiary. The policyholder is not entitled to any money during his or her own lifetime. There is no survival benefit wherein the benefit ends.

Universal life coverage: Permanent insurance coverage with flexibility in premium payment and the potential for a higher internal rate of return. It allows the policyholder to break the death benefit and cash value accumulation into separate components.

Unit Linked Insurance Plans: Risk cover and investment (endowment) where the policyholder bears the investment risk. The portion of the premiums after deduction of all expenses and the premium for the risk cover is allocated to unit funds. Premiums provide not only a life insurance cover, but a part of the premium will also be invested in specific investment funds of choice.

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