Life Insurance

Most common types of Life Insurance are:

  • Term Life Insurance:Term Life Insurance or Term Assurance is Life Insurance which provides coverage on the insured person’s life for a fixed term by paying a fixed rate of premium during the term. If the insured person dies during the term, the death benefit will be paid to the beneficiary.After that period expires, the coverage expires and the client must either forgo coverage or can obtain further coverage by paying the relevant premium or with different conditions. Term Insurance is the least expensive way to purchase a substantial death benefit on a person’s life over a specific period of time.
  • Whole Life Insurance:Whole Life Insurance, or Whole of Life Assurance, is a Life Insurance policy that remains in force for the insured person’s whole life. Generally, it requires premiums to be paid every year to the insurer.
  • Universal Life Insurance:Universal Life Insurance policy offers a cash value to the insured person along with the death benefits payable to the family members. The excess of premium payments above the cost of insurance is credited to the Cash Value of the Policy. An interest, as decided by the insurer (there is a contractual minimum rate of 2%) is paid on the cash value on a monthly basis. The Cost of Insurance and other policy charges and fees are debited to the cash value, even when no premium is paid in that month. This ensures continuity of the term cover on the life of the insured person.When the rate of earnings are linked to a financial index, such as a stock index, it is called as “Indexed Universal Life Insurance”.