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Saturday, 25 June 2011

Discuss the various types or kinds of life insurance

Kinds or Types of Life Insurance :-
Following are the different kinds of life insurance :

1. Endowment Policy :-

This policy is taken for fixed number of years. It also provides the benefit of getting the full amount of the face value of the policy in case a person remains alive to the end of the period. It is a most popular kind of policy. It has two kinds :

i. Unprofitable Policy :- According to this policy the insured amount will be paid but without profit.

ii. Profitable Policy :- Under this policy insurance company also pays profit with the insured amount. Its premium is generally higher.

2. Whole Life Insurance :-
In this policy period is not fixed. It is the assured amount which is payable after the death of policy holder to his heirs. Its rate of premium is low than others. It has also two kinds profitable and unprofitable insurance policy.

3. Term Insurance :-
It is issued for a fixed period, insurance company will pay the face value of the policy to the heirs. On the other hand if insured person survives in this period he gets nothing.

4. Group Life Insurance :-
This policy is introduced for giving an insurance coverage to the group of employees working in office or factory. These are issued without medical examination.

5. Joint Life Policy :-
This policy is obtained by two or more than two persons together. In case of death of one partner, the insured amount is paid to the partners.

6. Family Protection Policy :-
This policy is very useful for the family members. It issued for a specific period. If the insured person dies during this period, insurance company pays a specified amount to the heirs up-to a specified period monthly, quarterly or yearly. If the insured survives then he will get the insured amount.

7. Children Educational Policy :-
Parents may obtain the life insurance policy for their children. Its objective is to provide funds for their educational expenses.

8. Insurance of Last Survivor :-
This policy is obtained by two or more than two persons. The insured amount is paid when all the insured persons die. If one dies before the other then insured amount will not be paid.

9. Annuities :-
Generally it means annual payment. The insurance companies sell the policy named the life annuities. The buyers pay lump sum amount to the insurance company. The company undertakes to pay fixed amount each year for the entire of the annuity.

10. Accident Insurance :-
Some people obtain this policy to save them selves from the unexpected accidents. Insurance company pays the insured amount in case of accident death. In case of injury and disability insured person is paid according the condition of contract.

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