What Are The Types Of Insurances
Today, insurance has evolved from a luxury investment product for the haves to an almost must-have for everyone. And now, to fit every consumer's budget, there is an insurance plan and product that can be catered and tweaked to fit every need, including the immediate ones.
Life insurance rates change from person to person. A person starting with his career will prefer a lower premium amount. It also depends upon the type of insurance plan opted. Following are the difference between the two:
-It is the insured that will be benefitted, in the first go, as this would give him the freedom to enjoy his money after the duration of the insurance is over. However, the amount would be given to the beneficiaries in a life insurance.
-The premium in a life insurance plan is less as contrary to the endowment plan. The reason being that the endowment plan matures after some time.
Even within the general term of life insurance, there are different plans to suit different people.
1.You can make changes at any point of time in your premium amounts and death benefits if you are insured under Universal Life Insurance. Please note that modifying the death benefits might need you to prove your good health with some new evidences.
2.The Whole Life Insurance is guaranteed to last throughout your whole life. It is, however, significantly more expensive than Term Life Insurance or Universal Life Insurance as it builds up its cash value as the years go on. The Whole Life Insurance also allows loans to be used during the insured's lifetime. The sum borrowed against this insurance plan can be used for college tuition fees, to buy a first home or added to any retirement fund. Unlike the Universal Life Insurance plan, this plan features fixed premiums.
3.The easiest to apply, an insurance with low premiums is Graded Benefits Life Insurance. But with these advantages, there comes some disadvantages as well. The complete insurance amount cannot exceed $50000. The death benefits are also limited initially.
Another form of insurance is the term life insurance. These are used to address a specific need like Personal Accident, Travel, Fire, Car/Hire Purchase or Medical/Hospitalization. Unlike some life insurance, term life insurance rates do not change much and aside from the occurrence of death, there is no benefit for the insured. Just like any other insurance, however, it does recognize the insured's beneficiary who will be the one to get the death benefits.
The term life insurance rates are fixed and do not increase with each passing year. They can fulfill your immediate and important need for a short time. After the expiry of the term, the insured does not get any cash claim, but he tends to renew the term with the same conditions.
Some term insurance like the auto insurance can have decreased premium rates every year. Every successive year, the value of the vehicle decreases, so does the insurance.
Term life insurance is often said to be the original form of insurance as there is no cash value and does not come with any investment-linked or loan attachments. It serves one sole purpose and that is to provide ample coverage during any specified term or cause.
Life insurance rates change from person to person. A person starting with his career will prefer a lower premium amount. It also depends upon the type of insurance plan opted. Following are the difference between the two:
-It is the insured that will be benefitted, in the first go, as this would give him the freedom to enjoy his money after the duration of the insurance is over. However, the amount would be given to the beneficiaries in a life insurance.
-The premium in a life insurance plan is less as contrary to the endowment plan. The reason being that the endowment plan matures after some time.
Even within the general term of life insurance, there are different plans to suit different people.
1.You can make changes at any point of time in your premium amounts and death benefits if you are insured under Universal Life Insurance. Please note that modifying the death benefits might need you to prove your good health with some new evidences.
2.The Whole Life Insurance is guaranteed to last throughout your whole life. It is, however, significantly more expensive than Term Life Insurance or Universal Life Insurance as it builds up its cash value as the years go on. The Whole Life Insurance also allows loans to be used during the insured's lifetime. The sum borrowed against this insurance plan can be used for college tuition fees, to buy a first home or added to any retirement fund. Unlike the Universal Life Insurance plan, this plan features fixed premiums.
3.The easiest to apply, an insurance with low premiums is Graded Benefits Life Insurance. But with these advantages, there comes some disadvantages as well. The complete insurance amount cannot exceed $50000. The death benefits are also limited initially.
Another form of insurance is the term life insurance. These are used to address a specific need like Personal Accident, Travel, Fire, Car/Hire Purchase or Medical/Hospitalization. Unlike some life insurance, term life insurance rates do not change much and aside from the occurrence of death, there is no benefit for the insured. Just like any other insurance, however, it does recognize the insured's beneficiary who will be the one to get the death benefits.
The term life insurance rates are fixed and do not increase with each passing year. They can fulfill your immediate and important need for a short time. After the expiry of the term, the insured does not get any cash claim, but he tends to renew the term with the same conditions.
Some term insurance like the auto insurance can have decreased premium rates every year. Every successive year, the value of the vehicle decreases, so does the insurance.
Term life insurance is often said to be the original form of insurance as there is no cash value and does not come with any investment-linked or loan attachments. It serves one sole purpose and that is to provide ample coverage during any specified term or cause.
