Types Of Life Insurance - The Two Major Policy Types
There are different types of life insurance policies. However, they all are variants of two major types. It will be a good idea to get a grip of each of these major types before you buy any policy.
There are two main types: Term life and whole life or permanent life insurance.
A term policy gives coverage for a specified period. It usually ranges from 1-20 year terms. Some insurers may also offer longer terms or have special variations of these. A term life insurance policy pays out a death benefit only upon the death of the insured. The insured would have to die within the term for any form of benefit to be paid out. In the actual sense of the word, term life is the only pure insurance policy of all life types and variations. This is because it insures against an event that may or may not happen.
A whole life insurance policy (or permanent life policy) is effective for the entire life of the policy holder provided premiums are paid as and when due. A death benefit must be paid upon the death of the insured whether it happens at age 40 or 100.
You might have seen other forms. They are simply variations of term life and whole life. If you have to read this to know what types of life insurance policies there are then you are better advised to get either of these basic types for now until you become more knowledgeable in these matters.
You could save some hundreds or even a few thousand dollars by simply obtaining quotes from about three insurance quotes sites. You will need to take out only 15 minutes to obtain quotes from three insurance quotes sites. However, ensure you give your correct details as you complete the questionnaires on each site. Furnishing false details will produce misleading quotes. When the quotes are returned simply pick lowest insurance quote for you from the list of quotes obtained.
Here are my favorite pages for life insurance quotes…
Life Insurance Quotes
InsureMe Life Insurance Quotes
Publishers can get unique versions of my articles by following any of the links above. Click on “To Use My Articles” when you get to my site.
Chimezirim Odimba writes on insurance.
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