| Life insurance is a type of insurance
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| | policy provides coverage till the policy
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| wherein the insured pays a premium for a
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| | matures. A policy is said to mature when
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| period (often lifetime) and the life
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| | the person reaches a fixed age or dies.
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| insurance company provides insurance
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| | The policyholder needs to pay premium for
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| coverage against the risk of death. There
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| | the entire period. This type of policy
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| are many types of life insurances or
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| | accumulates a cash value. The
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| assurance (in the UK) available today.
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| | policyholder can withdraw or borrow the
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| Basics: There are 4 parties in any life
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| | money or surrender the policy to receive
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| insurance policy. The policyholder is the
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| | surrender value. There are 3 types of
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| one who is buying the policy, the insured
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| | permanent life insurances.
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| is the one against whose death the policy
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| | 2.1 Whole life insurance. This has a
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| is made, the insurer that is the
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| | level premium and corresponding cash
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| insurance company and finally the
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| | value. Upon death of the insured, the
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| beneficiary is the person who will get
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| | beneficiary receives the death benefit
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| the proceedings of the life insurance
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| | only and not the cash value. The policy
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| policy. It is mandatory that the
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| | owner can borrow loans on the cash value.
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| policyholder should have a legitimate
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| | 2.2 Universal life insurance. This has a
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| reason for insuring a persons life.
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| | flexible premium and gives higher
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| Types of Life Insurances:
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| | internal rate of return. The policy has a
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| 1. Temporary Life insurance.This policy
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| | cash account depending upon the premium.
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| is also called term life insurance that
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| | The surrender value equals the cash
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| has coverage for a fixed period of time.
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| | account balance.
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| The policyholder needs to pay a premium
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| | 2.3 Variable Universal life insurance.
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| for a fixed period of time for which the
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| | This is similar to universal life
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| insurance company provides insurance
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| | insurance with cash account. However the
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| coverage. This type of policy does not
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| | money is invested by the insurance
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| accumulate cash value.
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| | company in mutual funds for a greater
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| 2. Permanent Life Insurance. This type of
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| | return.
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