| There are many types of life insurance policies. | | | | amount that is to be paid as a benefit to the |
| Before you venture out for one, learn about | | | | nominee of the policyholder can be varied |
| them and see which one is applicable to your | | | | according to the need of the beneficiary (in |
| needs best. The following are the most common | | | | relation to the funds available in the account). |
| ones: | | | | 2. |
| 1. | | | | Universal life insurance: This insurance one of the |
| Term life insurance: This type of insurance is the | | | | most flexible of all types of insurances. It not only |
| most basic of all. Its one and only function is to | | | | covers the death, but also allows you a host of |
| cover your life with an amount of cash which on | | | | other benefits:a. As all insurance policies, it pays |
| even of your death will be given to your nominee. | | | | the beneficiary a pre-arranged amount of cash in |
| Here the death benefit is equal to the policy limit. | | | | the event of your deathb. It provides a tax-free |
| This is a good way to have mental peace in the | | | | cash investment - which can accrue interest at |
| conviction that you will provide for your family | | | | market valuec. It allows complete flexibility on the |
| even in the event of death. This is good thing to | | | | premium making it easy for you to keep up with |
| have as a stand by any day. | | | | your payments even in lean timesd. At the same |
| 2. | | | | time this type of insurance allows amount |
| Whole life insurance: This type of policy besides | | | | flexibility |
| providing a fixed amount to your nominee on | | | | 1. Universal variable life insurance: This is the |
| your death, it also gives you a financial gain over | | | | ultimate among all the insurance policies. It allows |
| time as an investment would. The benefits you | | | | you complete freedom on the way you invest |
| get out of this type of insurance is:a. pays a fixed | | | | and recover your investment. You have full |
| policy amount in event of deathb. gives you an | | | | control upon your cash at all times:a. it pays the |
| investment amount that is free of taxc. protects | | | | beneficiary a pre-arranged amount of cash in the |
| you from rising prices - the premium is fixed for | | | | event of your deathb. It provides a tax-free cash |
| the life despite market fluctuationsd. pays | | | | investment - which can accrue interest at market |
| dividends as any good investment plane. offers | | | | valuec. It give you total premium flexibilityd. It |
| you freedom to sell the policy back at any given | | | | allows to withdraw cash from your policy at any |
| time you choose | | | | given time throughout your life timee. It allows |
| 1. | | | | you to borrow against the maturity amount at |
| Variable life insurance: This type of insurance is | | | | subsidized rates of interestf. It allows you to |
| much more flexible than the whole life insurance. | | | | terminate the policy at any time, however, in that |
| The best benefit here is the fact that it allows | | | | event your maturity amount will be reduced |
| the policy owner to borrow against the policy | | | | according to the time in question |
| maturity amount. In this way not only you are | | | | Life insurance first and foremost role is to protect |
| insured but you also have a very decent source | | | | the near and dear ones in even of one's death by |
| of borrowing at a lower rate than the market | | | | providing an alternative source of income. Today, |
| price interest rates. The variable life insurance too | | | | however there are a number of benefits added |
| offers the benefit of tax-free ash accumulation | | | | to the main role. Check out the latest |
| that is a great incentive for investing in insurance | | | | developments and choose well. Get value for your |
| the world over. There is another benefit that | | | | money. |
| accrues from this type of insurance, i.e. the | | | | |