| There are numerous companies existing today | | | | for the entire life of the individual. The value of |
| that offer life insurance policies. Though the crux | | | | this policy increases throughout the time one |
| of the policy (to ensure a safe and sound life of | | | | participates in the program. Terms such as Par |
| an individual's survivors as well as to the individual) | | | | and Non-Par are widely used in this context. Par |
| does not alter yet companies try to differ with | | | | whole life coverage generates dividends that are |
| each other by making different classifications or | | | | a partial return of the premium paid for coverage |
| bifurcations. | | | | and investment growth. The amount of dividends |
| Broadly the life insurance is divided into two parts. | | | | keeps on changing from annually. On the other |
| 1. Term Life Insurance Policy- Anyone can opt for | | | | hand the non-par whole life insurance policies offer |
| a term life insurance. This type of policy is | | | | no dividends. The future cash values in these |
| basically meant to cover a person's short term | | | | cases are not projected but assured or |
| requirements. For instance if the policyholder | | | | guaranteed.o Besides this whole life-quick pay |
| unfortunately meets with a grave accident, he | | | | premium policies are also available. In these there |
| can claim for the insurance amount. But it also | | | | is a fixed premium that one has to pay for quit a |
| compensates the bereaved in the case of death | | | | short interval of time till the time it is entirely paid |
| of a family member. All in all it is a policy that | | | | up. The death benefit in this policy is leveled and |
| helps in covering potential need for life insurance in | | | | paid up at the time the premium ceases.o Whole |
| the short run. | | | | life insurance policy can also be fractured in terms |
| Term life insurance is usually a renewable and | | | | of premium payable for 15 years, 20 years and |
| convertible program. It ranges from one to | | | | 65 years of age. The terms and conditions in |
| hundred years. If it is a one year program then | | | | these cases remain more or less the same.o |
| the cost of its coverage increases after every | | | | Universal life insurance policy is meant for people |
| one year till the time it expires. Generally the | | | | who require a life insurance, have a big marginal |
| expiry is at the age of 75. While if the policy is | | | | tax bracket, have big RRSP and pension |
| term to the age of 100 along with cash value it | | | | contributions, paying a good tax on investment |
| subsequently becomes a part of the insurance for | | | | income, want to have an additional future income |
| 'whole life'. Quite often it is noticed that it is | | | | and have an investment prospect for at least 10 |
| cheaper to buy a whole life insurance policy than a | | | | years. These policies are considered to be most |
| non-cash one in value Term 100 policy. | | | | difficult of all the insurance contracts. |
| 2. Permanent Life Insurance- this is life insurance | | | | |