Life Insurance Policies

There are various types of insurances to protect our goods, house, car and other valuables. Life is also precious and need to be protected for income so that our loved ones and the dependents can be provided in case of illness, sickness and even death. There are various types of life insurance policies available in the market like:

  • Whole life insurance
  • Endowment insurance
  • Term Insurance
  • Joint Insurance and
  • Payout Options

These various types of life insurances are available from different providers like insurance companies, banks, insurance brokers, internet providers, building societies and also large supermarkets and each has differing terms and conditions for the coverage they provide. The type of life insurance taken up by a person or the one that suits you the best depends solely on their needs and circumstances.

Once you have bought an insurance policy it should be regularly reviewed to check that it still gives all the benefits agreed and reflects your financial and personal conditions. Take for example if you have insured for your mortgage payment as well in your policy and have already made all the payments for the sum then your dependent won’t be requiring this money to pay off the debt in case of your death. If you have been made redundant you may ask the insurer to decrease the sum assured and thus reduce the cost of the policy especially when you looking for a new employment.

The term insurance is the most basic type of life insurance policy and it pays a lump sum amount if one dies within the term period. It is of two type’s level term insurance policy and decreasing term life insurance policy. In level term case the amount assured remains same throughout if the insured dies within the specified term whereas in case of decreasing life term policy the amount of money paid decreases with the term. In whole life insurance policy the sum assured is paid whenever the insured dies and are more expensive than the term policies. One of the policies is Family Income Benefit Policy and is a decreasing term policy in which the beneficiary is paid a regular income rather than lump sum amount and it is paid till the time your policy gets over in the insured dies within the term period. It is always considered beneficial to have a life insurance policy which suits your need the best.