state and explain the types of life insurance
Answers
Answer:
There are two basic types of term life insurance policies: level term and decreasing term. Level term means that the death benefit stays the same throughout the duration of the policy. Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy's term.
Answer:
The five basic types of life insurance are:
Explanation:
1. Term Life Insurance Plans
It is a pure risk cover policy that offers only death benefit and no maturity benefit.
This type of life insurance gives you maximum coverage with minimum premium.
The objective of term plans to offer financial protection to the nominees in the event of the policyholder’s unfortunate death.
Note that many insurance companies like Future Generali India Life Insurance offer term plans that return premiums to the life insured at maturity along with accrued bonus.
2. Endowment Plans
An endowment plan = insurance cover + savings
The plan offers both death benefit as well as maturity benefit i.e., sum assured is paid to the nominee or family in case of death or sum assured amount plus accumulated bonus in case the insured outlives the policy term.
3. Whole Life Insurance Plans
Whole life insurance plans also known as traditional plans cover the life insured up to 100 years of age.
It offers both death benefit as well as maturity benefit.
4. Money Back Plans
As the term suggests, the policy offers the sum assured money back at regular intervals, during the policy term.
The balance of the sum assured is paid as lump sum including accrued bonuses on maturity.
In case of the unfortunate death of life insured, the death benefit is paid to the nominee.
5. Unit linked insurance plans (ULIPs)
ULIPs = insurance + investment + tax-saving tool i.e., Triple Advantage in one plan.
One part of the premium paid is used to offer life cover and remaining premium is invested into various schemes such as Equity and Dividend