Question

Write short note on types of life insurance policies.

Answer 1

There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life.

Answer 2

Life insurance policies are one of the most crucial and prevalent policies in today's insurance scenario.

The types are as follows:

1. Term Life-covers pure death benefit protection for fixed time duration of 10,15,20 years etc.

2. Whole Life-covers whole life of the insured with a constant premium payment throughout the policy's tenure.

3. Universal Life-provides permanent coverage inclusive of death benefit and tax deferred funds which are the cash funds part of the policy cover, making it a flexible policy.