Life insurance policy has been in existence for quite some decades and has remained to be relevant because of the many benefits it comes with. Life insurance covers one against losses that come as a result of diseases, accidents and deaths. One good thing with life insurance is that it can also cover the owner and the other family members.
Life insurance policy comes under three categories which are very important to every person despite of his or her age or gender and hence important to know about the common types of life insurance covers. Some common types of life insurance policies that have been very helpful to many people across the world include term life insurance, whole life insurance and universal life insurance policy. Here is what term life insurance, whole life insurance and universal life insurance entails.
Just as the word suggests, term life insurance only provides insurance cover for a specified period of time according to the agreement between the insurer and the client. Compared to whole life and universal life insurance policies, term life insurance is one of the most affordable life insurance that any person can afford. Buying a term life insurance is very simple which is another pro that comes with it.
Lastly, there is no any exam policy available. The term life insurance is very great and serves best to those with kids, the homeowners and the retirees. Some common forms of life insurance include level term life insurance, decreasing benefit life insurance and actual renewable term life insurance. Whole life insurance is the other category of life insurance that provides benefits until one dies. Whole life insurance does not have any expiration date which is also a great advantage that comes with it.
Despite of higher premiums in this type of life insurance, there is great cash value considering the benefits the clients get. The last category of life insurance is the universal life insurance which is known to be very flexible especially in payments. Just like whole life insurance, universal life insurance also comes with great cash value. You can also get a good lump sum when the policy grows or matures.
Life insurance generally comes with so many benefits one of them being great peace of mind to the insured. The other benefit of life insurance is getting cash to finance your education. Lastly, the introduction of life insurance has greatly promoted economic growth in many countries by offering employment to many.