Types of Life Insurance Policies

Insurance companies have present different levels of policies to suit different needs of public. At the time of confirming to buy a policy, a person must know firstly the amount of premium he will have to pay, secondly time span of insurance, and thirdly.sum insured with or without bonus. The following are the types of life insurance policies:

1) Whole life policy

2) Endowment policy

3) Term policy

4) Other life policies

Types Of Life Insurance Policies

1) Whole Life policy

           In this type of policy the insured have to pay premium throughout his life or up to limited years. The amount is paid to the nominee of the insured on his death. This done for the protection of nominee's family. The rate of premium in the policy is low as compared to other policies of life insurance because amount is payable in the whole life. This type of policy has no financial gain to insured. It can be further classified into following types:

Ordinary whole life policy

 Limited Premium whole life policy

 Single Premium whole life policy

2) Endowment Policy

This type of policy is issued for a fixed specific period of time. Insured is payable to the policyholder on the maturity of the policy. Endowment policy is very popular because it makes provision for the security of the family. The following are the types of this policy:

•  Ordinary endowment policy
• Pure endowment policy
•  Double Endowment policy
•  Deferred endowment policy.

3) Term Policy

     It's a very old policy which is for 1, 2, 5 or 10 years. The money is paid back only after the death of the nominee. If the nominee survives more than the insured time than company will not pay back the amount. We have to make knowledge that it's neither saving nor investment. It has following types:

•  Straight Term policy
• Convertible Term Policy
• Decreasing Term Policy
• Renewal Term Policy

4) Other Life Policies

Some of the types of life insurance are as follows:

•  Single Premium Insurance
• Joint Life Policy
• Group Life Insurance
• Multipurpose Insurance Policy