The life insurance is a mutual bond between policy holder and insurance company. The term of life insurance policy lasts for specified period of time. In this the policy holder pays the insured set of amount and the policy holder pays the amount at set intervals of time.
The life insurance policy known as long term life insurance provides death case of money. Life based contracts fall into 2 types:
1 protection policy:
2 Investment policies
The protection policies are those policies in which the policy holder pays a lump sum amount. The other type is investment policy in which main goal is to help the growth of capital by regular or single premiums.
Life insurance falls under two classes as temporary as well as permanent. It has some more subclasses like term insurance, universal insurance, whole life and endowment insurance polices. The term insurance refers to that insurance policy in which it is set for fixed amount of time. It is considered as pure type policy where the premium buys protection in the event of death and nothing else. When you purchase a term insurance policy some points to be keep in mind like face amount, premium amount as well as duration of the insurance. Generally the term policies are fixed more than one year. It can be 5, 10, 15, 20, 25, 30 &35 etc. depending upon which policy you purchase and what duration. A policy holder insures his life for a specified term. If he dies before that specified term is up his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing. The suicide is not covered in insurance policies.
The whole life insurance policy provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. When you buy the right type of universal life you guarantee the death benefit for as long as necessary… It really depends on what you are trying to achieve. The key is to understand the ramifications of making the move before you do so. The health insurance also takes care of your accident. It has several advantages like ICU charges, doctor, consulting, anesthetist and surgeon fees, operation and other diagnostic and surgical material costs are covered, Ambulance Charges: They are normally covered, Cashless Hospitalization is offered by almost all Non-Life Insurers, Pre and Post Hospitalization Expenses which normally are 30 days prior and 60 days after hospitalization and Day-Care expenses such as Chemotherapy, Dialysis and Radiotherapy, etc.