Types of Life Insurance Products and Policies Available

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Types of Life Insurance Products and Policies Available Powered By Docstoc
					                             Life insurance products are generally split
into four major categories: Term, Accidental Death cover, Whole Life
policies, Universal Life policies, Limited pay and endowment. They are
outlined in more detail below:Term InsuranceTerm Insurance give the
holder life insurance coverage for a term of months or years so long as
the customer pays the premiums required. This policy will not accumulate
a cash value. The term insurance policy will give the holder protection
due to death and nothing else. Most insurance companies will sell term
insurance policies with lots of different options in order to provide
customers with what they want. The term policy can be for one or more
years. Although the term insurance contract is set in stone customers can
choose to pay their premiums at a set rate or on an increasing scale and
they can change as they see fit in the future. There are Level term,
Guaranteed renewal policies and annual renewable terms available for the
customer to purchase each are designed for specific sectors and are
mainly provided by employers to employees.Accidental Death
CoverAccidental death cover is an insurance product that covers the
policy holder when they die due to an accident. It will cover accidents
from most kinds of injuries including work related ones. These policies
will also usually cover accidental loss of limbs or loss of hearing etc.
So if you where to accidentally lose a finger at work there is a set
payout that would be covered by the insurance. Because it only covers
accidental insurance these policies can be very cheap and affordable and
are good for people for work in dangerous jobs. However you will need to
read the fine print of the policy because usually it will not cover
people that put themselves in harms way for pleasure or work or example
if you where to work in the military or fly jets for recreational use.
Most of the permanent life insurance policies will include accidental
coverage in the full plans as well.Whole Life PoliciesWhole life
insurance policies provide the customer with a value of life insurance
based on a cash amount i.e. $500,000 or $1,000,000, the customer will
then pay a premium based of the amount of cover they wish to receive. In
the unfortunate event of death the customers beneficiaries will receive
the lump sum payout usually tax free and it is guaranteed by law. The
main disadvantage with is that the cash values they accumulate are
generally kept by the company at the time of death, with the benefit
going to the beneficiaries of the the policy holder.Universal Life
PoliciesUniversal life insurance policies are similar to whole life
policies in that they provide permanent life insurance but they give you
more options in relation to how you pay your premium and the benefit can
grow in value over time. Within the universal life policies there are the
following varieties: fixed universal life insurance, equity indexed
universal life insurance, variable universal life and guaranteed death
benefit. The varieties basically centre around offering you different
options for premium repayments, changing the level of increase on the
cash value and the ability to lower the death benefit as the client see
fit.Limited PayOne of the rarer types of life insurance is the Limited
Pay insurance, there are quite simple in design and are largely used when
clients are expected to make large sums of money within a set time frame.
Basically the premiums are paid over a set period of years and after the
set period of time no more premiums need to be paid. These policies
usually last around 10-20 years.EndowmentsEndowments are permanent life
insurance policies where the cash that is build up over the life of the
policy is the amount the beneficiaries receive when the policy holder
reaches a certain age or passes away. This type of insurance generally
costs more because the time is shortened in which to pay the premiums and
there is set age where it has to pay out.

				
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