Insurance Types – A Handy Guide

The concept of life insurance involves peace and security not only during the life of the policy holder but also allows the individual to leave something worthwhile for his family and loved ones, when he is no longer physically present to be by their side.

People buy different types of insurance to meet different types of requirements. Some buy insurance as an investment so that their outstanding mortgage loan or credit card bills can be paid off by the survivors in case of his death and some even buy life insurance as a means for forced saving to meet future financial needs like paying for a child’s education, etc.

Therefore knowing about the several types of insurance makes sense. It can help you buy the right types of life insurance depending on your necessity, affordability and suitability. When you are planning for the future, you truly need to be extra careful. Let us study the different types of life insurance one at a time:

One of the types of insurance where the death benefit is applicable only for a limited period of time is known as Term Insurance. Here the timing of the death of the policy holder is very important. If he dies after the term is finally over, the nominated beneficiaries receive the entire sum assured. But if the said policy holder dies before the insurance term is over, there is no return guaranteed. The coverage of such types of extended insurance extends from one to thirty years.

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