Life Insurance policies.....

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Life Insurance policies.....

Post by jiten702 on Mon Oct 25 2010, 14:12

Life insurance comes in many shapes and sizes, but the different types of life insurance policies can be broadly classified into two categories:

1.Term life insurance and
2.Permanent life insurance

Term life insuranceis the insurance policy under which the death benefit is payable only if the insured dies during a specified period & this policy does not have any investment component. It is the most affordable type of life insurance available. It is designed to meet temporary life insurance needs; providing protection for a specified period of time, the term. This type of life insurance makes sense if you have financial needs that will diminish over time, such as a home mortgage or a child's tuition.

Permanent life insurance is the insurance policy that provides coverage throughout the insured's lifetime and may include an element that builds cash value. This type of policy provides lifelong protection. It also provides a savings element that accumulates a cash value over a long period of time. In other words, this type of policy, combine life coverage with an investment fund. Here, you're buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company.

jiten702
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