Saturday, December 8, 2012

Various Types of Life Insurance


Nowadays, it is a customary practice to have insurance almost on everything. In the popular movie series "The Sopranos", a restaurant is set on fire to protect the owner from being the victim of a fight that would destroy his reputation. Afterwards, the characters chat about the event with lighthearted regret, because they expect the insurance to cover the damage. Of course real life has little to do with movie scripts about the mafia, but this speaks about the status held by insurances in the modern times. They have become financial safety nets; their types have ramified and continue to ramify in order to cater for more and more people.

From a realistic standpoint, it is always better not to have to resort to an insurance. That is why many people avoid the thought of it. But in case of an undesired event (such as sickness, accident or death), having financial support built over time helps improve the situation. This is how life insurances basically work: one agrees to pay a monthly fee over a fixed period of time, in order to insure a certain amount of money. That money (termed "the sum assured") can have multiple purposes, from paying a mortgage to supporting one's dependants to covering the costs of a short-term illness treatment. Bearing this in mind, committing to a monthly premium does not have to seem that daunting. Life insurances have evolved into more flexible types, allowing one to change the status of a policy if one's own financial status and needs change.

The widely known types of life insurance are the term insurance, the permanent insurance, the endowment insurance and the joint insurance. The majority of people purchase either the term insurance or the permanent insurance. These first two are taken with the aim to protect one's financial dependents in case of death, either to pay debts not yet completed at the moment of death or in order to provide financial help immediately after the event. The only difference between them is the period, which can be unlimited for the permanent one.

Still, the benefits can be reaped even with a term life insurance that expires, thanks to the possibility of converting or renewing it. The other two types have some extras: the endowment insurance acts as an investment policy and the joint insurance provides a single insurance for two people (a married couple or business partners). These are just to name a few, but a single search on the web will reveal many other types, as there are life insurances for income protection, private medical services, mortgage protection, critical illness, redundancy, pregnancy, accidents and sickness, life insurance for smokers and the list can go on depending upon a multitude of factors.

Save Up to 60% on Life insurance Policy.

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