A Brief On Different Life Insurance Policies
Having a life insurance is absolutely required to ensure the wellbeing of one’s family in case of one’s death.This becomes much more important in cases where the person who dies is a bread-earner of the family, or if there are outstanding dues in terms of loans or mortgage that are required to be paid.However, since these insurance policies come with a high premium attached to them, finding a cheap life insurance policy ensures that the person buying the policy does not get financially hurt.Following are some of the different variants of these policies.
The first is the term insurance policy.Here the person is given a life insurance cover for a specific term and the premium is taken from him.In the event of the insured person’s death, the insured amount is provided to the nominees and beneficiaries of the insured person.However, if the person does not die during this period, the insurance Company is not liable to pay anything back to the insured.This is one of the cheap life insurance options, since the chances of death are low.It provides the option of paying lowest premium for the corresponding insurance cover obtained.
There are other endowment life insurance policy options as well.Like the term insurance, here also, the complete insured amount is paid to the beneficiaries of the insured person in the event of the person’s death during the insurance term period.However, if the insured person does not die during this term, then the insurance Company returns a part or the complete premium with some interest rate to the insured person.This form of life insurance helps for investing and pension planning.Needless to say, these policies charge much higher premium as compared to the term insurance.
There are various other life insurance policies available in the market that either giver money back or provide extra cover for accidental deaths and other parameters.What you need to do is provide your details and check with the various policy providers to find out the various policies that you are eligible for.
Since different policy providers use different parameters, the policy options will vary.It is therefore very important that you look out for the different options and compare the pros and cons based on your requirements to figure out which policy is more suited to you.If you are looking for a cheap life insurance policy, do check out the various online insurance providers, since these are known to charge lesser premiums.