There are actually four main Types of Life Insurance. With each company the policies and the definitions may vary a little. There could also be differences from state to state. The different types are Term Insurance, Whole Life Insurance, Universal Life Insurance and Variable Life Insurance.
Term Insurance
Of all the Types of Life Insurance the Term Insurance is the simplest one. The policy that you buy is for a specific period and has a specific price. In case of the policy owner’s death, the beneficiary gets the value of the policy. Investment component is not existent in this policy at all.
It is a 100 per cent risk cover. If the policy owner survives the specific period, he is not entitled to any payment. The entire premium paid during the period is retained by the insurance company. The risk cover involved simply protects the family of the policy holder against his sudden death. Since he forfeits the amount if he outlives the period of the policy, it explains why the cost of the Term Insurance policy is low.
When the policy expires, the insured is given the option to renew it, but he has then to pay the revised rates of […]

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