There is a famous quote about life insurance by Will Rogers which says
BENEFITS OF LIFE INSURANCE
- Help pays the bills.
- Pay for funeral costs.
- Used to cover any short term or long term loan. Example mortgage loan.
- Ensures the availability of funds for kids’ education.
- Helpful in estate planning.
TYPES OF INSURANCE POLICIES
• Term Insurance:
This insurance covers for specific time period namely 10 years, 20 years, 30 years, etc. This insurance is the most economical of all the available types. It has to be renewed at the expiry of the term or can be converted into a permanent plan. Ideal for any individual or small family which needs a higher coverage amount at a small cost.
• Permanent Insurance:
This type provides coverage till the age of 100 or death whichever is earlier. It is ideally used to leave something for near & dear ones. It is also used to cover the funeral costs by seniors. With this insurance in place, one can use his savings for investment purposes to garner further growth.
• Universal life insurance:
It is a unique product that combines permanent life insurance coverage with options for investment that offer tax-advantaged savings. It’s an excellent tax-efficient product to help you build an estate and pass your assets to your beneficiaries.
• Participating Policy:
A participating policy is an insurance contract that pays dividends to the policyholder. Dividends are generated from the profits of the insurance company, that sold the policy, and are paid out on a yearly basis over the life of the policy. A participating policy is also referred to as a with-profits policy.
