3 Types of Life Insurance and Their Benefits that You Need to Know

Life insurance is an important form of financial protection for individuals and their families.

Life insurance is an important form of financial protection for individuals and their families.

It is a contract between the policyholder and the insurance company, where the policyholder pays a premium and in exchange, the insurance company will provide financial benefits to the policyholder or his or her heirs in the event of death or other specified events.

There are several types of life insurance available, each with different characteristics and benefits.

In this article, we will discuss several popular types of life insurance.

1. Pure Life Insurance

Pure life insurance, also known as traditional life insurance, is the simplest and most common form of life insurance.

In pure life insurance, the policyholder pays a fixed premium over a certain period, for example 10, 20, or 30 years. If the policyholder dies during the coverage period, the death benefit will be paid to his or her heirs.

However, if the policyholder survives after the coverage period ends, no benefits will be paid. Pure life insurance can provide financial protection for families in the case of unexpected death.

2. Term Life Insurance

Term life insurance is a form of life insurance that offers protection for a specific period of time, which usually ranges from 5 to 30 years.

If the policyholder dies during the coverage period, the death benefit will be paid to his or her heirs. However, if the policyholder survives after the coverage period ends, no benefits will be paid.

Term life insurance is often chosen by people who need financial protection for a specific period of time, such as the life of a mortgage loan.

3. Unit Link Life Insurance

Unit link life insurance is a combination of life insurance and investment. Unit Link Life Insurance is an insurance contract that provides protection benefits with low premiums as well as investment.

This type of insurance provides death and investment protection benefits at the same time.

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