Meaning of Life Insurance
Meaning of Life Insurance are given in the diagram below.
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In Life Insurance contact, the human life is insured against old age illness, accident, death, etc. Life insurance contract is not a contract indemnity. Hence the insurer has to reimburse a definite sum on the maturity or completion of policy.
Life Insurance is only for those who survive, and not for the person who passes away. It is moral responsibility of every person to protect his family member from uncertain circumstances or death. Hence Life insurance plays a vital role in the world.
Definition of Life Insurance
Definition of Life Insurance are given in the diagram below.
Image credits © Manoj Patil.
Definition of Life Insurance is follow.
“A contract where an insurance company undertakes in consideration of regular payment of premium to pay a certain sum of money to the assured on maturity of policy or death, whichever is earlier”
Types of Life Insurance Policies
Different Types of Life Insurance Policies are given in the diagram below.
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Best Life Insurance Policies are given below.
- Whole life Policy
- Endowment Insurance policy
- Term Insurance policy
- Money-Back Policy
- Joint Life Policy
- Annuity Policy
- Pension Plan Policy
- ULIP (Unit Linked Insurance Policy)
Life insurance policy types are given below.
1. Whole life Policy
What is whole life policy? Define, Meaning of whole life policy are given in the diagram below.
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Types of life insurance policies, whole life policy is an important policy. Under this policy, a person is insured for whole life. The insurance company cannot pay any money to the insured until he is alive. The premium for such policy is very low. Under this policy, the money is payable only after the death of the insured person to his legal heir or his nominee. This policy is more beneficial for the family of the deceased, as it provides financial assistance to the family after the death of the insured person.
2. Endowment Insurance policy
What is endowment insurance policy? Define, Meaning of endowment insurance policy are given in the diagram below.
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Types of Life Insurance Policies, endowment insurance policy is an important policy. Insurance is taken for a specific time in such policies. In this policy, the sum assured along with the bonus is given on his death to the dependent of the family or on the expiry of the particular time, the insured get the specific sum along with bonus. Such insurance plans are famous these days as it protects the family of the dead person or provides old-age pension to the insured.
3. Term Insurance policy
What is term insurance policy? Define, Meaning of term insurance policy are given in the diagram below.
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Types of Life Insurance Policies, term insurance policy is an important policy. The period of such policies is specific. The premium of this policy is the lowest among all the insurance schemes. Throughout the term of the policy, the premium is fix, and it does not change. In the term life insurance agreement, dependents will receive the specified benefited amount in case of untimely death of the person.
4. Money-Back Policy
What is money-back policy? Define, Meaning of money-back policy are given in the diagram below.
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Types of Life Insurance Policies, money-back policy is an important policy. Money-Back policy gives a regular percentage of the sum assured during the life time of the policy. It also guarantees the benefit of a full sum assured in the event of the decease of the insured to the dependents of the family. Such types of policies give a dual benefit one is saving and other is the insurance cover.
5. Joint Life Policy
What is joint life policy? Define, Meaning of joint life policy are given in the diagram below.
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Types of Life Insurance Policies, money-back policy is an very important policy. Under this policies two or more people can be insured at a time. Insurable interest (trust) should be there among the person who takes such policies. It is for those people who have common interest and require joint safety for their lives. This policy can be taken by business partner or husband and wife or any person who has trust on another person. The sum assured is payable at the end of the specified term or the first death of either of the two lives assured, if earlier.
6. Annuity Policy
What is annuity policy? Define, Meaning of annuity policy are given in the diagram below.
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Types of Life Insurance Policies, annuity policy is an important policy. In such policies the insured has to pay the premium of the policy in installments or in the lump sum for a specific period of time. The insured will receive back a specific sum periodically from a mentioned date onwards, either for life or for the fixed number of years. Generally such kinds of policies are for those people who have some extra money and want to use the same after his retirement.
7. Pension Plan Policy
What is pension plan policy? Define, Meaning of pension plan policy are given in the diagram below.
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Types of Life Insurance Policies, Pension policy is an very important policy. This policy is different from all other forms of life insurance policies. As it does not provide any kind of life cover, but it offers a guaranteed income after certain period of time or life time. These insurance policies are taken to provide some financial support after retirement.
8. ULIP (Unit Linked Insurance Policy)
What is ULIP (Unit Linked Insurance Policy)? Define, Meaning of ULIP (Unit Linked Insurance Policy) are given in the diagram below.
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Types of Life Insurance Policies, ULIP (Unit Linked Insurance Policy) is very popular policy. The private companies introduced ULIPs to merge the profits of life insurance policies with mutual funds. In such kinds of a policy's specific amount of premium is invested in listed companies or bonds, funds and remaining amount is used in fund management expense and life insurance to provide balance.
Conslusion: Human life is full of uncertainties no one can predict what,s goo na happened next so it is important to get yourself, and your family insured. This provides an extra financial support to your family.
Some important articles on insurance policies are given below.
What is Insurance? Meaning, Definition of Insurance
Principles of Insurance - Basic Principles of Insurance - Diagram
Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance
Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies
Life insurance polices really become impossible to grasp for their varieties. I love the way you have presented the issue in this article. It is really reader-friendly and this is blog posts should be. Thanks a lot and keep up the work.
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