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Life Insurance

Life Insurance. Life insurance is a contract that pays a beneficiary in the event of your death as long as the policy is in effect.

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Life Insurance

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  1. Life Insurance • Life insurance is a contract that pays a beneficiary in the event of your death as long as the policy is in effect. • Life insurance is something you buy for those people you leave behind. Life insurance covers your expenses such as funeral and medical bills. You may also need to leave financial support to your family.

  2. CLASSIFICATION OF LIFE INSURANCE POLICIES

  3. Who Needs It? If your: • Single - Consider life insurance for retirement and estate planning.  And if you’re young and healthy, now may be the best time to lock in a low rate. • Married or Getting Married - You are not in this alone anymore. Your spouse depends on you in lots of ways.  Losing you to an accident or illness would be a huge emotional loss for them. Having the right amount of life insurance can help make sure it’s not a huge financial loss as well. Isn’t it important to help secure your family’s future? • Buying A Home - Buying a home is one of the biggest purchases you may ever make. Did you know that life insurance can be used to help pay off your mortgage and keep your family in their home should something happen to you?

  4. LIFE INSURANCE POLICIES

  5. A) POLICIES ON THE BASIS OF DURATION OF POLICY • WHOLE LIFE POLICIES- Whole life policies are issued for life period of insured. It means that the policy amount will be paid only at the death of the life insured. • Only the dependents of life insured will get the advantage of this policy. • Risk is covered for the whole life of the policyholder.

  6. Whole Life Insurance Whole life or Permanent Insurance This type of policy never expires. As long as premiums are paid, it remains in force. Premiums are usually based on your age at the time of purchase and generally remain level. In addition to providing a death benefit, premiums are also invested to produce returns – adding cash value to your policy. There are three major types of whole life or permanent life insurance: traditional whole life, universal life, and variable universal life.

  7. Types of whole life policies

  8. II) Term Life Insurance Term Insurance The most basic and least expensive type of life insurance. You buy coverage for a certain amount of time, such as 10, 15, 20 or 30 years. If you die before the term is over, your beneficiary gets the benefit stated in your policy. If you live beyond the term, the policy expires.  Therefore, if you purchase a 30 year term policy at the age of 20 you will not have any life insurance beyond the age of 50

  9. TYPES OF TERM LIFE INSURANCE POLICY • Straight term (temporary) insurance • Renewable term policies • Convertible term policy

  10. III) ENDOWMENT TYPE POLICIES

  11. CONTINUED…

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