When you make the smart decision to look for life insurance that can provide the right support and financial independence to your family in case something happens to you, you will learn about multiple life insurance options. A good life insurance policy should contain everything you need while it suits your current salary and financial state. You can take an agent’s help to find a policy that can support your family’s education, health, debts, and allowance for the long term. Meanwhile, it should also help you with tax savings and other loan facilities. Here are the six life insurance types you can find today.
Term insurance plan
A term insurance plan stays for a limited period of 10,20 or 30 years. This insurance policy does not have any cash value or maturity benefits. It is one of the simplest plans for average earners that can provide good support to their families. This insurance can only be useful after the occurrence of the event of the death of the candidate.
Money back policy
Money back policy allows the candidate to gain survival benefits that can differ based on what the insurance company offers. It is similar to a term insurance plan as it does not offer any benefits until the policy matures, after which the money can be allotted proportionately for stable pension-like returns for long terms.
In this policy, the is an additional benefit that comes when the insurance matures. Just like the term insurance plan, the insurance will not provide any benefits throughout time until the policy matures. After the date of maturity, the candidate receives the lump amount of the insurance all at once. The other details in the policy remain the same as the above two policies.
Whole life policy
This policy is also known as permanent insurance as it can stay for a lifetime without any maturity date. It is beneficial for those who want to live comfortably with life insurance for over 75 years. This insurance also offers other survival benefits, such as withdrawing the sum of money a candidate invests in the policy. As this policy offers lifetime security, it is more expensive than all the other options on this list. The policyholders can also borrow money from your insurance and then return it back.
Also known as a pension plan, this insurance policy offers a payback like a pension plan. It is meant for candidates who want to enjoy a stable return at the time of their retirement. When this policy matures, the entire amount of the insurance will be summed up and distributed according to the requirements of the candidate. The candidate can then take the payments as an income every month or take a lump sum at the end of every year.