The Principal Types of Life Insurance
The life insurance is the plan or contract which is signed between an insurance company and individual whereby the insurer assures to pay all the death benefits to the policyholder's documented beneficiaries in time and as expected by the agreement. Life insurance does not benefit the policyholder directly, but it benefits his or her people whom he or she names as their successor after he or she dies. There are two main types of life insurance plans, and they are both different regarding the premiums paid and the way they are operated. For more information about the two principal types of life insurance, read through the context below.
The first principal type of life insurance after prostate cancer is the term life insurance plan. This is one of the simplest types of life insurance policies. It is strictly operated with specific timing and mostly it ranges from one year to thirty years. This lie insurance plan is only compensated if the death of the policyholder occurs within the period of the active term. That means it has an expiry date and it expires after the end of the thirty years.
In most cases, once the term has ended, the policy does not accrue any other type of benefits. Still, on the point of the term insurance policy, it is further divided into two categories. These include the decreasing term and the level term insurance plans. The decreasing term insurance policy means that the death benefits of the insured and the beneficiaries keep dropping. It usually drops in one-year increments during the entire term of the active policy. On the other hand, the level term insurance policy means the death benefits maintains a constant level all-through the term, view here for more details!
The other principal type of term insurance policy is the permanent or whole life insurance plan. This means when you start paying for your premiums; you keep on paying until your last day of demise. That means the insurer will also pay the benefits accrued to your named beneficiaries after your death. This sound a bit simpler and easy for many of the insurance policyholder. Even if the policyholder lives for over a hundred years, al the accumulated benefits will be paid after his or her death to the beneficiaries he or she had named. There are three commonly known types of this whole life insurance. They include universal life, whole traditional life and finally the variable universal life insurance policies. Here are more related discussions about insurance at http://www.ehow.com/how_5017067_set-up-insurance-company.html.