What Are the Different Types of Life Insurance Policies?

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Types of Life Insurance Policies

There is a range of insurance policies available in the market today to meet different needs. Every type of life insurance in Anaheim and Fullerton has the same basic setup. You pay premiums on a monthly basis and upon your death; your heirs receive a monetary benefit. However, insurance policies are rather different in terms of how much they cost, how long they last, and whether they offer other benefits, apart from the financial benefit.
It’s important for you to understand all the life insurance options offered by different insurance companies. Listed below are some of the popular life insurance policies available in the market.

Term Insurance Plan

As the name suggests, term insurance plans are purchased for a definite period. These policies do not carry any cash value, thus they do not offer any maturity benefits. Hence, this life insurance policy is cheaper compared to other policies. This policy becomes beneficial only when a grave incident happens.

Endowment Policy

The sole difference between the endowment policy and the term insurance plan is that endowment policy has the added benefit that policyholders get a lump sum amount if they survive until the date of maturity. All other details of a term policy are the same and applicable to an endowment policy.

Unit Linked Insurance Plan

This plan allows policyholders to build wealth, along with life security. Premium paid in this policy is divided into two parts – one for life insurance and the other for building wealth. This plan also allows partial withdrawal of the amount.

Money Back Policy

This policy is similar to the endowment policy. The only difference is that money back policy offers more survival benefits that are allotted proportionally all through the term of the policy.

Whole Life Policy

Unlike other policies that expire at the end of the specified period, Whole Life Policy, as the name suggests, extends to the life of the insured. It also offers the survival benefit to the insured. In this policy, the policyholder can partially withdraw the sum insured as well. They also have the option to borrow sum against the policy.

Universal Life Insurance

Universal Life Insurance is similar to the Whole Life Policy but it comes with additional earnings on the savings component. Universal Life Insurance offers more flexibility regarding the face value and premiums. In this policy, you may decrease, increase, or defer the premium and withdraw the cash values. You may also have the option of changing the sum insured amount. Universal Life Policy typically provides a guaranteed return.
Lifeinsurance in Fullerton and Anaheim are more flexible than most people think. You can choose from these life insurance plans. Each of them has their own benefits and drawbacks that you need to consider when looking for life insurance protection for your family. Each insurance provider has a different way of calculating insurance premiums, which means you can get different quotes depending on the company you choose for your life insurance. Therefore, go through all of them carefully and choose the one that suits your needs the best.
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