Life insurance is a written agreement between the insurance company and the policyholder, in which the insurance company will pay a certain amount of money to the insured, such as death, disability or being unproductive resulting in loss of job.
We can find several types of life insurance offered by insurance companies to the public, which have different benefits and durations. So before buying life insurance you should understand the types of life insurance products. Here are some types of life insurance that are generally provided by insurance companies, including:
1. Term Life Insurance
This term life insurance applies if the insured dies within a certain time, but if the insured still remains after the specified time period, then the policyholder has the right to continue/extend life insurance coverage.
2. Whole Life Insurance
This life insurance provides coverage for life, but there are also insurance products that only provide coverage until the policyholder is 100 years old.
3. Endowment Insurance
In general, this type of life insurance endowment insurance is equipped with a savings feature, so premium payments by the insured will be partially allocated to insurance benefits and some will be allocated to a savings account. If the insured is still alive until the end of the policy, then all the sum insured can be disbursed.
4. Unit linked insurance
Unit linked life insurance is a combination of life insurance and investment instruments, so that the insured will benefit from insurance protection and also get returns from the investment. The amount of premium money deposited with the insurance company will be allocated to insurance and investment premiums which will be managed by the investment manager.
We can find several types of life insurance offered by insurance companies to the public, which have different benefits and durations. So before buying life insurance you should understand the types of life insurance products. Here are some types of life insurance that are generally provided by insurance companies, including:
1. Term Life Insurance
This term life insurance applies if the insured dies within a certain time, but if the insured still remains after the specified time period, then the policyholder has the right to continue/extend life insurance coverage.
2. Whole Life Insurance
This life insurance provides coverage for life, but there are also insurance products that only provide coverage until the policyholder is 100 years old.
3. Endowment Insurance
In general, this type of life insurance endowment insurance is equipped with a savings feature, so premium payments by the insured will be partially allocated to insurance benefits and some will be allocated to a savings account. If the insured is still alive until the end of the policy, then all the sum insured can be disbursed.
4. Unit linked insurance
Unit linked life insurance is a combination of life insurance and investment instruments, so that the insured will benefit from insurance protection and also get returns from the investment. The amount of premium money deposited with the insurance company will be allocated to insurance and investment premiums which will be managed by the investment manager.
