What are the types of life assurance we have?

[Richee84]

Most people are familiar with life assurance but don't actually know the type of life insurance we have and what they can benefit from been a policy holder.

Life insurance is defined as the possibility of life to occur, that is, it is certain for what we insured to happen or come to an end.
Examples of life assurance is;

1). Term assurances; This the protection against financial consequences of unforseen circumstance about life. It is of the believe that life will definitely come to an end one day and therefore the policy holder of life assurance is ready to protect his or her dependants should life happen to him or her anytime..

2). Whole life assurance; This is also part of life assurance since it is certain to come to an end one day. They include personal savings with insurance company,, savings towards a child education, savings for a particular target and so on. Most people don't know that they can also have personal savings with an insurance and which is even more safer than the commercial banks.

The advantage having savings with insurance company over commercial bank is that the policy holder have a life cover, which mean even if anything happen to the policy holder the insurance company will pay the beneficiary the sum assured and the life cover

 

[Min Eduok]

Types Of Life Assurance​

Are there different types of life assurance ?

Yes, there are different types of life assurance. Some examples include term life insurance, whole life insurance, universal life insurance, and variable life insurance. Each type has its own specific features and benefits, and is designed to meet different needs and financial goals. It is important to understand the differences between the types of life insurance and to choose the one that is best suited for your individual needs.
Term life insurance is a type of insurance that provides coverage for a specific period of time, usually 10, 20, or 30 years. If the policyholder dies during the term, the death benefit will be paid to the beneficiaries. If the policyholder outlives the term, the policy will expire and no death benefit will be paid.
Whole life insurance, also known as permanent life insurance, provides coverage for the entire lifetime of the policyholder. It also accumulates cash value over time, which can be borrowed against or used to pay premiums.
Universal life insurance is a type of permanent life insurance that offers flexibility in premium payments and death benefit amounts. The policyholder can adjust the premium payments and death benefit within certain limits, as long as the policy remains in force.
Variable life insurance is a type of permanent life insurance that allows policyholders to invest the cash value of their policy in a variety of different investment options, such as stocks and bonds. The cash value and death benefit of the policy will vary based on the performance of the underlying investments.
It is important to consider your financial goals, budget and time horizon when choosing the type of life insurance that's right for you. An insurance agent or financial advisor can help you to understand the different options available and choose the best policy for your needs.