Life Insurance Plans

Life insurance is a product that protects from financial loss in the event of death and is an important consideration when you become an adult. There are two different types of life insurance: term and whole. Though a term policy is the least expensive, it only provides coverage for a specific period. On the other hand, whole life insurance offers a life-long range. Over time, it builds a cash value that can be paid out to the beneficiary or a person designated to receive life insurance proceeds upon the policyholder’s death. Many things affect the cost of a life insurance policy, including age, medical condition, and occupational risks.

Types of Life Insurance Plans

Endowment Plans

Endowment plans are policies wherein the policyholder pays a premium for the defined term, and benefits are payable either at the insured’s death or at the policy’s maturity. In most endowment plans, the minimum paying term equals policies. A bonus might be added to the base policy every year, depending upon the investment and mortality experience of the life insurance company.

The policy owner has no control over the investment decisions of the premiums. Generally, most investments are made in government securities and other debt products. This result in conservative returns from such investments.