Knowing Your Options: 3 Popular Types of Life Insurance Explained
When you think of life insurance policies, the chances are that you tend to think of a plan that you pay monthly or annually and has you covered in the events or situations that are detailed in the fine print.
While this is true to a certain extent, this is the most basic view of what a life insurance policy can be and is by no means the only version that’s available. In fact, life insurance policies come in all shapes and sizes, which means there’s a ton of choice out there for you as a customer.
By taking the time to shop around, you can then find the policy that’s right for you and your individual circumstances, rather than simply settling for what you’re giving. To help you get off on the right foot, today we’re going to explore three of the most popular types of life insurance that could be best for you.
Term Life Insurance Policy
This is perhaps the most common type of life insurance policy, and certainly one of the most popular. However, this is also considered the most basic type and typically offers a basic pure death protection benefit; and that’s it.
Term insurance policies can normally be purchased for 10/15/20/30-year terms, and usually comes with a 1-year renewable bonus. However, this is your typical no-frills attached policy and provides little to no benefits, so it’s worth shopping around.
Unit Linked Insurance Plans
This kind of plan, more commonly referred to as ULIPs, is a type of life insurance product where you can make money over time due to the investments made during the term of your policy. Of course, this can include risks, but there are plenty of different types of investment available, depending on what your personal preferences.
As a single investment plan, both your life protection terms and the investment side of things are taken care of in one single entity and can be customized to your specific needs. There are also various investor classes to choose from, which will ultimately invest in different capital areas.
There are many tax exceptions that can be taken advantage of, and multiple payment solutions, all of which will be defined by the provider you opt for.
Survivorship Life Insurance Coverage
This type of policy is typically where multiple people are assigned to a single policy, both of which can receive the benefit. However, there are multiple ways these policies can be set up. In most cases, the premium will be paid out when the first person dies.
Also, this type of policy is usually more expensive than a single person policy, but less expensive than two separate, which gives you the discount in the long term. You can pay for these policies the same way you pay for a term or permanent policy, depending on which broker you go for.
Summary
This is just scratching the surface when it comes to the type of life insurance policies out there, but this gives you a rough idea of the diversity that exists. When it comes to taking out your life insurance policy, you can be sure it pays to shop around to see what’s out there.
About AEGON Life
Launched in July 2008 with pan-India operations, AEGON Life Insurance Company Limited has a vision to be the most recommended new age life insurance company.
As a joint venture between AEGON – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, AEGON Life Insurance adopts the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions, and to prioritize customer’s needs.
Our product portfolio includes term life insurance plan, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.
