Whole life insurance policy:
Whole life insurance policy is defined as an insurance in which the insured person pays the premium in the installment basis for full duration of his/her life. After the death of insured, his/her nominee receives the insured amount. There are 3 types of whole life insurance policy
Ordinary whole life insurance policy: In this policy, insured person has to pay the premium to his/her concerned insurance company till his/her death. The insured person can’t utilize the insured amount because this amount will be returned after his/her nominee
Limited premium whole life insurance policy: Under this policy, the insured person has to pay the premium for limited time and the insured amount will be returned after the death of insured person to his/her nominee
Convertible whole life insurance policy: It is that type of policy which can be converted to endowment life insurance policy after a certain time. It is suitable for those people who have lower income at present, and they hope for increment in income in the near future.
Endowment life insurance policy:
It is defined as that type of insurance in which the insured person pays the premium for a certain time and after certain time they receive insured amount. If she/he dies before the insured period his/her nominee receives the insured amount. Generally endowment life insurance policy is done for 10, 15 20 years and more. The insured has to pay the premium either till the end of insured period or till the death of insured which ever is earlier.
Ordinary endowment life insurance policy: Under this policy, time will be fixed for a certain period and insured person have to pay either till the end of insured period or till his/her death. If he/she dies earlier before insured period, his/her nominee receive the amount. And if she/he is alive than himself/herself go and receive the amount.
Joint endowment life insurance policy: In this policy, two or more persons are involves s the insured person.the premium amount should be paid till the insured person’s death like in ordinary endowment life insurance policy.
Double endowment life insurance policy: Under this policy, the insured person receives double of the insured amount is she/he is alive till the end of the maturity time. If she/he dies before the insured person his/her nominee receive only single insured amount.
Pure endowment life insurance policy: Under this policy, insured person receive the insured amount after the certain time when he/she is alive. If the insured person dies before the end of maturity time the insurer becomes free from its liability.
Term life insurance policy
Straight term life insurance policy: Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore, it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesn’t receive anything.
Straight term life insurance policy: Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore, it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesn’t receive anything.
Renewal term life insurance policy: Under this period the insurance can be renewed after the maturity of the insured period. Second rate of premium may be higher than the first-rate of premium. Because the age of the person also increases with renew of insurance. It doesn’t need a new health report or any sort of gent report for renewal.
Convertible term life insurance policy: It is generally done for 5, 6 or 7 years like term life insurance policy. If the insured person want to convert this insurance policy in whole life insurance policy and endowment life insurance policy it can easily be converted.
On the basis of profit distribution
With profit policy: Under this policy the insured person receive the insured amount with the profit of insurance company. In other words if the insured person dies before the term of insured period his/her nominee receive only insured amount not the profit o the company. But if he/she is alive then with the amount of premium the portion of profit of the insurance company is also received by the insurer.
Without profit policy: Under this policy the insured person doesn’t receive the insured amount with the profit of insurance company. In other words if the insured person dies before the term of insured period or remains alive till the end his/her nominee or himself/herself receive only insured amount not the profit o the company.
On the basis of number of insured:
Single life insurance policy: Under this policy there is only one individual as an insured person. In other words, the life of a single person is done insurance. Single life insurance policy is applied in whole life insurance policy, endowment life insurance policy and term life insurance policy.
Joint/ multiple life insurance policy: Under this policy two or more than 2 people are involved as husband and wife, partners of partnership firm and other people may conduct the joint life insurance policy. It may be applied in whole life insurance policy and endowment life insurance policy.
On the basis premium payment:
Single premium life insurance policy: Under this policy, insured person pay the premium to the insurance company at the beginning in the lump sum amount. There is no tension to pay the premium timely later on. It is mostly used in that case when a person wins a lottery.
Regular premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. In other words, the insured person pays the premium to insurance company regularly or timely.
Limited payment premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. The time is however less than the insured period.
On the basis of payment of insured mount:
Lump sum payment policy: under this policy the insured person receives the total insured amount. Even all premiums have not been paid total insured amount is received by the nominee of the insured person and if the total amount has been paid she/he receives the total insured amount himself or herself.
Installment payment policy: under this policy, the insured person and nominee receive the insured amount in the installment basis. It is useful to those individual who are old and lump sum mount may be misused.
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