Life Insurance: Your Life Protection & few Precautions..

a Life Insurance policy facilitates enough financial security to the family of the holder in loss of his/her life. In many cases the assured amount is repaid back on expiration of a stipulated period or expiry of the policy holder, whichever is earlier. Whatever the case may be, life insurance is quite inevitable for every individual in order to indemnify their families from immediate losses on loss of the policy holder as well as for a prudent family planning. Hence, a life insurance policy puts enough promise over a well protected future. However, now days insurance companies offer several types of life insurance schemes to meet the requirements of their diversified customer portfolio. Accordingly, finding out a affordable as well as amountable life insurance policy is a handsome task. It requires a lots of shopping around among companies, comparing quotes, consultation with existing clients & confirming up on all terms & condition of the policy in choice etc etc. However, it could always be apprehensive to have some fundamental thoughts over the kind of life annuities & their applicability as follows:

Term Life Insurance

a term life insurance policy covers the minimum criterion of a life insurance program. Hencefoth, a term life policy comes up with no cash assurance on expiration of the term unless the concerned individual dies with in & for such carries with a lower premium. The said term can be extended depending upon the agreement with the insurer & varies accordingly. However, if the insured person doesn't die before the expiry of the term, the entire amount so paid over the span of insurance will be forfeited by the insurance company. This type of policy is not fitted for savings plan.

Whole Life Insurance

a whole life insurance is more secure than a term insurance policy as it gives the assurance of money back on death of the insured individual. Also it helps in indemnifying the immediate loss on death of the prime earner of a family. Again a whole life insurance can be work out as a savings plan to take care of future needs & moreover this type of policy facilitates premature withdrawal to offer more customizations in the hands of the customers.

Universal Life Insurance

an Universal life insurance policy is same like a whole life insurance policy only differs in the mode of return. Here, the premium so paid are put in to capital market investment & periodical return or dividend are paid back to the policy holder. Henceforth, it can be taken as a good savings option with more promising return.

Endowment life insurance

This type of insurance scheme comes with a higher premium as the maturity period is low. It acts more like a savings plan along with a life indemnifying stipulation. Accordingly it suits more to young peoples who seeks to have big savings as wel as life protection. On maturity, a lump sum amount is paid back to the policy holder.

On all the above Life Insurance plans, the prima facie concern is to secure the financial stability of the near ones on loss of policy holder's life. Henceforth, a life insurance policy should be choose considering your income stability over future span of time i.e, the extent of affordability in paying premium, the number of dependent family members, current financial standings & future requirement of funds as well.