The life insurance policy can be obtained in various types of policies. These policies of life insurance are issued to meet the special needs of the insured. To have the policy of life insurance, it is must to disclose all the facts to the insurer those were know to the insured. This eventually helps the insurer in fixing the premium and enters into the contract of life insurance. Here under are the various policies of life insurance.
Various life insurance policies
- Endowment Policy
- Children’s endowment policy
- Whole life policy
- Limited payment life policy
- Joint life insurance policy
- Convertible whole life policy
- Anticipated policy
- Sinking fund policy
- Janta policy
This policy is the most popular variety of policy in the life insurance policies. The sum assured in the contract is paid at the end of the time specified in that contract or after the death, which ever occur sooner.
Children’s endowment policy
This policy is taken to meet the expenses of the marriage of the children after attainment of certain age. Also, this policy is taken to meet the expenses of the education of the children after the death of the insured. This policy is generally taken on yearly payment basis and the assured sum is paid after the end of specified years.
Whole life policy
In this policy the assured sum is paid after the death of the insured. The premium is paid throughout the life time of the insured.
Limited payment life policy
In this type of policy the premium is paid for selected years. It is paid till the death occurs but in the selected period of years. The premium to be paid would be known to the insured. This is similar to the endowment policy in terms of payment of premium for selected years. Unlike the endowment policy, in here the assured sum is paid only after the death of the insured.
Joint life insurance policy
In this type of policy the assured sum is payable on the first death of any of the lives insured according to the contract. The assured sum is also payable at the end of the endowment.
Convertible whole life policy
This kind of policy is for the young who were pursuing their career. Initial years of this policy will have premiums at very lower rates. After specified years, the insured is given an option either to convert the policy into an endowment or continue the same as whole life policy.
The assured sum in this policy is paid at the end of the mentioned intervals. It is all specified in the contract of policy. For example: 25 per of the assured amount is paid at the end of first five years and same per of assured amount is paid at the end of next 5 years and the total final assured sum is paid at the end of policy agreed. If death occurs before the expiry of the policy term, the entire amount is paid.
The assured sum is paid by the insurer to the insured not in lump sum. It is paid monthly or quarterly or half yearly of yearly in installments after the insured attain certain age. The premium would be a lump sum or paid regularly over a period of time. This policy is generally taken to have regular income after specified policy period.
Sinking fund policy
Companies generally take these policies. They use the assured sum to redeem their debentures or they use the same to repay their loans. The premium is paid annually and that is fixed. The paid premium is accumulated at a rate of interest and at the end of agreed period the assured sum is paid to the company. This policy is also used to replace the assets like machinery of the company.
The risk of death caused by an accident for a year is covered under this policy. The premium in this policy is very nominal and the entire amount is paid on death.