Currently, almost everyone owns a life insurance plan. It could be for many reasons such as for tax benefits or investment purposes. However, the key point is that it offers full peace of mind to the insured.
With the life insurance plans, one does not have to worry about the future security of his or her family in his or her absence. The life insurance plans offer financial security to the surviving family members after the death of the insured.
Insurance is certainly a must for anybody who has financial dependants. The age bracket to buy the life insurance plan is approximately from 18 to 75 years. The majority of the insurers have a minimum as well as a maximum amount of money to be assured.
Different types of life insurance plans
In broad terms, there are chiefly two types of life insurance plans that are term insurance and whole life insurance plan.
The term insurance plans are the simplest and the most basic plans. These plans offer a cover for risks only for a short period of time. After the term comes to an end, you can renew the policy, but chances are that the premiums will increase. These plans are economical.
On the other hand, the whole life insurance plans are expensive; however these policies continue for as long as the insured lives or till the age of 100. These policies are sometimes treated as investment options due to the fact that one does not get any money till the insured is dead or completion of the policy term i.e. age 100.
The other plans include the unit link life insurance plans that provide great investment options along with financial security. Generally, the premium is utilized for two purposes i.e. one is for the life insurance and the other for the investment. These plans are highly beneficial as they offer financial solutions during the lifetime of the insured and even after his or her death to the members of the family.
There are retirement insurance plans available for the senior citizens as well. The insurance policies are extremely essential for such people as these policies offer security and freedom even to the surviving spouse. The child plans are another option in the life insurance plans.
Such policies offer financial aid for the education, marriage, etc. for the children. Another choice is the health deals. Such deals offer a cover for medical expenses. These plans are suitable for the people who may suffer from health issues like cancer, diabetes, and much more.
Riders in life insurance plan
Riders are the extra perks that one can add to their purchased life insurance plans. However, the premium amount rises with the inclusion of such riders. There are many types of riders in the life insurance plans provided online at coverfox.com. The most popular ones are:
- Critical illness benefit rider: It provides financial aid in the case the insured gets diagnosed with any critical disease like heart attack, cancer, kidney failure and much more.
- Accidental death and disability benefit rider: In the event that insured becomes disabled following an accident, the rider covers this risk.
The mentioned life insurance plans are great for buying if you know how to maximize their use. Generally, the whole life coverage plan is more expensive but that does not make it the best.
The best type of life insurance plans are the ones that cover the most needed risks covered.
The terms that you should know for life insurance plans are
- Sum Insured / Face value: This point is self-explanatory. It is the Sum Insured / face value of the decided plan that is paid upon the death of the insured.
- Accidental death benefit: Also known as the double indemnity, this perk stipulates that an additional amount of money is to be paid if the insured dies in an accident.
- Disability income rider: This provision pays the insured a fixed sum each month after the initial six months of suffering from a disability.
- Policy loan provision: This permits the holder of the policy to borrow money against their life insurance plan for the surrender value up to the amount of the surrender value of the plan at the time of the loan application.
- Incontestable Clause: A good protective device states that after the policy has been in effect for a year or two the company cannot contest it.
Now that you know the different kinds of life insurance plans and the plan terms, get yours today at coverfox.com.