How many types of life insurance available? - InsuranceRise

Saturday, 23 July 2016

How many types of life insurance available?



There are several types of life insurance . There are basically four types, namely: risk insurance or death cases, savings insurance or case of survival or retirement, mixed insurance and annuities. Each of these forms of life insurance has its own characteristics. Let us see what each.


Risk insurance or death cases


What s risk or death cases insurance is a type of life insurance where the contracted capital is paid immediately after the death of the insured if it occurs before the end of the term of the insurance. If the insured person survives that period the insurance is canceled, leaving the satisfied in favor of the insurance company premiums.


There are two types of insurance risk: temporary insurance and whole life insurance.


temporary insurance


Term insurance covers the risk of premature death before terminating the contract. In this type of insurance risk component prevails over other variables. It lasts for one year renewable tacitly to a certain number of periods. Its cost is not very high and can hire high coverage.

Temporary insurance often contracted to protect mortgage bonds, debt cancellation guarantee or as extra protection for famialia.


Whole life insurance


Meanwhile, whole life insurance extend their coverage throughout the life of the insured permanently, without notice. Compensation is paid immediately after peeing insured, any qeu is the time when this happens.

Sometimes the option to return the insured amount is added if has survived certain age, terminating the contract. In this case it would be a mixed insurance, life and death.


In story to the whole life insurance, there are two ways:



  1. Whole life insurance to annuity premiums, in which premiums are paid throughout the life of the insured, so having continuous coverage
  2. Whole life insurance premiums temporary, in which the payment is made only for a few years or until the death of the insured.

Savings insurance


Savings insurance or cases of supervening or retirement are aimed at obtaining a capital at the end of the agreed period. The purpose of this insurance is the investment medium or long term to supplement retirement benefits or to accumulate capital to cope with future situations.


mixed insurance


Mixed insurance combine in a single contract risk insurance and insurance savings, so that the insured is covered in case of death (in which case the beneficiaries receive compensation) and has secured one provision if it survives the stipulated age .


Annuities


In annuities, by providing a single capital or payment of a premium for a certain time, the insured has a guaranteed annuity (payment of some while living amounts, the amount may be fixed or variable) or income time (for a given time).
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