What are the types of life insurance?




  



Types of life insurance, In recent period, what is known as life insurance appeared, People resorted to it in their desire to obtain a large amount of money for themselves, or for their children, in the event of any health problem, or their exposure to death, which is a very important and clear matter, and therefore We will talk about its details in our featured site.

 

Life insurance concept

Life insurance means insurance that covers material losses arising from the realization of the phenomenon of death or reaching a certain age (life) or both (death and life).

 

Therefore, life insurance is one of the life-risk management policies for the individual to face the financial loss arising from the realization of the phenomenon of death for those who depend on the individual or for the financial loss arising from reaching a certain age and the inability to earn. Reaching a certain age or both.

 

Life insurance documents

The life insurance policy is a contract under which the insurance company is obligated to pay the insurance amount to the insured, his heirs, the beneficiary, or the beneficiaries specified in the policy, in the event of the death of the life insured, or in the event that the life insured reaches a specified age in the policy, in return for The insured pays a single premium to be paid once upon contracting or annual installments.

 

Types of life insurance policies

Life insurance policies can be divided according to the benefits that beneficiaries get from life insurance into three main sections:

  • Section One: Insurance policies whose amounts are paid to the heirs and beneficiaries in the event of the death of the insured, such as temporary insurance policies and life insurance policies.
  • Section Two: Insurance policies whose amounts are paid in the event the insured is still alive, such as pure endowment insurance policies, and life payments contracts (pensions).
  • Section III: Insurance policies whose amounts are paid in the event of death or life, which are mixed insurance policies that guarantee payment of the insurance amount to the beneficiaries if the insured died during the period of contracting the insurance, or the insured personally obtained the insurance amount if he was still alive at the end of the insurance period.

 

Temporary life insurance

Under this policy, the insurer (the insurance company) undertakes to pay the insurance amount specified in the policy to the heirs of the insured, the beneficiary, or the beneficiaries specified in the policy in the event of the death of the insured for his life during the period of insurance that begins immediately after contracting, but in the case of the insured’s survival until At the end of the insurance period, the company is not obligated to pay any amounts to the insured, provided that the insured is obligated to pay the due premiums on their due dates.

 

Temporary insurance is one of the most important types of life insurance contracts, and many individuals prefer to buy temporary insurance because of its low cost, as it is considered the cheapest type of life insurance in terms of the amount of premium, and its importance has increased, especially after the expansion of the purchase in installments, where the life insurance policy is used Temporary payment of installments in the event of the death of the buyer.

 

Temporary life insurance features

Several distinguishing characteristics of temporary insurance can be identified, including the following:

  • Insurance protection is temporary for a specified period of time.
  • The ability of the temporary insurance contract to be renewed, as there is the possibility to renew the temporary insurance contract without the need to prove the insurance validity of the insured, that is, without the need for a medical examination.
  • The temporary insurance premium increases with each renewal due to advancing age.
  • But, for example, some insurance companies limit the number of renewal times without a medical examination, and some insurance companies give you an additional five years only as a renewal of the temporary insurance policy of 20 years without a medical examination.
  • Therefore, you must return to the insurance laws in your country and you must negotiate with the insurance company at this point.
  • The possibility of converting temporary insurance to other types of insurance such as life insurance or mixed insurance without the need to provide proof of insurance validity.

 

Life insurance benefits

  • Cheap price, so you can get a small amount of the insurance policy you need, the temporary insurance policy is at least 10 times cheaper than the life insurance policy.
  • The temporary insurance policy is the best example of the idea of ​​insurance and transferring the risk of death to the insurance company, as it does not contain any saving part, unlike mixed insurance policies and life insurance policies.
  • The temporary insurance policy is used by banks when giving mortgage loans or any other loan to ensure that in the event of death or total disability, the insurance company pays the value of the loan (the value of the insurance policy is equal to the value of the loan), and therefore the temporary insurance policy encourages the assumption.
  • The temporary insurance policy allows you to obtain insurance coverage only when you need it and for a specific period, and when you do not need it, you simply will not pay the premiums.
  • So you should pay attention to the duration and amount you need to insure your life, and most people who have young children and are afraid of interruption of income choose a temporary insurance policy until their youngest child is 23 years old and able to earn.

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