Life insurance may provide compensation for individuals or groups either when the policy holder dies, as in a permanent life insurance or at the end of a specified time-period, as in term life insurance.
A permanent life insurance covers a person for a lifetime. It may be
* Whole life insurance
* Universal life insurance
* Variable life insurance
You may purchase permanent life insurance for an individual, family or even a separate child life insurance policy, based on the nature of your requirements.
In a life insurance policy, the cost of coverage is spread over the person's life, in equal, regular installments. This is the case even for child life insurance. The death benefit and premium in most cases remains the same. In a whole life policy, a part of the premium goes towards building cash value, which in turn could pay off the whole policy in a few years time.
A universal life insurance policy is a permanent life insurance plan with some of the features of term life insurance plan. The life insurance company calculates a flexible target premium. The insurer may pay more or less than the target premium, depending on his financial position. A portion of the premium is set aside to pay the claims if a policyholder dies during the policy period.
Variable life insurance policies are similar to whole life insurance policies, except that the overpayments from all insurers are invested in the stock market. Term life insurance does not have benefits of a universal or a whole-life policy, but it is just right for someone who cannot afford high premiums or someone who is young and healthy.
Life Insurance Quotes
Some portals offer insurance quotes for free or for a fee. Life insurance quote, auto insurance quotes are most frequently sought after. Make use of online insurance quotes to compare life insurance rate. This will help you to pick a plan within your budget confines. However life insurance rates vary from one individual to another based on a number of factors. It is important to consult with your insurance provider and gain a clear idea regarding the premium rates charged on your policy. Today, most life insurance company will insure people against any conceivable risk, be it a dancer's legs, a pianist's fingers, even an outdoor event against loss on a rainy day.
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