Life Insurance is an agreement between an insurance company and a policyholder. It guarantees the insurer an assured sum of money to the nominated beneficiary incase of the policyholder's demise during the term of the policy. Typically, life insurance is chosen based on the needs and objestivesof the owner. It's important to note that death benefits from all types of life insurance are generally income tax-free.
There are different types of Life Insurance Policies. Some of the most common ones are:
Term life insurance
Term life insurance provides financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, but usually at a considerably higher premium payment rate.
Whole life insurance
Whole life insurance provides lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premium payments than term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.
Universal life insurance
Universal life insurance is a kind of permanent life insurance created to provide lifetime coverage to the policy holder. Unlike whole life insurance, universal life insurances are flexible and allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Apart from it, due to its lifetime coverage, universal life typically has higher premium payments than term.
We at Confi help you select the best policy options based on your requirements, risks and future benefits.