Types Of Long Term Insurance Plans
Various types of insurances are available for the masses to buy. These insurance can be classified on the basis of their validity in terms of time. Long terms insurance plans are those that have a long validity period and the plans can range from a couple of years to decades. The reason why these plans are long in duration is because of the conditions in which they can be availed.
The long term insurance mainly includes the life insurance policies which are paid for in case of the death of the insurer. The various plans you could opt from long term insurance policies are:
Term Insurance: The time frame of this insurance is for a specified period of time. In case of the death of the policy holder, the amount of the policy is surrendered to the family left behind by him. If he/she does survive, the policy is scraped and no amount is paid to the insurer. The term of the policy can be decided upon by the client as per his jurisdiction.
Whole Life Insurance: Contrary to the type of insurance mentioned above, the whole life insurance is valid for the whole life span of the owner. The premiums can either be paid till death or it can be a single down payment at the time of registering for the policy. This type of insurance does get paid for in the end as the person is to die someday. The only variable to be decided upon is the amount of the policy.
Annuities: These are again plans that cover a decent period of your life time. Generally known for the retirement plans, these policies pay not a lump sum but in installments. The payment of the premiums has to be done prior to the policy coming to affect. Another flavor of this type of insurance is the immediate annuities under which the insurance agency pays the customer with small installments of capital in lieu of a complete down payment done.
Money Back Policy: This kind of insurance policy is beneficial for those who have a huge cash reserve but want to make use of it in small amounts. The insurance company provides them with the facility of depositing the whole amount and pays them a fixed amount of capital on periodic basis in return. The amount of the payment left in case of an untimely death of the customer results in the payment being surrendered to his/her nominee.
Children Assurance Plans: The children assurance plans assure the safety of your children's future by paying the claim amount on a specific date of the calendar (generally when the child attains adulthood). The premiums have to be paid for by the parents and in case the policy collapses due to some reason, the amount of the installments is reverted to the payer.
The other insurance policy included in the long term type of insurance is the endowment insurance policy which works similar to the term insurance policy with the only difference that the time period is not arbitrary and can be for 15, 20 or 25 years.