Different Types of Life Insurance Plans – What Are the Different Classifications?

Life insurance plans are classified according to their different types like Term Life Insurance, Variable Life Insurance, and Universal Life Insurance. These plans cover the whole life of the insured and there is no difference in the premiums being paid by the two.

Different Types of Life Insurance Plans

Term life insurance plans are taken only for a particular time period and as the time period is not long, these plans are very cheap. This plan can be purchased for less than five thousand dollars and one can buy an additional amount of money as per need. The extra amount is called the Terminal Premium and is paid at the end of the insured person’s lifetime.

Variable life insurance plans are based on the market movements and changes and they provide the insured with an opportunity to increase his savings Burial insurance. According to this plan, the insured can borrow the cash value of his plan if and when there is some increase in the stock market or in the money market.

These plans cover the variable premiums and the rate of interest is also subject to change. They are best suited for people who are into business or for people who have some share in the stock market. On the other hand, Universal Life insurance plans are the most expensive ones as they give cover to the whole life and one never has to pay any kind of premium or commission on the death of the person covered.

To know more about the different kinds of life insurance plans and the premium rates of each of these you can take the help of your relatives and friends. You can even talk to an agent of such a company and get more information about these things. Once you know all about these things you can easily compare the premium rates and can choose the best policy among them.