Insurance 101

Different types of life insurance

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The chapter of life insurance tips cannot be completed until you are now much aware of the different types of life insurance. When you talk the types of life insurance, they come under the two basic elements- that is the death benefit or the death cover that provides the surety of payment of the claim in case the policyholder dies within the policy term. The other is the survival benefit that gets paid when there is life assured survives the policy term.

Here we will not talk about the variable and permanent types of insurance as they are very common and every person is aware of them. Our motive is to give you better and detailed knowledge about subtypes and policies.

The insurance plan that provides the death cover is known as the Term Assurance while the one that offers the survival benefit is the Pure Endowment. Most of the traditional life insurance comes as a combination of these two plans.

The whole life policy is a term assurance plan that has an unspecified period and under this, the amount assured will be paid whenever the death of the policyholder occurs.

The endowment assurance is the blend of the term assurance and the pure endowment plan. The sum assured is given when the policyholder still survives on a specific time or in case of early death as well.

The term assurance plans are among the most affordable plans. You won’t have a saving component in it. However, this is only useful when the death cover is required just to cover the outstanding loans.

In the normal insurance premium, the payment is made for the whole policy term. There is also the Limited Payment Policy in case you require paying for a shorter time. This is suitable for those professionals who don’t have a fixed earning rate.

Joint life insurance

Another type of life insurance is the joint life policies issued covering the joint life of two people especially spouses and business partners. Here, the policy may cover two lives but the calculation of the bonus is done on a single basic assured sum.

Child life insurance

Another major insurance plan that you seriously need to consider is the child life insurance that will protect your child in every possible way. This will help the child in case the parents die and the lost income will be gone to the brought up of the child.

Survivorship life insurance

The survivorship life insurance is another type of life insurance which also goes by second name-second-to-die insurance. Just like the joint life insurance, this covers two people but however, the payment of the death benefit will only be given after the death of the second person.

That’s not it! There are other types of life insurance but these are most important including a return to life insurance which is a most common type that people would select to take less or avoid insurance that has less attractive returns.

Knowing types will help you to get the life insurance easily as you know the difference between all of them and get the one which suits most with your requirements.


  1. Sbi balance enquiry

    January 8, 2019 at 7:53 am

    Peculiar article, totally what I was looking for.

    • admin

      January 15, 2019 at 4:09 am

      Glad you enjoyed reading my blog

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