A Comprehensive Guide About The Types Of Life Insurance Plans

Posted by Ali Tariq on July 23rd, 2019

If you have a car then probably you have got the car insurance plan. If you have bought a new house then you may have received the home loan. For the protection of your life, you definitely have to get the Life Insurance Gold Coast plan. It is the most vital part of our life that cannot be ignored at any cost. It is a type of saving that you do for your family to protect them from the financial crisis when you will not be alive. Many people overlook its benefits and think it as a waste of money but they do this act due to lack of knowledge.

Those who have got detailed information about it, make sure to have a plan for themselves no matter how much they are earning currently. Just like there are different types of loans for different things in the same way; life insurance policies offer multiple types. You have to grasp information about all of them for picking up the right plan for you. Collecting information from here and there can be difficult so we have created this comprehensive post in which we have covered all the types.

Term life insurance

It is one of the simplest and affordable types of a life insurance policy. This policy does only one thing which is to pay a fixed amount of money to your family members after your death. If you will die during the course of the term, then you will not receive a single penny so this policy is not worth it in that case. It is better to buy this plan for 10 to 12 times your annual income. In that way, your savings will be replaced if something unfortunate will happen to you. It is a cost-effective way to protect your loved ones for the long-term. 

Permanent Life Insurance

If you want to buy a plan that is easy to understand then a permanent life plan is the right choice for you. It will do two things for you at once in which it will offer you all the advantages of life insurance and will pay a specific amount to your loved ones after you die. You can also try it as an investment account similarly. This plan is also called cash value because the longer you will use the policy, the more money you will be able to receive. It does not expire during the course but will continue.

Whole life insurance

If you want to buy this plan then you will lock your amount as long as you desire. You will pay a premium amount to the insurance company each month and a small portion will go into the cash value and will continue to grow for the whole life. It is very expensive than the other policies and still, you will not gain as much cash value as the extra amount you will be paying every month. It is one of the bad life insurance policies and it is not advised to buy it.

Universal life insurance

It offers you death and cash value advantage and it provides the facility to pay the only adjustable monthly premium amount. It is possible to access the cash value that is collected in one year. There is no condition to pay a minimum premium amount for maintaining this plan but it totally depends on you when you would like to eliminate the payment depending on your cash value.

Just like the whole insurance, this policy is also not worthy enough to be purchased. Why? The management collects heavy fees and it can be the biggest disadvantage for you. You have to pay small portions every year for the renewal of the policy or it will be applied to the cash value of your Income Protection Gold Coast Plan. Both of these things make this plan uglier for the users.

Variable life insurance

This policy is very complicated because it is trying to be a life plan, saving account, and mutual fund at the same time and it becomes very expensive. It allows you to decide the amount of cash value and which way is suitable for you. If you will choose a mutual fund then it can be risky because of stocks and bonds.