Important assets are better off being financially covered. Life happens to be the most precious, so getting life insurance is a certainly a good idea. Given the importance of life insurance, insurance companies have different types for a subscriber’s varying needs.
There are several types of life insurance -
- Level term insurance – This is the most common type of life insurance where insurance company pay out the policyholder if he/she dies before the policy term.
- Decreasing term life insurance – the best example of this type is mortgage protection cover. With mortgage protection insurance a policy holder pays a fixed monthly premium which reduces over the term. This type of life insurance commonly used together with a repayment mortgage.
- Critical illness insurance – As the name suggest this type of life cover can protect a policyholder if the person suffer from a critical illness (i.e. heart attack, permanent disability) usually in the list of the insurance provider.
- Convertible term insurance – This type of life cover has a option to convert to another type of life insurance without requiring a medical check.