There are millions of different life insurance policies! What should I choose?

What different types of life insurance are there?

There are many different types of life insurance:

Lifetime Gift

Variable life

Permanent life

Universal life

Maximum protection policy

Renewable term

Convertible term life

Only protection

Permanent non-par living


Cash value plan

Maximum investment plan

term life

Variable life

Return of premium policy

And more!

Already confused?

There is no need to panic, life insurance products basically provide protection, which can be temporary or permanent. Life insurance may also offer structured savings and investment plans, which are optional. With all policies you pay a premium and with all policies you are guaranteed to pay out to your beneficiaries when you are no longer with them. In addition, they can be customized with a range of additional options to protect you and your loved ones from unforeseen circumstances.

The simplest and cheapest form of life insurance is term or term life insurance. This type of policy is purchased for a specific period of time and is therefore used to protect your loved ones during times of greater financial commitment, such as paying a mortgage or when your children are still financially dependent on you. If something happens to you during that period, your loved ones will receive a guaranteed amount, but if the policy is not used, you will not receive a refund!

Continuous or whole life insurance protects your dependents against your death throughout their lives. It offers more protection and peace of mind because it won’t run out. Think of it as a retirement plan for your partner when you are no longer there to care for them. Just like with term life insurance, your loved ones will receive a guaranteed amount when you are gone. In addition to protection, insurance policies can include a way to save on your premiums each month.

Endowment insurance offers financial protection for your surviving dependents for a certain period of time and pays out a guaranteed amount as soon as your contract ends. For example, if you’re saving for a college fund or putting money aside for retirement, you might want to look at endowment policies. Endowment insurance policies can pay out the agreed amount when you reach the age of 60. If you were to die earlier, your next of kin will receive the full amount for which you were insured. This way your savings are protected no matter what happens to you.

If you are willing to take on some risk, you can choose to invest a portion of your insurance premium to benefit from any stock market gains during the time you are insured. This way you can build up some capital while protecting your loved ones in case something happens to you. Investment-linked life insurance uses a portion of your premium to purchase units of funds. The value of your policy is therefore partly determined by the performance of these investments. If your investments work well, the value of your policy will increase, if not, the value will decrease. However, the amounts your family receives in the event of your death are not affected by the fund’s performance.

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Whichever type of policy you choose, it is possible to purchase additional protection and flexibility in the form of riders, which extend the scope of your cover and protect your dependents against events not covered by the original policy. This additional protection can be added or discontinued at any time without affecting your life insurance policy. Premium waiver driver, for example, continues to pay the premium of your term life insurance if you are suddenly no longer able to pay the premium yourself due to disability. This means your loved ones are still protected!

Since everyone has different needs and financial resources, it’s important to look at all your options and make a decision based on what’s right for you and your loved ones.