Life Insurance Research Paper Example | Topics and Well Written Essays - 2500 words

Life Insurance - Research news report Example, n.d.). The need for life damages arises to obtain a form of financial protection against unintended incidents or deaths for which individuals are not always prepared. If redress is ready, through payments of the premiums, then in cases of accidental deaths or incidents, individuals can be insured. Life restitutions provide benefits for deaths or critical illnesses, for financial avocations of individuals and family, for insurances at different stages of life, plans for retirements, bring facilities, as well as with benefits of tax payments (Why life insurance?, n.d.). The two main types of insurance are the upstanding life insurance and term life insurance where the whole life insurance offers for aeonian insurance and term life insurance offers for insurance for certain terms or period of cartridge holder (Magni, 2013). The present study discusses about life insurance with particular focus on the differences between whole li fe insurance and term life insurance and trying to determine which is better, also having an understanding of the affinity of the insurance with economic situation. II. Discussion Term Life Insurance Meaning Term life insurance is defined as the form _or_ system of government of life insurance whose coverage period for the insurance has a effectuate duration limit. On expiry of the policy the owner of the policy can decide on each renewing the policy or to end the coverage of the insurance plan. The benefits associated with such insurances are mainly curb up to the death of the policy owner. However in order to obtain the benefits of the plan, the death of the owner is undeniable to occur within the meter limit set by the term life insurance. If such time limit is passed and nothing happens to the individual, the owner does not receive any benefits from the insurance. hence term life insurance do not provide with any savings from the investments that the policy owner makes f or the insurance (Term Life Insurance, 2013). oecumenic Policy of Life Insurance The universal policy of life insurance reflects that a flexible unending life insurance is offered to the owner of the policy that requires the individual to make low cost protection payments to the general agent and also in turn obtains a savings from the insurance plan. Thus a cash honor buildup is possible with the investment of this type of insurance. With the universal policy of life insurance, the owner of the policy is capable of employ his interest that he gains from his savings in order to pay the premiums for the insurance. The universal policy of life insurance was initiated considering the need for more flexibility for the owners of the policy as the policy allows shifting of the invested money between the insurance and the savings from the plans. Premiums of these plans are variable and are divided into insurance and savings by the companies offering the insurances. Thus the owner of t he policies is allowed to make adjustments between their payments depending upon the different circumstances that they belong to (Universal Life Insurance, 2013). Thus the most requirement benefit of the universal policy of life insurance is its flexibility along with the permanent insurance it offers to the policy owners. It enables the policy owners to adjust depending upon their needs and conditions. Based on the policy, an interest is earned from the cash value of the insurance. This interest is based on the