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What are the types of life insurance?



Types of life insurance: In recent times, known as life insurance, people have attacked it in their desire to obtain a large amount of money for themselves or for their children in case of health problems or exposure to death, which ‘ is a very important and clear matter, and therefore we will talk about the details of it on our website.

Life insurance concept

Life insurance means insurance that covers material losses due to the realization of the phenomenon of death or the attainment of a certain age (life) or both (death and life).

Therefore, life insurance is one of the life risk management policies for the individual to cover the financial loss due to the realization of the phenomenon of death for those who are dependent on the individual or for the financial loss due to the attainment of a certain age and the inability to earn. Reach a certain age or both.

Life insurance documents

The life insurance policy is a contract under which the insurance company is obliged to pay the insurance amount to the insured, his heirs, the beneficiary or the beneficiaries specified in the policy, in the event of the death of the life insured, or in the event that the life insured reaches a certain age in the policy, in exchange for the insured paying a single premium that must be paid once upon contracting or annual installments.

Types of life insurance policies

Life insurance policies can be divided into three main sections according to the benefits that beneficiaries receive from life insurance:

  • Section One: Insurance policies, the amounts of which are paid to the heirs and beneficiaries in the event of the death of the insured, such as temporary insurance policies and life insurance policies.
  • Section Two: Insurance policies the amounts of which are paid if the insured is still alive, such as pure endowment insurance policies and life payment contracts (pensions).
  • Section III: Insurance policies the amounts of which are paid in the event of death or life, which are mixed insurance policies guaranteeing the payment of the insurance amount to the beneficiaries if the insured dies during the contract period, or if the insured personally pays the insurance amount at the end of the insurance period still lived.

Temporary life insurance

Under this policy, the insurer (the insurance company) undertakes to pay the insurance amount specified in the policy to the heirs of the insured, the beneficiary or the beneficiaries specified in the policy in the event of the death of the insured for its life during the insurance period beginning immediately after the contract, but in the event of the insured’s continued existence until the end of the insurance period, the company is not obliged to pay amounts to the insured, provided that the insured obliges is to the premiums due on their expiration dates.

Temporary insurance is one of the most important types of life insurance contracts, and many people prefer to buy temporary insurance because of the low cost, as it is considered the cheapest type of life insurance in terms of the premium amount, and its importance increased, especially after the expansion of the purchase in installments, where the life insurance policy is used Temporary payment of installments in the event of the death of the buyer.

Temporary life insurance functions

Several distinctive features of temporary insurance can be identified, including the following:

  • Insurance coverage is temporary for a specified period.
  • The possibility of renewing the temporary insurance contract, as the possibility is to renew the temporary insurance contract without proving the insurance’s validity of the insured, i.e. without a medical examination.
  • The temporary insurance premium increases with each renewal due to the increasing age.
  • However, some insurance companies, for example, limit the number of renewal periods without a medical examination, and some insurance companies give you an additional five years as a renewal of the 20-year temporary insurance policy without a medical examination.
  • Therefore, you need to return to the insurance laws in your country, and you need to negotiate with the insurance company at this point.
  • The possibility of switching to temporary insurance to other types of insurance, such as life insurance or mixed insurance, without providing proof of the validity of the insurance.

Life insurance benefits

  • Cheap price, so you can get a small amount of the insurance policy, the temporary insurance policy is at least ten times cheaper than the life insurance policy.
  • The temporary insurance policy is the best example of the idea of ​​insurance and the transfer of the risk of death to the insurance company as it contains no savings component other than mixed insurance policies and life insurance policies.
  • The temporary insurance policy is used by banks to provide mortgage loans or any other loan to ensure that the insurance company pays the value of the loan in the event of death or total disability (the value of the insurance policy is equal to the value of the loan), and therefore the temporary insurance policy encourages the assumption.
  • With the temporary insurance policy, you can only get insurance coverage if you need it and for a specific period, and if you do not need it, you simply do not pay the premiums.
  • So you need to pay attention to the length of time and amount you need to insure your life, and most people who have young children and are afraid of income disruption choose a temporary insurance policy until their youngest child is 23 years old and can earn.
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