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Investment policies (which commonly come in the form of “whole” life insurance) are a type of life insurance that differ from protection policies (typically “term” life insurance) in that they are considered permanent, and offer guaranteed benefits that will never be reduced. Investment policies allow the insured to receive loans against the insurance policy, and do not have to be paid back because they educe the ultimate death benefit. However, there are different types of investment policies, and being familiar with the more common major types will allow you to choose the one that’s right for you. Here, we’ll go over a few of the common types of investment policies.
Non participating investment policies make sure every term, condition, and other aspects of a life insurance plan are determined at the beginning of the life of that plan. If the claims against that policy are less than what was estimated, the insurance company keeps the difference. If the claims against the policy are more than what was estimated, then the insurance company makes up the difference. Participating investment policies, on the other hand, provide the policy holder with dividends (refunds) based on the performance of the insurance company. When the insurance company performs better, the insured receives larger dividends.
Indeterminate premium policies are in many respects similar to non participating investment policies, with one key difference. In indeterminate premium plans, the premium of the plan can vary from year to year, as long as it does not exceed a predetermined amount. Economic investment policies are largely similar to participating insurance policies, except the dividends the insured receives are used to purchase further life insurance plans. Lastly, a limited pay plan closely resembles a participating policy, with the main difference being that the insured is only required to pay premiums for a predetermined number of years. Once the insured has completed these payments, the insurance continues until death.
Getting a quote online allows you to quickly and easily compare the various rates from different insurance companies, allowing you to find a plan that’s right for you at the lowest overall cost. You shouldn’t have to sacrifice coverage in order to save money, and a free rate quote can help you get the best coverage for your budget. If you are looking for a fast and easy way to save on life insurance, then an online quote is one of the best ways to do so.