Life insurance is a contract where the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.
The insurance company promises a death benefit in consideration of premiums paid by the insured. Here are different types of life insurance policies:
Whole Life Policy: Under this policy, premiums are payable throughout the lifetime of the assured. The sum becomes payable only on the death of the insured. These policies are taken out to make provisions for dependants.
Endowment Policy: This is the most popular form of life insurance. This policy is taken up for a specified period known as the endowment period. The sum is payable upon the death of the assured or on the expiry of the fixed period, whichever is earlier.
Joint Life Policy: This insurance policy is designed to cover couples or partnerships in the event of either partner’s death. It is a comprehensive protection plan, with multiple benefits for couples or partners.
Annuity Policy: An annuity is a contract aimed at generating steady income during retirement. The individual begins by making a lump sum investment in the annuity plan, in order to obtain certain amounts at some point in future.
Group Insurance Policy: This is a type of life insurance in which a single contract covers an entire group of people. Typically, the policy owner is an employer or an entity such as a labour organisation, and the policy covers the employees or members of the group.
Life insurance is chosen based on the needs and goals of the user. To purchase one, please visit: www.youareinsured.ng.