Life insurance policies types

Life insurance policies are basically of two types: term insurance and permanent insurance. A term insurance policy is where the benefit is paid if the insured dies during the term of the policy. Term insurance polices can be renewed after the expiration of the policy. Some also contain a convertibility option through which it can be converted into a permanent policy. Premiums are generally small for term insurance policies. It is also difficult to get term insurance for older people, since their risk of death is greater. In a permanent term policy, the security is for the whole life of the insured. The premium is slightly higher for this policy. Other types of life insurance policies are: universal life insurance (the insured can select the premium to be paid); variable life insurance (the insured has the ability to direct the investments of the cash surrender value); variable universal life insurance, single premium life insurance (single up-front payment for the full life of the policy); and survivorship life insurance (joint insurance for two people).
There are many factors to be considered while choosing a life insurance policy. They are: the amount of insurance required, the type of insurance, affordability of the premiums, surrender charges, cash value projections, policy loans, dividends, mortality assumptions, the stability of the insurance company, and so on. Most insurance companies provide the same kind of offers. The best way to compare is to compare the premiums. If the premiums are the same, then compare the other benefits and terms and conditions.