Three types of life insurance policies that provide financial stability

by Darwin on February 10, 2013


The following is a guest post on behalf of Life Insurance:

When planning your financial future, life insurance should be top of your to-do list.

Insurance gives you the peace of mind that comes with knowing that your family will be financially secure if you pass away. Below, we examine three of the less commonly-used forms of policy.

Double Endowment Policy

A Double Endowment Policy broadly works in the same way as a standard Endowment Policy. It runs for a fixed term – normally 10, 15 or 20 years – during which premiums are paid. Upon the maturation of the term or when the policy-holder dies (whichever occurs sooner) the agreed funds are released. However, under a Double Endowment Policy, if the policy-holder lives on past the maturation date the insurer commits to pay the insured person double the amount of the insured sum. This type of policy is particularly suited to physically disabled people who may not be eligible for other kinds of insurance.

Joint Life Policy

This policy covers the risk against two people and is most often used by business partners, although it can be available to married couples under certain circumstances. The assured sum becomes payable at the end of the specified term, or upon the death of one of the two policyholders.

With or Without Policies

These policies make reference to the potential share of profits available to the policyholder from the insuring corporation. Under “With Profit” or “Participating” Policies, the insured person is eligible to claim a share of the profit of the corporation in the form of a bonus, which is added to the total sum paid when the policy matures. Under the “Without Profit” or “Non-Participating” Policies, the insured person is not eligible for any bonus. Naturally, the premiums payable under the With Profit Policies are higher than those under the Without Profit Policies.

Higher potential pay-outs are available in the life insurance market, and it’s well worth shopping around to find out whether such schemes are available and suitable for you. You should always take expert advice before committing to one these policies. Andrew Watt, a life insurance specialist from says “A life insurance policy should always require research and that means shopping around for the best deal to suit your circumstances.”

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