Whole life insurance plan offers coverage for whole life of applicant and even after his demise. The premium is fixed in this policy and one can get various added facilities like accidental disability compensation and pensions. Term life insurance covers up for a predetermined number of years, and if one dies during that period, his spouse receives a specific lump sum amount. Once the duration is up, there are no death benefits. The different types of term insurance policies that one can select include annual renewable, renewable insurance, level premium, decreasing term plan and convertible insurance policy. When it comes to accidental death insurance plan, it does not offer benefits for any type of demise excluding accidental deaths. It is actually a short-term plan and there are no cash-back opportunities.
There are several individuals related with life insurance plan, such as insurance brokers and insurance agents. Life insurance agents often work on the behalf of a firm, meet with several prospective policy holders and persuade them regarding the plans of his firm. Insurance broker is an individual who aids potential insurers to select an apt insurance plan. He does it for commission that he receives from both the insurance firm and insured, and is not recruited officially by any firm.
As far as premium rates are concerned, they are often tied to one’s policy length, health status and age.
So, if anyone wants to protect his family after he dies, he can choose to purchase an apt life insurance plans that pays huge benefits. If he does not feel he can buy regular ‘term life-insurance’, he must at least provide his family the safety of inexpensive ‘accidental death’ plan.