Life Insurance

The first life insurance policies were taken out in the early 18th century. The first company
to offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded
in London in 1706 by William Talbot and Sir Thomas Allen. The first plan of life insurance
was that each member paid a fixed annual payment per share on from one to three shares
with consideration to age of the members being twelve to fifty-five.

Term insurance
It is a policy which provides financial coverage during a set amount of time.
Often considered the "simplest" form of life insurance, it is best suited for
providing coverage or income for a short term and on a limited budget.

Eg:- To illustrate, suppose Bob has a term life insurance policy that covers him
financially in the event of death until the age of 40. Should Bob somehow die
before the age of 40, the terms of the policy cover him and pay a financial benefit.
If Bob lives past the age of 40, however, his policy will not yield any financial
benefit. He must renew the policy for another term under new conditions.

Term Insurance Policy:-

It is a type of life insurance which provides death benefits to the

insured only if he/she dies during the specific period of the policy. If the
insured survives for the end of the period the coverage ceases without
value and claim for death cannot be made. The following are the two
types of term insurance policies:-

a) Renewable term insurance:- It means that under this period policy

can be renewed or extended after maturity period of the
insured.
b) Convertible term insurance:- It is a type of policy which allows the
policy holder to convert term insurance to endowment or whole
life insurance policy.
Endowment Policy:-
It is a type of insurance policy which insurer pays till the specific period
of time and after the specific period they receives the insured amount.
If he/she dies before the maturity period his/her nominee receives the
amount. The following are the various types of endowment policies:-

a) Joint Life Endowment Policy:-It is type of policy which is insured

for more than 1 person and the amount assured is payable at the
time of maturity or at the time of death of the insured

b) Fixed Term Endowment Policy:-It is a type of policy where the

insured amount is payable at the end of the maturity period. If the
death of the insured occurs earlier, the payment of assured
amount will be ceased and the beneficiaries will receive the
amount only after the maturity period.

c) Double Endowment Policy:- It is a type of policy where the insured

gets double the assured amount if he /she is alive till the maturity
period.

Whole Life Policy:-

It is a type insurance in which the insured person pays the premium
amount till his/her entire life . There are 3 types of policy:-
a) Ordinary whole life policy:-In this case the premium amount of
the insured person is paid periodically throughout the entire life
time .

b) Limited payment whole life policy:-In this case premium amount is

paid for very limited period of time and the insured amount will
be returned back to his/ her nominees after the death of the
insured person.

c) Convertible whole life policy:- It is a type of policy which allows

the holder to convert to Endowment policy after a certain period
of time.
Unit Linked Insurance Policy(ULIP):-
It is a type of policy where the insurance company covers the risk
of the policy holder and also allows the holder to invest in any
number of insurance avenues such as Stocks ,Bonds, Mutual
Funds etc. This type of policy also gives protection to the policy
holder and his family and he also has a chance to earn the
premium amount paid earlier.

Group Insurance:-

It is a type of insurance used by the governments to cover a

defined or group of people for the social welfare. The people who
are covered under this policy are not parties to insurance contract
but the insurance contract is between the company and the body
which represents the group of persons covered.
Marine insurance:-
Marine insurance covers the loss or damage of ships, cargo,
terminals, and any transport or cargo by which the property
is transferred, acquired, or held between the points of origin
and the final destination.