What types of life insurance policies are available in the usa ?

There are many types of life insurance policies. Before you venture out for one, learn about them

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What is Level Term Life Insurance?: Level Term Life Insurance is a form of insurance that pays a lump sum to you or your family if you die or fall terminally ill whilst the policy is in force.
What is Mortgage Payment Protection Insurance?: Mortgage Payment Protection Insurance will pay your monthly mortgage repayments if you were off work because of sickness, an accident or unemployment.
What is Family Income Benefit Insurance?: Family Income Benefit Insurance will provide a monthly payment to the family until the end of the policy’s term, following the death of the policyholder.
What is Critical illness Insurance?: Critical Illness Insurance pays an lump sum if you are diagnosed with a serious illness or critical illness.

and see which one is applicable to your needs best. The following are the most common ones:

1. Term life insurance: This type of insurance is the most basic of all. Its one and only function is to cover your life with an amount of cash which on even of your death will be given to your nominee. Here the death benefit is equal to the policy limit. This is a ( mortgages ) good way to have mental peace in the conviction that you will provide for your family even in the event of death. This is good thing to have as a stand by any day.

2. Whole life insurance: This type of policy besides providing a fixed amount to your nominee on your death, it also gives you a financial gain over time as an investment would. The benefits you get out of this type of insurance is:

a. pays a fixed policy amount in event of death
b. gives you an investment amount that is free of tax
c. protects you from risi
ng prices - the premium is fixed for the life despite market fluctuations d. pays dividends as any good investment plan
e. offers you freedom to sell the policy back at any given time you choose

3. Variable life insurance: This type of insurance is much more flexible than the whole life insurance. The best benefit here is the fact that it allows the policy owner to borrow against the policy maturity amount. In this way not only you are insured but you also have a very decent source of borrowing at a lower rate than the market price interest rates. The ( Secured loans ) variable life insurance too offers the benefit of tax-free ash accumulation that is a great incentive for investing in insurance the world over. There is another benefit that accrues from this type of insurance, i.e. the amount that is to be paid as a benefit to the nominee of the policyholder can be varied according to the need of the beneficiary (in relation to the funds available in the account).

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