There are many types of insurance policies. Below are some of the most common policies.

Term insurance

this sort of policy is guaranteed for a specified term and is paid out if the policy holder dies within that time frame. If the policy holder does not die during the term, the policy would not be paid out and the premiums would not be returned. There are different types of term insurance.

Level Term

Level term insurance is a type of term insurance that pays out a lump sum if the policy holder dies during the specified term. The amount of cover remains the same throughout the term. This would be a good option if you need to be covered for a set amout of time.

Decreasing Term

Decreasing term insurance is a type of term insurance where the amount that the policy holder is covered for decreases over the term. The payout would be made in a lump sum if the policy holder dies within the term. This is generally used to cover a debt that is being paid off and reducing over time.

Family income benefit policy

Family income benefit policies are a form of decreasing term policy that pays a regular income to the beneficiaries of the policy holder until the expiry date of the policy.

Joint policy

A joint policy is purchased by a couple and is paid out in the event of the first of the policy holders dying. This is generally cheaper than taking out two separate policies.

Whole life policy

This policy pays out when you die, no matter when that is. Because it is guaranteed to pay out, this type of policy is more expensive than term insurance.