Changes

==Types of policies==

==Types of policies==

There are two basic types of life insurance:

There are two basic types of life insurance:

* [[Safety|Protection]] policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. An example is term life insurance.

* [[Safety|Protection]] policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. An example is term life insurance.  Sometimes these policies have additional "accidental death and dismemberment" (AD&D) benefits, where the policy face value is double if a death is the result of an accident or other benefits are paid due to loss of limb, sight, or hearing from an accident.  AD&D policies (albeit small, such as $1,000) are sometimes offered free by a credit union to members (with repeated solicitations to increase coverage -- for additional premiums paid).  Also, some of these policies will decrease coverage if a person reaches a specified age, such as 65 or 70.

* [[Investment]] policies – where the main objective is to facilitate the growth of capital by regular or single premiums. In the United States these are typically: [[Whole life insurance|whole life]], [[Universal life insurance|universal life]] and [[Variable universal life insurance|variable life]] policies.

* [[Investment]] policies – where the main objective is to facilitate the growth of capital by regular or single premiums. In the United States these are typically: [[Whole life insurance|whole life]], [[Universal life insurance|universal life]] and [[Variable universal life insurance|variable life]] policies.

[[Category:Insurance]]

[[Category:Insurance]]

[[Category:Business]]

[[Category:Business]]