Are you confused about which insurance plan you should buy? Please read this………………
Comparison of Basic Insurance Policies
| Type | Characteristics | Uses |
| Whole life | Low costs, cash value, premiums payable for lifetime (age 100). | Young single persons and young, married persons for protection, with some saving, and as an emergency source of funds. |
| Universal life | Higher investment component than traditional whole life | High-income individuals who find tax-free build-up attractive. |
| Limited payment life | Stays in force when paid up. Builds cash and paid up values. Fewer insurance payments paid up protection. | Good for persons with short-term high income, sports stars, entertainers. Also, high-income middle-aged individuals. |
| Single premium life | Minimal insurance protection. Investment builds tax-free | High-income individuals who find tax-free build-up attractive. |
| Term | Protection only. low cost | Good for persons who need large amount of coverage for short period (1-,5-,10-,15-,20- year terms) good for young, married persons with growing children. |
| Reducing
Term |
Protection reduced with time
Low cost |
Good for mortgage redemption repayment of other loans or installment payments |