Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Types of Insurance and Their Advantages and Disadvantages

By Cody Subscribe to RSS | March 6th 2012 | Views:

As we all know, the insurance is a policy or contract between the insurance company and the policy holder or the insurer wherein the insurance company is entitled to pay the insurer some money as per the insurance plan he or she has chosen, in the case of an untimely death of the insurer. It is to protect the family of the insurer or the policy holder (a member of the policy) who loses his life due to unfortunate incidents. Though there are different types of insurance available, the two most important types are that of the term and whole life where the latter is also termed as cash value insurance. However, both these insurances have their pros and cons. Let us discuss some of them in detail.

Advantages and Disadvantages of Life Insurance

Types of insurance

The first type of insurance is cash value insurance in which the policies compensate for the insurance expense. And some part of the insurance cover is invested on the investment vehicle scheme that generally goes on for a few years. Some of the notable cash value life insurance vehicles are whole life, variable life, paid-up and universal life insurance. You may also do your bit of research on the Internet powered by any of the services like ATT Uverse and gather more information on the types of insurance. Though they are different from each other, the basic purpose of all the above-mentioned insurance is pretty much the same. How does cash value investment scheme work? Basically, the client has to pay a premium amount on a term-basis and some cash to his account to the insurance policy that normally carries a death benefit scheme.

The next type of insurance is the Term life insurance that is slightly different from the cash value life insurance. Unlike the cash value insurance, the term life insurance doesn’t entail the insurer to have a cash value account. The main purpose of paying the premium in this type of life insurance is to cover the cost for the benefit scheme. As the name mentions, this type of life insurance is maintained on a specific term and at the end of the term, the insurer is entitled to purchase a new policy.


Both types of life insurance discussed in the above stanza have several advantages. The most striking thing about cash value life insurance is that it covers the entire life of the insurer or the policy holder. The best time to purchase this type of insurance is when you are young because that is when you need it the most. Another advantage is that the cash value life insurance can also be borrowed against life policy. In this case, the policy holders don’t have to pay the interest or any other earnings along with the cash value accounts. It’s not only the individuals who benefit from the cash value insurance but also the corporate. Coming to the term life insurance, the main benefit that they offer is they can be availed at cheaper premiums particularly when the person is healthy and young. The monthly cost of the cash value ranges from $20 to $30. The tem life insurance is ideal in cases where the financial obligations such as mortgage loans, education loans, and automobile loans are to be covered.


Always make sure that you consult an experienced insurance agent before you purchase a life insurance. Choose a policy/insurance that suits your family. For example, if you have a mortgage loan for 10 or 15 years, then you may opt for insurance covers based on the tenure and expense cover of your loan. Also decide whether you have to go for short term policies or long term policies depending upon your family needs.

Cody - About Author:
Cody is a freelance writer and an active blogger. He writes on a wide range of topics including home entertainment, technology, Internet, food, health and environment. He likes to surf the web for information on various topics including insurance with his Internet connection powered by ATT Uverse.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Insurance Articles Subscribe to RSS

Getting a cheap van insurance
Published by Robmarshall on March 1st 2012 | Insurance
Previously vans were only used for commercial purpose i.e. for hauling people and goods from one pla...
Unconventional aspects of commercial liability insurance
Published by Andrew Edwards on February 8th 2012 | Insurance
Decide your insurance cover according to need, unexpected disasters will harm your company...
Finding cheap Arizona auto insurance
Published by Auto Insurances on January 13th 2012 | Finance
Let’s not take more risks with our valuable autos. While applying for Arizona auto insurance make ...
Credit card types
Published by Fiona Roy on April 23rd 2012 | Finance
Discover the different types of credit cards available....
Important considerations with regard to backpackers insurance
Published by Marry James on February 24th 2012 | Insurance
One of the greatest risks that a person can take is to go on an adventurous trip worldwide without g...
Breaking false beliefs to help you pick correct income protection insurance policy
Published by Jenymorison on December 10th 2011 | Insurance
You would have often come across various myths about income protection insurance or in general any i...
Cheaper van insurance – ways to find the best deal
Published by Robmarshall on March 28th 2012 | Insurance
Whether you have a larger vehicle or a smaller vehicle, you will definitely have to buy an insurance...
Things to remember about cheap car insurance
Published by Robmichae on March 2nd 2012 | Insurance
Car insurance might not be important for you but it is very important thing for your car. As you go ...
Why we should acquire Commercial liability insurance
Published by Andrew Edwards on December 12th 2011 | Insurance
Since the competition has reached a significant value, we have to be quite selective when it comes...
Health insurance benefits and coverage
Published by Chris Luke on April 24th 2012 | Insurance
It is definite that health insurance has become an essential component of one’s life and buying a ...
Tips to find cheap classic car insurance
Published by Anneshirley on March 20th 2012 | Insurance
Classic car insurance coverage is different from the regular type of insurance coverage. The definit...
A quick guide to reducing your auto insurance premium rates
Published by Jerry on March 10th 2012 | Insurance
In this day and age, it has become very important that one tries to get a decent means of transport....
Significance of business interruption insurance for corporate houses
Published by Andrew Edwards on December 14th 2011 | Insurance
To reach the elevation of success we have to plan our business administration programs...
A brief overview of high risk auto insurance
Published by Jerry on March 10th 2012 | Insurance
Auto insurance seems to be a necessity for every driver to minimize the risk after any accident. As ...
What are the advantages of buying insurance online at my cheap car insurance
Published by Harrisonford on April 12th 2012 | Insurance
Cars have become the basic necessity of most of the people. Everyone wants to have his/her own trans...
All about major medical health insurance
Published by Johndy Sons on March 21st 2012 | Insurance
There are several individuals in the globe who don't know the value of well being insurance in any r...
Safeguard your organization by commercial liability insurance
Published by Andrew Edwards on May 17th 2012 | Insurance
There are few insurance plans protecting organizations from facing the issues which can harm on fina...
Benefits of getting insurance policy specially when working abroad in search of earning and job
Published by Andy Robert on December 22nd 2011 | Insurance
Although the insurance policy might look expensive at first sight but the in-fact insurance policy i...
Individual medical health insurance Procedure
Published by Lessardcasey on March 28th 2012 | Insurance is a website devoted to helping people find affordable Individual Medica...
All new drivers should be conversant with laws regarding auto insurance!
Published by Jerry on March 10th 2012 | Insurance
When you are a first time car owner or buyer, there are usually many things that you may need to edu...