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   Types of Insurance




When one goes out to shop for an insurance policy one has two different options of terms for buying a policy. If one wish to buy an insurance policy for a term then its term insurance and if one wish to buy a permanent insurance policy then it is continued for whole life. The period of term insurance is of 5,10 or 15 years.

In permanent insurance a person gets not only death benefit but also acquires cash money. The two kinds of policies are suitable in different situations. The term insurance is suitable for those who just wish to get death benefit not the amount in cash. The person who buys such an insurance policy buys such policy for once child then child can get education if in case the father dies. The premium for such policy remains less but when child grows mature then amount of premium increases.

When one goes for permanent policy then the premium for such policy remains high as such person not only wish to acquire death benefit but also the large amount of cash. Permanent life insurance policy is costly affair. There is benefit of tax in permanent insurance.
 
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