Types of Life Insurance

💰 Types of Life Insurance

1. Term Life Insurance

   • Covers a fixed period (e.g., 10, 20, or 30 years).

   • Pays only if death occurs during the term.

   • Cheapest and simplest.

2. Whole Life Insurance

   • Covers the entire lifetime.

   • Has both death benefit + savings/cash value.

   • More expensive but builds value over time.

3. Endowment or Money-Back Policy

   • Pays either on death or after a specific number of years.

   • Often used for savings and investment goals.

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❤️ Why It’s Important

• Provides financial security to wife, children, or dependents.

• Covers loans or debts after death.

• Helps fund education or daily living expenses for the family.

• Gives peace of mind knowing loved ones are protected.

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📄 Example

Mr. Rahim buys a 20-year term life insurance for $100,000.
He pays $20/month.
If he dies within 20 years, his family receives $100,000.
If he survives, the policy ends with no payment.