What do we understand about the term Life insurance and Life annuity policy?

Life insurance is a financial instrument for providing resources after death to take care of the survivors and to handle any post-death obligations of the estate.

On the other hand, Life annuity policy is a financial instrument used to provide post-retirement resources to take care of the annuitant as long as he or she lives.

Types Of Life Insurance Policies

Functionally, life insurance policies are of three types :

(1) Terms insurance

(2) Endowment Insurance

(3) Whole Life Insurance

Further Reading...

Combination Of The Above 3 Policies

Lastly, a combination of these polices into various packages are also available to meet particular life insurance needs. These are known as Special-purposes policy plans.

An example of such a policy plan is the retirement income policy. This is also one of the more popular policy. It provides the insured, at age 65, a $10 per month lifetime income (ten years certain) per $1000 of life insurance.

Another example is the multiple protection policy. It provides for the combination of level term and whole life insurance  (written for a specified period) in an amount equal to some multiple of the whole life insurance and for a premium lower than that usually charged for term insurance alone.

Other examples includes the family income policy, mortgage protection policy, the juvenile life insurance polices and etc.