What are the Different Types of Life Insurance Policies?

A life insurance policy is mainly meant to provide insurance cover. However, there a few variants that also serve an investment.
There are mainly four different types of insurance policies, which are:

Whole Life Policy
The whole life policy is the most popular types of life insurance policy in which the premiums are paid throughout the life of the policyholder. The insured sum is granted to the nominees, such as parents or spouse, after the demise of the insured.
A whole life policy is mainly popular because of its affordable premiums and long-term benefits.

Endowment Policy
Unlike whole life policy, the endowment policy runs up to only a particular age. The sum insured in this policy is payable only when the insured reaches the specified age or if the endowment period expires.
The premiums of endowment policy are more expensive than whole life policy. However, unlike the latter, an endowment policyholder can actually reap the benefits of the policy.

With-Profits Policies
In a with-profits policy, the policyholder gets a share of the profits the provider makes on the basis of the premiums made by them. These profits, which are made through investments in bonds, shares, etc., are collected over the policy period and finally paid to the insurer at policy maturity.

Annuity
In this policy, the insured amount is paid to the policyholder in installments either annually or monthly after they reach a certain age. The period of time when the person becomes eligible for receiving the funds is called the accumulation phase.