Policyholders can usually pay the insurance premium in installments on a monthly, quarterly, half-yearly or annually. This premium payment frequency is called the Premium Payment Mode. Then there is a Premium Payment Term, which determines the duration for which the premium needs to be paid, or number of installments.

How would you select an appropriate life insurance product?

1. Make sure your purchase is Need based and not peer based!
2. Buy more policies Online than Offline.
3. Be specific about the time you would require the cover for.
4. Take Inflation into account.
5. Compare the Costs and Benefits of a Term plan.

Which is life insurance payout option should you choose?

This option allows you to receive a life insurance payout in installments. Unlike with a life income option, you can choose the time period over which you want to receive payments and the amount of the payments. For example, if you received a $250,000 life insurance payout, you could choose to receive $25,000 a year for 10 years.

What is the specific life option in life insurance?

The specific life option allows the beneficiary to give the insurance company a payout schedule to follow. If the beneficiary dies before the period is over, a secondary beneficiary will receive the rest of the payments. With a $100,000 death benefit, the beneficiary can choose to receive $10,000 per year (or another amount).

Can You take Your Life Insurance with you?

You will have two options: you can continue your life insurance, or you may be able to take it with you; however, not all companies offer the option to take your insurance coverage with you. If you are given the option to do so, you would be eligible to “port” your policy.

What are the distribution options from a life insurance policy?

But don’t worry, there are still more options. You can also choose to have the policy proceeds distributed over a certain period of time, say five years, 10 years, or even 20 years. The insurance company will calculate the monthly or annual payments in such a way that the policy proceeds will be fully dispersed within that timeframe.