Life Insurance and Life & Savings Insurance both make sure your family’s future is safe and secure. Insurance is an important part of any financial plan. An 



Life Insurance vs. Life and Savings Insurance | Faydety

Insurance is an important part of any financial plan. An insurance policy helps you bypass dangers/hazardous situations and emergencies if they occur, and life insurance policies are one of the most popular insurance policies out there.&nbsp;<h2>What is insurance?</h2>&nbsp;It is essentially a contract between you (the insured) and the insurance company of your choice (the insurer) whereby the insured pays a monthly or yearly premium and in exchange the insurer is obligated to pay out the insurance amount if the insurance policy terms are met. The policy may cover the insured, their family, or their property according to its type.&nbsp;<h2>Life insurance comes in two types:</h2>&nbsp;<ol><li>Life insurance: this type of insurance policy is valid for a pre-agreed upon duration between the insured and insurer. The premium is usually not huge as the insurance policy is paid out in one case only – death. If the insured passes away while the policy is active his/her beneficiaries receive the insurance amount but if the policy lapses before the insured’s death the insurance company does not have to pay.</li><li>Life and savings insurance policy: similar to a life insurance policy but the life and savings insurance policy can be active for much longer (as much as 20-30 years). The premium is higher than a life insurance policy’s since the life &amp; savings insurance policy acts more like a certificate of deposit or a savings account than a regular insurance policy. In other words if the insured passes away while the policy is active their beneficiaries receive the insurance amount but if the insured is still alive when the policy duration ends then the insured receives the full amount of the insurance policy.&nbsp;</li></ol>&nbsp;Check our blog to find out more about insurance types: <a href="https://www.faydety.com/ar/learn/%D9%82%D8%A7%D8%B1%D9%86-%D9%88-%D9%82%D8%B1%D8%B1-2/-%D8%A7%D9%84%D8%AA%D8%A3%D9%85%D9%8A%D9%86-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%D9%85%D9%85%D8%AA%D9%84%D9%83%D8%A7%D8%AA-%D9%88%D9%84%D8%A7-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%25D">Difference between Property Insurance and Life Insurance</a>

Find out what life insurance is and its types

Life Insurance vs. Life and Savings Insurance

Insurance is a contract, in the form of a policy, in which an individual or entity receives financial protection and/or compensation against losses from an insurance company. Insuring something means diverting the burden of payment for its loss from a personal responsibility to one that the insurance company bears on your behalf, in a certain percentage, depending on the type of insurance you have.&nbsp;&nbsp;The insurance company relies on calculating the probability of a loss or damage to an insured asset. If there is a high probability, then the insurance cost tends to be expensive; on the other hand, if the probability is low, the insurance cost tends to be relatively cheaper.&nbsp;Let's start with the basics.&nbsp;<h2>Insurance Policy:</h2>&nbsp;As stated briefly above, an insurance policy is a contract between you and an insurance company. This policy outlines your agreement's details and determines the claims that the insurer is legally required to pay in exchange for a premium. It essentially states that the insurer must pay for any loss or damage caused by risks covered under the policy.&nbsp;<h2>Insurance Premium:</h2>&nbsp;An insurance premium is a certain amount of money that you need to pay periodically in exchange for the maintenance of your chosen insurance policy. If you are unable to pay the premium, the insurance policy will be forfeited. If this happens and you decide you would like to keep your coverage, you may be required to pay a fine or charge a higher premium accordingly.&nbsp;<blockquote>The insurance company relies on calculating the probability of a loss or damage to an insured asset</blockquote>&nbsp;<h2>Types of Insurance:</h2>&nbsp;There are many different types of insurance. Though it is possible to divide them into two basic categories, under which the other types of insurance fall, the two categories are:&nbsp;<h2>Life Insurance / Health Insurance</h2>&nbsp;Life insurance is a contract between you and an insurance company where, in exchange for premium payments paid by you during your lifetime, the company will pay a sum of money to your beneficiaries after your death.&nbsp;&nbsp;Health insurance covers medical expenses that may arise due to illness. These expenses could entail costs of hospitalization, cost of medicines, or medical consultation fees.&nbsp;These insurance types are primarily based on individuals, although some countries go one step further and provide pet insurance. This is because, at times, the cost of medicines and veterinarian visits are higher than the costs of individuals.&nbsp;<h2>Property Insurance / Disaster Insurance</h2>&nbsp;This type of insurance reimburses an individual or business and protects a physical property against loss from theft, fire, natural disasters, etc. Property insurance covers the building or structure itself as well as its contents, whether personal or corporate, including furnishings, inventory, and other items.&nbsp;Get your <a href="https://www.faydetyinsurance.com/en">Insurance Policy</a> Now through Faydety!

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Life Insurance vs. Life and Savings Insurance

Find out what life insurance is and its types

What is insurance?

Life insurance comes in two types:

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