The term policy of insurance is derived from the Italian word 'disecuranza' which signifies a bill of security or indemnity. The policy is always considered as the security for the payment of the premium. It contains only the promise of the underwriters without anything in nature of counter promise on the part of the insured. The policy may be effected by the owner of the property insured of his broker or agent.

Generally, an insurance policy is assembled with a combination of various standard forms. It includes a declarations page, coverage form, and endorsements. Sometimes a cause of loss form is also required. In order to protect the property, we can contact an insurance carrier to acquire an insurance policy which can protect things from damages.

An insurance policy is a legally binding contract between an insurance company and the person who buys the policy, known as "policyholder", who is also the person insured. The insurance company agrees to pay for the certain types of loss or damage as specified by the contract. The term insurance policy refers specifically to the written contract.

The Whole life policy is a type of permanent insurance. It is a combine life coverage with an investment fund. It provides for the payment of the fresh amount of the policy on the death of the insured to his/her nominee. The premium of the life insurance is made during the entire life time of the insured. Generally, this policy is a policy purchased by the person to protect the family or dependents. The amount of premium of this policy is lower as compared to other policies.
There are three types of whole life insurance which are as follows:

a) Ordinary whole life policy
Ordinary whole life is a form of whole life insurance that provides life time protection to the insured. This policy is useful to provide lump sum continuing income to beneficiaries.

b) Limited payment whole life insurance
Whole life insurance provides lifetime protection with the single premium. The insured also has life time protection, but the premiums are paid for a limited period such as 10, 20, or 30 years, until age 65.

c) Convertible whole life insurance
The main purpose of convertible whole life policy is to provide maximum protection at minimum cost. It brings flexibility in life insurance.

An endowment policy is insurance contract designed to pay a lump sum after a specific term or on death. Here, the maturities are 10, 15 or 20 years up to a certain age limit. An endowment is payable at the death of the insured or on a specified maturity death if the insured survives to the end of the endowment period. The face amount of insurance is paid to the policyholder at that time. The insured pays the premium for a fixed period of maturity to the end of the endowment period. This types of policy hs higher rate of premium but offers both investment and protection advantage. 

a) Ordinary endowment policy
This policy is purchased for a fixed period of time. The premium is to be paid till the maturity of endowment period or up to the time of the death of the insured.

b) Double endowment policy
Double endowment is the policy at which double of policy amount is payable to insured if  he survives to the end of endowment period.

c) Joint life endowment policy
In this policy, the amount is paid to the survivor after the death of the person. If both of them are alive until the policy period, the amount is refunded. It is generally purchased by the married couple.

d) Pure endowment policy
In this policy, the insured amount is payable to the policyholder only if he survives till the maturity of the policy. If the policyholder dies before the maturity of the policy, the insured amount is not payable by the insurance company.

e) Deferred endowment policy
In this policy, the insured amount is payable only at the end of the endowment period even the insured dies prior to the maturity.

The different types of life insurance include the following policies.

1. Term Life Insurance

Term insurance provides protection for a specified period of time. This period can be for one year or provide coverage for a specific number of years such as 5, 10, 20 years. It refers longer the guarantee, the higher the initial premium. If a person dies during the term period, the company will pay the face amount of the policy to his beneficiary. If he lives beyond the term period he had selected, no benefit is payable. According to the rule, the term policies offer a death benefit with no savings element or cash value. This policy has some basic features, which are given as follows:

a) Temporary protection
The temporary protection of this policy may be 1 year, 5 years, 10 years or 20 years. The protection expires at the end of the period unless the policy is renewed. 

b) Convertible
Most of the policy can be convertible which means the term policy can be exchanged. The policies may be exchanged for a cash- value policy without evidence of insurability.

c) Renewal
The policy can be renewed for the additional period without evidence of insurability. Most of the term policies are renewal.

d) No cash surrender value
The term policy provides protection after the death of insured in a specified time period. It does not provide amount after the period expired.

2. Whole life policy

The Whole life policy is a type of permanent insurance. It is a combine life coverage with an investment fund. It provides for the payment of the fresh amount of the policy on the death of the insured to his/her nominee. The premium of the life insurance is made during the entire life time of the insured. Generally, this policy is a policy purchased by the person to protect the family or dependents. The amount of premium of this policy is lower as compared to other policies.
There are three types of whole life insurance which are as follows:

a) Ordinary whole life policy
Ordinary whole life is a form of whole life insurance that provides life time protection to the insured. This policy is useful to provide lump sum continuing income to beneficiaries.

b) Limited payment whole life insurance
Whole life insurance provides lifetime protection with the single premium. The insured also has life time protection, but the premiums are paid for a limited period such as 10, 20, or 30 years, until age 65.

c) Convertible whole life insurance
The main purpose of convertible whole life policy is to provide maximum protection at minimum cost. It brings flexibility in life insurance.

3. Endowment policy

An endowment policy is insurance contract designed to pay a lump sum after a specific term or on death. Here, the maturities are 10, 15 or 20 years up to a certain age limit. An endowment is payable at the death of the insured or on a specified maturity death if the insured survives to the end of the endowment period. The face amount of insurance is paid to the policyholder at that time. The insured pays the premium for a fixed period of maturity to the end of the endowment period. This types of policy hs higher rate of premium but offers both investment and protection advantage. 

a) Ordinary endowment policy
This policy is purchased for a fixed period of time. The premium is to be paid till the maturity of endowment period or up to the time of the death of the insured.

b) Double endowment policy
Double endowment is the policy at which double of policy amount is payable to insured if  he survives to the end of endowment period.

c) Joint life endowment policy
In this policy, the amount is paid to the survivor after the death of the person. If both of them are alive until the policy period, the amount is refunded. It is generally purchased by the married couple.

d) Pure endowment policy
In this policy, the insured amount is payable to the policyholder only if he survives till the maturity of the policy. If the policyholder dies before the maturity of the policy, the insured amount is not payable by the insurance company.

e) Deferred endowment policy
In this policy, the insured amount is payable only at the end of the endowment period even the insured dies prior to the maturity.

4. Unit Linked Insurance Plans

A unit-linked insurance plan is a type of insurance vehicle in which net asset values are purchased by the policyholder. It helps to provide an option to invest in any number of qualified investments, such as stock, bonds or mutual funds. In certain areas, ULIPs differ from traditional endowment plans. As the name suggests, the performance of ULIP is linked to markets. Individuals can choose the allocation for investments in stock or debt markets. The value of the investment portfolio is captured by the net asset value. 

5. Money Back Policy

In a money back plan, the insured person gets a percentage of sum assured at regular intervals. The person will not get the lump sum amount at the end of the term. In this Policy , the sum assured by the company will be paid in installments at periodic intervals. However, the full sum of assured is payable without any deduction in the event of death. The bonus additions to the policy will be reckoned and they are payable at the end of the selected term of years or at the Life Assured's death.