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The life insurance is a major type of business in the state. As of the year 2001, the total number of 9.2 millions ordinary life insurance policies worth $783.4 billions were held by the peoples in the state.
The total value of the all types of insurances including ordinary, group, industrial and credit has reached a total sum of $1,296 billions.
The market for life insurance in the state is very much competitive. Around 140 insurers currently write life insurance in the state and those companies generate over $188 billions as annual premiums.
The Insurance Department in the state must approve any life insurance policy before a company issues it to the consumers.
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Various insurance types used in the state are as follows:
- Term Insurance :
Such insurance provides protection to a specified period. This period provide coverage for specific years such as 5, 10, and 20 years or as high as 80. The types of the term insurance can be renewable term, convertible term and decreasing term.
- Permanent Insurance :
The permanent insurance provides coverage for the entire lifetime. Generally there are two categories of permanent insurance. One is traditional whole life and the other is interest-sensitive.
- Variable Life Insurance :
In this case the face amount and cash values are generally specified in units and value of units may increase or decrease according to investment results.
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