Life insurance is globally accepted as one of the most striking financial gadget in an individual’s assortment that provides a guarantee of security with prominent returns. Life insurance is the convicted way to digest the life’s bad strokes and satisfies your liabilities after you.
What is life insurance?
Life insurance is an agreement between the person and insurance company. The insurance company is bound to pay back the sum of money to an insured individual for the specified event. This agreement gives you the payment on the date of insurance maturity or on the predefined dates or at unfortunate death of breadwinner during the insurance period. Life insurance not only provides the liability coverage against premature death but it also takes the responsibility of your bread after retirement.
Why life insurance is better than other form of savings?
Security: Life insurance promises the full risk coverage of the premature death of investors. Life insurance gives you double amount of investor’s policy with bonuses where as other savings pays only the saved amount with interest.
Aid to economy: Many easy installment options give absolute no burden to long term investment plans. The most popular ‘Salary Saving Scheme’ deducts the premium of policy from salary. Premiums payment options are monthly, quarterly, half-yearly and yearly.
Liquidity: The policy can be considered as security for commercial loans. Also insurance company offers loan on the policy but terms differs from policy to policy.
Tax relief: The provision is made by the government such that one can get the tax rebate of amount paid in the insurance policy. Ultimately the less amount of income tax has to pay otherwise more has to pay if not insured.
Any time money: By various combinations of insurance plans the periodic money generation can be achieved. Also money can be available for specific reasons like marriage, higher education in foreign, carrier start, world tour, to buy the new home. We can save money for above specified reasons in our bank accounts. But bank can not provide other benefits like tax benefit and life’s risk coverage. Alternately, policy money can be so arranged to be made available like salary in retirement life. The insurance policy can be surrender at any time and money can be withdrawn with minor deductions.
Who can buy a Life Insurance Policy?
Any one who is breadwinner and possesses the liabilities of minorities in the home or any one who is interested in the insurance policy benefits, any one who is health conscious. Any one who is living continuous traveling life and like the coverage against accidents.
What are the types of Life Insurance?
There are basic three types and they are Medical and Non Medical scheme, with profit and without profit, key man insurance (insurance taken by business for its key employees to get cover against the loss occurred by there demises).
What are the plans available?
1. Basic life insurance plans:
a) Whole life assurance plan
b) Endowment assurance plan
2. Term assurance plans:
a) Two year temporary assurance plan
b) Convertible term assurance plan
3. Children’s plans.
4. Pension plans.
5. Plans for handicapped dependents.
Study and chose the right plan for your life and your liabilities.
