Most of us are aware of what life insurance is. So lets quickly refresh that here. Lets put it this way. Life insurance is actually a promise made by a life insurance provider company to pay a lump sum or as decided, to family of the insured, in case of death of the person insured.
That’s the main reason why you need life insurance. Because your family depends on you. And God forbid if one day you were not around what will happen to them? Accidents or terminal illnesses can strike anyone at anytime without warning. Who will provide for your family then? That's where the saviour life insurance comes in. Its actually a risk prevention strategy by committing a certain amount as premium every month or yearly, to the insurance company.
Lets quickly wade through the Types of Life Insurance Plans Available In The Market Today.
To see full detailed article on each of the following please click on the heading.
To see full detailed article on each of the following please click on the heading.
1. Endowment plan:
Endowment plan combines Savings and Insurance in which a person pays certain amount as premium to cover himself & certain amount is invested as Saving.
2. Whole life plan:
As the title suggests, this plan serves you as cover for your entire life (99 years) as a backup. In case of any untoward incident like death, the family of the insured gets the compensation.
3. Term Insurance plan:
A policy holder pays premium for a certain period (say 20 years term) & if he dies before this term, the family of the insured gets the sum assured. Normally in Term Insurance you don't get anything if you outlive the term period but depending on the pre-agreed conditions & riders chosen, the family may get cash back or compensation as decided in policy.
4. Retirement plan:
Would you be worrying about financial burdens after retirement in the old age? Not anymore if you opt for the Retirement plan that takes care of your expenses etc by providing you with a monthly quarterly or yearly fix income so that your life continues like it was before & your bank account is credited as it used to during your prime time when you were earning.
5. Child Insurance Plan:
Have children & worried about their education, marriage etc? This plan is designed to take care of your children's education and further even for their marriages and any business etc they may desire to start. Very beneficial if started when children are young.
6. Health Insurance plan
Sudden medical emergencies like hospitalisation, Treatment costs etc. can drain your bank savings
if not planned & taken care of before hand. This plan adequately provides the fund required when such things happen, without you having to spend anything from your bank.
7. Unit Linked Insurance plan:
Provides excellent Investment plus Saving plan to people interested in investments. A certain amount is locked as premium and the rest is invested in Funds, Equities & bonds.
