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Life Insurance

Life Insurance  Is A Contract Between An Insured ( Policy Holder) And An Insurer (Life Insurance Company), Where The Insurer Promises To Pay A Designated Beneficiary A Sum Of Money (The “Benefits”) In Exchange For A Premium, Upon The Death Of The Insured Person. Depending On The Contract, Other Events Such As Terminal Illness Or Critical Illness May Also Trigger Payment. The Policy Holder Typically Pays A Premium, Either Regularly Or As A Lump Sum.

Life Insurance  Is A Contract Between An Insured ( Policy Holder) And An Insurer (Life Insurance Company), Where The Insurer Promises To Pay A Designated Beneficiary A Sum Of Money In Exchange For A Premium, Upon The Death Of The Insured Person. Depending On The Contract, Other Events Such As Terminal Illness Or Critical Illness May Also Trigger Payment. The Policy Holder Typically Pays A Premium, Either Regularly Or As A Lump Sum.

Life Policies Are Legal Contracts And The Terms Of The Contract Describe The Limitations Of The Insured Events. Specific Exclusions Are Often Written Into The Contract To Limit The Liability Of The Insurer; Common Examples Are Claims Relating To Suicide, Fraud, War, Riot, And Civil Commotion.

Life-Based Contracts Tend To Fall Into Two Major Categories

  • Protection Policies – Designed To Provide A Benefit In The Event Of Specified Event, Typically A Lump Sum Payment. A Common Form Of This Design Is Term Insurance.
  • Investment Policies – Where The Main Objective Is To Facilitate The Growth Of Capital By Regular Or Single Premiums. Common Forms (In The US) Are Whole Life, Universal Life And Variable Life Policies.
  • There Are Many Types Of Life Insurance Policies Available In The Market

    1)Term Life Insurance Policy.
    2) Endowment Life Insurance Policy.
    3)Money Back Life Insurance Policy.
    4)Whole Life Insurance Policy.
    5)Unit Linked Insurance Plans(ULIP).

 

 

Advantages Of Life Insurance

  • Life Today Is Full Of Uncertainties; In This Scenario Life Insurance Ensures That Your Loved Ones Continue To Enjoy A Good Quality Of Life Against Any Unforeseen Event.
  • Insurance Plans Provide Attractive Tax-Benefits For Both At The Time Of Entry And Exit Under Most Of The Plans.
  • Insurance Acts As An Effective Tool To Cover Mortgages And Loans Taken By The Policyholders So That, In Case Of Any Unforeseen Event, The Burden Of Repayment Does Not Fall On The Bereaved Family.

 

  • Life Insurance Not Only Provides For Financial Support In The Event Of Untimely Death But Also Acts As A Long Term Investment. You Can Meet Your Goals, Be It Your Children’s Education, Their Marriage, Building Your Dream Home Or Planning A Relaxed Retired Life, According To Your Life Stage And Risk Appetite. Traditional Life Insurance Policies I.E. Traditional Endowment Plans, Offer In-Built Guarantees And Defined Maturity Benefits Through Variety Of Product Options Such As Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.
  • Life Insurers Through Riders Or Stand Alone Health Insurance Plans Offer The Benefits Of Protection Against Critical Diseases And Hospitalization Expenses. This Benefit Has Assumed Critical Importance Given The Increasing Incidence Of Lifestyle Diseases And Escalating Medical Costs.
  • Life Insurance Is A Long-Term Contract Where As Policyholder, You Have To Pay A Fixed Amount At A Defined Periodicity. This Builds The Habit Of Long-Term Savings. Regular Savings Over A Long Period Ensures That A Decent Corpus Is Built To Meet Financial Needs At Various Life Stages.

 

  • Policyholders Have The Option Of Taking Loan Against The Policy. This Helps You Meet Your Unplanned Life Stage Needs Without Adversely Affecting The Benefits Of The Policy They Have Bought.