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Want to make your life more worthy!Go for life insurance
Life insurance as the name suggests, is the insurance of life. In India people carry their hereditary and the lineage with their responsibilities which goes on even after death. Therefore, in the Indian family system, life insurance plan plays a vital role to safeguard their loved ones and dependants. Life insurance is a promise or a written contract between the insured, the person who insures his life and insurer, and the company which insures his life. In India life insurance policy is the most popular and the oldest policy. The first company to start this was Life Insurance Corporation of India (LIC) which was set up in 1956. From 1956 LIC has been ruling the life insurance sector.
once the insurer issues the life insurance policy, with a certain policy amount, the policy holder has to pay some predetermined amount i.e. premium in regular intervals to the company. If the policy holder successfully makes all the payments, he will become eligible for the receipt of certain assured sum of money, after the maturity date. Also, if the policy holder dies unexpectedly in an accident or in any other event, an assured amount of money will be paid to the nominees mentioned in the policy irrespective of the full payment of the policy amount. Policy holder through it can also avail tax exemption.
There are some important factors one should consider before taking a life insurance policy like premium, nature of policy, benefits and coverage. An individual must decide the premium he can bear on the basis of his income and the need for insurance. After that he must check the nature of the policy that suits his conditions and must always look forward for the benefits he is supposed to procure by the means of policy and the coverage he gets through this plan. Generally, Life insurance plans cover the risk of life due to some uncertain event.
Life insurance plans are categorized in to 8 types and they are
Life Insurance: Most popular policy which covers an individual from the risk of death and for long term savings. Minimum age limit for this is 20 years and maximum age limit is 60. The maximum term can be 25-35 years. Minimum sum assured is 50000 INR.
Endowment plan: In this plan the individual or dependents not only get the assured amount but also bonuses till that point of maturity. Remember, this long-term plan requires high premium payment.
Term insurance- This plan is low on premium and is only a protection plan that has no cash value.
Children’s plan- The cost of education is unimaginable and this plan helps the policy holder and his child to get an assured sum of money for the child’s education after the maturity or in case of death of the policy holder.
ULIP plan- Unit Linked Plan is similar to the life insurance plan but the only difference is that the company distributes the investment gains to the policy holders.
Pension Plan- This is a plan which serves the individual and his family after the retirement with an assured sum of money along with life coverage, when the individual will not be having any source of income.
Money Back Policy- This is very feasible and easy policy where the individual can get both life coverage and savings. There is an option like the holder can quit the plan and can enjoy the benefits till that point or in case of any uncertainty his dependents get the assured sum and bonus irrespective of the full payment.
Whole life insurance- As the name suggests, is for the whole life without any maturity period. Policy holder is not entitled for any money in his/her survival.
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