Life insurance Policy is a contract between insured and the life insurance company (insurer) for the specified period of time (term) to protect your family against financial risk of your life to the extent of the life coverage (sum assured) by paying a cost (premium) to the life insurance company.
Life insurance is a must for the bread earner of the family, who has dependents. In case of an uncertain death of the bread earner it pays a lump sum amount to the nominee of the life insurance policy, so that the family can continue with the same standard of living even after losing him. Basically we can say life insurance covers the risk of death.
The cost or premium of your insurance policy depends on the type and kind of coverage you get under a life insurance plan. Premiums vary from insurance type to insurance type. So, for an identical insurance cover, term insurance premiums are extremely low while money back premiums are extremely high.
Insurers offer many options on paying the premiums. Monthly, quarterly, half-yearly, annual, or one-time all these are premium paying options. Remember, the annual premium-paying option is cheaper than a monthly premium paying option and the one-time premium-paying option is cheaper than the annual one, and so on.
Life insurance can provide for two risks the risk of your dying early AND the risk of your living too long.
It provides financial security to your family if you are not around anymore, depending on the type of life insurance policy you opt for. Different types have different premium levels and varying coverage.
Some insurance plans also provide income for you in your non-earning years i.e. after retirement. There are various life insurance plans that do this, such as endowment plans and pension plans.
Life insurance can provide for two risks the risk of your dying early AND the risk of your living too long.
It provides financial security to your family if you are not around anymore, depending on the type of life insurance policy you opt for. Different types have different premium levels and varying coverage.
Some insurance plans also provide income for you in your non-earning years i.e. after retirement. There are various life insurance plans that do this, such as endowment plans and pension plans.
You have done the right thing by you and your family by buying that life insurance policy, covering yourself adequately. Now, how about an actual claim? How would you go about that?
The process claim is straightforward and simple. There are instances when claims can be rejected, for instance, on proving misrepresented facts on the insured's part.
There are some charges besides the premium, that you pay for life insurance plans. These include commission paid to the insurance agent, administration charges towards your policy, mortality charges, etc.
There is a whole bunch of charges in ULIPs - Premium allocation charge, fund management charge, surrender charges, policy administration charges, mortality charges, fund switching charges, switching charges, partial withdrawal charges, revival charges, and miscellaneous charges.
A life insurance policy covers two types of risks ?? first is of living too long and second of dying early. Important goals and even dreams of your family members can be achieved through an insurance policy. It will provide financial stability to the affected family so that they are able to maintain similar standard of living after the demise of key member.
An insurance policy is the perfect way to protect your family from various financial crises, which they may face when you are no longer there. It will provide financial consistency so that the family is able to face such situations, which can affect them financially.
In case of uncertain death of a sole earner, nominee or beneficiary included in policy will receive a lump sum amount. Insured can also opt for a policy, which pays constant income by way of pension after retirement.
Life insurance policy can be useful at every stage of life to any segment of the population. If you are a young earner then you can accumulate a big corpus for the retirement with many years left in your pocket with your policy. By taking a life insurance policy you will be on a secured path to turn your dreams into reality.
Your post retirement expenses, death and disability, debts, various key goals including marriage and education of your children etc. can be met with your insurance policy. All these crucial risks and dreams can be managed systematically with the help of insurance policy.
Life insurance India is termed as the most effective rescuer when you??re in need of funds in case of any eventuality. Importance of life insurance can be understood when any uncertain event arrives and you are short of funds to overcome it. Risk related to your life can be easily taken care of with an effective life insurance policy.