Insurance: Insurance is a necessity, any person shouldn’t consider it optional or an investment or tax saving tool. There are many types of Insurance each with different categories to meet different needs, i.e. Medical & life insurance for people, Home insurance for your home, Vehicle insurance for your vehicles, Travel insurance for your journey, Transit insurance for your products, Electronic goods insurance for your Electronic products.
Life Insurance: Every individual should atleast have life insurance irrespective of their income. Life Insurance protects you and your family from unforeseen circumstances, it helps your family financially. Purchasing Life insurance doesn’t make you rich, but it protects your family from becoming poor, Your family gets the
Sum assured of your Insurance Policy, its funds your family, food, clothing, education and shelter after you. some insurance companies have Disability rider and serious illness rider with their insurance policy, Depending on the circumstances you don’t have to pay future premiums or policies which pays you the entire insurance amount you secured for in case you have met with an accident and you have been disabled or incase you are contraindicated serious illness like chronic lung disease, apallic syndrome, heart valve surgery, major head trauma etc. there are mainly five types of life insurance policies, term insurance,endowment plan insurance, whole life insurance, unit link plan insurance and money back insurance policy.
Term Insurance: Term insurance is the cheapest of all insurance as it gives returns if the insured person is no more. In term insurance the premium is very less compared to other insurance plans as it gives no maturity benefits. Some insurance companies offer add-ons with term insurance like critical illness rider and disability rider. The benefit of these add-ons is that in case you have met with an accident and get disabled, you get the sum insured and the same goes with the critical illness rider, All these benefits varies as per insurance companies policy, so you should review and compare the policies before buying.
Endowment Plan Insurance: Endowment plan is a life insurance policy designed to pay an assured sum amount at the maturity period, an endowment policy has a maturity period of 10 to 25 years depending on your age. Endowment policy benefits with the term of the policy, the longer the year of premiums you the more the benefits you get. In Endowment policy, you can opt for additional add-ons like disability rider and critical illness rider.
Whole life Insurance: Whole life insurance policy is a wealth accumulation policy the premium of the policy remains same as it was at the time of taking the policy. It provides the insurer life time insurance or up to the age of 80 years. At the time of maturity the insured person gets the sum assured plus interest and additional bonus. The Whole life insurance policy also comes with optional disability and critical illness rider.
Unit Link Insurance Plan: Unit Link Insurance Plan is an insurance with an investment in equity plan, in this insurance your money is invested in the stock market, Your investment is in units in this insurance plan and subject to the movement of stock market, you may make huge profit or make some loss as per the stock market movement. Many people who prefer investment avoid these plans.
Money Back Insurance Policy: In money back insurance policy you get life insurance as well as a fixed amount of sum assured at a particular time frame from the start of your policy.