Life Insurance plan is the safest and the most secure way to protect your family or dependents against financial contingencies that may arise post the unfortunate event of your untimely demise. Under a Life Insurance Contract , the insurer assures to pay a definite sum to the policyholder’s family on his demise during the policy term.
Life insurance is a contract between insurer and insured.
When we refer to insurer that is company selling the insurance policy.it could be lic,hdfc,birla sun life.Insured is we who is taking the policy.when we take the policy,we are called insured.we take insurance policy because we want to protect ourselves and our family . if any eventuality occur,insurance company will give benefits of policy to nominee and for this,we have to pay premium.
Various types of life insurance
1)Whole life policy -In this policy, nominee will get compensation on policy holder's death. It is a good policy to protect family for financial crisis after death.
2)Endowment policy- It offers the dual benefit of insurance and investment. A certain part of the premium is allocated towards the sum assured, while the remaining portion of the premium gets invested in asset markets— equities and debt.
This policy is for particular number of years .typical maturity period is 15 or 20 years. After completion of maturity period or specified duration, insurer will get lump sum amount of money. If any eventuality or policy holder's death during policy period,then nominee will get compensation.
3)Joint life policy- A Joint Life Policy is an insurance policy which is taken out by the partnership firm on the joint lives of all the partners. The amount of policy is payable by the Insurance Company either on the death or on maturity of policy, whichever is earlier. The firm pays annual premium to the insurer against the policy. Joint Life Policy will be an asset of the firm and deceased partner has a right to share any profit or loss on such policy. So, any claim which is received by the firm on the death of a partner is divided among the partners and credited to their capital accounts in their profit sharing ratio.
4)Annuity policy- an annuity is a contract with an insurer whereby you agree to pay the company a certain amount, either in a lump sum or through installments. In turn, it makes a series of payments to you now or at some future date. Sometimes those payments last for a specific time period – say, 10 years. But many annuities offer lifetime disbursements. As a result, the fear of exhausting your assets starts to subside.
5)Term insurance- Term assurance provides life insurance coverage for a specified term like 10,15 or 25 years. The policy does not accumulate cash value. Term insurance is significantly less expensive than an equivalent permanent policy but will become higher with age.
It is the simplest and cheapest form of insurance that is designed to offer financial protection for a specified tenure, say 15 or 20 years. Term insurance ensures that your family gets a large lump sum amount, i.e; sum assured after your death to lead a financially stable life. However, if you survive the term, the insurer pays nothing. The best thing about a term insurance policy is that the premium is quite low for the insurance cover it provides.
6)Child deferred insurance- Children's deferred insurance is issued on the life of the child. The parent or guardian is the policyowner. When the child reaches the vesting age (either 18 or 21), the policy will be vested in the child (thereby making him/her the policyowner as well as the insured) and future premiums will be continued by him/her. Sometimes, the parent may want to continue paying the premiums, which is allowed by the insurance company. The purpose of this type of policy is to provide the child with future life insurance cover. However, if the child dies before attaining the vesting age, the sum insured of the policy is not payable. Only the premiums paid (with or without interest, depending on the company's policy) are refunded. Should the child die after the vesting age, the full sum assured will be paid.
7)unit linked insurance plans-ULIP is a combination of insurance and investment. Here policyholder can pay a premium monthly or annually. A small amount of the premium goes to secure life insurance and rest of the money is invested just like a mutual fund does. Policyholder goes on investing through the term of the policy – 5,10 or 15 years and accumulates the units.
8)Group insurance-Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.
You may also like
What is auto insurance and how can we get auto insurance quotes online
What is Term insurance and why should we buy Term insurance
Life insurance is a contract between insurer and insured.
When we refer to insurer that is company selling the insurance policy.it could be lic,hdfc,birla sun life.Insured is we who is taking the policy.when we take the policy,we are called insured.we take insurance policy because we want to protect ourselves and our family . if any eventuality occur,insurance company will give benefits of policy to nominee and for this,we have to pay premium.
Life Insurance is an agreement between an insurance company and a policyholder, under which the insurer guarantees to pay an assured some of money to the nominated beneficiary in the unfortunate event of the policyholder’s demise during the term of the policy. In exchange, the policyholder agrees to pay a predefined sum of money in form of premiums either on a regular basis or as a lump sum. If included in the contract, some other contingencies, such as a critical illness or a terminal illness can also trigger the payment of benefit.
Various types of life insurance
1)Whole life policy -In this policy, nominee will get compensation on policy holder's death. It is a good policy to protect family for financial crisis after death.
2)Endowment policy- It offers the dual benefit of insurance and investment. A certain part of the premium is allocated towards the sum assured, while the remaining portion of the premium gets invested in asset markets— equities and debt.
This policy is for particular number of years .typical maturity period is 15 or 20 years. After completion of maturity period or specified duration, insurer will get lump sum amount of money. If any eventuality or policy holder's death during policy period,then nominee will get compensation.
3)Joint life policy- A Joint Life Policy is an insurance policy which is taken out by the partnership firm on the joint lives of all the partners. The amount of policy is payable by the Insurance Company either on the death or on maturity of policy, whichever is earlier. The firm pays annual premium to the insurer against the policy. Joint Life Policy will be an asset of the firm and deceased partner has a right to share any profit or loss on such policy. So, any claim which is received by the firm on the death of a partner is divided among the partners and credited to their capital accounts in their profit sharing ratio.
4)Annuity policy- an annuity is a contract with an insurer whereby you agree to pay the company a certain amount, either in a lump sum or through installments. In turn, it makes a series of payments to you now or at some future date. Sometimes those payments last for a specific time period – say, 10 years. But many annuities offer lifetime disbursements. As a result, the fear of exhausting your assets starts to subside.
5)Term insurance- Term assurance provides life insurance coverage for a specified term like 10,15 or 25 years. The policy does not accumulate cash value. Term insurance is significantly less expensive than an equivalent permanent policy but will become higher with age.
It is the simplest and cheapest form of insurance that is designed to offer financial protection for a specified tenure, say 15 or 20 years. Term insurance ensures that your family gets a large lump sum amount, i.e; sum assured after your death to lead a financially stable life. However, if you survive the term, the insurer pays nothing. The best thing about a term insurance policy is that the premium is quite low for the insurance cover it provides.
6)Child deferred insurance- Children's deferred insurance is issued on the life of the child. The parent or guardian is the policyowner. When the child reaches the vesting age (either 18 or 21), the policy will be vested in the child (thereby making him/her the policyowner as well as the insured) and future premiums will be continued by him/her. Sometimes, the parent may want to continue paying the premiums, which is allowed by the insurance company. The purpose of this type of policy is to provide the child with future life insurance cover. However, if the child dies before attaining the vesting age, the sum insured of the policy is not payable. Only the premiums paid (with or without interest, depending on the company's policy) are refunded. Should the child die after the vesting age, the full sum assured will be paid.
7)unit linked insurance plans-ULIP is a combination of insurance and investment. Here policyholder can pay a premium monthly or annually. A small amount of the premium goes to secure life insurance and rest of the money is invested just like a mutual fund does. Policyholder goes on investing through the term of the policy – 5,10 or 15 years and accumulates the units.
8)Group insurance-Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.
You may also like
What is auto insurance and how can we get auto insurance quotes online
What is Term insurance and why should we buy Term insurance
Along with life insurance coverage in position, beneficiaries may have no trouble balancing the budget.S Jones Insurance Hero
ReplyDeleteThis blog has expressed its meaning in a very short but clear way, so succinct.
ReplyDeleteonline payday loans for bad credit
This blog is so valuable. A present for the blog perusers.
ReplyDeletehttps://theloanrepublic.com
I want you to thank for your time of this wonderful read!!! I definately enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog!
ReplyDeletewhere to get a long term loan