Last Updated on July 31, 2021 by Aaron Thompson
Now as we are already that there are many types of insurance, the most important of which is life insurance. Now you are wondering what is life insurance. Do not give Today in this article we are going to give you every information related to life insurance.
What is life insurance
Life insurance is also called life insurance. Life insurance is a written contract between the insurance company and us as the person who has taken the insurance.
The person taking the insurance has to pay a certain amount to the insurance company for some fixed time which is called the amount of premium.
If we die in an accident of a person whose insurance is taken, then the insurance company gives some amount to his family. How much this amount will be depends on how much premium of the insurance has been paid.
Life insurance is for an individual. This should be the very first step taken for any financial plan. All the people who are doing financial planning definitely recommend life insurance. By taking insurance, some have also given me a revet on tax.
How much will be the premium of life insurance You are taking life insurance personally from the insurance company or when. Because as the age increases, the premium of life insurance also increases. It is stated that “the smaller the insured, the decrease the premium”. That is, the younger the age, the higher the premium.
In some life insurance policies, we are given money to the policy holder even after the maturity of the policy is brought by the insurance company, it is not necessary that the money is received. It depends on whether you have taken a C policy.
Now that we know what is life insurance. Now you are thinking why this is necessary. Tho let’s go through the interactions of life insurance covers
Why is life insurance necessary?
As we mentioned earlier, getting life insurance is the first step in any financial plan. Every CA definitely advises its customers to take life insurance. The biggest reason for this is Tax Pay Me Revate.
And the biggest advantage of Dussehra is the long term savings of life insurance. Life insurance covers your life risk as well as plans a better financial future for you.
There is no trust in anyone’s life in today’s world. In this way, life insurance gives me a protection that if something happens to the breadwinner of the house, then at least the family will get financial support through life insurance.
What are the types of life insurance
Life insurance means that there are working plans of life insurance such as:
1. Term Insurance
This plan is the cheapest plan from all other life insurance plans. In term insurance, the policyholder has to pay the premium for a stipulated time or in case of death of the agri policyholder, then we in case Me Insurance Company, the nominee of the policy holder gets the amount which is in their contract. This amount is given in one go or several times on monthly or yearly basis. It depends on what you have written in your policy contract.
2. Unit Linked Plan (ULIP)
Unit Linked Insurance Plan (ULIP) is a slight upgrade plan from term insurance plan. This plan provides investment as well as life risk cover. Whether under the plan, when your premium is in India, a part of your premium paid goes towards your life cover or some percentage is invested in a market fund.
Its premium amount is slightly higher than the premium amount of term insurance. Is plan me policy buyer has full authority as to where he wants to invest his money.
3. Endowment Plans
This plan is considered to be better than both the earlier plans or its premium amount is also slightly higher than the other two plans. Do I also have to use some fixed percentage amount for life risk cover or do I invest some percentage.
This plan also gives some amount to the policy holder after the maturity of a certain age i.e. maturity benefit. Or if the policyholder dies before the maturity of the agriculture policy, then the nominee of the policy holder also gets the bonus amount in addition to the amount of life risk cover.
4. Money Back Life Insurance Plan
In a money back life insurance plan, the policyholder is given some amount by the policy company at a predetermined interval. This is called the survival benefit. This policy acts as a short term investment tool. The premium amount of money back life insurance plans is slightly higher than term, ULIP, and endowment plans.
5. Whole Life Insurance Plan
Whole Life insurance covers your life risk for the longest period of time with low premium amount. Life insurance has a life cover of around 100 years. And if the policyholder lives for 100 years i.e. on maturity of the policy, the policyholder also gets maturity benefits.
This policy covers the life risk for the longest time and therefore, if the purpose of a customer is to cover the life risk, then they give preference to the policy first.
6. Child Planning
Child plans are generally the tab lay of the policy holders when the objective of giving them a safe and secure future to their children is in man. It acts as a travel tool to make the lives of children easier. Especially this scheme is very useful at the time of children’s marriage or higher education. Child plan sometimes offers installment on annual basis or sometimes one time payout. You are the subject of your policy contract.
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