Life Insurance can be define as a contract between an insurance policy holder and an insurance company. Where the insurer promises to pay a sum of money in exchange for a premium. Upon the death of an insured person or after a set period. or A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment. Known as a death benefit, to beneficiaries upon the insured’s death.
Term life insurance
Term life insurance is design to provide financial protection for a specific period of time. Such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance.
How much life insurance do I need
life insurance Although, it is not possible to attach a rupee value to human life. It is nonetheless important for you to estimate the value of your life in terms of what. It will take for your family members to be financially independent in your absence. In insurance parlance this is the sum assure. The financial estimate of the value of your life is call Human Life Value.
The fundamental method of calculating the human life value involves two steps:
Once you add the two figures, you get your human life value. Which in effect is the sum assure for your life insurance policy.
Points to remember:
What Life Insurance Offers?
Life insurance offers you risk coverage and takes care of monetary needs of your family after your death. Besides providing coverage against all sorts of risks. It gives you an opportunity to grow your investments. It could also be viewe as a long-term investment tool that help. You to save for your child’s future expenses or your post retirement expenses.
Types of Life Insurance
Type of Insurance Policy Features
Whole Life Policy the policyholder pays regular premiums until his death, upon which the corpus is paid out to the family.
|1||Term Life Insurance||Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period.|
|3||Endowment Plans||Endowment plans pay out the sum assured under both scenarios – death and survival|
|4||Unit Linked Insurance Plans||ULIP is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments.|
|5||Money Back Policy||Money back plan is a life insurance product as well as an investment plan which provides life insurance cover against death of the policy holder along with periodic returns as a percentage of sum assured.|