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Life Insurance - Individual
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What is Life Insurance?
An amount which the nominee or the family will receive after the demise of the insured. Life insurance is simply a tool which will provide money to your near and dear ones after you, which will help them in different ways like paying EMIs, payment of school bills, payment of other household expenses etc. For that you need to pay risk charges to the life insurance company.
Need of Life Insurance
Life Insurance is required to provide financial security to the family. So that the family should be financially independent after the demise of the bread winner of the family.
Things to consider before buying a Life Insurance Policy.
- Credibility of the company, services offered and claim track record.
- Credibility of your investment consultant.
- Does the policy offered to you suit all your needs?
- Go through the terms and conditions of the policy (either through company’s own website or company’s broacher).
- Past track record of the product.
All the above one should check very carefully as it might be the case that your family have to claim the amount from the company.
Providing information to the company while filing up the Application Form.
One should provide all the correct information to the insurance company like your Personal details, Medical details, Family history, Existing insurance, Nominee details etc. as all these details helps the insurance company to rate the risk for you on the basis of which company issues the policy.
Types of Insurance
There are few different types of plans available to invest in life insurance.
Term Assurance Plan
A pure risk coverage policy which has no maturity value, in case of death nominee will get full sum assured of the policy. The premium in this policy is very low but the risk coverage is very high.
Endowment Plan
A traditional life insurance plan which comes with a specified coverage for the insured on a specific premium where at the time of maturity insured will get full sum assured plus bonuses and in case of death nominee’ll get full sum assured plus accrued bonuses
Money Back Plan
A saving plus risk coverage plan where insured will get sum money in specified intervals of the term of the policy, balance amount will be payable at the maturity with accrued bonuses. In case of death of the insured the nominee will get full sum assured alongwith the accrued bonuses.
Retirement Plan
Saving plans for the retirement which will generate income after one retire from work. |
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