What is a life insurance

what is a life insurance

Endowment Plans

Endowment Plans are an ideal choice for the risk-averse customer. Endowments are long-term, regular savings plans with a built-in life cover.

Provided you have paid all your premiums, at the end of the term the policyholder receives the sum assured plus accrued /guaranteed bonuses that have been declared over the years, as a lump sum. In case of the unfortunate death during the term of your plan, the sum assured, will be paid out as a lump sum with the bonuses that the policy is entitled to.

The benefits of Endowment Plans are as follows:

  • Available as money back plans also
  • Option to avail a host of additional rider benefits
  • Cover your life for a longer period of time
  • Loan facility can be availed against most of the plans.

Whole Life Insurance

Whole Life Insurance plans provide cover throughout your lifetime. The premium could be paid for as long as a lifetime or for a limited period.

Unlike endowment plans they do not carry a maturity value and pay the sum assured to the family in case of the unfortunate death of the policyholder. A Whole Life Insurance plan assures that your family is protected against financial loss that could occur your death.

Group Insurance

Group insurance covers a group of people, usually members of societies, employees of a common employer,

or professionals. All employees or members are included under one 'master policy' owned by the employer /nodal agency. Group Insurance covers both life and savings products along with options like Superannuation and Health.

Retirement Plans

Retirement Plans make sure that you have support in the twilight years of your life. The savings you set aside today become your wealth and support in the years to come.

Retirement plans are of two types:
  1. Immediate Annuity Plans

Children's Plans

Insurance today offers a very simple assurance in terms of monetary support to a child and family incase of death or disability of parent and helps ensure that the shortage of fund never hampers dreams or aspirations of your child. In short, Children's Plans ensure a secured financial future for your child.

As parents, make sure you keep the following factors in mind before choosing a child insurance plan:
  • Should cover your child throughout even if something happens to the parent
  • The payout should be at a age when the child requires it the most, i.e. when he wants to enter his dream college or needs to start his career.
  • Should provide a regular source of income so that child doesn't have to compromise on his dreams and aspirations.
  • Your child should not be forced to pay the premiums of the policy.

Source: www.lifeinscouncil.org

Category: Insurance

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