INSURANCE
LIFE INSURANCE
Life insurance offers dual advantage of risk management and investment. Key benefits of life insurance include protection for family, Childs education, asset protection and planning for life stages needs etc.
Here are the looks of types of Life Insurances.
NEED OF LIFE INSURANCE
FINANCIAL PROTECTION FOR FAMILY
Life Assurance prevents families from becoming a burden on society. If the Income-Earner in a family was to die, the family might have no income to survive. With Limited Income or No Income, the Family would rely on the Government for Subsidies: and there would be No Money to Pay, for Education for the Children, Limiting the future Employment Opportunities of the Children.
With Life Assurance, it ensures that, in such an Event, the Families will have the financial resources to protect their future income and pay for immediate and future financial obligations to continue living in their homes, provide Education for Children, and look after their Financial Needs.
types of Life insurance
ENDOWMENT INSURANCE
An Endowment policy is a combination of a protection plan (insurance) and a saving plan (investment). These types of policies cover the risk (insured)for the specified period. Thus, the insured has the option to insure himself till he wishes to be certified. It is a life insurance policy that pays the sum assured ( face amount) plus the bonus, if any, on a fixed date or upon the insured's death, whichever comes earlier. Bonus is paid for the number of years the policy was in force. In case of demise before the policy term, the sum assured and the accumulated bonus are paid to the nominee. Upon maturity, the insured receives the sum assured plus the bonus for the policy's term, if any. Thereafter, the insured is not covered by the policy.
An Endowment policy may declare a bonus every year. The money that is invested generates an inevitable return every year. This return is declared as a bonus. The bonus is typically generated as a certain proportion of sum assured or life cover as it is popularly known. Endowments can be cashed in early (or surrendered). The holder then receives the surrender value determined by the insurance company depending on how long the policy has been running and how much has been paid into it.
MONEY BACK POLICY
Money-back policies are a part of Endowment policies. These are opted by the people who want periodical payments.
A money-back policy is generally issued for a particular period, say 15, 20, 25,30 years, and the sum assured is paid through periodical payments to the insured, spread over this period. In case of death of the insured within the policy's term, the entire sum assured along with bonus accruing on it is payable by the insurance company to the nominee of the deceased. This Plan helps to accumulate a specific sum of money over a period of time.