Life insurance

Life Insurance can be defined as a contract between an insurance policyholder 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. A life insurance policy offers both death and maturity benefit to the insured.

• Life Insurance is like a parachute – If you don’t have it when you need it, you will never need it again!

BENEFITS OF LIFE INSURANCE:

Life insurance policy benefits can be used to help pay for final expenses after you pass away. This may include funeral or cremation costs, medical bills not covered by health insurance, estate settlement costs, and other unpaid obligations.

Life insurance can be an important part of your financial strategy. That's because a life insurance policy can help you ensure that your loved ones have a secure financial future after you pass away.

Not only can life insurance help cover your final expenses — it can also provide your family with a financial safety net by helping to replace your income or serving as an inheritance for a loved one.

Different Types of Life Insurance Plans in India

1. Term Life Insurance Plan
2. Whole Life Insurance Plan
3. Unit Linked Insurance Plans
4. Endowment/ Saving Plans
5. Money Back Policy
6. Child Insurance Plan
7. Retirement Plans

TERM INSURANCE

Term Insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. With term insurance, you can get a large amount of life cover (i.e., sum assured) at a relatively low premium rate. Term life insurance, also known as pure life insurance.

WHY CHOOSE TERM INSURANCE PLANS?

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

WHO SHOULD BUY A TERM INSURANCE POLICY?

Anyone with financial dependents should buy a Term Insurance Policy. This includes married couples, parents, business people and self-employed, SIP investors, young professionals with dependent parents, and in some cases, even retirees.

WHO IS ELIGIBLE FOR TERM INSURANCE?

Term insurance eligibility can differ for each plan and insurer. All insurance providers offer plans with unique terms and conditions. However, as per the general norms, the minimum age limit for buying a term insurance plan is 18 years. Likewise, the maximum age limit for buying a term insurance plan is 65 years. So, make sure that you fall under this age group if you wish to buy a term plan.

IS LIFE INSURANCE IS SAME AS TERM INSURANCE?

The most common difference between term insurance and traditional life insurance plan is that a term insurance plan only provides a death benefit in case of demise of the insured within the term period, whereas a life insurance policy offers both death and maturity benefit to the insured.

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