Life Insurance
Life insurance is a kind of agreement made between a living person and an insurance company. The person, or the insured, must pay a regular fee (called a premium) to the insurance company. In return, the insurance company will pay a pre-determined sum to the insured's family upon his or her death.
There are many kinds of life insurance policies in the market i.e.
- Anticipated Endowment (Moneyback)
- Child Plan
- Endowment Plan
- Health Plan
- Pension Plan
- Single Premium
- Term Plan
- Whole Life
Anybody who has dependents (children or a spouse that relies on this person's income) should invest in life insurance. In the event of his or her death, the insurance settlement will cover the lost income resulted in that person's death.
Indian life insurance is seen as an important long-term investment. When considering various policies, one must keep the following in mind:
- Life insurance is a must for everyone. Life insurance is a protection for family member and dependents against debt, funeral expenses, financial support and children’s education.
- Compare the coverage amount and period. This will determine not only the amount one would be eligible for in case of a mishap, but also the insurance premium. One should try to maximize life insurance coverage at the lowest cost.
- Avoid guaranteed issue life insurance policy if you are healthy. Although this Indian life insurance is the easiest to purchase, as it does not involve a medical examination, it has the highest premium amount.
- Selecting an annual premium payment plan instead of a monthly one results in lower cost.