Insurance is a contract between The Insurer (Insurance Company) and The Insured (policyholder) in which the Insurer guarantees benefits (sum assured against the policy) in return of specified premiums. It provides security and financial support at the time of need.
After learning briefly about definition and introduction of insurance, let us now understand what life insurance is.
You must have heard about the term ‘Life Insurance’ but do you know the Life Insurance Meaning
Like Insurance is an Insurance which offers risk coverage and gives financial support by covering monetary needs of the family after the death of a policyholder. In a simple term, it is a back-up plan which smoothens your life.
There are multiple insurance companies in the insurance market which provide various types of life insurance policy with attractive coverage benefits. You can compare and choose a plan according to your needs and requirement.
Term Life Insurance –
This plan is for a fixed period of time i.e. 15 years, 20 years, 30 years etc. bảo hiểm ô tô It provides death benefits to the insured if the insured dies during that specified plan period. It is the most affordable plan which has high coverage at low premiums.
The benefits are paid in lump-sum, as monthly payouts or both combined, depending on the policy.
Whole Life Insurance -As the name suggests, this policy extends up to the whole life of the Insured and does not end after a specific period of time like other policies. This has both death benefits as well as cash value which help you survive throughout the life. You can partially withdraw cash or take a loan against your policy.
Endowment Policy -This is somewhat similar to Term Insurance policy, but this has extra benefit along with the Death benefits. Even if the Insured survives or surpasses the maturity date of the policy, Insurance Company will still pay lump-sum amount against the policy.
Money Back Policy –
This policy has various survival benefits. It provides periodic pay outs to the Insured throughout the policy tenure and the rest of the part of the sum assured after the policy comes to maturity. In case of death, the entire amount is paid to the nominee.
Annuity/Retirement Plan –
This policy helps you save throughout your work life and the Insured receives the amount collected through those premium, at the time of their retirement, either in the form on regular income or in lump-sum, depending upon the plan and its terms.
Savings & Investment Plan –
This plan helps you save money regularly and provide funds for future expenses, help you with your short- or long-term financial goals. Besides this avenue, death benefits are also provided under this plan.
Unit Linked Insurance Plan (ULIP) –
This plan is a combination of both insurance and investment. However, the insurance premium is paid, monthly or annually, a part of that premium goes to insurance and the other is invested in assets chosen by the Insured. The Insured can also partially withdraw the amount.
Child Insurance Policy -Under this, future financial needs i.e. education, marriage etc. are covered. The policy is taken on Child’s Parent. In case of death of a parent, child’s future is secured as the policy gives financial support at different stages of life, depending on the policy chosen by the policyholder.