Life insurance policy paves way for a safe and secured future

Life is unpredictable and so having a backup is always the best option for saving you and your family. Before you pen down your financial assets it’s always wise to plan for your financial status. When compared to other assets that you own, having a life insurance policy will be beneficial even after death. This policy carries multiple benefits that are really worth knowing.

Different types of Life Insurance Policy

Research reveals that in India, people use life insurance policy more for investment purpose but actually this policy is benefits in three ways like:

• Pure protection

• Protection and investment

• Only investment

Term plans

This term plan comes under the pure insurance policy and it is applicable only for life protection. It is paid on a premium year on year to the company and incase if you face any accident or death, the particular money called as the Sum Assured is returned back. No other investments are battered along with this and thus it’s the economy insurance policy. There is also something called the:

Term-insurance-with-return-of-premium – During the end of the policy term, premiums that are paid are returned back to you

Endowment plans

When you are paying for a term plan, if you add an offer for some premium return backs, then it’s termed as the endowment plan. You are eligible to get both the sum assured and the returns. But it is quite expensive because you pay more premium year on year.

Whole-life plans

The name itself defines that this type of insurance policy offers a money backup for your entire life. Here it is all based on the maturity age, when filling the whole-life plans you need to specify the certain age you will pay the premium. After the date ends, the holder can either withdraw the sum and the bonus or continue the plan without paying any premium.

Money-back plans

There is something called the survival benefits that you should be aware of. The insurer can pay the amount at some periodic intervals. In case of death, then the beneficiary can get the entire sum assured and nothing will be deducted the survival amount. Even the bonus will be considered on full sum and not the balance money. These are even more costly than the endowment plan.

The other policies are: pension plan, unite linked insurance plans etc. which will be discussed in the coming post. So, still not yet invested in life insurance policy? Check out for Insurance agents and place an investment for a sturdy future!

Source and Image: Net