What is life insurance? Why do life insurance? | Life Insurance

What is life insurance? Why do life insurance? | Life Insurance

Through this post you will know what is life insurance? Why do life insurance? What are the disadvantages of life insurance, and what are the different types of life insurance plans in India?

We have all heard the name of life insurance but many have misconceptions or comments on this subject. Many people are confused about life insurance, what to do or not to do? So let's not know what is life insurance? And some of the information involved.

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With the increasing uncertainty of life today, life insurance is proving to be an ultimate lifeline in people's lives. Having a life insurance cover ensures that your family does not face any financial risk in your absence.

Especially after the Corona epidemic, many people have a better understanding of life insurance or financial security.

What is life insurance?

A life insurance policy is an agreement signed between a policyholder and an insurance company. The insurance company guarantees financial assistance to the nominee or nominee in the event of loss of life of the policyholder as per this agreement but only if the policyholder pays regular premium.

Why do life insurance?

Life insurance nowadays provides financial assistance in case of loss of life of the sole breadwinner of the family but you need to know why you should take life insurance and what are its requirements?

Everyone wants the family not to face financial difficulties in case of loss of life due to their absence or any uncertainty. That means love and affection towards family can be a factor that will lead you to life insurance.

Your personal, family and professional goals will help you choose life insurance.

For example, are you planning to be a parent? What are your career and income goals? At what age do you want to retire? Etc. Depending on the factors like why you take life insurance and which company's insurance will be better for you.

If you have life insurance coverage, the loan you take out will not be a burden for your family members.

Moreover, your funeral expenses can be covered by this insurance. In a word, life insurance will take all the responsibility on you.

Depending on your needs, you can have different types of insurance such as short term insurance, retirement insurance, child insurance plan etc.

Moreover, if you have all the responsibilities of running a family, the financial assistance received by this insurance in your absence will help your family to lend or live their next life.

The difficulty of life insurance

You will have to pay the premium of the insurance policy regularly and for that you will have to reduce your monthly expenses. Usually life insurance is not for yourself i.e. for the policyholder, it is for the future of the family and their children.

If you feel you are no longer able to pay the premium and want to surrender the policy, you may receive less or less than the total amount you paid.

Life insurance can be expensive for you if you are unhealthy or old. Life insurance is usually best done at a young age and in good health because the company will ask you for more money as a premium if you are older or older.

Term life insurance will work better for you than full life insurance. Because full life insurance is very expensive.

It is best to verify that your life insurance agent is trustworthy. You need to know all the information from your agent before you start life insurance.

There are different types of life insurance plans, you need to know everything before you take out the insurance because you may be mistaken or the agent may forget to determine the right insurance.

What are the different types of life insurance plans in India?

Now that you know some information about life insurance, let's find out what life insurance plans are.

There are several types of life insurance policies that you can choose from. But remember that before any plan or plan survives, you need to set financial goals.

1) Term life insurance

This is a popular plan in life insurance because your policy will mature within a certain period of time like 10, 20, 30 years. The premiums here are very affordable so you can take out this insurance at the beginning of your career. Some of the best term life insurance plans pay for the treatment of your serious illness.

2) Whole life insurance

This policy will work for your entire life i.e. till you are 99 years old. In this policy you will get cash and some other benefits for sudden death. In this policy you can spend some money in old age but the rest of the money will go to your nominee.

3) Unit Linked Insurance Plans

In this plan you will get the benefits of both life insurance and investment. That means you can make money with the policy. But this policy depends on the market momentum or uncertainty, so you should insure after checking its risk.

4) Endowment / savings plan(Endowment policy)

This plan will give you some money when the policy matures in your leisure time so that your last life is well spent. This money can be spent on your child's higher education, buying a new home, or living a leisure life.

5) Money Back Policy

In this policy you will get money at fixed intervals. One per cent of the sum insured is refunded during the term of the policy and you will get some benefits once the policy matures. In case of death of the policyholder during the course of the policy, you will get all the benefits and money together.

6) Retirement Plans

With this policy you can save money for your leisure. You can nominate your wife as a nominee in this life insurance plan. In your absence your spouse will be able to live financially independently. Plus, you'll be getting rid of clutter you don't need.

What are the names of life insurance companies in India?

• Life insurance corporation of India (LIC)
• SBI Life Insurance
• Bajaj Allianz Life Insurance
• Kotak Life Insurance
• Birla Sun Life Insurance
• HDFC Standard Life Insurance
• ICICI Prudential Life Insurance
• Max Life Insurance

Last word

There is no hope in our lives because our lives stand on uncertainty and nothing can be said about what will happen when. We must always be prepared for unforeseen circumstances and be a shining example of the covid-19 epidemic.

A life insurance helps you and your family to live in peace because you know that your family will not be financially helpless in your absence.A small investment can have a big impact on your life and you can live your life in peace.