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Let's talk on the topic today that
what is Life Insurance? Before that, we try to know what is insurance.
Insurance is the weapon to deal with the possibility of any loss in future. We
do not know what will happen tomorrow, so we try to compensate for the possible
loss in the future through an insurance policy. Insurance means protection from
risk. If an insurance company insures a person, then the insurance company will
compensate for the financial loss caused to that person. Insurance is actually
a contract between the insurance company and the insured person. Under this
contract, the insurance company takes a fixed premium from the insured and pays
damages to the insured person or company in case of any loss according to the
terms of the policy.
Life insurance is very important, but
the language of life insurance is so difficult that it is difficult for even
the best people to understand the difference between different policies. Life
insurance provides financial security to the dependent people after the sudden
death of employed people. A man's life is very valuable and it is not easy to
determine his economic value. But taking life insurance, you take an even
assured policy. Under this, his nominee gets that amount on the insured's
untimely death while the policy is in operation.
1. Term insurance plan
Life insurance that provides only
this type of insurance is called term life insurance. This is purely a life
cover. It is simply life insurance that promises to pay a guaranteed amount in
the event of the death of the insured during the policy's term. This plan can
be purchased for a fixed time, such as 10, 20, 30 or 40 years. Under this plan,
you get coverage for a tenure that you choose. In such a life insurance policy,
there is no maturity benefit. These provide life cover without savings/profit
component. So they are cheaper than other policies. In term insurance, a
certain sum of money is paid to the assured beneficiary under the policy on the
death of the policyholder during the policy term. In term insurance, a higher
sum assured is available at a lower premium.
2. Endowment Policy Plan
This type of life insurance policy
has both insurance and investment. In this policy, there is a risk cover for a
fixed period and the sum assured is returned to the policyholder along with the
bonus at the end of that period. The face value of the policy amount is paid
under the endowment policy after the death of the policyholder or after a
specified number of years. Some policies also pay in case of critical illness.
3. ULIP Plan
In this plan also both protection and
investment remain. In traditional ie endowment insurance policy and money back
policy, the returns are certain to a certain extent, while there is no
guarantee of returns in ULIPs. The reason for this is that the portion invested
in ULIPs is put into bonds and shares and you get a unit just like a mutual
fund. In such a situation, the returns are based on market fluctuations.
However, you can decide how much of your money should be invested in shares and
how much money should be invested in bonds.
4. Retirement Plan
Life insurance cover is not available
in this plan. This is a retirement solution plan. Under this, you can create a
retirement fund by assessing your risk. After a fixed period, a fixed amount
will be paid as a pension to you or to Beni Fesiri after you. This payment can
be on a monthly, half-yearly or yearly basis.
5. Lifelong Life Insurance Plan
In Whole Life Insurance Plan, you get
lifetime protection. That is, there is no term of the policy. Upon the death of
the policyholder, the nominee gets an insurance claim. Other life insurance
policies have a maximum age limit, which is usually 65–70 years. After death,
the nominee cannot take the death claim. But under the Life Insurance, the
nominee can claim the death of the policyholder even at the age of 95. The
premium of this policy is very high. Under this policy, the policyholder has
the option to partially withdraw some insurance. Apart from this, he can also
take money in lieu of the policy as a loan.
6. Money-back Insurance Policy Plan
This policy is a kind of endowment
policy. There is also a combination of investment and insurance in this policy.
The difference is that in this life insurance policy, along with the bonus, the
sum assured is returned in instalments only during the term. The last
instalment is available at the end of the policy. If the policyholder dies
during the policy term, then the entire sum assured gets to the beneficiary.
Although the premium of this policy is the highest.
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