Life Insurance
"In case you are not there to hold him make sure you leave a safety net for them"
Individual Life Insurance Plan
Life insurance is a contract between you and a life insurance company. You agree to pay for the policy on a regular basis, and the insurer agrees to pay a sum of money to your beneficiaries if you die. Within those parameters are several types of life insurance. We start with the our customer's requirement to access their goals and drive towrds solutions.
The obvious and most important benefit of insurance is the payment of losses. An insurance policy is a contract used to indemnify individuals and organizations for covered losses. The second benefit of insurance is managing cash flow in th times of uncertainty. Insurance provides payment for covered losses when they occur.
FEATURES OF LIFE INSURANCE POLICY
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Waiver of premium: This feature facilitates the beneficary of the waiver of the premium payment if life insured expires or is disabled.
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Accelerated death benefit: This feature allows you to receive cash advances against the death benefit of your policy if you're diagnosed with a terminal illness. Many people with this benefit use the money to help pay for treatment and other expenses when they have only a short time to live.
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Guaranteed purchase option: With this feature, you can purchase coverage at designated future dates or life events without proving you're in good health.
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Long-term care riders: Some life products include this option, which allows you to use the benefits of your policy to pay for long-term care in exchange for a reduced life benefit.
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Cash withdrawals and loans: Many universal and whole life policies allow you to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low. You can also use the cash value of your life policy to pay your premiums if you need or want to stop paying premiums for a period of time.
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Cash value plans: This type of policy pays out upon your death and also accumulates value during your lifetime. You can use the cash value as a tax-sheltered investment, as a fund from which you can borrow and use to pay the policy premiums later.
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Mortgage protection: This feature, typically found on term life policies, will pay your mortgage if you die.
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Survivor support services: Some life policies offer services that provide objective financial and legal assistance to beneficiaries.
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Employee assistance programs: This feature makes resources available to you for problems that can affect your personal and professional life. Resources are usually free and help address issues such as substance abuse, stress, marital problems, legal concerns and major life events.
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Spouse or child term riders: Life policies with this feature allow you to purchase term life insurance for your spouse or dependent child, up to age 26. This option can be a more affordable way to purchase coverage if you can't afford separate policies
Endowment Plan
The New Endowment Plan from Insurance Companies is a non-linked, participating, life insurance policy. This policy guarantees a death/maturity benefit with additional bonuses. The higher the period of maturity the higher is the maturity amount as the bonuses are higher. Further, the policyholder can also avail a loan against the policy if he/she is in need of emergency funds. Policyholders can also increase the level of coverage offered by the Endowment Plan by opting for Accidental Death and Disability Benefit Rider. One is also entitled to claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Term Plan
Term insurance is a type of
life insurance
policy that provides coverage for a certain period of time or a specified
"term"
of years. If the insured dies during the time period specified in the policy and the policy is active, or in force, a
death benefit
will be paid.Term insurance is initially much less expensive when compared to
permanent life insurance
. Unlike most types of permanent insurance, term insurance has no cash value. In other words, the only value is the guaranteed death benefit from the policy.
Annuities and Pension Plan
Retirement is an inevitable stage that comes in every working individual’s life. It is a stage in life which is likely to bring feelings of apprehension, especially in terms of finances. Now, that regular paychecks will no longer be there as most of the Government organisations have abandoned pension for their employees, maintaining one’s lifestyle and meeting expenses is a valid worry which will every retired individual’s mind. However, Insurance Companies brings a special product designed specially to provide a regular income after you’ve retired, and in some cases, also provide insurance cover. Here are some important things which can help you decide on which pension plans is best suited for you.
Money Back Plan
A traditional insurance, Money Back, plan pays out the same maturity benefits in the form of several guaranteed “survival benefits” which are staggered evenly throughout the course of the policy. The Plan is with the benefit of regular liquidity as the beneficiary get payback on a regular basis. Not only this, but it also pays out a lump Sum Assured in the event of the death of the life insured. The beneficiaries/dependents/nominees of the life insured receive a benefit (called a death benefit) if the worst should come to pass for the insurance holder.
Whole Life Insurance
Whole life insurance plans are a type of life insurance plan which provides insurance coverage to the policyholder for the whole life i.e. up to 100 years of age, provided the policyholder pays the premiums of the policy on time. A whole life insurance plan offers guaranteed death benefit to the beneficiary of the policy in the event of an unfortunate demise of the policyholder during the tenure of the policy. The insurance holder can decide the sum assured amount at the time of policy purchase.
Under whole life insurance plan if the policyholder survives up to 100 years of age, then matured endowment coverage is provided to the policyholder as maturity benefit.
Unit Link Plan
Insurance is a financial product that has quite a few variants depending upon what exactly is being insured and what use will the premium amount be put to. Life insurance plans, health insurance plans, loan insurance plans are some of the most common insurance plans that we come across when we learn about insurance policies. Unit-linked insurance plan is a widely acclaimed investment cum insurance instrument across the globe. Unit-linked insurance plans or ULIPs as they are generally called is an integrated financial product that has features of both insurances as well as investment.
