Life Insurance
Among various insurance products, LIFE INSURANCE has been the most popular. It is an important part of financial planning. Life insurance provides financial protection to the family in case of the death of the breadwinner of the family. It enables the family to lead the same standard of life even after the demise of the head of the family.
Life Insurance is a contract between the insurance company called INSURER and the Policyholder called INSURED. The amount guaranteed is called the SUM ASSURED. The insurance company guarantees the payment of sum assured to the named beneficiary in case of death of the insured.
Type of Life Insurance
Term Insurance Plans
Endowment Plans
Life Insurance
Endowment Policy
Unit Linked Insurance Plan
Money Back Policy
Whole Life Policy
Pension Plan
Buying Decisions
Medical Check-up
The issuance of a life insurance policy depends upon the good health of the policyholder. Hence, a comprehensive medical check-up is done before issuing the policy. A medical check-up is arranged by the Insurance company at their cost through their approved doctors/hospitals. The premium also depends upon the medical condition and habits. The premium is higher for those who are consuming alcohol and tobacco. For any pre-existing disease, too, premiums may vary.
Riders
Riders means obtaining additional coverage by paying extra premium. The following type of riders are available:
- Accidental death benefit– In the policy, the risk of accidental death can be covered.
- Disability– In case policyholders become disabled due to some reasons, either sum assured is a payable or certain percentage of sum assured is paid.
- Critical Illness-If policyholder is diagnosed with any critical illness like Cancer etc. the sum assured will become payable.