subject: Benefits And Importance Insurance [print this page] Insurance, when introduced was a very good form of securing the future of ones family. Life insurance still remains one of the best ways of providing financial support to the dependants in the event of the death of the earning member of the family.
Insurance has now grown into a preferred investment portfolio for salaried and business people alike. A person investing in Life insurance may not become a wealthy person after sometime, but investing in a good policy will at least provide him or her with enough money to lead a financially secured life.
Directly investing in stock market or mutual funds can be a very risky proposition for a middle class, salaried person. But, investing in a safer portfolio such as Life insurance can be a very good step. Investing in stock market requires a huge sum of amount. But, investing in insurance would require a very less amount. As we all know, these amounts, called premiums must be paid to the company in regular intervals for a stipulated period of time. The time can be 10, 15, 20 or 30 years depending upon the type of policy that the person opts for.
Today, there are many insurance companies offering numerous insurance policies to people. People can opt for the best policies around which offer a higher return on investment and at the same time charge a less premium. Other than benefits such as higher rate of return and less premiums, there are other benefits such as tax deduction for payment of premiums.
Some insurance policies are term polices which means that the policy holder pays the premium but will not reap the benefits of insurance. Only after the death of the policy holder is the amount given to his/her family members.
Other insurance policies from insurance companies include investment plans, pension plans and money back policies. These policies are ideal for those people who want to invest in insurance and expect better return on their investment.
ULIP or Unit Linked Insurance Policy is becoming a very popular term nowadays. ULIPs are earning profits in the long run after a stipulated time of 10-20 years. In ULIPs or Unit Linked Insurance Policies, the premiums are invested in mutual funds. Often mutual funds may or may not yield benefits, because the time of investment is not more than 5-10 years and so, the funds may not be increase their value. They require some more time. And this time gap is filled by ULIPs. Investing in equity based ULIPs in the long run can be profitable. But, one should be very careful while investing in ULIPs. It has to be made an important point that the investment must not be made in one large pool, instead, it should be invested in various funds in smaller amounts.
The speed of internet today is giving us another opportunity through online insurance. Almost all the insurance companies are offering their policies through online. Not only insurance companies, but also financial retailers are also offering online insurance. With the help of online insurance, one can compare all the insurance policies from various companies and choose the best policy which provides highest return on investment while charging the lowest premium.
by: Andy Smith
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