Life Insurance Plans and Benefits
As the population is increasing year by year, persons purchasing insurance is also increasing
. It makes a way for breeding of Life Insurance companies. Major types of life insurance plans include child plans and guaranteed plans. Child plans help in funding for care of the child and education. These types of plans can able to give bright future for your child.
Guaranteed plans are like investing in a share market. It creates security to your money. Like banks, it also provides gains to your money. But in share market you need to fear when the shares are low. Here in these types of companies you don't fear for the down of the share market. It also ensures your money back if you are in need of money. They also announces bonus for you if you have paid full premium amount. Likewise, if you have paid the amount for 12 years you can enjoy the benefits up to 15 years. There are also several plans exists like retirement plan, health plans.
Types of Life Insurance coverage:
Term Insurance Policy
This provides the lump sum of guaranteed returns and useful for people who have more dependents and the policy will pay, if you diagnosed and any terminal illness and live more than 12 months
Only exception is it won't cover for suicide from first 13 months in this policy.
Amount paid back only if policy holder dies in the policy mentioned period of time.
Benefits of Term Insurance Policy:
Term insurance policy is low cost insurance policy.
Payments in term insurance policy is fixed and do not increase during your term period.
The length of the term insurance can be extended up to 35 years.
Income Payment policy:
This provides the regular based monthly incomefor policy holders who are independent but temporarily unable to work due to illness.
Policy holder can get partial benefits if he is partially disabled and can work part time.
Benefits of Income Payment policy
This policy helps policy holder in retirement period with assured returns.
Regular sum of money can be received and no loss in premium.
Income Protected and tax deductible.
Whole Life Policy:
The whole Life Policy covers person against death, irrespective of when it happens during the policy period.
It also protects the person from permanent disability and temporary disability.
In this plan, the policyholder pays regular premiums until his death and the total amount is handed over to his family.
This Whole Life policy covers only some minimal part and fails to use in post retirement and if the policy holder quoted low amount then it would be not enough for growing demands.
Benefits of Whole Life Policy:
Whole life policy is used to reduce income tax and can mortgage this policy.
Guaranteed return unlike the term insurance policy.
This whole Life policy is used as a saving policy.
Endowment Policy the sum assured is payable even after the insured policy holder survives the policy term.
If the insured policy holder dies during the policy period, the insurance company has to pay the sum assured.
Endowment policy is also a form of financial saving, where the person covered remains alive beyond the policy period; he gets back the sum assured with some other investment benefits.
Benefits of Endowment Policy:
In endowment policy in addition to the basic policy, insurers offer various other benefits such as double endowment and marriage/ education endowment plans.
Money Back Policy:
Money back policy provides money for the policy holder at any time before the matured period for various personal needs.
Money back policy make portion of the sum assured is payable at regular intervals. On survival of the policy holder then the remainder of the sum assured is payable. In case of death, the full sum assured is payable to the insured.
The premium is payable for a particular period of time.
Benefits of Money Back Policy:
Money back policy provides the assured money back for the policy holders for personal needs.
It helps in loss caused for policy holder due to inflation and gives assured sum.
Life Insurance Plans and Benefits
By: Allan Parker
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