In case of an unfortunate event, like sudden death of the family head OR only earner in the family, is not only an emotional loss, but also a financial loss for his/her family. Life insurance provides protection against such financial loss that results from the insured Individual’s death.
You have different-2 financial needs at different stages of life. In order to meet those needs, you need some kind of protection against those financial risks. In addition to protection, Insurance provides avenues to invest your savings and give them an opportunity to grow.
The two basic elements of life insurance for all the individuals are:
- Risk coverage
- Savings for the future you will receive at different stages of life.
As early as you can because insurance premiums will increase as your age increase for the same amount of life insurance.
Yes offcourse.. you will save tax on the amount of premiums paid upto a certain limit per financial year.
No, There is no limit on insurance amount.
Term insurance is nothing but the insurance whic will be paid in case of certain death to the nominee of the policy holder. No maturity benefit will be paid in case of maturity of the policy.
Endowment policies provide protection as well as savings. These plans provide Life cover giving death benefit to the nominee in case the life assured dies during the policy term or provide benefits to the life assured in case he survives the specified time (survival benefit) or full policy term (maturity benefit).
Money Back Plans are the plans which provide periodic payments at the end of specified policy years along with death and maturity benefits.
Unit Linked Insurance Plans are long term investment with protection plans that offer you an opportunity of getting market linked returns while providing life insurance protection with the ease of payment of insurance premiums.
Plans which protects a Childs future by providing financial support for the child’s higher education, marriage etc., in case anything unfortunate happens to the parent. These policies are taken on the life of parent/children for the benefit of the child.
Pension plans nothing but the retirement plans which protects someone after retirement also and provides periodic returns in old ages with death benefis as well.