Depending on this arrangement, the insurance provider (insurance provider) pays a lump sum to the person or his family after the policyholder (policyholder) dies or if the policy matures (matured). There are various life insurance (life insurance) policies suitable to the policy buyer's demands and needs.
Which financial goals (financial goals) can you secure with Life Insurance (Life Insurance)?
Life insurance plans (life insurance plans) help a person and his family meet various financial (financial) objectives. Some of the goals (goals) of a person that life insurance (life insurance) policy helps to fulfil are:
- Financial protection in the event of death
- Education for children
- Marriage of children
- Buy a house
- Pension or regular income (income) after retirement
With life insurance plans (life insurance plans), you can get financial goals (financial goals). Life insurance plans are pretty versatile. You can plan for your assigned life goals (goals of life) and include your insurance in it to help you achieve them, e.g., prepared from an endowment plan (traditional or market-linked). You can use the corpus (large amount) to pay for a house in the future.
What are the different types of life insurance?
Because you have come to know what is life insurance (life insurance), now you should know about the major types of life insurance plans (life insurance plans):
- Term Life Insurance Plan - Pure Risk Cover
- Unit Linked Insurance Plan (ULIP / ULIP) - Insurance as well as Investment (Investment) Opportunity (Opportunities)
- Endowment Plan - Insurance and Savings
- Money-Back - Periodic Returns with Insurance (Periodic Returns)
- Whole Life Insurance (Whole Life Insurance) - Whole Life Coverage for Life Assured / Whole Life Coverage for Insured
- Child Plan (Children's Plan) - Children's life goals (Jeevan Dhyaya) such as education and marriage
- Retirement (Retirement) Plan - Income (Retirement) after retirement
Let us know further and understand the specifics of each life insurance plan.
1. Term Life Insurance Plan
A term life insurance plan is the purest form (pure form) of life insurance (life insurance). It provides you with a life cover with no saving or profit elements (elements). A term life insurance plan is the most economical type of life insurance as its premiums are pretty cheap compared to other life insurance plans. This is the purest form (pure form) of life insurance (life insurance).
2. Unit Linked Insurance Plan (ULIP / ULIP)
A unit-linked insurance plan is a complete mix of investment and insurance. A portion of the premium paid for ULIP plans is used as a risk (insurance) cover, and a portion is invested in various funds.
Depending on the policyholder's risk tolerance (risk-taking ability), they can invest in various funds offered by the insurance provider (provider). The insurance provider then supports the money collected in different money market instruments such as shares and equities.
3. Endowment Plan
An endowment plan is a traditional (traditional) life insurance (life insurance) policy, a mixture of insurance and savings.
If the life assured means that the insured wins more than the policy period in an endowment plan, the insurance company provides the maturity benefit (maturity benefit) to the policyholder. Also, some endowment plans may offer periodic (periodically) bonuses that are paid either on maturity or in the policyholder's premature death.
4. Money-back
A money-back life insurance plan is a unique type of life insurance policy. A portion of the sum assured (sum insured) is paid directly to the insured person at regular intervals as a survival benefit. In this way, the policyholder can achieve short-term (short-term) financial objectives
5. Whole Life Insurance
Whole life insurance plans cover the life assurance (insured) for the entire life, or in some cases up to the age of 100 years.
At the time of purchasing a whole life insurance plan, the sum assured is determined. A nominee (nominee) is mentioned during the purchase. In case of any unfortunate event, they are paid Death Claim and Bonus, if applicable.
However, if the Life Assured (Insured) survives more than 100 years, the Insurance Provider gives the Life Assurance the same Maturity Benefit as the Endowment Corpus (amount).
6. Child Plan
The child life insurance plan aims to create a collection (amount) for the child's future development. Usually, it helps to provide money for the education and education of a child.
Such a plan provides instalments annually or pays a lump sum after the significant milestones (halt) of a child's life. If the insured's foster premature death (untimely death) occurs during the policy term (term) - then all future premiums are waived, and the policy benefits (benefits) continue without interruption.
7. Retirement Plans
The Retirement Life Insurance Plan helps to build a stable (stable) financial source (financial source) for a person's retirement (retirement) years. It helps make a person financially independent (financially independent) and allows them to live without worries. Most retirement life insurance plans offer an annual payout (in the form of an annuity/annuity) or a one-time lump-sum payout (through the commutation/conversion of the accumulated limit/amount collected up to the prescribed limit) on completion of 60 years.
In case of a possible event during the policy term, the insurer pays the insurance benefit (insurance benefit) to your family.
What are the benefits of a life insurance plan?
After knowing about the meaning and type of life insurance (life insurance), you should learn about the three significant benefits of taking a life insurance policy. The three essential benefits of a life insurance policy are as follows:
1. Security
Life is unpredictable and can be full of uncertainties. It is difficult to reduce the likelihood of an unfortunate event such as death. In such situations, the family has to face financial troubles due to a continuous income (income) shortage.
Investing in a life insurance policy from the very beginning in life acts as a protective shield in the event of such a possible event. The Life Insurance Provider is obliged to pay a pre-determined sum assured (Sum Insured) to the nominee (nominee) or beneficiary (beneficiary). As a result, his family is protected even if the policyholder is not there.
2. Long Term Saving (Long Term Savings)
If one wants to make a long term investment (long term investment), it is important to consider life insurance (life insurance). Such insurance plans help you systematically save and create a corpus (zodiac) that can be used for many reasons, such as building a new home, good education for your child, and the child's wedding expenses. Providing funds for Some life insurance policies offer monthly payouts annually, which is ideal for targeting and achieving retirement goals.
3. Investment Options / Investment Options
Life insurance providers offer unit-linked insurance plans (ULIPs), which are primarily investment instruments.
These market-linked life insurance products provide significant benefits during maturity, making this ULIP a reliable investment tool.
How much life insurance do you need?
Apart from understanding life insurance's meaning, it would help determine how much life insurance cover is necessary for actual terms. While it is impossible to find the exact value of human life in rupees, it is still essential to measure your deal. You can calculate your human life value (HLV) by estimating how much money will be required for your family to be financially stable in your absence.
In the unique terminology of life insurance (Jargan), the sum assured (monetary estimation / monetary estimate) of the sum assured and the policy holder's lifetime value is the human life value or HLV.
The primary (essential) way of calculating human life value involves two steps:
- Add all expenses like household expenses and daily living expenses
- Calculate future liabilities/obligations (such as outstanding loans)
Adding to the data mentioned above gives an estimate of human life value, which means the sum assured of your life insurance policy.
How to choose the right life insurance policy?
When you understand what life insurance is and have identified the need for life insurance, you should know about these easy steps to choose the best life insurance policy. Choose the best life insurance plan available with these steps:
1. Contact Insurance Consultant / Provider
Even though it may not seem important at the initial stage, it is essential to include a reliable and knowledgeable insurance adviser or provider while taking life insurance. Many people are unable to make their own decisions and require the expertise of an insurance adviser.
Insurance industry customers are more inclined towards digital media but still expect interaction and recommendation [2] for such essential activities.
2. Evaluate Life Insurance Cover
A Life Insurance Provider can help you calculate the Life Cover Amount (Sum Assured / Sum Assured). They calculate the preferred life cover by evaluating the source/source of your income, several dependents/dependents, any liabilities/liabilities and your expenses.
Life insurance providers also help choose the best insurance among the different life insurance plans available in the market. This ensures that you get an optimum life cover. Also, you can check your life insurance requirements with our online calculator.
Compare Life Insurance Plans
Many insurance providers present in the market offer different types of life insurance policies. It would help if you made sure that you carefully choose the life insurance that is most suitable for you from the available options. To avail the best life insurance policy public as per the financial (financial) requirements, you should compare different life insurance plans.
For this, one can choose the most suitable plan by comparing the life insurance plans of different insurers (insurer), considering all the requirements and criteria (method).
Insure to be safe
Buying a life insurance policy is a necessity of our time. While many people believe in different life insurance plans, not everyone is aware of the many benefits (benefits). In your absence, a life insurance policy helps your family in difficult times and provides financial help to them.
Not only this, investing in a life insurance policy encourages a disciplined habit of saving. In this way, it enables any person to prepare a vital corpus (zodiac).
Max Life Insurance's life insurance policies help secure your financial future (financial future) and provide you with many other benefits. So choose to buy a life insurance policy now and stay safe!
Source (Source):
1. https://www.irdai.gov.in/ADMINCMS/cms/NormalData_Layout.aspx? page=PageNo4&mid=2
2. https://www.pwc.in/assets/pdfs/consulting/financial-services/competing-in-a-new-age- of-insurance.pdf
