What Is Life Insurance?

Life insurance is not an unusual term for most people in this world, these days. People today are very much aware of what life insurance is all about and most of them even hold this insurance policy.

Life insurance is insurance on human beings. Under this scheme, the sum assured is offered as an amount of benefit to the relative of the deceased person.

Human life is prone to physical disability & risks to death due to certain natural & accidental causes. Loss of human life or loss of body part due to accident results in loss of income. Nobody expects death or disability. However, such natural disasters occur when he/she least expects.

Life insurance can prove to be a breath of relief in such cases. Although loss of life cannot be filled up by a monetary sum, but it can easily support the family of deceased. Life insurance policies offer a fixed amount of money to the dependants of the insurance holder, in case the life insurance meets death during the period he earns. The life insured would also get money when he becomes disabled due to an accident that has resulted in reduction or even total loss in his monthly income.

This is not all, life insurance is also a method of protecting one’s old age when one is not capable enough to earn or is devoid of income, by deciding to buy an annuity product.

Talking about life insurance products, there are many of them that offer protection & also produce savings to the life insured.

Given below is a list of some of the insurance products and the benefit each of them offers.

  1. Term insurance: This type of insurance offers a stipulated amount of money on the death of the insured during the tenure of contract.
  2. Whole life insurance: Under this policy the life insured’s dependents, get a stipulated amount of money when the insured dies.
  3. Endowment Assurance: This product offers, an already fixed sum of money either when the insured dies during the period of policy or when life assured is alive.
  4. Money back insurance: This product offers fixed amounts, in conjunction with full amount of money assured on death during the tenure of policy. The fixed amounts are payable on specified dates during the tenure of contract.
  5. Annuity: The term refers to a product that offers monthly payments on fixed dates, in case the life assured is alive, on the dates fixed by the company.
  6. Linked product: The product offers a fixed sum of money as well as the amount of money, associated with the underlying value of valuables on the desired dates. The fixed amount of money is offered on the death of life insured.

There are many types of life insurance policies to suit to the requirements for varied categories of people including children, young, adults, old people etc.

Just choose the one that suits your requirements and rest assured.

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