What is Life Insurance? Types and Benefit of Life Insurance

What is Life Insurance Types and Benefit of Life Insurance
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What is Life Insurance Types and Benefit of Life Insurance

What is Life Insurance: Hello friends, today I am going to tell you in this article that What is Life Insurance? Importance of Life Insurance? Types of Life Insurance? Benefits of Life Insurance? As you all know, there are many questions related to Life Insurance. Like: – What is Life Insurance? Types of Life Insurance? Importance of Life Insurance? Benefits of Life Insurance?

What is Life Insurance? Types and Benefit of Life Insurance

There are many questions, Many people search the internet every day to get the answer. So if you are from them too, then this post can be beneficial for you today. Because today I am going to give you almost all the information related to life insurance in this post.

What is Life Insurance?

The life of the person is completely full of risks. Therefore, we make life insurance to protect our life from financial loss. This is called Life Insurance. When the insurance company insures a person, it does not mean that after his death, he will be given life again. Life insurance protects his family from the loss due to his income after the death of the insured.

Insurance used to protect your life from any financial loss is called Life Insurance. By getting life insurance, if a person is injured in an accident or gets too many serious injuries. So in this case, the insurance company is fully spent in the hospital of that person. In such a case, the entire expenditure in that person’s hospital is raised by the insurance company.

Also Read: Types of Insurance and Definitions 2019

And if the person dies in the accident, then Nominee from his family is paid a certain amount according to the Terms & Conditions by the Insurance Company. But this amount will be given as much as the person has made an insurance policy. There is no faith in the life of a person, so most people take this life insurance for their family. So that his family may not have problems with money.

Types of Life Insurance

Well, there are many types of life insurance. But there are mainly 5 types. Which has been mentioned below:-

1. Whole Life Insurance

In this, the entire life of the person is insured. In this insurance, the person deposits the premium till his death, and after his death, his family gets all the money. As the age of a person increases, then his premium increases as well. This type of insurance can make a good asset to a person’s family. The maturity period of Whole Life Insurance is 100 years. And if the person lives more than 100 years, then Whole Life Insurance is converted into an endowment plan.

2. Endowment Insurance

Endowment insurance is totally different from the rest of the insurance. The best part of this insurance is that there is a Mutual Liability benefit. In this, during the period of insurance, if the life insured dies, then his family gets a fixed sum assured. In addition, if the life insured survives even after the expiry of the term of insurance, then the bonus is also given on the amount invested with a certain amount of insurance.

3. Term Life Insurance

Term Life Insurance is considered to be good with the rest of the insurance. There is a high price cover in very little premium. In Term Insurance, a fixed amount of insurance is given to the family or the nominee after the death of the life insured person. Its purpose is to secure only your family. If the life insured survives after the term of the policy, then he will not be paid anything.

4. Unit Link Insurance Plan – ULIP

This is a very popular insurance plan. It is such life insurance, which gives the insured the benefit of insurance and investment. This plan is considered best for those who invest for a longer period. Most people use it for their children’s education, children’s marriage, etc.

5. Money-Back Plan

The money-back plan is also different from all insurance. It works as an investment with Life Insurance. It provides a life insurance cover against the death of the insured. In this, the insured person gets a fixed portion of the sum assured in the course of a certain period of time during the insurance. And in the end, the insured person gets the remaining amount, with the bonus.

Also Read: Home Loan Process Step by Step 2019

Benefits of Life Insurance

Life Insurance has many advantages. Every person should be insured because it provides protection from Financial Risk. Not only that, but there are many other benefits too. Which you can read below:-

Life insurance provides you and your family with a High Life Risk Cover.

In life insurance, your family gets fixed income at regular intervals. Which provides financial support to your family.

After the maturity period is completed, the insured person can get the full amount of his insurance with interest.

After the insured person’s death, his nominee gets financial protection.

For Salaried Person, there is a good way to reduce tax liabilities under Section 80C. For discounts under Section, 80C Can invest up to Rs 1,00,000 in life insurance premium, pension fund, employee provident fund, etc.

And there are many other advantages.

Importance of Life Insurance

Life insurance is of great importance in every person’s life. Because nobody knows what will happen in the future of human beings. Life Insurance secures the future of human life. secures means only financial help. If there is any untowardness in the future with the person, then he or his family gets financial security. Apart from this, there are many other important aspects of life insurance, such as: –

  • If more money is needed, the loan can be taken from life insurance.
  • social Security.
  • Savings get promoted.
  • Untimely death protection.
  • The best option to invest.
  • Savings for old age.
  • The family gets protection.

Note: Before taking any insurance policy of any company, you must read about its Terms and Conditions.

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Conclusion

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