subject: Life Insurance: Which Insurance Policy To Opt For? [print this page] Life insurance is one of the biggest assets that a person can possess. Having an appropriate life insurance plan is a must in todays times, considering the pace of life, stress levels and lifes uncertainty. So, what is life insurance?
A permanent life insurance means providing a cover to an individual, if an unfortunate event like death takes place. A person can buy this type of a policy and get a life cover for himself,by paying a specific premium to the insurance company, for the plan selected. The reason why one should invest in a permanent life insurance is because in case of an untimely death of the policy holder, the beneficiaries will receive a lump sum amount. If the policy holder survives the tenure of the policy, then on the type of policy taken, he/she shall receive the returns that the policy may have earnt.
Now, let us understand the concept of a term life insurance and the importance of investing in this type of insurance. You strive all your life to provide the best comforts to your family and ensure they have the required facilities till the time you are around. But we are all aware about lifes uncertainties! Imagine if you are the breadwinner for your family and suddenly, an unfortunate event like death occurs! Will your family then be able to maintain the same standard of living? The answer is a definite No! This is the reason why it is strongly recommended that you have a term life insurance, so that your family does not have to be worried about future financial insecurity. Read on to understand the details of a term life insurance.
Unlike in permanent life insurance, policy for a term life insurance is for a particular period. Hence, the policy provides the insured person, a risk cover of a certain amount, for a specific period of time. Once the policy expires, the insured person can decide whether to renew it or not. For instance, if a person buys a Rs. 15 lakh policy for 10 years, his dependents will receive a sum of Rs.15 Lakh, if the insured person passes away within that 10-year period.
There are various online life insurance policies offered by life insurance companies. These can be bought from the respective insurance companys website. It is very important to understand which policy type suits your needs. Remember, insurance is a subject which demands your immediate attention to take care of your short term as well as long term needs.
So invest, insure and say goodbye to future worries!
by: Sudeep Desai
welcome to Insurances.net (https://www.insurances.net)
