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Life Insurance: A Detailed Review | What is life insurance? | Insurance

Life Insurance: A Detailed Review

Life Insurance: A Detailed Review

What is life insurance?

Life is full of unexpected surprises. We have no idea what could happen next but we are moving forward and we have a face in front of us. One thing that is certain everywhere is the certainty of death. No one has escaped this ultimate truth and never will. Also, life is very valuable to pay for it. But we still have this life insurance policy. We try to cover the financial void that may arise due to the sudden departure of the family key breadwinner. Thus, in the essential technical terms of having a good life cover for you and your family, life insurance is an agreement between the life insurance company and the client where the client agrees to reimburse for any subsequent death or accident or other event like terminal illness. A life insurance can be a whole life insurance, term insurance or endowment plan. In return for this cover, the insurer agrees to pay a certain amount of premium to the identified company. Life insurance became the most important form of protection against life. Different life insurance companies provide different life insurance quotes for their insurance policies. Thus, it is important to compare life insurance plans and make the right choice.

Who needs life insurance?

Do you need a life insurance policy? Why not? No one can escape the certainty of death and so one needs to be prepared. You should think about your loved ones and what will happen to them in your sudden absence. Life insurance will not be able to fill the void left by the departure of your loved one but it can certainly help to fill the financial gap that arises. The cash provided by the insurance company can ensure that the dependents are not burdened with large debts. You need to have better life cover so that you can be prepared for the bad and protect yourself and your family.

Death is not the only reason to be covered by life insurance. You have a healthy life and you will live a long life but you will not be able to work all your life. There will be a stage - retirement - where you take a break and look back at what you did. As you look back, the regularity of income will definitely start to decline year after year. There may also be some unexpected health problems. A good life cover will take care of the above problems. You can use life insurance in many more ways, such as your child's education and marriage, buying a home, pension or retirement income.

Life Insurance Policy: Type

There are five types of life insurance plans offered to customers by insurance companies:

  • Term insurance

Term insurance, you get covered for a certain period of time. It provides cover with no profit or savings material. Term life protection is most affordable as the premiums charged are cheaper than other types of life insurance plans.

  • Whole life insurance

As the name implies, insurance cover for a lifetime as long as you live. The main highlight of the policy is that the validity of the insurance remains unchanged. Thus, policyholders enjoy the cover throughout their lives.

  • Endowment plan

There is a big difference between endowment plans and term insurance that endowment plans have a maturity benefit. Unlike term insurances, endowment plans pay a guaranteed amount of money for both death and survival.

  • Money back

Policy This is a variant of endowment insurance. Money back policy pays at regular intervals over the term of the policy. A portion of the sum insured is paid during this regular break. If the person survives this position, they will receive the amount due by the policy.

  • Unit Linked Insurance Plan (ULIP)

ULIPs are another form of traditional endowment planning. ULIPs are mostly invested in the stock market and thus a high-risk appetite. A certain amount of money is paid at the time of death or maturity.

How are life insurance assessments calculated?

As mentioned above, it is almost impossible to put a price tag on a person's life, however, it is very important to estimate the value of your life. To be financially stable you need to calculate how much money your family may need in your absence. Insured Terms The financial statement of your life is called Human Life Value or HLV. And it is also a guaranteed amount for a paid life insurance policy.

The initial method of calculating HLV involves two steps:

  1. Add up all the expenses like family, livelihood etc.
  2. Calculate future liabilities such as loans, debts, etc. that you may have to pay for the sudden absence of your family. Once you add these points, you get the sum insured for your insurance policy.

So, after calculating the HLV, your life insurance price or premium is calculated. When calculating, it takes into account the above HLV and other physical factors such as your age, health, financial strength, etc.

The best life insurance plan of 201 Life

The best life insurance plan of 201 Life
The best life insurance plan of 201 Life
The best life insurance plan of 201 Life

Life insurance claims

Claims under this section can be classified as:

Death claims

In case of death claim of the policyholder, the beneficiary has to provide the following documents:

  • A properly filled claim form
  • Original copy of the policy agreement
  • An original or certified copy of the death certificate insured.
  • Proof of identity of the beneficiary

Maturity claims

To enjoy the benefits of maturity of a life insurance policy, the policyholder needs to create these documents:

  • Original copy of the policy agreement
  • Maturity claim form.

Life insurance company

There are 24 life insurance companies in India:

  1. AEGON Life Insurance Company Limited
  2. Aviva India
  3. Bajaj Allianz Life Insurance
  4. Bharti AXA Life Insurance
  5. Birla Sunlife insurance company
  6. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd
  7. DHFL Pramerica Life Insurance Co. Ltd
  8. Edelweiss Tokio Life Insurance Company Limited
  9. Exide Life Insuranc
  10. Future Generali India Life Insurance Company Limited
  11. HDFC Standard Life Insurance Company
  12. ICICI Prudential Life Insurance
  13. IDBI Federal Life Insurance
  14. IndiaFirst Life Insurance Company
  15. Kotak Mahindra Old Mutual Life Insurance
  16. Life Insurance Corporation of India
  17. Max Life Insurance Co. Ltd
  18. PNB MetLife India Insurance Company Limited
  19. Reliance Nippon Life Insurance Company Limited
  20. Sahara India Life Insurance Co Ltd
  21. SBI Life insurance co Ltd
  22. Shriram Life Insurance Co Ltd
  23. Star Union Dai-ichi Life Insurance Co Ltd
  24. Tata AIA Life Insurance Company Limited

Remember the important points

  • There is no life cover plan cover for everything you need. It doesn’t have to be like your friend or colleague’s insurance plan. You must set the right financial goals and these goals must be reflected in the insurance plan.
  • It's best to start early because insurance costs increase as you get older.
  • Term plans are more affordable than other plans and you will get greater life cover at a lower premium.
  • Life insurance riders add more value to your existing cover. A rider is an add-on to an initial insurance policy, which provides benefits beyond and beyond the promised cover on certain terms.
  • Consult an experienced insurance agent / financial advisor to find out which plans are best for you and thus buy the right cover for you

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