Term Life Insurance

What is Term Life Insurance Policy

Life insurance policies provide coverage for the family after the sole breadwinner is no more. It appears as a means to provide economical support to the family who are heavily reliant on someone else earning for them.

The amount is compensated to the family if the policy holder expires within the timeframe of the policy. The policy premium is based on a person’s age, health, and life expectancy. The insurance company may also want to know about the driving record, current medications, smoking status, and family history.

What is Term Life Insurance Policy?

Term Life Insurance Policy is necessary when you know that you have dependent family members or loved ones. However it is not mandatory in the case when you are living a single independent life.

For instance, Param has a family of 4 including his wife and 3 kids. If Param opts for a Term Life Insurance Policy of rupees 1 crore starting at rupees 500 per month then incase of sudden death within the policy period the family will be compensated with rupees 1 crore.

On the other hand if Param lives single and with financially independent parents or an independent wife then in those circumstances he does not require a Term Life Insurance Policy or any investment in it. He might invest in one later whenever the situations demand any kind of change. 

Types and Benefits

Now that we are aware about what a General Insurance is, let us know why it has become an immediate requirement!
To have a financially risk-free life, General Insurance can be an asset.
General Insurance can cover you in the following mentioned cases:

Traditional Plans

Traditional insurance policy plans provide the sum assured. These plans take a limited exposure in high risk equity, therefore the downside probability is low. The plans are suitable for tax planning. They help meet your life protection requirements and keep your money invested in low risk return options.

Unit Linked Policies (ULIPs)

Help you to invest in a variety of funds, including equity, debt, & hybrid, according to your risk appetite and financial goals. While the risk is borne by the policyholder, these policies do offer the opportunity of enjoying great returns and amassing a hefty amount of money at the time of maturity.

Life Insurance Policies

Life insurance policies offer the dual benefit of life protection and investment for fund building. Depending upon the risk taking ability and financial commitments, one can opt for a traditional insurance plan which offers stability & guaranteed returns.

Endowment Plans

These are typical and traditional insurance products which come with life cover but with very low profits. These are for the individuals who are looking for guaranteed profits on their investment, but with a higher life cover. Ideal for those who want their small funds safe and secure, with a certain amount of profits on their assets.

Retirement Plan

Retirement plans help you to live financially independent. In case of an unfortunate event, if the policy holder passes away during the policy term payment is payable to the nominee by the insurance company. This plan is best suited for Long-term savings and retirement planning.

Child Plan

Child plans help to build funds for child’s education and marriage. To build a corpus for your child’s future growth, and to take care of the future financial needs like college or even higher education expenses. Child’s insurance plans can help you meet with expenses at the time of their marriage.