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.
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.
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: