WHAT IS LIFE INSURANCE?
Life Insurance is a contract between Insured (Life Assured) & Insurer (The Life Insurance Company), in which RISK transferring from the Insured (Life Assured) to Insurer (The Life Insurance Company) in return of a Consideration (Premium), according to this contract Insurer (The Insurance Company) promises to pay a specified amount to the Insured (Life Assured) on the happening a specific event.
Why We Need Life Insurance Policy?
We all know that death is certain of a Human Life but the time of death is uncertain, due to this uncertainty about the time of death that makes Human Life’s death Insurable. Life Insurance will not prevent from any type of uncertainty (Death). When anybody dies due to any reason then his/her family suffering two of loss, one is Physical Loss and another one is Financial Loss. Nobody can recover their Physical Loss but a needful Life Insurance Plan will decrease their effects of the financial Loss & provide financial help to his/her Nominee/Beneficiary. Which help to their family’s daily expanses, education, and marriage and also to pay EMI of loan?
Types of Life Insurance Products:
- TERM INSURANCE PLANS: It is also known as Protection Plan or Income Security Plan.
- RETURN OF PREMIUM (ROP) Plans: It is also a term insurance plan but features are some what different, like if someone want term insurance plan but also want some money, if he survives till maturity date of his policy, then he can purchase Return of Premium Plan.
- ENDOWMENT LIFE INSURANCE Plans
- Whole Life Insurance Plans