Availability of Loan against a Life Insurance policy: The knowledge of getting a loan against insurance is not quite common among people but it is a fact and the amount of loan depends upon policy type and surrender value of the insurance. Refund on online payment: The Company provides a rebate on the online transaction because the cost is not incurred on documents or stamp papers. Refund on the maturity amount: This benefit can be obtained only if the sum assured is high because the servicing cost of every insurance company is more or less the same. Savings on the lesser frequency of premium: The Company can provide a discount if the premiums are paid in one go rather than paying at regular intervals.
LIFE INSURANCE
Life Insurance is an agreement in the form of a contract that promises an insured a certain amount of money after his/her death or any unforeseen circumstances. The contract is made between an insurer and an insured after the insurer agrees to pay a premium for its insurance..
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Life Insurance is an agreement in the form of a contract that promises an insured a certain amount of money after his/her death or any unforeseen circumstances. The contract is made between an insurer and an insured after the insurer agrees to pay a premium for its insurance.
Life insurance is needed to overcome financial crises in times of urgency and it caters to several problems like payment of debts, mortgage, education expenditure, cash to sustain life, etc. It assures an insured family of financial aid after the untimely death of the policyholder or any such circumstances pertaining to it. Apart from death, a life insurance policy provides a guaranteed sum of assured benefits after maturity with a certain profit in form of a bonus in a few cases. There is a number of factors to determine the premium of a policy i.e. age, income, and sum assured of an individual and it is exclusive to every person purchasing the policy. There is also a provision of tax benefits under section 80C of the Income Tax Act 1961.
Importance of a Life Insurance Policy
The importance of Life Insurance policy is very essential in our life as life is unpredictable. Catastrophe can strike anyone at any time because we don’t know the time of death. We could not predict it at the time of emergency when unforeseen situations happen like death or accidents. The most challenging task is to gather funds to bear the high expenses of medication and as a majority of people are from the middle class. It becomes quite impossible to arrange the funds for treatment and thus Life insurance comes in handy in that situation rescuing the life of the insured or providing money to his family making the life more safe and peaceful as it also gives financial stability to the family by paying dues like children’s education fees, providing a monthly income, payment of rent and other expenses.
.F.A.Q
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WHAT ARE THE BENEFITS OF BUYING A LIFE INSURANCE?
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WHAT ARE THE RIDERS PROVIDED UNDER LIFE INSURANCE?
• Accidental Death benefits Rider. • Total and permanent accidental disability Rider. • Major illness Rider. • Waiver of Premium rider. • Accelerated Death benefit Rider. • Term Rider.
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WHAT ARE THE EXCLUSIONS MADE UNDER A LIFE INSURANCE POLICY?
• Death due to a bad lifestyle like smoking and drinking. • Injuries due to self-harming deliberately. • Death due to participation in severe sports. • Damages did by Man-made. • Death due to criminal activity and overuse of drugs.