Life insurance is a contract between an insurance policy holder and insurer where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person depending on the contract.
What are the benefits of life insurance plan?
One you get the knowledge about what is life insurance and what are the types of life insurance then you will be able to find the three main advantages of getting the life insurance. Following are the three main benefits of life insurance plan.
Life is full of uncertainties. It is impossible to reduce the possibility of an unfortunate event like death. In such a serious accident family face financial issues arises from the lack of steady income. Investing in the best life insurance policy early on in life act as a safety blanket during such eventuality. According to the definition of insurance this provider is obliged to pay the beneficiary the predefined sum assured. As a result even in the policyholder’s absence, his family stay protected.
2.Long term savings
If one to make the long term investments it’s important to think about life insurance meaning. Such insurance plan help you create a corpus which can be used fir several reasons such as building a new home schooling of your child and funding a child’s marriage expenses.
Understanding the meaning of life insurance in your financial context will allow you to plan your investment efficiently as well. Life insurance providers offer Unit_linked investment plans (ULPs), which are mainly investment instrument based on the market linked returns and life insurance, meaning you can get dual benefits with a single financial products.
According to the definition of life insurance, you are required to pay regular premiums to keep the policy active. The life insurance premium paid can be availed as a tax deduction under Section 80C of the income Tax Act,1961. You can avail of deduction up to Rs.1.5 lakh under section 80C.
What are different types of life insurance?
Now that you are aware of what is life insurance meaning you should check the main types of life
•Term life insurance plans
•Whole life insurance
1.Term life insurance plans
It is the purest form of life insurance types as they offer life cover with no savings or profit element. Term life insurance plans Are the most Afford able types of life insurance policies as premium are relatively Cheaper in comparison to other life insurance plans.
One of the most unique Life insurance types, A unit linked Insurance plan, is a through mixture of investment and insurance. ULIP is a unit linked insurance plan. As per the life insurance definition the premium paid for the ULIP plan is partially used as a risk cover and partially invest in different funds.
It is a traditional type of life insurance policy. With life insurance types such as an endowment plan, if the life assured live longer than the policy period, the insurance company provides maturity benefit to the policyholder.
Additionally, some endowment plans may offer periodic bonuses that are either paid on maturity or to the beneficiary in case of the policyholder’s Untimely death.
4.Whole life insurance
Whole life insurance plans are amongst the life insurance types that cover the life insured for a lifetime, or in a few Cases, up to the age of 100 years. In case of any unfortunate event, as per the whole life insurance definition, they get paid with the death claim and any bonuses, if applicable.
Nevertheless, if the life assured lives longer than 100 years, the insurance provider gives the life insured with a maturity benefit equal to the endowment Corpus
Money-back life insurance plans are a unique types of life insurance policy in which a portion of the sum assured is paid back directly to the insured at regular intervals as a survival benefit. This way, the policyholder can achieve short-term financial objectives.
6. Child Plan
Child life insurance plans aim at building a corpus for the future development of a Child. Typically, such life insurance types helps in funding the education and Marriage of a child. Such plans provide instalments annually or in one lump sum pay-out, following the major milestones of a child’s life. In case the insured parent meets with an untimely death during the policy term — future premiums are waived off, and the policy benefits continue without disruption.
7. Retirement Plan
Retirement life insurance plans support building a stable financial source for an individual’s retirement years. The purpose and meaning of life insurance for retirement is to help one become financially independent and live without any worry. Most retirement life insurance definitions fall under life insurance types that offer annual payout (by means of annuities) or a one-time lump sum pay-out (by means of commutation of the accumulated amount, up to the prescribed limits) on the completion of 60 years of age.
In case of an eventuality, within the policy term, the insurer pays the insurance benefit to your family.
How to Buy life insurance online?
You can buy a life insurance plan online from Max Life Insurance following the below Mentioned steps:
Step 1: Log on to www.maxlifeinsurance.com and click on “Calculate Premium”.
Step 2: Enter your personal information like Name, Mobile number, Gender, Smoker/Non-Smoker, Date of Birth, Annual Income. Click on “Calculate Smoker/Non-Smoker, Date of Birth, Annual Income. Click on “Calculate Now.
Step 3: Enter Life Cover amount, premium payment term and click on “Proceed”.
Step 4: Select Riders and click on “Proceed”.
Step 5: Enter all the essential information required and click on “Proceed”.
Step 6: Select your Payment method and click on “Pay”.