What is Life Insurance Plan?

Life sometimes brings unannounced uncertainties and hardships. Some events may have an irreparable impact on your life and may leave your family in a turmoil both financial and emotional. To reduce the financial worries that may erupt due to the unpredictable and untimely demise of the earning member of the family, the life insurance comes to the rescue. Life insurance is a vital form of investment that will act as financial aid or assistance to your family when you are not around.

Life insurance plans are of various types out of which a few plans are pure protection plans offering a death benefit, whereas the others are saving or investment plans offering death and maturity benefit (whichever occurs first).

How does Life Insurance Work?

Life Insurance is a long term contract (known as LIFE INSURANCE POLICY) between the Life Insurance Company (known as INSURER) and the person whose life is being insured (known as LIFE INSURED) for a specified tenure (known as POLICY TERM) giving an amount of money equal to the life cover (known as SUM ASSURED) by paying a cost (known as PREMIUM).

In the event of death of the Life Insured (known as DEATH CLAIM) during the policy term, the insurance company passes on the requisite amount as policy proceeds (known as DEATH CLAIM AMOUNT) to the specified family members (known as BENEFICIARY/NOMINEE) mentioned in the contract and the policy terminates thereafter or in the event of life insured survives through the policy term, the insurance company pays out the promised amount (known as MATURITY CLAIM AMOUNT) to the policyholder and the policy terminates thereafter.

What kinds of Life Insurance Plans can I opt from?

There is a bundle of life insurance plans available in the market. It purely depends on which one suits your need and requirement basis the benefits accrued or attached to a plan.