Life Insurance

Do you believe in planning for the future? If yes, purchasing Life and Health Insurance policies should be your next move. Want to understand everything about these policies? Read and sharpen your knowledge with us.

What is Life Insurance?

Life insurance is like your personal safety that your family can open once you are not around to fulfill their needs. It is a bond between the person getting insured and the insurance company that in the unfortunate event of the insured’s demise, the life insurance he/she paid premiums for, bears fruit in terms of financial benefits to the beneficiary/nominee.

The death benefits in most cases are income tax-free. So, the sum assured reaches the family without any substantial deductions. Life insurance offers an insurance cover for your entire life. You can think of it as your future full-proof savings plan for your family.

There are two main categories of life insurance:

Whole life insurance often comes with fixed premium payouts and provides sum assured to the beneficiary generally tax-free and is fixed. This insurance is less costly than the Universal life insurance given its consistency and low or no risk approach. In some cases, one can choose to take a loan too against this kind of policy.
Universal life insurance also provides the nominee with a death benefit, but this can also be regarded as an investment policy. The premium payouts are generally flexible, and a part of the payment is invested to add more cash-value to the sum assured. Unlike Whole Life Insurance or Term insurance, this type of insurance is expensive, given the nature of investing for higher returns that in-turn can sometimes result in potential risks. Keeping this in mind the premiums for such plans are flexible offering flexible death benefits.