Leave a Safety net, in case you are
not there to catch him
Life Insurance is a contract by which you can protect yourself against specific losses by paying a premium over a period of time. Each one of us, during our lives are faced with numerous risks – failing health, financial losses, accidents and even fatalities, our instinct drives us to cover ourselves against those risks. Though an insurance cover can’t protect us against the emotional losses arising out of these risks, it softens the economic crisis that usually accompanies these losses.
Insurers also offer bundled products which help in savings along with insurance cover. Such schemes can be market linked, linked to fixed income rates or even guaranteed returns.
Term Plan: These are pure life insurance plans and the policy pays only on death of the policyholder during the term. These are low cost plans and do not have any savings element. Ideal for individuals who are keen to buy adequate insurance at a low cost.
Endowment Plans: These policies combine life insurance and savings. The policy matures on expiry of term period or on death, whichever is earlier.
Whole Life: These policies also combine life insurance and savings, but unlike endowment has no fixed term. Policy generally continues for the entire life of policyholder and matures only on his/her death.
Money Back Plan: Endowment plans where the maturity is paid in periodic instalments. Ideal for policyholders who prefer periodic payments as against a single maturity payment.
Retirement Plans These plans help policyholders receive a regular income post retirement. Policyholder can contribute to these plans regularly over a period or in a single lumpsum.