September 6, 2013
Life Insurance Policy (LIP) is very important for everybody’s life which ensures the safety of either or both one’s life and his/her family. In India, LIPs are considered one of the major investments. For majority of Indians LIPs are the only investment they are aware, thanks to Life Insurance Corporation of India (LIC). LIC is owned by the Government of India and this is one of the reasons why the people believed in Insurance. Lately, insurance were considered as Investment as they were secure with the government. Many Insurance companies offer different types of life insurance products. Let’s go the main topic. We will discuss main and mostly known LIPs here.
Term Insurance Policy
Term Insurance is considered as pure Life Insurance Polity among others. This type of insurance will benefit the family of the insured only after the demise of the insured within the term of policy. If the insured outlives the term, there will be no benefit will be availed and all the money paid as premium will lapse to the Insurance Company. These types of policies are always advised by Financial Planners. The premium of these policies is lower than others.
Endowment Insurance Policy
This is one of the popular insurance policies especially among Indians. These types of policies are considered as insurance and an investment. The sum assured will be paid either at the time of death of the insured or at the end of the policy period. One of the advantages of this policy is that the insured can get the money at the end of the term if he outlives the policy period. The premium of these policies is usually higher as the Insurance Company has to anyway pay the sum assured either to the beneficiary or the insured person.
Children’s Insurance Policy
These types of policies are available for the different needs of the children of the insured. You can take these policies for their education, marriage, etc. Education policies are useful for supporting children’s education in the absence of the insured person. These policies take of the expenses of the education from time to time especially when they go for higher studies. Marriage policies are helpful for taking care of the marriage expenses when they attain the age limit suitable for marriage.