What Is Insurance Policy | Benefits Of Insurance Policy | How To Invest In Insurance | When To Invest In Insurance
Life Insurance
Life insurance is a Legal contract between an insured and a life insurance company, where the insurance company pays a lump sum amount after a certain period or upon the death of the insured in exchange for the policy premium.
What is Life Insurance Policy?
A life insurance policy is an agreement between an insurance company & a policyholder that offers financial coverage under which the insurance company guarantees to pay a certain amount to the nominaww in the unfortunate event of the insured person's Death during the term of life insurance plans. In exchange, the policy holder agrees to pay a predefined amount of money as premium either on a regular basis or as a One Shot premium.
Best Life Insurance Plans in India 2020
Listed below are the best life insurance policy plans:
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Term Insurance
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Endowment Policy
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ULIP - Unit Linked Insurance Plan
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Money Back Life Insurance
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Whole Life Insurance
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Child Insurance
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Pension Plans
Before Investing In Insurance We Have To Know About The Insurance Policy How They Works , What Is The Guarntee Of The Return Of Amount , What Is The Settlement Ratio Of The Insurance Company And What Is The Terms And Conditions Of Insuranace Company.
Term Insurance -:
Term insurance is the simplest and purest form of . It provides financial protection to your family at the most Reasonabe rates. With term insurance, you can get a Lumsum amount of life cover at a relatively low premium rate Based On the age. The benefit amount is paid out to the nominee in case of death of the person insured during the term of the policy.
Endowment Policy -:
An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term.
Ulip-:
ULIP (Unit linked Insurance Plan). ULIP's are a combination of insurance + investment. A small portion of the money invested goes to securing your life whereas the rest of the money is invested in the market because uts market linked policy. Policyholders can pay premiums monthly/annually.
Monet Back Life Insurance -:
In a money back plan, the insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. It is an endowment plan with the benefit of liquidity.. The money-back policy Is a policy where insured person get secured his life and gets the return in regular interval like a salary It provides life coverage during the term of the policy and the maturity benefits are paid in installments by way of survival benefits in every 5 years. The plan is available with 20 years and 25 years term.
Whole Life Insurance-:
Whole life insurance, or whole of life assurance, sometimes called "straight life" or "ordinary life," is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date.
Child Plans -:
Child Plans provide the dual benefit of life insurance as well as investment. This policy enables the policyholder to secure their children's future; while simultaneously building up an investment corpus to help meet the major milestones in a child's life. (Education, marriege,etc
Child plans basically help in financial planning for your child's future needs at the right age. As a parent you can secure your child’s future with plans that encompass children insurance plans and children education plans.
Pension Plus -:
A pension is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. After retirement inssured person will get a pensio after his retirement for his livelyhood in systematic way.
A pension plan is a that requires an employer to make contributions to a pool of funds set aside for a worker's future benefit. The pool of funds is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.
Who Can Buy Life Insurance Policy?
How to Choose the Best Life Insurance Company for Our Family?
The selection of the right life insurance provider is Very Important to ensure that you or your loved ones will get the benefits they seek from the purchase plan Hassel free.
Following aspects while choosing the best life insurance provider:
1. Claim Settlement Ratio (CSR)
This ratio defines the claims settled by an insurer over the ones received in a financial year. The higher the CSR, the higher are the chances of getting your life insurance cover claim paid.
2. Solvency Ratio
It refers to how well an insurance company can manage sufficient cash flow to deal with the debts. An insurer can provide hassle-free claim settlement if this ratio depicts its strength to meet the related liabilities.
3. Premium
All life insurance plans are priced differently. Thus, you need to choose the one that seems cost-effective for you. To avoid the risk of Lapse the life cover, make sure you do not select a plan whose premium is too high and cannot affordable .
4. Persistency Ratio
It defines the percentage of policyholders that pay the premium over the total active policyholders. It is a good indicator of customer satisfaction delivered by the insurer.
5. Claim Settlement Process
A simplified claim settlement procedure implies your family will not have to face any hassle to receive life insurance benefits. It is advisable to choose an best insurance company which runs a streamlined process to settle claims.
The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous Statuory Body tasked with regulating and promoting the insurance and re-insurance industries in india . It was constituted by the Insurance Regulatory and Development Authority Act, 1999.
Functions -:
The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999
- Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
- Protecting policyholder interests
- Specifying qualifications, the code of conduct and training for intermediaries and agents
- Specifying the code of conduct for surveyors and loss assessors
- Promoting efficiency in the conduct of insurance businesses
- Promoting and regulating professional organisations connected with the insurance and re-insurance industry
- Levying fees and other charges
- Inspecting and investigating insurers, intermediaries and other relevant organisations
- Regulating rates, advantages, terms and conditions which may be offered by insurers not covered by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)
- Specifying how books should be kept.
- Regulating company investment of funds.
- Regulating a margin of solvency.
- Adjudicating disputes between insurers and intermediaries or insurance intermediaries.
- Supervising the Tariff Advisory Committee.
- Specifying the percentage of premium income to finance schemes for promoting and regulating professional organisations.
- Specifying the percentage of life- and general-insurance business undertaken in the rural or social sector.
- Specifying the form and the manner in which books of accounts shall be maintained, and statement of accounts shall be rendered by insurers and other insurer intermediaries.
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