What is Life Insurance?

By the way, there are many insurance provider companies and don’t know how many types of insurance exist. But the name of the main insurance that is heard is life insurance. In today’s article, you will know what is life insurance and its types. Along with this, we will also tell the meaning of life insurance.

Life insurance has great importance in our life and life insurance has many features. It can also be called a type of money saving scheme, because at the maturity of the life insurance policy, you get a fixed amount of money which is essential for our golden future.

Many insurance companies offer life insurance and all these companies have their own specialties. But the most popular life insurance provider in India is LIC India (Life Insurance Corporation of India).

Apart from this, you will also know about the features of life insurance i.e. the merits of life insurance in this article. Whether poor or rich, every person can take advantage of life insurance.

All these insurance provider companies keep bringing different types of life insurance schemes. If you are from a poor family, then you can take any type of LIC’s cheap plan whose premium is low.

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what is meant by life insurance

Life insurance, which is called life insurance, is a type of system. Life insurance means that it is capable of financially compensating us for any incident, accident, disease or economic loss that may happen during our lifetime.

Under life insurance, an agreement is signed between the insurer and the insured. Under this contract, a fixed amount is given to the insured on behalf of the insurance company on his death, any kind of illness, any kind of incident or accident, financial loss or on maturity of the insurance.

Apart from this, you can ensure the golden future of your children under the ‘child plan’ of life insurance for the future of your children.

Child plan also comes under life insurance and when your children grow up, you get the benefit of this child plan. When your children mature, along with that the child plan of life insurance also matures.

You can choose Child Plan for the marriage of your daughters and for the further studies of your children. Child plan helps you fulfill your children’s dreams.

If you are a taxpayer, you can also avail life insurance to get tax exemption. Section 80C and 10D of the Income Tax Act 1961 provide for tax exemption.

Types of Life Insurance Policy

Life insurance as its name suggests is an insurance based on life and there are about 9 types of life insurance policies. You have learned above what is life insurance, now we are going to tell you the types of life insurance.

  • child plan
  • Group Life Insurance
  • term insurance
  • Retirement Plan
  • endowment plans
  • money back policy
  • Whole Life Insurance
  • Unit Linked Insurance Plan
  • Return of Premium

Benefits of Life Insurance

  1. There are many benefits and importance of life insurance. It depends on which company you are getting life insurance through. All those benefits and importance of life are discussed below point wise.
  1. First of all, when you take a life insurance policy, for this you have to deposit a small amount as premium. You can pay the premium at intervals of one month, 3 months, 6 months or one year. When the insurance policy matures, the insurance company gives you a fixed amount.
  2. Life Insurance Another advantage is that when you take the policy and you die during the total term of the insurance, the company gives a fixed amount to your family members which is fixed under the contract.
  3. Apart from this, it also has the advantage that if any incident, accident, any kind of disease or financial loss happens to you, then the insurance company helps you financially as per the stipulated conditions.
  4. Under the retirement plan of life insurance, also known as pension plan, you start getting benefits at the age of 60 years or above. After the maturity of the retirement plan, you are given money in the form of pension after a certain age. This amount is given to you every month as a pension.

The age limit for entering the pension plan i.e. taking the retirement plan ranges from minimum 18 years to maximum 85 years. This entry limit for pension plans may vary from company to company. For example, the minimum age limit of ‘SBI Life Saral Pension Plan’ is 18 years and you can take this plan till the maximum age of 65 years.

Apart from this, there are other big and small benefits of life insurance, each insurance company has different schemes, so everyone’s benefits can also be slightly different.

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