Life Insurance in simple words is the insurance of One’s life. In today’s chaotic world the risks to human lives are ever-increasing and therefore it is of paramount importance that one insures one’s life. Life insurance ensures that your family is financially supported or taken care of in case of your absence. In addition to securing your family life insurance also helps in tax saving, financial and retirement planning and covering your liablities.
Can NRI take life insurance?
- NRIs can also take life insurance if the insurance company’s terms and conditions are fulfilled.
Various Types Of Life Insurance:
Increasing sum insured option
Decreasing sum insured option
Return of Premium Option
Life Long Term Plan Option
Insurance is a means of protection from unforeseen financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss and secure from financial loss.
An entity that provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
There are 4 broad terms in which
1. Life Insurance
2. General Insurance
3. Health Insurance
4. Pension Insurance
Life insurance can provide tension free that your beneficiaries will be provided for after you die. Learn more about selecting the right policy for you, and how some policies can even serve as retirement savings. There are 4 types of life insurance,
1) Term Insurance
2) Traditional / Endowment Insurance
4) Guaranteed Income Insurance
You must check and see whether or not there is availability of guarantee of return, what the lock in period is, details of premium to be paid, what would be implications of premium default, what the revival conditions are what the policy terms are, what are the charges that would be deducted, would loan be available etc.
In case of certain proposals, depending upon the age of entry, age at maturity, sum assured, family history, and personal history, special medical reports may be necessary for consideration of risk. E.g. if the proposer is overweight, special reports like Electro Cardiogram, Glucose Tolerance test, etc could be required, while for underweight proposers, an X-ray of the chest and lungs with reports could be required.