You may have aimed to attain several goals in your working life. You toil and earn to ensure that your life is valuable. You want to achieve all of your objectives and see that your family members reach their investing objectives as well.
However, life is unpredictable. What if you were the sole breadwinner and died suddenly? Your family would face a financial catastrophe in such a situation. Everything they've been thinking comes to a standstill.
Life insurance is required to ensure that your family members' ambitions and desires are realised.
What is the definition of a life insurance policy?
Life insurance protects you and your loved ones by providing financial support if you are unable to be with them. In the case of your death, your dependents will receive a lump sum payment from the insurance.
You must pay tiny amounts known as premiums on a monthly basis in exchange for this coverage. Your coverage will not be activated unless premiums are paid.
ULIPs, Savings plans, Term plans, and other types of life insurance are available.
What is the definition of term insurance?
Term insurance is a sort of life insurance that covers you for a set amount of time, or a 'term.' It is the most basic and cost-effective type of insurance.
a) You may purchase a policy for a period of time ranging from 5 to 30 years.
b) You choose the term and pay the premiums throughout the duration.
c) If you die within the policy's term, your family will get the sum assured that you agreed to when you bought the policy.
d) However, if you live to the end of the insurance term, you will not be entitled to any benefits at maturity.
e) Some plans in case you live to the end of the insurance term, you will be refunded the amount you paid in premiums.
Life Insurance | Life Insurance |
Plans range from 5-30 years. Certain plans offer coverage up to 100 years. | Ranges from 5-40 years. |
Premiums are higher as compared to term insurance. | Premiums are affordable |
Maturity benefit is received after the policy term is over provided the premiums are paid. | No benefit on maturity. Return of premiums available in some plans |
Tax deductions available u/s 80C and 10(10)D on the death benefit | Tax deductions available u/s 80C and 10(10)D on the death benefit |
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