Insurance
Insurance is a type of policy between the insurer and insured, in which insurer contract in a standard form with the insured and that is known as policyholder.
In which the insured is required to pay according to that policy which is specified by the insurer or by the insurance company.
Insurance policy is designed for completion of different of different specific requirements and needs of policyholder.
In insurance there are to many type of insurance policies and the all policies have specific contract.
Generally insurance is an integrated contract between the insurer and insured.
- Term plan
- Endowment policy
- Money back policy
- ULIP
Term plan:
It is a type of insurance in which you will cover more benefit in a low premium cost. Term plan insurance policy is very good or beneficial policy. After paying a lowest premium cost in the given term plan or time,you will get cover for a few specific years. The term policies are taken for 10 years, 15, 20, 25, 30 years.
The term plan insurance policy have good benefits which are given below as
1. Death benefit: During the time of policy if policyholder is accidentally dead then the nominee of that policy will get all cover amount of the insurance policy.
2. Tax benefit: According to rule and tax policy 80c, the policyholder have to pay no taxes after the premium and cover of the plan.
Endowment policy:
Endowment policy is the way to get insurance it is a risk free investment in which the policyholder have to pay or invest a few amount of money in the form of installments. Endowment policy is the best way to collect and saving of your money. Endowment policy plan helps in saving of money during a specific period. And the maturity amount that will be get by after the completing of time period of policy and this maturity amount can be used to purchase various financial requirements such as retirement , education of children, marriage or home.
Money Back Policy:
Generally Money back policy is the part of endowment policy in which a fixed amount is given to insured and that is policyholder in a specified time period during the insured period, and the remaining sum assured is paid with bonus.
ULIP:
ULIP completes the needs of both insurance and investment. In ULIP the invested money by deducting the expenses and charge of insurance and management the premium or amount paid by you depends on how investment in the funds and that is determined by policyholder. The policyholder can invest in both debt or equity funds, or by looking at your risk. Like mutual funds and the ULIP is based on units NAV in ULIP.
