All You Want to Know About Life Insurance?
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All You Want to Know About Life Insurance
Life insurance is nothing but insuring yourselves or exactly your life. People normally get cars, trucks, motor cycles; house etc insured so that if anything unexpected happens causing damage to them and the people using them insurance would help them to pay for the losses incurred or even to pay for medical expenses for curing the people hurt in those accidents. Insuring your life would mean that the beneficiary of the insurance who is specified in the policy when it is taken, would get certain amount from the insurance company basing on the premium chosen if the insured dies unexpectedly due to any reason.
Normally the whole family is dependent on a single person for the income to run the household, to pay of children’s education, medicines of old parents, house rent or anything and everything. If such a person dies in any accident quiet unexpectedly then the whole family is thrown into a serious financial crisis. In order to avoid such a situation, Life Insurance is highly necessary. This would provide for the monetary support of the aggrieved family as per their policy premiums paid.
The family must always have a backup plan if the bread-earner was to die in any unfortunate event. The only solution would be to go for sufficient coverage in the life insurance which would give them income equal what the person would earn if he was alive. If there are any loans or debts like home loans to be repaid, then coverage must be set accordingly in order to be able to repay those loans even if the earning member dies.
There are two kinds of Life Insurance, Term life insurance and endowment or money back policies. In Term life insurance you need to pay premiums regularly but the insurance company would pay the money promised in the policy to the beneficiary only if the insured person dies unexpectedly. If the insured person does survives well they would get nothing. All the premiums paid will go completely to the insurance company. Endowment life insurance or the other hand returns the money paid as premiums at the end of the term of insurance. If the person dies in the middle the amount promised as the cover would be given to the beneficiary.
Though endowment life insurance looks appealing, actually the premiums for this kind of life insurance are very high. The entire coverage amount is divided into premiums and you are supposed to pay the whole amount yourself. If you survive the term you are just returned what you pay to them. Only few pay some interest, even then it would not be worthy taking note of the high inflation. To pay such high premiums one would have to forgo buying many things or investing the extra amount when compared to term life insurance premiums, in any other high return investment. The term life insurance premiums are very low when compared to the endowment life insurance premiums and this means you would have the extra amount in your hand for at your own disposal. You can buy anything or invest in better options.
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Insurance is bought in order to rescue the owner of the policy from the charges or losses incurred for having lost the insured item or person in any accident or because of any unexpected reason. Therefore insuring any valuable item is very important as we cannot know the future. As for life insurance, it is also a very important as our life is very important to us. There would be many people dependant on a particular person. If the person expires suddenly due to any unexpected reason then any person or family dependant on the person who expired, is completely lost. Their only source of income to run the family is lost. Not only the sadness of losing the person aggrieves them, but also the cruel and bitter truth that their only care taker is also gone saddens them.
Many questions regarding what to do to get income for running the family and obtaining daily requirements haunt them. Running the family, educating the children, taking care of old parents of the dead, taking care of the spouse, making it up to meeting daily expenses etc all need income which the dead person used to earn before, but now, he is gone and the income he brings too is gone. In order to avoid such a situation it would always be advisable to go for life insurance. When a person is insured for life, upon his or her unexpected death, based on the policy he chooses the beneficiaries of the insurance policy are paid a lump sum amount. This would be useful for the family of the dead to be supported.
Nobody can guarantee about a person’s life. Life is very uncertain and unpredictable and we cannot tell anything about a person’s future. Future is completely unknown. Death could take upon a person at any time at any place. Various kinds of unexpected accidents occur daily and many people lose their lives. Vehicular accidents, pedestrians being hit by trucks on roads, deaths while building constructions, deaths in factory accidents, deaths due to fire accidents in a buildings or industries, deaths due to accidental falls from tall buildings, death in a terror attack, deaths in natural disorders like earthquake or floods etc are various causes of an unexpected death. It could make it look that all one could say is that death lurks in each and every turn of our life.
Death of a person could many times mean a death blow to the entire dependant family. To have a protection financially even after the unexpected death of the person who is highly essential for the family or any other dependant it is always advisable that such a person is insured so that after his misfortunate death if it happens, his family or other dependants can have some financial security. Therefore to have a proper financial security Life Insurance is highly necessary and completely essential. Life insurance has the huge benefits of providing security of life. It is an intelligent way of investment of money and securing our future. Our money grows if we live happily and can withdraw it at the end if it is a term life insurance. Liquidity of money is maintained and various tax benefits can be availed.
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12 Things You Must Know Before Buy Health Insurance
Health Insurance (popularly known as Mediclaim) offers protection in case of unexpected medical emergencies. In case of a sudden illness or accident, the health insurance policy takes care of the hospitalization, medical and other costs incurred. So this is important for us to know some important things before buy a health insurance. You can also read basic of health insurance, if you don’t know much about it.
health-insurance
1. Buy a basic health insurance plan, which is an indemnity policy that reimburses all the medical costs incurred during hospitalization.
2. Buying a health insurance policy for your family from the same insurer could entitle you to a discount of up to 10 per cent of your premium.
3. A basic policy pushing up the sum insured by 5 per cent every year that you do not make a claim. if a claim is raised on your policy, the accrued bonus is reduced by 10 per cent till sum insured is reached.
4. You could push up basic policy by adding defined benefit plans.
5. The plans offered by life insurer come with death cover. the premium you pay is tax deductible under section 80D up to Rs. 15,000 and under section 80C up to Rs. 1 Lakh.
6. If you are relying on the medical benefits given by your employer, then during the period between two job, your policy might suffer a break. Buy these defined benefit plan in order to keep yourself insured at all times, so that your policy does not suffer a break in between.
7. Buy floater plan to cover entire family
8. Opt for a cashless plan, keep cashless mediclaim cards at hand
9. Ask insurers for premium rates to find the cheapest policy
10. Keep an eye on exclusions and inclusions in the policy
11. Undergo medical tests, if required
12. Buy health insurance even if you have one from your employer.
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LIC Jeevan Anand Review: Covers Life After Endowment Term
LIC’s Jeevan Anand is a fusion of the Endowment Assurance plan and Whole Life plan which cultivates maximum profit. The insurance plan has ripped off the conventional insurance plan. The plan presents pre-decided secured figure and additional benefits at the maturity of the policy term, still continues the coverage till the demise of an insured person. The insurance plan acts as a boon as it facilitates higher life coverage, unparallel return, death and maturity reimbursement, liquidity, and the major convenience is it provides greater flexibility.
LIC Jeevan Anand
Jeevan Anand insurance plan is very flexible as the payment modes varies from monthly, quarterly, half-yearly or yearly premium. The premium payment plan allows the insured person to complete the payment of the premium only till the selected term of years or until demise before maturity. The plan is highly rated because it’s offers huge reimbursement after the completion of the endowment period in case the insured person survives, and most of the people reinvest the reimbursement in an pension stipulation or try to yield interest from it. The plan has outstanding provisions for the family members of the insured person in case of early death before endowment term, and the premature amount goes to the family. The plan has provision for taking the premature output before the maturity by keeping a clause of guaranteed surrender value which facilitates unmatched flexibility of termination after 3 years or more in the policy. Along with this bank offers surrender values if the insured person wants to close the policy.
LIC’s Jeevan Anand policy is one of the biggest contributors in the yields of LIC’s life insurance business, as it provides benefits from the allocated and received profit. At the end of each financial year the policy provides reversion or incurred setbacks benefits. Generally, such benefits or bonuses are fully dependent on the future profits and thus it is not guaranteed to be received every year. Yet once declared, then it will be accomplished.
Major Advantages of Jeevan Anand Plan: LIC Jeevan Anand
* If you are looking for collaboration of Endowment Assurance and Whole Life plan. Then the Jeevan Anand plan is in for it.
* One of the chief benefits is the flexibility which enables an insured person to select the premium payment mode.
* It is one of the With-profit indemnity policies which provide bonuses according to the profit earned.
* The basic boon is the policy facilitates continuation of risk coverage till the demise of the insured person even after the maturity of policy term.
* The plan offers endowment benefits, death bonuses and accident coverage. Supplementary benefits are elective and only given with the inclusion of additional premium. Accidents benefits are also offered.
So the structure of the LIC’s Jeevan Anand plan is suitable rather recommended to everyone inclusive of the age.
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