Thursday, November 15, 2012

Life Insurance Coverage and It's Advantages


Life Insurance has become one of the necessities for a person who wishes to give his family a safe and secure life even after their soul rests in peace. The insurance policy is a commitment made by an insurance company to pay to its nominee a specific amount if the policy purchaser dies during the term of the policy. You make sure that your family is left with a lump sum of money for financial protection.


To satisfy the actual needs of individuals from various walks of life you'll find distinct life insurance plans.

Term Insurance is with extremely low premium rates. This plan comes with a limited period which means this policy can be used only for a nominal period and after the maturity times you lose eligibility for any profits or allowances. In case if an insurance holder dies during the coverage period, the nominee gets a specific lump sum amount. This policy can be taken for 5, 10, 15, 20 0r 30 years.

Endowment Insurance Plans are for best saving plans which provide a specific amount at the end of specific term or maybe with the demise of the insurance holder. Even after the end of the plans the client will get supplementary advantages such as bonuses and profits. Usually this plan is available for 10, 15 and 20 years or up to a certain age limit.

Pension Plans are for you if you desire to lead a happy and respectful retirement life, a decent pension plan is a must. Pension plans help to provide better retirement days by securing amount while you are earning. Here, the policyholder can pay any large total sum or premiums for certain years to acquire an annuity throughout old age.

"With Money-Back Plan" you can enjoy insurance coverage along with savings. "In this policy all through the term" you are benefited along with fair dividends along with the final lump sum return.

The eligibility to apply for the life insurance policy is to attend the age of maturity. They can make a valid contract with any of the insurance providing company and can protect those with whom they have an insurable interest. One can also take policies on the life of one's spouse or children, on certain terms and conditions. Policyholder's state of health, the supporter's income and other significant aspects are being checked by the insurer before any approval. For working women who earn an income can also apply for the policy with the above conditions. In other cases, there is an obstruction clause that only female up to the age of 30 years, and if she does not have an income attracting Income Tax can apply for life insurance policies.

While taking a policy, you should ensure that you go through all the terms and conditions carefully, and all questions in the application form are correctly filled. Any parody, non-disclosure or deception in any document may lead to risk and your policy could be considered null and void.

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