what is life insurance? its big questions today, in this article we will discuss about the life insurance and how much it is imortant for us now a days
Life Insurance – What is Life Insurance & Needs.
Types of life insurance – Traditional and Market linked
Following are the types of Life Insurance
- Traditional Life Insurance
Traditional Life Insurance plans offer multiple benefits in terms of life cover and returns, thus providing safety and security to the insured. These policies are considered risk-free. This is because they provide a fixed benefit (Cover Amount) in case of death of the insured person or at end of the term. Following are the three types of Traditional Life Insurance plans:
Term Insurance Plans
Term policies are considered largely risk-free, low cost and usually with the highest coverage. These plans are purchased for a ﬁxed period of time (such as 10 years or 20 years). They provide a ﬁxed payout in case of death of the insured person or at the end of the term. These plans have evolved to also provide survival beneﬁts so customers get double protection – for family and regular income for retirement needs. Let us understand the plan with an example:
Example of Term Insurance
Endowment Plans or Guaranteed Returns Plan
Endowment Plans provide ﬁnancial protection through life cover along with guaranteed returns. The policyholder will receive a lump sum amount if he or she survives until the date of maturity of the policy. With these plans the life cover amount is much lower and people generally buy these plans for the maturity beneﬁt. These plans are great if you are saving for a big purchase.
Money Back Policy
In a money back policy, the customer gets a certain percentage of the sum assured as guaranteed payouts at fixed intervals. In short, money back plans are endowment plans with liquidity.
- Market Linked Plans or ULIPs
ULIPs (Unit Linked Insurance Plans) provide both protection and savings combined with flexibility to the covered person. As these products are linked to capital markets, they may have the potential to deliver better returns than traditional plans. However, with high returns there is a risk of low returns as well, which will depend on the market’s performance.
Why you MUST buy life insurance?
Life, as we know it, can throw a surprise at any moment. Surprises are welcome as long as they are pleasant. Rude surprises completely take us by the hook!
A heath emergency, an accident, or sudden death – these are some eventualities that you and your family must always be prepared for. That is where the importance of life insurance lies.
In other words, look at life insurance as your replacement as far as income is concerned. Thus, helping your family and you get over any kind of financial problems, if you are not able to take care of them. As simple as that!
Aegon Life Insurance’s iTerm Insurance Plan
Aegon Life iTerm Insurance Plan is a cost-effective comprehensive protection plan with an option of life coverage till the age of 100 years with add-on flexibility to choose from 3 different plan options basis your protection needs.
The best thing about this plan is that you can get an additional lumpsum payout on diagnosis of 36 Critical Illnesses up to age 80 years (including cancer, heart attack and kidney failure) with Aegon Life CI Care Rider.
Aegon Life iTerm insurance plan also covers COVID-19 death claims.
Benefits of iTerm Insurance Plan
Term Insurance Benefitsiterm Brochure
Disclaimer: This article is for general reference reading, please take an expert’s advice in case of doubt.