INSURANCE

-Thota. Sai Sneha

Definition:
An insurance is a legal agreement between an insurer (insurance
company) and an insured (individual), in which an insured receives financial
protection from an insurer for the losses he may suffer under specific
circumstances.

Why is Insurance important?

Insurance plans are beneficial to anyone looking to protect their family,
assets/property and themselves from financial risk/losses: Insurance plans will
help you pay for medical emergencies, hospitalisation, contraction of any
illnesses and treatment, and medical care required in the future.
Now, let’s get into types…
#Term life Insurance:
A term life insurance policy is the simplest, purest form of life insurance:
You pay a premium for a period of time – typically between 10 and 30 years –
and if you die during that time a cash benefit is paid to your family (or anyone
else you name as your beneficiary).

#Whole Life Insurance:

Whole life insurance is a type of permanent life insurance, which means
the insured person is covered for the duration of their life as long as
premiums are paid on time.
#Endowment Policy:
An endowment policy is an insurance policy that provides life coverage, but
that pays a sum of money if the policyholder is still alive after an agreed period of
time. An endowment policy is designed to provide a lump sum on maturity.

#Money back Policy:

Money back policy is a type of life insurance product that allows the insured to
receive regular returns, or as a lump-sum amount at a defined point during the
policy period. The returns offered under a money back policy can be guaranteed or
depend on investment performance, or a combination of both.
 ULIP:
The full form of ULIP is Unit Linked Insurance Plan. A ULIP is an insurance
plan that offers the dual benefit of investment to fulfil your long-term goals, and a
life cover` to financially protect your family in case of an unfortunate event.

Children Policy:
Means a life insurance contract entered into by Government to pay a given
sum of money to a child or his/ her parent at a certain specified period of child's
life or to his/her legal representatives or assigns at his/her death, if death occurs
before the specified date.
Retirement Plans:
A pension plan is a type of investment plan that helps individuals invest for
their future retirement needs. It allows you to accumulate a pool of funds by
making either a lump sum investment or regular premium payments over a period
of time.

Examples:
ICICI, HDFC, ACKO, Bharathi AXA, Star health and allied , Bjaj Allianz etc…