WHAT IS INSURENCE HOW YOU GET IT AND WHY YOU NEED TO GET IT.

December 31, 2017 | Author: | Posted in Insurance

what is insurence

life insurence policy informaion.Life Insurance is a contract between the insurance company and the person who is insured. The contract states that the company has to pay a lump sum amount to the nominee, which is selected by the insured person when any kind of mishap takes place with the insured. The policy is a protection for the family or the loved ones who are dependent on you for financial needs after you are no more. The insured has to pay a small amount for the specified amount of time and then the company pays a lump sum amount to the family of the insured person if the mishap takes place.

Individual lives have become risk prone because today’s race has made life uncertain and thus people have become helpless from a financial point of view. To support their risk leading lives they take a life insurance. People are approaching for these insurance policies, but there is an additional policy that would help them ease their costs after death. It is a life insurance.

Life insurance is a brilliant facility or perquisite for any employee which provides them with varieties of supplemental insurance coverages. It turns out to be a good offering to take extra or additional protection for their families. These policies can be available to cover the major expenses and will mitigate to preserve your regular life insurance policy. This type of policy is aimed for only specific expenses. If the employee takes this policy, then he becomes eligible to receive more coverage. There is also a designated limit to the extent of the additional coverage. This limit varies from one policy to another.

As already mentioned above, one needs to have supplemental life insurance to cover certain expenses. This policy makes sure the employees aren’t burdened during any type of financial entanglement. When the debt is paid by supplemental policy, the basic insurance policy will cover other aspects. An employee is able to buy a low cost or free additional policy if the life insurance he gets isn’t enough.

This life insurance policy is best suited for those employees who have the responsibility to manage a large family and thus they require a comparable huge amount of coverage to take care of a spouse or a family. Supplemental insurance stands a good choice as it is a cost-effective solution or option and it helps to fill in the gaps of an employer sponsored plan. It is created to supplement and not replace. It makes the employee aware and ready against any future loss or uncertainty i.e for “what if’s”.

Multiple Beneficiaries

If an individual has multiple beneficiaries included in the policy, the assets will be distributed and can provide each with multiple benefits.

Boost with Financial help

As one can very well remember when he takes any insurance, one needs to cover the final expenses, pay off the debt, replace for lost income and pay for childrens education. Life insurance works for these types of needs. Now what happens when any employee looses the job, he gets short of money or more likely he needs some financial help to carry expenses of his family. Unemployment is a factor that would starve you until you get another job; even the employee accepts borrowing loans for financial help. So in these cases the employee would be in a better position to accept the life insurance policy.

Not to be too harsh to offer the truth, but what happens when any employee absorbs death and how will his family run. The supplemental life insurance is a great implementation for one’s policy as the additional benefits it provides to its users allows it to offer help to the family of the dead employee in times of financial breakdown, they need the financial help to survive and not get mocked at by the society.

There has been a few cases where insurance companies have tried questionable practices and aren’t pretty much able to cover the expenses that the family undertakes. And many life insurance policies don’t allow for the coverage that the family needs after the death. Bad enough, but the coverage tends to climb high to 8-9 times to that of annual salary.

Any mishap that includes an accident

Any individual employee faces this mishap of an accident. The cost of recovering himself from the accident is pretty huge and yet an insurance policy does not provide them as much as their expectation demands. But fortunately though, the life insurance does, it aims to fill in the vacancy that needs to be removed. So as a matter of fact, the policy does turn out to be a lot helpful and useful to enable the employee to make its recovery process speed up.

Additional Benefits

The life insurance also provides benefits for the following losses- Paralysis, Severance, Speech, Hearing, Disability, etc. Which are offered as a benefit that many a times isn’t available in another insurance policy? For that, the Life Insurance is a must option.

If any employee has a large financial obligation like loans and mortgages, then surely this is the one policy that offers (as an additional life insurance policy) to cooperate and deliver the required funds to the family who can then utilize for their own purpose. Also, life insurance assists the family to plan and finance for a funeral.

No worries to gain

Now everyone worries about their family (or the spouse, as the case maybe) first and their living if the employee isn’t around someday, then this policy will help let the family continue their old living standards after the employee’s death.

Types of Life Insurance

TERM INSURANCE

It is a type of life insurance policy that falls into the complete protection category. It provides pure protection. Basically, it covers the risk of dying. 

Whole Life Plan
Whole Life insurance

Rest of the plans that come under life insurance such as endowment plan, money back plans, ULIP, etc. provides coverage to the insured for a specific age- majorly 65 to 70 years

 Endowment Plan

Endowment Plan

Unlike Term Plan, endowment plan pays you out the sum assured along with the profits in both the cases- death and survival

Child Plan

Child Plans

Provides financial coverage to your child’s future needs and allows you to plan his/her future in a better way and stabilize way.

Retirement Plan

Retirement plans

This plan assists you in securing your post retirement life financially. Choose from multiple options.

Investment Plan

Investment plans

This plan helps you in enhancing your wealth, savings and get an insurance coverage as well.

Unit-Linked Plan

Unit-Linked Plan

In all the above plans you don’t have any option to select where you want to invest your money. For securing your capital most of these plans invest in debts, 

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