What is Insurance and what are the advantages of insurance policy ?

Insurance and what are the advantages of insurance policy

                                                                    Insurance

We all live in a fast track world where some times taking quick and sudden decisions are necessary, but planning certain important things for life is essential. Most fundamental plan that an individual should have is taking an insurance policy for themselves or for protection of family which is also very vital.

Insurance is basically a contract between the person who buys Insurance and an insurance company who sold the policy, the company promises to pay the insurer or his family member a fixed sum of money in occurrence of any unfortunate event provided the policy holder should pay fixed sum of money every month or twice a month according to policy taken which is called as Premiums.

There are different types of insurance policies, example – Medical insurance, life insurance, vehicle insurance, home insurance, travel insurance etc…The below are some of the important insurance policies which is discussed in detail including the policy details.

Different types of insurance plans –

1. Whole Life Policies -
2. Risk cover both natural and accidental is applicable from the 1^st day of taking the policies.
3. In the table-2, the premium paying term is for the entire life. In table 5 the premium payable can be for selected term as per MATURITY BENEFIT. On maturity the policy holder will receive the sum assured plus accrues bonuses.
4. Accident benefit – In case of death due to accident, LIC will pay the nominee an extra sum assured.
5. In case of permanent disability due to accident, the policy provides for immediate waiver of future premiums in addition to payment @10% of sum assured every year for the next 10 years or till the maturity of the policy or till the life time of the policy holder, whichever is earlier.
6. Loan facility is available under the policy, provided at least three years of payment has been made under the policy.

              Table -2                                                                                                                  Table -5

Min age at entry: 15 years                                                                     Min. Age at entry: 12 yrs

Max age at entry: 60 years                                                                    Max Age of Entry: 60 Yrs

Max Maturity age: 80 yrs of age or at least                                        Max Maturity Age: 5 to 55 yrs

40 yrs of policy term whichever is later.                                              or 70 yrs of age.

Min Sum Assured: 50,000                                                                      Min Sum Assured: 50000                                         

Max sum Assured: No Limit                                                                   Max Sum Assured: No Limit.

Multiple of S.A: 5000

Accidental Benefit Charge: Rs 1per 1000 of S.A

1. Endowment Policy –
   1. Risk Cover (Natural + Accidental) starts from 1^st day of taking the policy.
   2. On Maturity, the policy holder is paid sum assured + bonus + financial bonus.
   3. In case of an unfortunate death of the policy holder during the term of the policy, his nominee is paid sum assured Bonus accrued as on that date.
   4. Accidental death cases, additional sum assured is also paid.
   5. In case of permanent disability due to accident, the policy provides for immediate waiver of future premiums in addition to payment @10% of sum assured ever year for the next 10 yrs or till the maturity of the policy or till the life time of the policy holder, which is earlier.
   6. Loan Facility is available after three yrs of payment under the policy.

The above are the two policies which is discussed in details because everyone should have a fair idea about how the insurance policy works.

The other different types of insurance policies are –

1. Limited payment Endowment
2. Money Back
3. Jeevan Mitra double Cover & triple cover
4. Jeevan Saathi
5. Marriage Endowment/Educational Annuity Plan
6. New Jana Raksha
7. Jeevan Kishore
8. Jeevan Chaya
9. Jeevan Surabhi
10. Jeevan Vishwas
11. Komal Jeevan
12. Money Plus
13. Health Insurance plus

 Apart from the ones mentioned above there are so many other insurance policies which is beneficial for an individual to secure his/her life and to protect their complete family.For all the above mentioned insurance policies if you need any verbal assistance you can contact -

Name    – Mr. N. Nagaraja Manja (Divisional club Member – LIC Agent )

Contact # -9885903868.

This Privilege is available only for the people in India – Hyderabad city, free services provided.

 Advantages of Insurance policy

1. Risk Coverage
2. Tax  Savings
3. Long term investment
4. Protection for your family
5. Lifetime financial security
6. Extra income in retirement days
7. Lump sum cash in addition to bonus.
8. Permanent Protection