Life Insurance Is The Combination Of Savings And Investments
The Life Insurance Corporation is an Indian association established in1956 that provides Life insurance to people
. IRDA is the authoritarian arm of the government of India which handles the proper execution of the insurance sector. They provide policies with long term agreements. Various insurance companies provide special offers to their existing customers. There are several policies and plans offered by the insurance company.
LIC of India offers incentives to their customers in the form of savings or investment. Person can avail any policy and plan from LIC according to their requirements. Borrower can also compare the quotes of different companies then choose the best companies among all. Life Insurance is the bond between the insurer and the policy holder. Person must take Life Insurance in their life to provide protection to their family after his/her death. It is a financial support provided by the company to the policy holder family.
The various LIC plans are as follows:
1. Whole Life Plans
2. Child Plans
3. Term Insurance Plans
4. Variable Insurance Plans
5. Endowment Plans
6. Health Plans
7. Withdrawn Plans
Insurance companies provide an option of invest their money to save the tax on income. The Income Tax Slab helps the person to calculate their tax for Year 2012-2013. Borrower can save their tax when they are investing maximum up to 1 Lakh.
Term Insurance Plan
Term Insurance plan provides coverage for specific years. This plan does not collect cash value. There are three most important factors to be determined that are the death benefit amounts, period of coverage and monthly premiums. Various insurance companies can sell their insurance policies with a variety of different combinations of these parameters. The terms can be for one year, five years, ten years or twenty years.
Whole Life plan
In Whole Life Plan, borrower is paid premium for 35 years or till the policy holder is 80 years old. Policy holder can withdraw the bonus + sum assured under the policy anytime after 40 years from the beginning of the policy.
Endowments Plan
In this plan, the cash value inside the plan equals to the death benefit at a specific age. This insurance plan is more expensive than a whole insurance plan. The reason behind this is that the time period of this policy is short with an early endowment date.