It may be morbid to think about death. But it is the ultimate truth that can leave the surviving family members stressed, both emotionally and financially. In the event of death of the bread earner, the demise can lead to complete standstill for the family members. While the loss is irreparable and the void cannot be filled, however, one can ensure that the family’s life style does not get compromised even after his/her death.
Getting the life insured makes it possible for the family to continue to manage the finances and the milestones like marriage, higher education etc do not get compromised.
How Credit Yoga can help?
Our experts can help you in following ways:
- Help understand adequate cover required through systematic analysis of your profile covering age, income, family size, work and your financial ambition
- Help you assess and decide on the riders to meet your insurance need
- Help you finalize the right policy from among the crowd of various policies offered by insurance companies
Types of life insurance
The life insurance policies can broadly be divided into following categories:
This is the basic for of life insurance and are cheapest and most affordable. Term insurance plans do not have any savings or profit component since these are pure insurance plans and give a very high insurance cover in minimum premium.
Unlike term insurance plans where the sum assured is paid only in case of death, the endowment plans pay up the agreed amount along with declared bonus at the end of the policy term in case of policy holder is surviving and the sum assured along with the bonus to nominee in case of death of policy holder.
This is a variant of an endowment plan where money is returned back to the policy holder at intervals over the term of insurance policy apart from the bonus or profits being paid along with the balance amount at the end of the term.
Under this cover the policy term is not defined as is the case in other policies. Here the policy holder enjoys the cover till survival and the nominee/s get the lump sum amount upon demise.
Unit Linked Insurance plans (ULIPs)
Under these plans a part of the amount paid gets invested in the market and linked to its performance. The policy holder can decide on the allocation between equity and debt depending upon the risk appetite.