Benefits of Insurence Service
Life is full of unexpected events. Some fortunate outcomes may prompt us to rejoice and may be remembered for long, but some may be dreadful in such a manner that even the most confident and determined person will want to evade it, but that may be next to impossible. In such a scenario and in order to safeguard oneself from any distressing eventuality or contingency, the concerned person needs the insurance cover. Insurance is a protection in the form of a guarantee of compensation provided to the insured by the concerned company or state against an eventuality that may cause specified loss, damage, illness, or death in return for the payment of a specified premium as per the policy.
Types of Insurance
There are different types of insurance that safeguard the concerned person from different types of contingencies that may arise due to uncontrolled factors or events of life. The major types of Insurance include:
Life Insurance: The ultimate truth of life i.e., death cannot be underestimated as it can just devastate the family and more so when the sole earner of the family dies. To evade such contingency, the Life Insurance policies ensure financial support to the family of the insured person and provides much-solicited support. Under Life Insurance Cover, there are different types of policies that are customized seeing the diverse requirements of the customers and includes:
Term Life Insurance Policy-This Insurance Policy provides coverage for a specific period from the date of purchase of the policy. Multiple benefits accrue to the policyholders of Term Life Insurance on purchasing the said policy besides the Tax Benefits as per the plan of the policy. In this policy depending on the plan, if the insured dies during the specified period of coverage, then the assured amount guaranteed under the policy will be paid to the nominee and if the policy matures successfully then the guaranteed amount along with the maturity benefits payable on the maturity will be paid to the insured.
Endowment Life Insurance Policy –Endowment Plan offers a lucrative amalgamation of protection and saving features. This combination assures financial support to the family in case of the death of the insured before the maturity of the said plan and a lucrative amount at the time of maturity for the surviving policyholders. This plan also bears the additional feature of caring for liquidity needs through its loan facility in case the policyholder requires the same.
Unit Linked Insurance Plan (ULIP) – Unit Linked Insurance Plan is for the people who realize the value of hard-earned money and want to invest the same and reap its benefit in times of need. This plan is a boon for the policyholders who do not have consistent income but dare to secure the future. In this plan, a part of the premium is invested in the Mutual Fund by the Insurance Company while the remaining is utilized for other benefits as per the plan.
Whole Life Insurance Policy– Whole Life Insurance Policy is just like the name of the policy and provides the cover to the insured throughout the life of the insured provided the policy is in force. The policy has lucrative benefits and includes a cash value component that increases over time besides the Loan facility as per the requirement of the insured.
Money-Back Policy-As the name suggests, the Money Back Policy ensures a percentage of the sum assured from the premium deposited at regular intervals during the policy period. On successful completion of the said plan of the policy, the insured receives the remaining portion of the corpus and the accrued bonus whereas, in case of the death of the policyholder, the nominee is entitled to receive the entire sum assured regardless of the number of installments of premium paid.it is one of the most expensive insurance options available because of the provision of returns to the insured during the tenure of the concerned policy.
Saving and Investment Plans– In Saving and Investment Plans, the insured receives a lump sum amount and is an excellent option to accomplish Short Term and Long-Term Financial goals. It covers both Traditional and Unit Linked Plans
Retirement Plans-The hard-working people are lured towards the Retirement Insurance Policy as these policies are an amalgamation of Investment and Insurance. These plans are also better known as pension plans. On maturity, the said corpus is invested for generating a regular income for the insured.
Child Insurance Policy-As per the name the Child Insurance Policy is the investment cum Insurance Policy to secure the future of the said child. The child can fulfill his/her dream. The policy comes with several added advantages as per the plan and the concerned child is benefited.
Health Insurance-Health Insurance provides financial support to the insured during Health-related issues and generally covers the insured when they are admitted to the hospitals for treatment, but with the growing requirement and increasing demand of the said Insurance, some plans also cover the cost of treatment at home prior to hospitalization and or discharge from the same. There are various types of Health Insurance that are available for the public with the recent addition of Covid-19 Health Insurance.
Motor Insurance– With the ever-increasing population and the growth of the economy, the purchases of vehicles have increased beside the rising graph of Accidents and Own Damage. All the factors when taken into totality necessitates Motor Insurance. This insurance covers Third Party Liability and Own Damage besides offering Comprehensive Cover to the Vehicle.
Property Insurance-The Insurance company offers Property Insurance for any building or structure that may be residential or commercial. Financial Support can be solicited from the concerned insured company when any damage befalls such a property. With rising awareness amongst the people, the Insurance company offers various plans under it for different requirements of the customers.
Travel Insurance-Travellers are insured under Travel Insurance provided by the concerned Insurance Company. It comes under different plans and suits Domestic, International, and Holiday travelers.it comes with the added advantage of offering cover to loss of baggage and trip cancellation also depending on the plan.
Insurance is now becoming the necessity of the people to safeguard against any eventuality that may come. There are various types of Insurance viz Life Insurance, Health Insurance, Motor Insurance, Property Insurance, Travel Insurance and many more depending on the need of the people. The general people can choose the plan of the insurance as per the requirement and reap the accrued benefits. People select the Insurance Policy mainly to get Financial Support in case of contingency. These insurance plans not only provide Tangible and Intangible benefits to the insured and the concerned family but also encourages the people to save and invest for a better and prosperous future.