LIC is an authorized contract between the policy holder and the insurance. The life insurance official contract comes under two classes that are, protection policy and investment policy. In case of protection policy, it is typically planned to provide a selected sum in the outcome specified by the policy owner, and the second investment policy is meant to facilitate the policy owner with an increase of capital by regular or single premium. The most ordinary kinds of investment policy under life insurance are whole life, global life and changeable life policies. Various categories of life insurance are as follows:
Natural endowment Policy
It is the famous policy among other types of policies. This policy usually connects risk cover with the savings and investment. If ever the policy owner dies during the policy term, he or she will emphatically get confident or assured money. The main benefit of this policy is if any policy owner lives after the completion of policy time. He or she will receive assured amount along with some additional benefits like a bonus.
Money back policy
When the policy holder needs money for his or her personal life, money back is an outstanding deal to provide money on such critical situations. In this policy, money will be paid back to the policy owner with the specified time period. In case of death of the policy owner, the sum assured is given to his or her family.
Term insurance policy
It is clean risk concealment for a specific time period. If you have a family unit then for you the term insurance is very beneficial. No other policy will offer you such a benefit as it provides. Term insurance is the safest form of life security. Zero investment or saving in such a policy takes it, it is a 100% risk cover.
Annuity
The main motive of an annuity is to defend against risk as well as supply money in the form of pension at regular time intervals.
Whole Life policy
In this category of policy, the owner has to give the premium for entire life until his or her death occurs. This policy does not speech act like any other requirements of the policy owner. That is the reason this policy is not in demand, and some insurance company not suggested to take this policy. They either provide the modified form of whole life policy or adjoin it with other policies. If the policy owner dies, the value of the sum assured is too low to meet his or her family's needs.
Any person wishing to screen or cover themselves should first desire advice from an insurance expert before they settle down to a specific policy. There are different types of cover under life insurance policies. For example, some include the critical illness cover that pays out a lump sum on the identification of a number of critical illnesses or conditions, as well as upon death. Other types of life insurance policies include casual death cover that provides a firm sum to the family.
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