An Introduction to Life Insurance
A life insurance policy is an agreement in writing between an insurer and a policy owner. According to this agreement, the life insurance company promises to pay a pre-determined, fixed sum in lieu of a regular premium paid by the policy holder, after a certain time period or upon the death of the life insured.
Types of Life Insurance Policies
There are two types of life insurance policies – Pure Protection Plan or Term Insurance Plan and Savings Plan.
Pure Protection Plan: Also referred to as Term Insurance Plan, this plan is designed to safeguard a family’s financial future by providing them with a lump sum amount, in the aftermath of your absence.
Savings Plan: This plan is a financial product that assists in planning long-term financial objectives like buying a home, bearing expenses for children’s higher education and other obligations while providing benefits for life coverage.
