Insurance Plan

What is Life Insurance?

Life insurance refers to an agreement between an individual and an insurance company under which the latter promises to provide a sum assured (death benefit) to the family of the life assured in the event of an untimely death of the life assured. In case of no death, a sum assured known as the maturity benefit is provided at the time of maturity of the policy under certain life insurance plans. Some insurance companies also offer optional coverage for critical illnesses. Besides the standard coverage, other benefits are provided in accordance with the type of life insurance plan chosen.

A life insurance policy helps the life assured ensure financial security of their family in case an unforeseen event takes place. The advantages of purchasing a life insurance policy is beyond providing financial security to the family of the life assured in difficult times. A life insurance policy can help an individual avail tax benefits on the premiums paid and benefits receivable under a life insurance policy. A life insurance policy can also act as a collateral for a loan. There are several different types of life insurance plans available in India, different life insurance plans have different features and purpose.