What is insurance

What is insurance? Life Insurance is the key to good financial
planning. On one hand, it safeguards your money and on the other,
ensures its growth, thus providing you with complete financial well
being. Life Insurance can be termed as an agreement between the policy
owner and the insurer, where the insurer for a consideration agrees to
pay a sum of money upon the occurrence of the insured individual's or
individuals' death or other event, such as terminal illness, critical
illness or maturity of the policy. Life insurance plans, unlike mutual
funds, are beneficial when you look at them as a long term avenue of
investment which also offers protection through life cover. Life
insurance policies are broadly categorized into 2 types; Traditional
Plans and Unit Linked Insurance Plans (ULIPs). Traditional
policies offer in-built guarantees and define maturity benefits
through variety of products such as guaranteed maturity value. The
investment risk in traditional life insurance policies is borne by
life insurance companies. Additionally, the investment decisions are
regulated to a large extent by IRDA rules and regulations, ensuring
stable returns with minimal risk. Investment income is distributed
amongst the policy holders through annual bonus. These policies are
ideal for policy holders who are not market savvy and do not wish to
take investment risks.ULIPs, on the other hand provide a combination
of risk cover and investment. More importantly they offer a
flexibility to decide your risk taking profile. Here's a list of
the investment plans you can benefit from: Term Plan Term
Insurance helps the customers in safeguarding their families from
financial worries that arise due to unfortunate circumstances. Term
plans are pure risk cover plans with or without maturity benefits.
These pure risk plans cover your life at a nominal costTerm plans also
let you avail the benefit to cover your outstanding debts like
mortgage, home loan etc. In case of something happens to you, the
financial burden is borne by the insurance company and not your loved
ones.Term Plan offers you the following benefits: • High insurance
Cover at lower costs • Financial security against loans and mortgages,
• Single premium payment option available • Available with host of
Additional rider benefits Health Insurance Endowment Plans
Whole Life Insurance Group Insurance Retirement Plans
Children's Plans Wealth Plans