What is Life Insurance
Life insurance is today’s most trending topic among the people who are planning to invest in insurance. By the way do you have a standby Tyre in your car? If yes, you understand the need that you must not get stranded in the mid-way to your journey. Life is also the same. It also needs a spare support in the form of Life insurance.Today, we live in interesting yet volatile times. This does not offer any guarantee on life. The only safe way of guarding your life and your loved ones is by doing life insurance. This keeps you against the unforeseen and unknown. Essentially, insurance is a treaty done between the insured and the insurer. In this treaty, the insured is expected to pay the insurer money at specific intervals. This is done as a premium in lieu where the insurer pays a certain sum on the maturity of the policy or in the event of death.
Conventional Policies of Life insurance company
Earlier, people would prefer the conventional insurance policies and the sum assured in such plans are pre-decided and guaranteed. These plans offered life and health insurance to the insured and it also linked the pension paying scheme for lifelong period. These are traditional plans that offered a safety net. They are now regarded as outdated and this is due to the increasing cost of living. These traditional plans of life insurance mean paying premium for rather long time and they do not yield the required high returns.
Change in Life insurance Plans with Generation
The younger generation, a decade back, ignored the need of insurance as the youth of today. Today’s generation is interested in investment and insurance as both takes place at the same time and also does not ask for separate amount. This is one of the significant reasons that life insurance showed a paradigm shift.
Life insurance policy is not merely a form of protection today to face the unfortunate or untimely incidents of life, but is also an investment form that is active in the equity market. The entire concept has changed and this is because more private sector companies are taking lead into this area. The days have gone when only government sector companies worked on playing it safe. Now, with the private companies entering the fray, the appetite of tasting risk has now increased and this is apparent in the ULIPS are ruling the insurance perch. The ULIPs do not promise life protection alone of the insurer’s money, but also ensures the growth of savings. The insurance biggies include LIC, Bajaj Allianz, Aviva, Birla Sun Life, Bharti AXA, Met Life, SBI Life, Tata AIG, Reliance Life, Max New York, ING Vysya, and many more.
The increasing awareness among insurers and the modern insurance plans have brought controls that all the new plans are now customized to suit the needs of an insurer. There is enough flexibility with respect to insurance term, premium and riders. In fact, now, they also come attached with optional riders such as critical illness, accidental death and premium waiver benefits. The loans can be availed against insurance policy, liquidity and the tax benefits have made the insurance plans more alluring.