Term insurance, as the name itself explains, is for a specific period of time, and has the lowest possible premium among all the other insurance plans available. You can select the length of the term for which you want the coverage right from one year up to 35 years.
Premiums of this policy are fixed and it does not increase during the term period of your policy. In case of sudden death, your dependents receive the cover amount that is mentioned in the term life insurance agreement signed by you at the time you got yourself insured.
In case the individual assured survives the term of policy, no claim is paid to the assured.Endowment insurance is another type of life insurance policy.
An endowment policy is a life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or on death of the insured.
The author is the founder of Rupeeinvest.com and has written Investment Planning: Turn Your Money Into Wealth. This book covers the details of investment avenues like shares, mutual funds, bonds, bank deposits, pension schemes, real estate, commodities, tax saving schemes, etc whose knowledge is essential for everyone to make our money grow and secure our financial future. This book also covers details about Insurance Planning, Retirement Planning and Children's Future Planning.
Source (Economic Times)
Source (Economic Times)
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