Archive for December, 2008

Whole Life Insurance – Investment

whole life insurance is the most popular life insurance plan as compared to others. It provides the permanent coverage with guaranteed death benefit. This is also a type of investment because one portion of your premium covers the actual insurance and other portion of the premium invested in an interest bearing account.

Insuring your family with whole life insurance is smart and responsible reason. You are not only insuring them but also making investment with good return.

The premium for whole life insurance is slightly higher than term life insurance because you can get back a specific portion of your premium on surrender dividends can be used in other ways.

Whole life insurance policy is divided into two parts:

• Universal whole life insurance – In case your accumulation accounts performs better, you get the additional benefits.
• Variable life insurance – In this, your accumulation account money invested in interest bearing account that is similar to mutual funds.

You can get online quote on whole life insurance in any of the good insurance websites online.

What is Life Insurance, Life Insurance Policy in India

life insurance ensures that your family will receive financial support in your absence. It is an agreement between Policy holder (Insured) and the insurance Company (Insurer). Simply, life insurance provides your family with a sum of money (Sum assured) if something happens to you. It protects your family from financial crises. It acts as a flexible money-saving scheme, which empowers you to acquire wealth – to buy a new car, housing loans, children’s marriage and even retire comfortably.

Life insurance, especially well fitted to meet your financial needs.

Most life insurance policies have a specified term, such as 10, 15, or 20 years. For the nominee to be eligible to collect the sum assured, the insured’s death has to occur during the term of the policy.
If the insured survives the term of the policy, depending on the type of policy purchased, He/ She may or may not receive a sum of money at the end of the policy term.

Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from investments such as gold, property, fixed income instruments, mutual funds and of course, life insurance.

Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money.

Life insurance is a unique investment that helps you to meet your dual needs – saving for life’s important goals, and protecting your assets.

How does insurance companies works

A life insurance company gathers premiums from a large number of people(policy holders). The larger and more diverse the group of policyholders, the lower the risk for a company to pay death claims. The premium payments collected by the insurers are used for three purposes – to settle claims, to make investments, and to pay expenses.

All Insurance Companies in India are controlled under IRDA (Insurance Regulatory Devlopment Authority ) it regulates investment of funds by insurance companies.

Types of Life insurance plans
a) Term Life Insurance Plan
b) whole life insurance Plan
c) Money Back life insurance plan
d) Endowment Life insurance plan
e) Children’s Life Insurance Plan
f) Unit Linked Insurance Plan