Insurance Plans

Insurance Plans are now become necessary for all us as they are source of protecting your family members from any future difficulties. There are multiple insurance plans available by various banks and financial institutions such as life insurance plans, Mutual funds, child insurance plans, retirement plans etc. One has to decide the insurance plan according to his needs and requirements.

Insurance Plans can be broadly categorized as long term insurance plans such as life insurance and general insurance plans i.e. non-life insurances.  Long term Insurance plans are meant for several years or for whole life time and covers all the policies related to life insurance. While General insurance plans is usually meant for shorter period of time of 1 or 2 years.

Long term insurance plans can be classified as follows:

Term Life Insurance Plans:  One of most important feature of Term life insurance plan is that it covered the risk factor of death and if the policy holder dies within the period of the insurance, the nominee or the family members will get the death benefit.  This insurance is for particular period of time and the policy holder can withdraw his policy after the term.

Whole life insurance: In whole life insurance, company receives the premium from the policy holder for the whole life or till the time of his retirement and pays it later after his death to his family members.

Endowment Insurance Plans: In this insurance plans, the insurance company defined the terms of the policy between 15 -30 years. If the policy holder dies between that period than his family members will get the death benefit otherwise the company pays the claim after this period.

General Insurance plans are for a short period of time. They can be classified as fire insurance, Marine insurance, motor theft insurance, accident insurance, health insurance, money insurance etc. The policy holder generally have to pay a small amount to the bank as premium and if any damage caused to his life, property, health etc due to some natural calamity or other explosion or accident the insurance company will pay for it.