Save Money On Your Life Insurance Policy

        http://www.jayantharde.com                                                                                                      Life insurance is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.

Life-based contracts into two major categories:

Protection policies – designed to provide a benefit, typically a lump sum payment, in the event of a specified event. A common form of a protection policy design is term insurance.

Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums.

Advantages of Life Insurance :

Risk Cover - Life today is full of uncertainties; in this scenario, Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. 

Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.

Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long-term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through a variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA of India, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance is a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short-term gains.

Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning lifespan is utilized to provide a steady source of income during the retired phase of life.

Protection plus savings over a long-term - Since traditional policies are viewed both by the distributors as well as the customers as a long-term commitment; these policies help the policyholders meet the dual need of protection and long-term wealth creation efficiently.

Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through the annual announcement of dividends/bonus.

Facility of loans without affecting the policy benefits - Policyholders have the option of taking a loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.