Sunday, March 22, 2009

WHOLE LIFE INSURANCE



What is whole life insurance?
Whole Life Insurance or whole Life Assurance is a kind of Life Insurance. As it’s name it gives protection for whole life. Whole Life Insurance is based on two main factors, one is death benefit another is Tax-delay. Normally Insurance Company offers flat premium. Whole Life Insurance is not more profitable than other Life Insurance plans. Policy Holder will get around same amount that he had paid as premium. In this Life Insurance policy the rate of premium is higher even return is low. So Whole Life Insurance is not profitable than Term Life Insurance.

Advantage of Whole Life Insurance
Whole Life Insurance has its own advantages. Once it bought there is no need any other Life Insurance for entire Life. At old age if you want to buy any other life Insurance then it will be costlier than Whole Life Insurance. In additional you have to take some medical check-up, strict paper work ect. So Whole Life Insurance is a helpful at old age.
Whole Life Insurance is a good option to save your tax. The amount which you had paid as premium will be cut in Tax amount.
This Life Insurance gives you life long Protection. Whole Life Insurance gives you continues protection, there is no need to renew your Life Insurance Policy like Term life Insurance.

Disadvantages of whole life insurance
Whole Life Insurance is not good for Investment. Its returns is very low than other Life Insurance Plans. There for it is not much profitable as an investment.
The rate of premium is higher. As its return is low and moreover its premium is high it is not value for money.


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Wednesday, March 18, 2009

TERM LIFE INSRUANCE POLICY

What is Term Life Insurance?
Term Life Insurance is the most popular Life Insurance. It is also known as TERM ASSURANCE. And there are various types of Term Insurance is available in Insurance Industry. But did you really know why it called TERM LIFE INSURANCE? Term Life Insurance is designed for temporary Life Insurance Coverage with limited budget. Actually Term Life Insurance is planned for specific time coverage. One can buy this Insurance for a particular time like 5 years, 10 years ect. During this specified time policy holder dies then the whole amount of claim will paid to the beneficiary by the Insurance Company. And if the policy holder is alive the he or she will get the return of his or her premium. Term Life Insurance Policy is renewed at higher rate of premiums in most of countries at the age of 80 and above. Some Life Insurance Companies returns 100% of the premium.

Usage of Term Life Insurance
The main use of Term Life Insurance is to secure financial responsibilities of the policy holder.


Qualities of Term Life Insurance

Renewable:
Tern Life Insurance policy holder can renew his/her insurance policy. Policy holder can continue his Insurance Coverage with safe features. As Term Life Insurance Policy is renewed the amount of it’s premium increases. The increasing of premium is also depends on policy holder’s age. Normally as your age is high you have to pay higher premium. Tern Insurance Policy holders can renew their policy as long as they wish but each time Policy holder renew their policy they have to pay higher premium then previous time.

Switch Policy:
Term Life Insurance policy is renew able. Some policy holders renew their Term Insurance Policy for a long time. There is another option to Switch policy for them, who wants to continue their Life Insurance cover for a long time. It is cheaper than they renew their policy for a long time. Only few Life Insurance Company gives this option. Term Life Insurance will be switched in to Permanent Life Insurance.

Flexible premiums:
Term Insurance has the facility that it’s premium is flexible. In this function policy holder has the choice to adjust their premium according to the Life Insurance Company’s rule. Term Life Insurance policy holder can pay some time higher premium and some time lower. But at the end premium will be not paid more than the total premium amount.



List of Indian life insurance companies