What is Life Insurance? Life Insurance is a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a policy premium, upon the death of an insured person or after a set period. You pay premiums for a specific term and in return, insurance companies provide you with a Life Cover. This Life Cover secures your families future by paying a lump sum amount in case of an unfortunate event. In some policies, you are paid an amount called Maturity Benefit at the end of the policy term.
Key Features of Life Insurance Plan
The Sum assured is the amount that is payable to the nominees after demise of policyholder.
A person in the age bracket of 18 to 65 is eligible to buy a term insurance cover.
The age at which the policy expires is called as maturity age. Usually, most of the policies have a maturity age of 75 years; however, a few may even go up to the age of 80 years.
The duration for which the policyholder has a life cover is the tenure of the plan .normally the tenure is 10 to 40 years.
Types of Life Insurance
- Term life insurance
- Whole life insurance
- Endowment policy
- Money back policy
- Savings & investment plans
- Retirement plans
- Unit Linked Insurance Plans (ULIPs)
- Child insurance policy
- KEYMAN POLICY
- GROUP TERM POLICY
- GRATUITY POLICY
- EMPLOYER- EMPLOYEE POLICY
Life Insurance Claims
- Death Claims: In case of a claim under your life insurance policy, your beneficiary needs to submit following documents: A fully filled claim form Original policy bond or contract An original, or certified copy of the policyholder‘s death certificate Proof of identity as the beneficiary.
- Maturity Claim: In order to avail maturity benefits of your life insurance you need to submit the following to your insurer Original policy bond Maturity claim form.