Life Insurance

Life insurance is a financial tool made to protect you from any risk of uncertain event that can result into losses. This loss may be loss of life or loss of health. A life insurance product cannot protect you from risks such as accidents. Life insurance compensates you or your family in case any economic loss to you or your dependents because of the accident. In true sense it is a product that helps you in times crises irrespective of how much you have saved or invested in this product. In case of claim one gets the life insurance cover money. But the get the claim you need to be covered under the life insurance cover. It means you need to keep paying your insurance premium timely and regularly.

Why so you need it?

Surprisingly this is a product that benefit in case of unpleasant events. You need it because you need to make it sure that what you loss because the unpleasant event, you are compensating that in this way. Not only you but everyone needs an life insurance cover.

Apart from the risk mitigation that is protection from unseen losses, it provides options of savings and investments as well as it provide tax benefits too. This makes life insurance products very attractive tool for everyone.

There are different kinds of life insurance products that one can buy. Some of these life insurance products are basically investment products.  These are term plans, endowment plans and the unit linked plans. Term plans just covers the life cover only and in case of survival the insured person gets nothing. Endowment plans are the plans that offer a term plan and investment opportunities in fixed income assets at one go. Unit linked plans that are famous by the name ULIP. It provides facilities of term plans and an investment opportunity in equities simultaneously. There is no return for term plan, from endowment plan it is moderate but the returns from the ULIPs are very high depending on stock market.

Insurance, Investment Strategy