Life Insurance :
What is life Insurance
Life Insurance is nothing but getting some compensation amount in case of demise or damage.
Mainly to protect the family members from financial troubles, earlier mainly it was an endowment or whole life policies, in a case of endowment the Insuree will get insured amount if he lives as on date of maturity or if he dies during the tenure of the policy the nominee will get the insured amount. in the case of whole life policies the in
- In case of whole life policies, the Insuree will not get any amount till he dies but the nominee will get the benefit of the policy
The above two are traditional policies, nowadays need-based life insurances are available in the market with so many insurance companies.
For Example :
- Housing Loan :
If a person avails housing loan from any institutions or banks the housing loan amount along with interest accrued on it will be paid by the insurance company, in case of the death of the borrower during any of the loan periods, if the borrower life is insured, in this particular insurance scheme the borrower can pay single premium or yearly premium. most of the banks are including the cost of the premium in the project cost of the house. If the borrower did not avail at the time of taking the loan he can insure his life at any time during the tenure of the loan. Like other insurances, the premium is very low small age group people. so that the legal heir need not bear any burden. so the Importance of Insurance of this specific subject may kindly be understood while availing housing loans
It is advice to take the general insurance policy to protect the house from damages like fire, earthquake, floods e.t.c. The general cost of the premium is very low.