A Life insurance is a legal contract between a customer and an insurance company for any future uncertainty. Under this contract, a customer is paying a periodic premium to an Insurance company. and in return of that an Insurance company is promising to the customer for Sum Assured on the Death or Maturity or benefits on surrender.
The basic purpose for customer if he/she is investing in the insurance is to secure family’s financial stability after the death of that insured person. The sum assured received by the nominee will support to them to clear Loans, to bear expenses of education of children if any, and also that amount support to family for their day to day basis expenses.
There are various types of insurance which are now a days in markets, below are the types of life insurance
Term life insurance :
Term life insurance policy is a insurance type which customer buy for the financial security of his family in is his absence after his death. There are 3 major types of Term Life Insurance.
Non Refundable Term Plan
Its a basic and old type of Term Plan which gives financial security to customers family in his absence after death. but in this option of Term Plan there is no any survival benefit or cash back or money back if he survived in the policy term. Sum Assured paid to nominee after the death of insured. Also a drawback of this type of insurance is, if a insured person not pay premium continuously or if the person discontinue the premiums then the policy will lapse and all the benefits of that policy will be stopped.