A insurance policy could be a type of insurance that gives coverage against the unexpected death of the policyholder or once a set-period of your time once the policy matures. so as to avail this protection, the insured pays a certain amount as premium towards maintaining the policy.
It is nothing however a safety net that provides money security/protection against loss of life. the primary purpose of a life assurance policy is to protect the money interests of the insured’s family.
There are three basic aspects related to life assurance, namely:
Premium – an individual is accorded cover provided that he/she pays a certain total of cash towards the policy. this is often termed the premium. One will think about it to be the initial investment that offers returns within the future.
Death Benefit/Sum Assured – this is often the money that the insurance company assures to pay to the nominee/beneficiary of the policyholder once his/her end. This varies supported a number of parameters.
Term – each policy is in have an effect on for a specific amount which may be chosen once getting the policy. this is often called the term, and it could vary supported the type of policy chosen.