Insurance : At a Glance
| Service | Service Type | Service Provider |
|---|---|---|
| Insurance | General Insurance | General Insurance Company, United Insurance Company, Oriental Insurance Company etc. |
| Health Insurance | Nearly all insurance companies and some insurance companies which only provide health insurances like Appolo Munich | |
| Life Insurance | Many life insurance companies like Life Insurance Corporation of India, Birla Sunlife Insurance Company Ltd., ICICI Prundential Co. Ltd, HDFC Life Insurance Co. Ltd. etc. | |
| General Insurance | Insurance of various types except life insurance like Insurance of vehicle, building, machinery, Crop etc. | All General Insurance companies |
| Health Insurance | Covers insurance of various types illness and accidential damages | Nearly all Insurance companies |
| Life Insurance | Traditional Plan | All life insurance companies |
| ULIP Plan | All life insurance companies |
Buying a Life Insurance Plan
Life Insurance is very important for all the members of family. Life insurance helps to fulfill the need of protection of family as well as the financial goals. Life is not very secure in today's fast running age. Someone said "Life is not a rehearsal. Each day is real show. No retakes, no rewindings. Protect yourself and your family." According to this life insurance is very necessary.
What is life insurance?
Insurance is contract (Policy) between the insured (Policy Holder) and insurer (Insurance Company). According to this contract the insurance company promises to pay a specified amount to the beneficiary (Policy Holder) at the time of happening an specified event as per contract. If event not occurred, at a future date or stated in policy, a lump-sum amount is paid.
Life Insurance is a financial plan whereby an individual makes periodic payments to an insurance company. In return the company repays the individual or the beneficiary at a stated future time or on the occurrence of certain events such as death, accident or disability. The beneficiary or owner of the policy is the person who to receive the insurance benefits. The person whose life is insured is called the Insured. In some cases beneficiary and insured may be same person and the also may be different.
Life Insurance Companies normally offer following three types of plans :
1. Term Plan (Life insurance without return)
2. Life Insurance (with return)
3. Health Insurance
Life insurance (with return) can be divided into two types:
1. Traditional Plan
2. ULIP (Unit Linked Insurance Plan)
At the time of taking life insurance plan, selecting an insurance company, an insurance advisor and an insurance plan according to need is most important steps. Select a company which have license from its regulatory body. In India regulatory body is Insurance Regulatory and Development Authority (IRDA). Also study about its reputation, financial soundness, claim rates of companies. Next step is selecting an insurance advisor. A reliable advisor can be very helpful in planning the plan. The next step is selecting the insurance plan according to need of protection and financial goals. Compare the various available plans and select the best suit plan.