Life Insurance Plans – Traditional Vs Modern

We live in an exciting time that are both exciting and volatile! In these uncertain times, where there is no guarantee on the future, Life Insurance is the sole assurance you are able to provide for yourself and your family members against the uncertain and unforeseeable funeral insurance. Insurance is in essence a contract that is made between an insured person and their insurance company. The insured is required to pay the insurer a set amount at set intervals in exchange for which the insurer will pay a specific amount of money in the case of death or the date of maturity or the expiration date of the insurance policy.

The past was when individuals were more likely to opt for conventional insurance plans, that were usually endowment or term insurance policies. The amounts guaranteed by these insurance plans is guaranteed and set prior to the purchase. They typically offer guaranteed insurance for life as well as health, and were sometimes connected to a life-long pensions. But, even though these plans are a security cover, they are dated due to the rising price of living. They don’t provide high yields and the premium time is quite lengthy.

Ten years ago the generation that was younger wasn’t so aware of the importance of securing oneself as our youngsters. Nowadays we are not just looking for insurance, but we’ve learned that investing and insurance can occur simultaneously and at the same amount of money.

The industry of life insurance has undergone an evolution in the way it operates. Nowadays, insurance isn’t only a means of protecting against unfortunate and untimely circumstances of life, but an active method of investing into the market for equity. The entire concept has evolved as increasing numbers of private sector firms rushing into this field. There is no longer a time when the majority of people opted for government-owned companies and kept it simple. The overall risk appetite has increased , which is why Unit Linked Insurance Plans or ULIPs have taken over the market. These ULIPs place the funds of the insurer on the market, and don’t only guarantee life insurance but also help your savings increase significantly.

With the increasing attention of people of all ages, modern plans have given the responsibility to the insurance company. Most of these plans are customizable according to the requirements of the insurer. They provide plenty of flexibility in terms of premiums as well as term and riders. They are accompanied by various additional riders, such as the risk of death from an accident, illness that is critical, and the benefits of premium waiver. Liquidity, loan against insurance and tax benefits make them more attractive than ever.

Life Insurance Corporation of India or LIC as we generally recognize it, was thought to be the biggest insurance company but has now made way for big insurance companies like AEGON Religare, Aviva, Bajaj Allianz, Bharti AXA, Birla Sun Life, Canara HSBC Oriental Bank of Commerce Life Insurance Company DLF Pramerica, Future Generali, HDFC Standard Life Insurance Comapny, ICICI Prudential, IDBI Fortis, India First Life, ING Vysya, Kotak Mahindra, Max New York, Met Life, Reliance Life, Sahara India, SBI Life, Shriram Life, Star Union Dai-ichi and Tata AIG.

With the increase in lifespan it is sensible to have enough resources for living life with a certain amount of peace. Nobody has ever seen the future, but we do have the ability to live in the present.

Start investing today and save money and you can rest assured that tomorrow will be just as safe!

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