Life insurance is a plan that protects the insured person and the dependent or family of the individual. In the event of the insured’s death, the insurance company provides financial security to the family by providing specific benefits. This includes the contract that entitles the insured person to receive a certain amount in the event of an accident. A life insurance policy can help dependents cope with the financial crisis caused by the insured’s untimely death.
The primary purpose of life cover and term cover is the same: they cover a wide range of life-threatening risks. Term policies cover the risks of natural death and accidental death. By paying an additional premium, the basic risk coverage will include coverage for fatal diseases and double the sum insured in the case of accidental death.
Children’s insurance policies cover risks and make timely payments for future needs. Also, children’s policy covers the life risk of their parents. It is the responsibility of the parents to pay the premium continuously. Some policies provide coverage without paying an additional premium in the event of an accident to the parent. There is also an income tax benefit on the premium paid by the parent.
PENSION SCHEME INSURANCE
The pension scheme works as below :
When a person enters the workforce at the age of 25 and retires at 55, their employment term is 30 years. He should have income for another 30 years if he lives to age 85. Joining the pension scheme during a period of good health and income may be the solution to this problem. During the first 30 years of your income, if you remain a member of the pension scheme, you will receive a fixed income for the next 30 years (non-income period).
Starting a pension or retirement plan at an early age is advisable when regular income is available. In the long run, a small amount will naturally grow into a large amount. When pensions or retirement plans are considered at a later stage, the expected amount of pension will only be received if a huge amount is paid together at the time of joining.