Both advantages and disadvanta
English Public
Life insurance is a contract wherein an individual is offered financial coverage by an insurance company in exchange for a payment over a period.
Both advantages and disadvantages of the Brighthouse Financial life insurance
For more info...
https://oclnn.com/policy/review-of-the-life-insurance-policies-offered-by-brighthouse-financial-in-2022/
The payment made to the insurer is referred to as the premium. In case the policyholder passes away during the policy tenure, the insurance company will offer a lump sum amount to his/her nominee. This lump sum amount is called the sum assured on death or the death benefit.
Upon completion of the policy term, the policyholder receives a sum assured on maturity or the maturity benefit from the insurer along with some bonuses.
A pure protection plan, such as a term insurance policy, offers only the death benefit. However, there are several types of life insurance policies that offer savings in addition to protection. The savings can be in the form of a maturity benefit or bonus. Premiums paid and benefits received under life insurance are liable to tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Types of Life Insurance Policies
Term Life Insurance Plans
Endowment Policies
Unit Linked Insurance Plans(ULIP)
Money Back Policies
Whole Life Policy
Annuity/Pension Plans
1. Term Life Insurance: This is the type of life insurance policy that comes with a death benefit which is payable only in case the policyholder dies before the term of the plan. The nominee can make death claim after the demise of the policyholder. But if the policyholder survives the policy term, then death claim cannot be made, and the policy coverage will cease without any maturity value. These policies can be supported with riders for additional coverage such as accidental death benefit, critical illness benefits, and others.
2. Endowment Policies: This type of insurance plan is a combo of guaranteed returns and life coverage. This type of plans offers lump sum payout on maturity and enables the nominee to make death claim in case of untimely death of the policyholder. Some of the endowment plans also come with benefit of bonus over the policy coverage.
3. ULIP: The Unit Linked Insurance Plans are wealth builder plans that offer the benefit of both an investment plan and an insurance plan. Customers can invest in various funds, such as equity, hybrid, bonds, and others, as per their risk appetite and receive market-linked returns from investments. These plans come with a five-year lock-in period, loyalty addition, and the option of partial withdrawal and fund switching.
4. Money Bank Policies: This type of insurance plan offers a percentage of the assured sum of the policy at regular intervals and returns the remaining portion of the corpus along with bonus, if the policyholder survives the policy term. The entire sum assured will be returned in case of unfortunate event before the policy term. The policy also offers maturity benefits with lump sum payments.
5. Whole Life Policy: This type of insurance policy offers 99 years coverage with family protection for an extended duration. This type of plan is best suited for policyholders with dependents and offers lifetime protection to the policyholder and their children.
6. Pension or Retirement or Annuity Plans: This is a wealth building plan for non-working years of the policyholder and offers financial protection to the family members as well. This plan comes with various withdrawal options such as lump sum payment, regular income, or both.
Some other types of Life Insurance policies also include:
Children Life Insurance Policy: This life insurance plan is a combination of savings and investment plan specially designed to meet the financial needs of the children in the future. This plan comes with intermediate withdrawal or provision of withdrawal after the child reaches adulthood.
Group Life Insurance: This type of life insurance policy is offered to the employees by employers, bank customers, NGOs, non-banking financial organizations, professional groups, and microfinance institutions. This plan offers financial support to the employees and to their family members in case of the untimely demise of the employee. Some group insurance plans come with critical illness coverage, and disability along with outstanding loan coverage for debtors.
Comparison of Different Types of Life Insurance Plans
Life insurance has changed from being a luxury to a necessity, and it now plays a crucial role in how smoothly our lives go. Although the country's life insurance penetration has not yet kept pace with its population, hundreds of new people enrol in various life insurance plans every day. Selecting the appropriate sort of insurance is one of the most difficult aspects of life insurance, and with so many alternatives available from different firms, it wouldn't be difficult for those who are unfamiliar with them to become perplexed.
Both advantages and disadvantages of the Brighthouse Financial life insurance
For more info...
https://oclnn.com/policy/review-of-the-life-insurance-policies-offered-by-brighthouse-financial-in-2022/
The payment made to the insurer is referred to as the premium. In case the policyholder passes away during the policy tenure, the insurance company will offer a lump sum amount to his/her nominee. This lump sum amount is called the sum assured on death or the death benefit.
Upon completion of the policy term, the policyholder receives a sum assured on maturity or the maturity benefit from the insurer along with some bonuses.
A pure protection plan, such as a term insurance policy, offers only the death benefit. However, there are several types of life insurance policies that offer savings in addition to protection. The savings can be in the form of a maturity benefit or bonus. Premiums paid and benefits received under life insurance are liable to tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Types of Life Insurance Policies
Term Life Insurance Plans
Endowment Policies
Unit Linked Insurance Plans(ULIP)
Money Back Policies
Whole Life Policy
Annuity/Pension Plans
1. Term Life Insurance: This is the type of life insurance policy that comes with a death benefit which is payable only in case the policyholder dies before the term of the plan. The nominee can make death claim after the demise of the policyholder. But if the policyholder survives the policy term, then death claim cannot be made, and the policy coverage will cease without any maturity value. These policies can be supported with riders for additional coverage such as accidental death benefit, critical illness benefits, and others.
2. Endowment Policies: This type of insurance plan is a combo of guaranteed returns and life coverage. This type of plans offers lump sum payout on maturity and enables the nominee to make death claim in case of untimely death of the policyholder. Some of the endowment plans also come with benefit of bonus over the policy coverage.
3. ULIP: The Unit Linked Insurance Plans are wealth builder plans that offer the benefit of both an investment plan and an insurance plan. Customers can invest in various funds, such as equity, hybrid, bonds, and others, as per their risk appetite and receive market-linked returns from investments. These plans come with a five-year lock-in period, loyalty addition, and the option of partial withdrawal and fund switching.
4. Money Bank Policies: This type of insurance plan offers a percentage of the assured sum of the policy at regular intervals and returns the remaining portion of the corpus along with bonus, if the policyholder survives the policy term. The entire sum assured will be returned in case of unfortunate event before the policy term. The policy also offers maturity benefits with lump sum payments.
5. Whole Life Policy: This type of insurance policy offers 99 years coverage with family protection for an extended duration. This type of plan is best suited for policyholders with dependents and offers lifetime protection to the policyholder and their children.
6. Pension or Retirement or Annuity Plans: This is a wealth building plan for non-working years of the policyholder and offers financial protection to the family members as well. This plan comes with various withdrawal options such as lump sum payment, regular income, or both.
Some other types of Life Insurance policies also include:
Children Life Insurance Policy: This life insurance plan is a combination of savings and investment plan specially designed to meet the financial needs of the children in the future. This plan comes with intermediate withdrawal or provision of withdrawal after the child reaches adulthood.
Group Life Insurance: This type of life insurance policy is offered to the employees by employers, bank customers, NGOs, non-banking financial organizations, professional groups, and microfinance institutions. This plan offers financial support to the employees and to their family members in case of the untimely demise of the employee. Some group insurance plans come with critical illness coverage, and disability along with outstanding loan coverage for debtors.
Comparison of Different Types of Life Insurance Plans
Life insurance has changed from being a luxury to a necessity, and it now plays a crucial role in how smoothly our lives go. Although the country's life insurance penetration has not yet kept pace with its population, hundreds of new people enrol in various life insurance plans every day. Selecting the appropriate sort of insurance is one of the most difficult aspects of life insurance, and with so many alternatives available from different firms, it wouldn't be difficult for those who are unfamiliar with them to become perplexed.
by gerryshown
Vocabulary List
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