Money Series: Part 42

By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group

‘Money Back’ Policies are also very popular in such schemes wherein the insurance company returns the insured money into installments in the interval in the plan period.

Let’s now take a look at India’s major and popular life insurance and general insurance plans available:

Major policies related to life insurance

The policies of this area take responsibility for the financial security of our lives. There are two types of insurance plans available in this group:

Term insurance policy

Nearly all life insurance companies have provided Term Insurance Policy in the market. In this policy, on the death of the policyholder/insured, the nominee/family is managed to return a lot of insured money, and the deceased’s family is protected from the serious financial pressure on the untimely death of the deceased. This policy provides the security of the life of policyholder year by year and returns the insured money on the death of the policyholder/insured, but the insured does not find anything during his life.

If you are younger enough now, this plan is fantastic for you because, in this plan, you can secure more than one thousand to twelve hundred times the sum insured on your annual premium for your family. Even if you are a bit older, this plan gives your family more financial protection than any other insurance plan.

Insurance and investment policy

There are two types of such insurance policies:

Endowment Insurance and Investment Policy without profit in business

In these types of policies, you also get the option of investing in the safety of your life. Although in such schemes, the insured does not get any share in the business and earned profits of the insurance company per year, but on its maturity, you receive the sum insured along with bonus also. In such policies, the premium amount is not very high and during the existence period of the plan, your family has financial protection against your life

Endowment Insurance and Investment Policy with profit in business

In these types of policies, you are also a partner of the insurance company’s profit earned in the business of the year with the security of your life and for this reason; the premium of such policies happens to be comparatively high. Some insurance companies offer minimum “guaranteed returns” in their insurance plans also.

‘Money Back’ Policies are also very popular in such schemes wherein the insurance company returns the insured money into installments in the interval in the plan period.

ULIP (Unit-Linked Plans) Insurance and Investment Policy

As the name implies, in this scheme, the money invested by the insured is invested in the stock market by the insurers, and the insured gets the benefit of the security of his life to a certain level along with the profit or loss in the ULIP business done by the insurers.

Pension Plans

In such schemes, the insurance company invests your money in various trading areas, and after the selected period, it returns you the benefits in monthly installments like a pension for you.

The main policies related to general insurance

The policies in this area take responsibility for the financial security of our goods or life-time needs. There are often following types of insurance plans available:

Auto Insurance

This plan provides insurance for your vehicles by getting the fixed fee from you annually and discharges your legal obligation on the accident to the injured/injured person or another damaged vehicle there. If you are a vehicle holder then obtaining this type of insurance plan is also your legal duty. If you wish, you can also get the protection of your vehicle by paying additional premium also.

Health Insurance

By investing in this scheme, you can get financial protection against the expenses incurred on your health and health problems of yourself and your family by paying annual fees. The sum insured is available in proportion to the fees you pay and, unintentionally, you can avoid future unexpected expenses due to the sickness of your or your family member, and as such, your medical insurance saves your other plans from being financially affected.

Travel Insurance

If you and your family are interested in a remote journey, you can avoid the financial side effects of all the risks of that trip by paying very little insurance charges in this plan.

Residential Insurance

In this scheme, if you provide a fixed insurance fee, the insurance company protects you from the financial side effects of your insured property.

Marine (cargo) insurance

In this scheme, the insurance company discharges the duty of importing or exporting securities of your object by receiving fixed charges, and in case of an accident, you are free from any financial side effect.

Business Insurance

In this scheme, the insurance company keeps you free from the financial side effects of accidents like damage, theft, arson, etc. to your business site by getting the prescribed insurance fee.

Industrial Insurance

If you are an industrialist, you can insure your industrial plants, machinery and plants, electrical appliances and your various contracts and avoid unwanted risks.

Personal Accident Insurance

If someone has taken any residential loan, which is determined to be paid by the income of that person and if the death of that person takes place in the insurance plan period, the remaining payment of the loan becomes exempted from the family, and the Insurer company pays the unpaid amount of loan (up to secured limit) to the finance company directly.

Many such insurance policies are available on the market today and many unseen future risks can be avoided by paying the very little fixed fee.

In these insurance plans, the maturity amount received from many schemes will be free from the tax liability, which provides an additional benefit for you.

Tarun Prakash Srivastava

The writer is the author of book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money  and in Hindi at http://bit.ly