Life Insurance in Short !
Before few years I was not knowing about the importance of Life Insurance and What life insurance is ! But gradually I came to know that it is an important part of financial thinking for future. It is also one of the way to save tax on your income. Government gives tax exemption on the life insurance policies.
So what it is ? If you have a life insurance, your insured company will pay cash to your relative in case of your death or terminal illness. You are required to pay a monthly premium depending on the amount insured.
Some people say “why should I go for life insurance if I will not be getting anything out of it”. But think of those who are dependant on you and left behind. So if there is a dependent in your family or have loan/mortgage burden, you should always consider life insurance option.
Life insurance is known by various names – Term Life Insurance, Life Assurance, Term Assurance, Mortgage life insurance etc. – but all are one and the same thing.
There are mainly 2 types of life insurance -
- Decreasing Life insurance or Mortage life insurance
- Level Term Life insurance
You will also find various other types of life insurance like monthly benefit, increasing term insurance, convertible term insurance etc. Premium rates and terms varies from company to company and you should always compare different quotes to get the best Life Cover.
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