Insurance: A life insurance policy is a contract between a policyholder and an insurance company. In a life insurance policy, the insurance company promises to pay an amount to the loved ones of the policyholder in case of death of the policyholder during a specified period.
Insurance Policy: A life insurance policy is a contract between a policyholder and an insurance company. In a life insurance policy, the insurance company promises to pay an amount to the loved ones of the policyholder in case of death of the policyholder during a specified period. In return the policyholder pays a small amount as premium to the insurance company.
On the other hand, in many policies, the policyholder can also opt for critical illness benefits or can opt for additional protection to avoid any unfortunate event. At the same time, before taking any life insurance, the person taking the insurance should keep in mind some things, which are as follows.
Nominee- The person who is being insured is called the Life Assured. On the death of the insured, his nominee receives the sum assured. In such a situation, the nominee should be selected carefully.
Policy Tenure- This is the period for which the insurance company provides coverage. The policy term for a life insurance plan is determined at the inception of the policy. This term can be anything according to the insurance plan.
Death Benefit- This is the amount that the insurance company gives to the nominee after the death of the insured. In such a situation, this amount should also be taken into account while starting the insurance.
Maturity Benefit- This is the money that the policyholder gets on survival till the completion of the policy term. Although there is no maturity benefit in a term life insurance policy, other life insurance plans offer this facility.
