Life Insurance gives financial protection to a family of an earning person, who dies accidentally by accident. Life Insurance is a contract between an insured person and an Insurance Company. Where an insured person pays money as a premium to the insurance company for a particular period for a particular sum assured. The Insurance Company provides a Life Cover as a specified sum assured for a specified term to the insured person. The Life Insurance Cover provides financial safety to the insured person’s family against any unexpected mishappening.
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We can divide life insurance into two parts. First is a pure life insurance plan (Term Plan). Which gives a lump sum amount to happen an unfortunate event in a specified period and no maturity benefit. The second is a traditional life insurance plan (Endowment and Money Back). Which gives a lump sum amount on the unfortunate events and additionally gives a maturity benefit also after a specified period.