The concept of life insurance is not restricted to the age old, traditional endowment covers. With insurance companies making rapid strides, several companies have emerged paving way for new options or choices. In fact plan features have evolved considerably. You can look forward to a plain insurance cover, a money back policy for family issues or a pension plan to take care of you during old age. Now you might compare insurance on various online websites and still be confused. Now let us throw more light on the buying process with a life insurance plan.
Definition of insurance?
The term insurance is a pure life insurance cover which goes easy on your pocket. It does cover death risk and a lump sum amount is provided to the beneficiaries in case of death of a policy holder during a given period. So it would mean that the family of an insurance policy holder is taken care of and provided security. But if an insurer survives during the period of time, no benefit is paid and the sum total of all premiums is paid over. But comparing insurance company quotes is necessary before you plan to purchase an insurance policy. This will help you to avail one as per your preferences.
Key terms of an insurance policy
The below are listed some of the key terms that you normally come across in an insurance plan
- Sum assured- is the sum payable to an individual on the maturity of a policy
- Entry age- an individual who is the age bracket of 18 to 65 years can avail an insurance policy
- Maturity age- the age at which a policy expires is referred to as maturity age. If you are an individual of 50 years and want to avail a policy with 80 years maturity then you would need to avail a policy of 30 years. Normally the tenure is between 10 to 40 years and it is suggested that you choose a policy with maximum time frame. In this manner your objectives are assured.
How to purchase an insurance policy?
You can purchase a policy in two ways, online and offline mode. In the former you can purchase it directly from an online website, whereas in the latter you would need to avail the services of an insurance agent. With the offline mode you can pay a visit to the nearest branch with all your documents. Here the application process needs to be fulfilled and then you can choose a policy of your choice. An insurance policy could be purchased with the help of agents or brokers as well.