Insurance Policiies- (More info on Term Policies)

Types of Insurance Policies:

1. Endowment


2. Money Back


3. Whole life


4. ULIPS


5. Term

All the policies are commonly having "Mortality charges".

Term Policies:

Suppose 30 yrs old person would like to take the policy for the term 20 yrs for Rs. 1000000(1 lakh) sum assured, (s)he has to pay premium 5000 per year. In all the 5 policies Mortality charges would be almost all same i.e, around Rs. 400 per year.

Here in Term policies we can pay only Mortality charges.

HUMAN LIFE VALUE(HLV):

Suppose a 30 yrs old person earns 5 lakh ruppes per year and next 20 yrs the person may earn 500000*20=1 Crore. Here that 1 crore is that person HLV.

If any unfortunate event happened for that person, the family members may lost that 1 crore.

If we need bigger life insurance coverage better go for Term policies. Its cheaper than other policies.

If we go for 50 lakhs coverage:

In Term policies, we need to pay 400 per lakh. for 50 lakhs 400*50=20000 roughly.

In Endowment/Money Back/whole life , we need to pay 5000 per lakh. for 50 lakhs 5000*50=250000.

Due to time constraint just am stopping this matter here. U can raise ur doubts in comments, I can answer.