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Life Insurance

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Life Insurance
CONTENTS SR NO | TOPIC | PAGE NO | 1 | INTRODUCTION | 4 | 2 | TYPES | 5 | 3 | ADVANTAGES AND DISADVANTAGES | 8 | 4 | LIFE INSURANCE IN INDIA | 10 | 5 | LIST OF INSURER | 11 | 6 | TOP 10 PRIVATE INSURANCE COMPANIES IN INDIA | 12 |

INTRODUCTION

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.
The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories: * Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. * Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life andvariable life policies.

TYPES

Life insurance may be divided into two basic classes: temporary and permanent; or the following subclasses: term, universal, whole life and endowment life insurance.
Term insurance
Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term is generally considered "pure"

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