Life Insurance is an arrangement between the Insurance company/Government which guarantees of compensation for loss of life in return for payment of a specified premium. In Life Insurance, the beneficiary whose name has been mentioned in the contract receives the specified sum, from the insurer in case of happening of the event i.e. Loss of Life.
Benefits of Life Insurance
Insurance provides risk coverage to the insured family in form of monetary compensation in lieu of premium paid.
Insurance companies offer a different type of plan to the insured depending on his need for insurance. More benefits come with the more premium.
These policies also cover hospitalization expenses and critical illness treatment.
Insurance policies also come with the saving plan i.e. they invest your money in profitable ventures.
Insurance policies come with the guaranteed sum assured amount which is payable on happening of the event.
Insurance companies provide the option to the insured that they can borrow a certain sum of amount. This option is available on selected policies only.
Insurance premium is tax deductible under section 80C of the income tax Act, 1961.
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