Contact an insurance agent and collect information about 5 different types of life insurance policies
provided by different companies. Include information as per details given below for every
insurance plan and make a comparative analysis.
Premium of insurance
Terms of inclusions and exclusions of each policy
Term of the policy
Withdrawal of money from the insurance scheme (surrender / foreclosure)
Advantages/disadvantages of the plan.
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Answers
Answer:
Life insurance is simply a contract between the policyholder and the insurance company. The policyholder pays a premium to the insurance company for a specific number of years (or for life), and in return the insurer promises to pay a sum assured to the nominee upon the death of the policyholder. For some policies, the insurer pays a maturity benefit to the policyholder, if he/she survives the term. However, these terms differ for different policies.
There are five different types of life insurance policies available, and here are their features and benefits:
Term Plan: A term insurance policy is a pure life cover and its structure is very simple to understand. You pay a premium to an insurance company for a specific number of years and in return, in case you were to meet with an untimely death, the insurer promises to pay the sum assured to your family. It does not come with any maturity benefit (apart from Term Plan with Return of Premium or TROP).
Benefits of Term Insurance Plan:
It provides higher cover for lesser premium as compared to other life insurance products.
TROP comes with a maturity benefit, which is the sum total of all premiums paid. No interest amount is paid on that.
Explanation: