M.F.M. - II
Life Insurance is the key to good financial future planning. On one hand, it safeguards our money and on the other, ensures its growth, thus providing us with complete financial well being. Life Insurance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness, critical illness or maturity of the policy.
In law and economics, insurance is a form of risk management primarily used to hedge ...view middle of the document...
Demographic factors are those factors which has got the maximum of its effect in the purchase decision of the product and especially for life insurance product. Considering this, it is very important to analyze and understand the association between demographics of individual investors and their investment behavior.
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15 – 20% annually. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of owner, because he expects to get some benefit from it.
Classification of insurance:
1) Life insurance.2)
2) Non-life (general) insurance
Benefits of life insurance:
* Life insurance encourages saving and forces thrift.
* It is superior to a traditional savings vehicle.
* It helps to achieve the purpose of life assured.
* It can be enchased and facilitates quick borrowing.
* It provides valuable tax relief
This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.
Money back policies:
This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.
This type of insurance offers life insurance protection under group policies to various groups such as employers employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.
Term life insurance policies:
This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life...