CATEGORY OF INSURANCE

Usually Insurance acts as an Umbrella which protects Financially to your Family even if you are no more in your Family. We know Everyone is important for their family but it is true beyond the time, the fact is that one day we all have to say Goodbye. 

No one can took your position in your family but Only Insurance is a secret things which makes you virtually evergreen.

Though it can not gives your family emotionally support but can give Financially support which is more important for daily lives.

 There are basically Three types of Insurance Plan -

1. Term Plan;

2. Pension Plan;

3. Endowment Plan;

You all have already read the above plan in a vast in different books or social sites and therefore it takes a lots of time to make understand any one that what is Term Plan? What is Pension Plan? & What is Endowment plan?

Here I am explaining all three types of plan in a very simple way with picture perfect so that you may remember for long time.

Lets explain....

1. TERM PLAN

It is a type of plan where you have to Protect yourself Today for your Better Tomorrow after being your Uncertainity.

For Example,

If you purchase a Term Plan for yourself, you have to pay the Premium in Single Pay or Regular Pay or Limited Pay.

Then within the policy period (May be it is for 5 yrs/6 yrs /10 yrs), If any miss happening or Uncertainity happenes to you, Your nominee will reveive Death Coverage. But If no Uncertainity Happens and your policy tenure get expired then your nominee doesnot get any Death Coverage..

In simpally, 

In case of term plan , If you die your nominee reseives Death Coverage but if you live then no benefit will be provided. 

2.PENSION PLAN:

A pension plan is an employee benefit that commits the employer to make regular contributions to a pool of money that is set aside in order to fund payments made to eligible employees after they retirement.

Normally a job holder person is said to be a Retired person when he crossed his 60's. Let asume your present age is 45. If you have think when you will at the age 60 after that you need a suitable and consistantly income for your family You must have to choose Pension plan.

In this type of plan You have to pay the amount either Single Pay mode or Regular pay mode.

First of all you must calculate your age upto 60 years for paying the premium and after that you will receive the benefit as pension either Yearly or Quaterly or Monthly and enjoy your Golden Days.

Unlike Term Plan, it is simply to say If you live you will get benefit and If you die your pension payout will stops.