life insurance?

The insurance company will guarantee that your loved ones will be taken care of, 

and of course you will have to pay a monthly premium for this guarantee.  The premium amount depends on various factors including your age (younger people are charged less than older people), health (smokers are charged more)

 and  The type of policy you are opting for (see more below on this).

 Of course, very few of the people who take insurance may die prematurely or at a young age, so the insurance company makes money from the premiums collected from all the people.  The premiums are invested in various investment vehicles like stocks and bonds.  The families of those who die young are paid out of the bereavements paid to other long-lived individuals.

 You may also be able to understand why some people are charged less than others.  If you are young, the risk of dying before the policy term is less, while if you are old, the risk of dying within the policy term remains.  And if you're a smoker, you're probably bringing yourself closer to death than a non-smoker.

 Now you might be thinking, what happens to my paid lovers if I don't die young?  Now we come to the point where two different types of insurance come before us: first is conventional life insurance and second is term life insurance.

 In 'conventional life insurance' you actually pay a premium for two things: first is to insure your family in case of your untimely death and second is an investment account in which the money is paid over the entire term.  Collected funds.  If you live to reach your 60th birthday, the money in your investment account will come back to you, which can be a substantial amount.

 In 'term life insurance' you pay a very low premium but if you don't die and reach the age of 60, you don't get anything from the insurance company.

 .

So why would anyone want to opt for term insurance?  However, the first thing to note is that term life insurance premiums are much lower than conventional life insurance.  If the sum assured is equal in both types of insurance, then you will have to pay 500 rupees per month for term life insurance and 5 thousand (or more) per month for conventional life insurance.

 Another major difference between them is the commission structure.  75% of the premiums paid in the first year of a conventional life insurance scheme and 90% goes to the agent who sold you the policy.  Only from the second year you start accumulating your capital.  A year's worth of commission may not seem like much when considering a life insurance policy for 20 years or more, but it can drag down your profits more than you think.

 Because of this difference in commission structure, insurance agents seem less willing to sell term life insurance than conventional insurance.

 Of course, I don't mean to suggest which one is better than the other.  My purpose here is only to show what are the different features of these two.  If you want a payout or guaranteed return of the amount paid in an insurance policy, are willing to use the insurance policy for a money saving plan and are also willing to pay commission, then you should consider conventional life insurance.  should be chosen.  If you simply want protection against untimely death and want to use mutual funds and other means of investment, term life insurance would be the best choice.

 So what do you think about the first question: should you get life insurance?  So one question you have to ask yourself is: "Do you feel lucky in your life?"

 This article is only intended to provide information about sources of financial services.  This article is not intended to encourage or recommend the purchase or sale of securities or any other financial instruments.  Readers should do their own careful research before making any investment or financial decisions.

 When the above blog was published, the word 'term' was left out due to a mistake in paragraph 14, for which we apologize to the readers.  Therefore, the insurance in the above paragraph should be read as 'term insurance'.  Thanks