Varied Insurance Plans In Banks

By Author: Shilpika Ponnappa
Total Articles: 428
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Investment is vast term, since it helps in securing the future of many. Banks provide varied kinds of investments that an individual can opt for any, to keep the worries away during the crisis. Investments can be of any form- mutual funds, demat accounts, pension plans and even insurance.

Life insurance is one such investment made by individuals, that prove beneficial to not just the individual making the investments, as it even benefits his/her family members when they are hit by any kind of financial crisis. One may not when any kind of unfortunate situation can strike them and shake up the entire living system. Insurance forms a critical part of the investment portfolio as it is not just important, it is necessary, to be able to maintain the standard of living of the family of the investor. Paying towards the insurance policy is a sacrifice done today, by providing a certain amount from the hard earned money of an individual to the bank, to provide for needs in the future. Insurance plans definitely do not show immediate results, instead is a long term investment and proves beneficial during the bad days.

One ...
... should ask the bank for all the detail regarding various insurance plans that would prove profitable to them and to their pocket. Insurance has two major components, which makes it a unique part of any investment portfolio offered to any individual by the bank- savings and mortality benefit. The savings component is the long-term gain, where you typically get a pay off at the end of the term not allowing the investor to avail even a certain part of the amount. The mortality component is the protector of the earning capacity i.e. it pays out the entire sum assured, if the investor dies during the term of the policy, compensating for the loss of income suffered by the family due to the bread earners demise. Only due to the mortality benefit, the family need not worry much regarding living a normal standard life after the demise of the investor. For the insurance to prove fruitful, investors need to pay a certain amount every month to the bank in the form of premiums. One should be careful while choosing the kind of insurance and the premium, keeping in mind the affordability factor. Whatever the economic landscape might be, once an insurance plan is bought at a particular premium rate, you are set i.e. the rates would not differ according to the changes taking place in the market with regard to the economic front. The premium doesn't change according to market markers or anything else, allowing the investor to worry just about the amount that needs to be deposited in the bank instead of the changing rates every month. Financial institutions provide variety of life insurance plans, such as entire life plans, money back, endowment plans and even the hugely popular unit-linked insurance plans. All these plans vary through different parameters; one should research well before finalizing on one.

Shilpika Ponnappa,
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