Postal Life Insurance | A Secured Future

Postal Life Insurance is a 125 year old life insurance scheme run by postal department in India. The postal life insurance scheme is for people who are not capable enough to afford the private companies insurance policies.

This policy was initially started for employees of Postal Department and is now expanded to cover all central and state government employees. After the success of this scheme Postal Insurance made a new scheme for Rural people called as Rural Postal Life Insurance to make advantage to rural people which accounts for 60% of India’s population.

This Postal Life Insurance Scheme gives better returns than other products. Recently postal life insurance announced a bonus of Rs 70 on Rs 1000 sum assured which means the insurer gets sum assured plus annual bonus when policy period is over.

In comparison to that Life Insurance Corporation of India (LIC) has till now given a bonus of Rs 38-40 in past five years.

Also this Postal Life Insurance scheme provides various tax benefits. The returns for this scheme are tax-free and premium payment is subject to tax exemption. Postal Life Insurance scheme are not for people or investors who are looking for new age products like unit-linked insurance plans and other schemes. Its is specifically designed as basic insurance covering policy.

Like life Insurance these scheme doesn’t provide you with any accidental death benefit but only offers death cover.

So if you are interested for a simple life insurance policy and become eligible for it the Postal Life Insurance is a great tool for you.

Read More About

• Why Not To Buy Whole Life Insurance
• Life Insurance Covers For People above 50’s
• Top 5 Reasons to Invest In Life Insurance
• Recovery of World Insurance Market Likely In 2010

Buying Life Insurance-An Easy Way

Life Insurance is one of the commonly available instruments. in life.
Life Insurance has 2 main benefits:

1. All insurances life insurance is aimed to protect against any financial, economic loss. With LIFE INSURANCE the loss is protected against the value of human life. This capital is defined as future income which is considered with value of current person. So we can say that life insurance is an investment for future income.

2. On insuring with life insurance one gets a tax free death benefit which replaces the capital value of insured. Definitely this doesn’t replace the person to make up for loss of the person but helps to make up the financial loss.

Whether you are young, new or a person in retiring age life insurance need is for everyone.

Many people feel that having too much of money spend on insurance is not good. But actually there are 2 approaches on basics of which one can decide how much insurance is needed.

1. Income Approach: This approach takes into consideration current income with the estimated inflation rate which helps to know how much insurance is needed to protect that particular income level over a specific time period.

2. Needs / Expense Approach: This approach uses your current expenses and estimated inflation to determine a minimum amount which will be needed to clear the outstanding amounts over a specific period of time.

Mostly all people need life insurance. But how much and how long one should buy depends on age parameter and for whom.

If one wants to buy life insurance some basic tips are given which needs to be considered:

1. All Insurance agents are not equal. Some insurance agents are captive agents which sell only one company’s product. They are good in terms of ethics and education but it is advisable to avoid captive agents.

2. There are 2 types of insurance-temporary and permanent. This type varies from person to person. Some people may require more of temporary insurance. So depending on your need you need to choose right type of insurance

Also there are various different kinds of features within different insurance products called as riders. These riders include disability income, waiver of premium etc. Such riders may or may not include overall cost of insurance but it should be taken care of at the time of selection of insurance.

One needs to ensure that they have a proper financial advisor to guide you with insurance and not just a sales person. This can be checked by asking him his professional designation, any specialized training they have received and which organization they belong to.

One also needs to ensure that the financial advisor they have hired must be of professional organization like National Institute of Insurance & Financial Advisors (NAIFA), Association of Advanced Life Underwriting (AALU) etc. The purpose to check for these organizations is because these organizations require agents to strictly follow stringent codes of conduct and receive additional training by them.

With taking such tips and advice on insurance one would surely be in a position to take a proper decision on when and what type of insurance to buy.

Read More About

• Why Not To Buy Whole Life Insurance
• Life Insurance Covers For People above 50’s
• Top 5 Reasons to Invest In Life Insurance
• Recovery of World Insurance Market Likely In 2010