What Are the Characteristics of Life Insurance?

6 Key Characteristics of Life Insurance Policies

FAQs about Characteristics of Life Insurance

What are the actual benefits of owning a life insurance policy? up-arrow

The main benefits you can enjoy after buying life insurance are:

  • You do not need to worry about the living expenses of your family.
  • Insurers often cover treatment costs of critical illness, so you do not need to worry about medical expenses.
  • You can reduce taxable income and plan for post-retirement life systematically.

Under what circumstances life insurance companies can reject claims of death benefits? up-arrow

Listed beneficiaries do not get the sum assured in a life insurance policy if the life insured expires due to self-inflicted wounds. Moreover, deaths caused by natural calamities or war-like scenarios are also not held as a reason for a valid claim.

What are the types of life insurance? up-arrow

Three types of life insurance policies mainly exist in India. These include term insurance plans, whole life insurance policies and ULIPs.