What is a life insurance plan?
A life insurance plan or policy allows a policyholder to enter into a formal contract with a life insurance company where the insurer agrees to pay a mutually agreed sum to the beneficiary in the event of the life assured's death or upon maturity of the plan.
If the policyholder fulfils the terms of the contract, such as timely payment of premium and correct disclosure of important information, the insurer is also bound to honour the terms of the contract. In India, there are numerous types of life insurance plans available for people according to their needs and life goals. Life insurance is not only used for getting a life coverage but it also considered as an effective investment option to secure your loved ones and plan for your life goals.
India has a booming and large life insurance industry where you can find life insurance policies in all shapes and sizes. In terms of total premium collected, India ranked 10th in the life insurance segment in 2018. The country has 24 life insurance companies and in FY19 total life insurance premium collection was Rs. 4,08,000 crore ($58.5 billion).