Prajna Capital - An Investment Guide

This explains how some popular insurance schemes work to help you choose one Anyone above 18 years of age, who is eligible to enter into a contract, can go for an insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or child too. Here are some popular policies: 1) Whole life policy These are the simplest of policies. You pay a fixed premium every year based on your age and other factors. The insured earns interest on the policy's cash value as the years roll by and his beneficiaries get a fixed benefit after he dies. The premium is the same even in later years as it was when the policy was taken. Whole life insurance policies are valuable as they provide long-term cover and accumulate cash values that can be used for emergencies or to meet specific objectives. The surrender value gives you an extra source of retirement money if you need it. 2) Endowment policy An endowment life insurance policy is designed primarily to provide a benefi...