Life Insurance Industry Of India And What People Believes About It.

Life Insurance is a matter which people doesn’t want talk about. But it really needs to be under consideration. The people are not realizing the importance of life insurance and they even think what is the use of having a life insurance policy, if everything is going perfectly fine. A good life insurance policy can protect you and your family in entire life, still a large number of people is still uninsured.

Firstly the people should understand what actually the insurance is. “It is a provision which a prudent man makes against the inevitable contingencies, loss or misfortunes and is a form of spreading risk.” And it has many benefits which it may provide to people and provide protection to the family; it prevents the loss, and gives adequate financial cover. Today the 2 uses or benefits for which the people take insurance are:

1. Protection for the family.

2. Tax deductions.

Usually the person who owns the life insurance policy is the person who has to pay the premiums and 95% of the policy cases the owner of the policy has the right to exercise control over the policy.

There are many life insurance policies like term plan, endowment plan, money back plan, whole life plan, pension plan but the most famous plan which the most of the insurance companies is trying to sell is the ULIP i.e. United Linked Insurance Plan and specially by private life insurance companies and when we talk about India still 90% of the population is uninsured which in itself tells that there is a huge potential in this sector. LIC is the most famous, far most and the oldest player in this sector which was formed by combining 245 small level companies of insurers or prudent societies and at the present moment its chairman is Mr. T.R.Vijayan and the other 15 private life insurance companies where ICICI