Insurance refers to a form of risk management that is primarily used to hedge against the risk of a contingent, uncertain loss. The benefits of having insurance cover are that its aids in protecting an individual and his family against high costs of medication and health care are administered. Mostly the premium money is on a monthly basis. The insurance coverage is not guaranteed, and the limitations on eligibility may vary. Apart from having health insurance cover, an individual can have insurance covering his vehicles, home, business and so on. Calgary State Farm has different insurance plans. Different insurance plans cover various aspects your life namely;
Different insurance plans
Term plans is an essential form of life insurance in that they provide life cover with the no aim of an individual saving or making a profit. The premiums are cheaper compared to other life insurance policies. Therefore, any person can afford whether rich or poor. There is always no payment to the beneficiaries if the policyholder survives whereas there is payment if the policyholder expires over the policy term.
Endowment plans is an insurance program that pays fixed sum of money to the beneficiaries whether the insurer survives or not. They charge higher fees reflected in the premiums. The premiums are invested in equities and debt which generates profit. Regarding maturity, aspect is where it differs with the term plan insurance cover.
Unit Linked Insurance Plans
Unit linked insurance plans are a variant of the traditional endowment plan. The performance of this program depends on the markets. The allocation of investments in stock/ debt markets is chosen by individuals. Net asset value is captured by the investment portfolio. In this type of plan, they are a combination of investment and insurance whereas mutual funds are a real investment avenue.
Whole life Policy
Whole life Policy covers a policyholder over his life. In this type of insurance plan is that the validity of the policy is not defined, so an individual or insurer enjoys the life cover throughout his life. The insurer pays premium regularly until his death, upon the fixed amount of money is given to his/ her family. Since there is no predefined policy tenure, the policy expires only in case of an event occurring.
Money back Policy Plan
Money back policy plan is a variant of endowment plan. In this type of program, it gives periodic terms over the policy term whereby a portion of the sum of money is paid at regular intervals till the moment all payments are settled. The policyholder gets the balance assured if he survives and the…