Life Insurance is generally a contract between the policy holder and the Life Insurance company. The Insurer promises to pay the beneficiary a sum of money in exchange for a premium upon the death or some pre-defined critical conditions of the life assured. Insurance companies provide customers with a wide array of products. The premiums paid against Life Insurance are deductible from taxable income under section 80c of Income Tax Act subject to conditions.
Life insurance is very important in the modern scenario. The unexpected death or disability of an earning member always impacts the family in a very bad way. In such an unfortunate event, the insurance policy covers the financial loss caused. Life insurance replaces income, improves financial security, helps to achieve long term financial goals, and helps in several other ways. Different types of life insurance products are available in the market now.