Life insurance companies typically give loans against endowment policies if you have been a policyholder for a stipulated minimum number of years- usually between three and five years. Life insurance policy will also pay the claim in case of death. The knowledge that you have insurance should be a relieving factor, but that is not to say that you do no take the necessary precautions. They offer the higher of the sum assured and the fund value to the nominee upon the death of the policyholder.
Life insurance policy offers investment strategies. Some fund options are for those who do not wish to take calls on which funds to invest in. It adopts a strategy of maximizing the earnings when the capital market is soaring by locking returns and protecting the investment during volatile markets by limiting equity exposure.
For those who would like to manage their own portfolio, there are also many funds. If you stay in the plans for more than 10 years, the policy rewards you with the guaranteed loyalty units that added to your fund values at the end of 10,15 and 20 years at the rate of some percent. You can surrender your policy at any time of the year provided you have paid the premiums for three continuous years. The surrender value, however will be payable only after the completion of the third policy.
Affordable insurance is not a contract of indemnity, one can have more than one insurance policy, and in the event of death of the policy holder, all policies pay the sum insured. In practice most of the life insurance agents do collect and deposit the premium on the policies sold by them, it is not obligatory on their apart to do so. In fact, after issuance of the affordable life insurance [http://insurethepoor.com/], the responsibility of keeping the policy on force lies on the policyholder. Therefore there is no provision to penalize agents for not collecting the premium before the due date. Most of the insurers these days have the facility of payment of premium online.
Poor people can either go for individual policies or joint policy. If you discontinue a term affordable life insurance policy, you do not lose financially. However obtain a fresh policy before discontinuing the existing policy, so that there is no break in the risk cover. Looking at the overall you can find it moderate in terms of costs and flexibility.