Insurance is a vital element in today’s world as it offers protection and financial security against uncertain events. Assured insurance is one such type of insurance that offers guaranteed protection to its policyholders. In this article, we will discuss assured insurance, its benefits, and how it can provide peace of mind to the policyholders.
What is Assured Insurance?
Assured insurance is a type of life insurance that offers guaranteed protection and payout to the policyholder. The policyholder pays premiums for a specific period, and in return, the insurance company assures a specific amount of money to be paid out upon the occurrence of an event, such as the death of the policyholder or a specific date in future.
Assured insurance is different from other types of life insurance in that it guarantees a fixed payout amount irrespective of the market conditions. This makes it an attractive option for people who want a guaranteed financial security for their loved ones.
How does Assured Insurance work?
Assured insurance works on the principle of a fixed term and a fixed payout. The policyholder selects the amount of coverage they require and pays premiums for a fixed period. If the policyholder passes away during the policy term, their loved ones receive the assured payout amount. If the policyholder survives the policy term, they receive the assured payout at the end of the term.
Assured insurance policies are typically offered for ten, fifteen, or twenty years. The premiums for these policies are higher than other types of life insurance due to the guaranteed payout. However, the premiums are fixed and do not fluctuate with market conditions, making it easier for policyholders to plan their finances.
The Benefits of Assured Insurance
Assured insurance offers several benefits to the policyholders, including:
Guaranteed Financial Protection
Assured insurance provides policyholders with the peace of mind that their loved ones will receive a fixed payout amount in case of their death. This payout amount can help meet the financial needs of the policyholder’s family, such as paying off debts, mortgages, and other expenses.
No Medical Exam Required
Assured insurance policies do not require a medical exam, making it easier for people with pre-existing medical conditions to obtain insurance coverage. However, the premiums for these policies may be higher than those that require a medical exam.
Fixed Premiums
Assured insurance policies offer fixed premiums for the duration of the policy term. This makes it easier for policyholders to plan their finances without worrying about fluctuations in premiums due to market conditions.
Tax Benefits
Assured insurance policies provide tax benefits to the policyholders. The premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act.
FAQ: Frequently Asked Questions
Who is eligible for Assured Insurance?
Anyone who is above the age of 18 and meets the eligibility criteria set by the insurance company is eligible for assured insurance. The eligibility criteria may vary from one insurance company to another.
What is the policy term for Assured Insurance?
The policy term for assured insurance policies is typically ten, fifteen, or twenty years. The policyholder can choose the term depending on their financial goals and requirements.
How much coverage can I get with Assured Insurance?
The coverage amount for assured insurance policies varies from one insurance company to another. The policyholder can choose the coverage amount based on their financial goals and the premium they can afford to pay.
Can I surrender my Assured Insurance policy?
Yes, the policyholder can surrender their assured insurance policy at any time during the policy term. However, the surrender value may be lower than the total premiums paid by the policyholder.
Is Assured Insurance better than other types of life insurance?
Assured insurance is a good option for people who want a guaranteed payout amount irrespective of market conditions. However, it may not be suitable for everyone. It is essential to compare different types of life insurance policies and choose the one that meets your financial goals and requirements.
Conclusion
Assured insurance is a type of life insurance that offers guaranteed protection and financial security to the policyholder’s loved ones. It provides peace of mind that their family will receive a fixed payout amount in case of their death. Assured insurance policies are easy to obtain and offer fixed premiums for the duration of the policy term, making it easier for policyholders to plan their finances. However, it is crucial to compare different types of life insurance policies before choosing the one that meets your financial goals and requirements.
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