Yes it is right we will not received income on insurance policies. Return on most of life insurance plan is less or equal to saving bank account. mazor benefits of life insurance policy is insurance of life and rebate in income tax.

Yes. Term insurance is the simplest form of life insurance. You can pay a fixed premium and in case of death the family receives a lump sum payment from the Life Insurer, The advantage of Term insurance, it ensures that the family is not left financially vulnerable in case something happens to the earning member.

Yes true. Many people thinks that life insurance is like an investment plan where after certain period of time they will get 10% increase in the output, similar to the fixed deposit amount. 

Rambabu please be original in your response , rather than repeat what is already there in the link...

Insurance policy is only helpful to the extent that it gets you tax refund and of course life cover and whatever bonus gets accumulated at the end of the term. But if one plans well a better return can be got because Insurance is the least beneficial , other than death benefit which happens in probably 10% or even less , among the number of people insured ..

i think yes, i don't much idea about polices but i know that term insurance polices helps the family in their vulnerable situation so its like a god for them, i think term insurance is the real insurance  

Life Insurance term policies have benefits for the lower middle class and poorer section where the mortality rate is higher and the families are often left with nothing. But such people find it difficult to pay even the yearly premium and often end up even the money that they have already paid because of some pre conditions 

Term insurance does not give return as this is not investment plan. But you get high cover at lower premium. The money saved by lower premium can be invested in better way.  The term insurance is also very useful as collateral security when you get loan.  The loan granting financial body is more interested in life cover rather than bonus/ dividend on policy. 

usha manohar wrote:

Rambabu please be original in your response , rather than repeat what is already there in the link...

Insurance policy is only helpful to the extent that it gets you tax refund and of course life cover and whatever bonus gets accumulated at the end of the term. But if one plans well a better return can be got because Insurance is the least beneficial , other than death benefit which happens in probably 10% or even less , among the number of people insured ..

Average age of person is increasing. So only few peoples are getting death benefit. Most of insured buy insurance policy only for tax saving. Getting claim from insurance companies is not an easy task.