Life insurance is a contract between an individual and an insurance company, where the company provides a sum of money to the beneficiary upon the insured person's death.
Life insurance is important as it provides financial security to your loved ones in the event of your death, helping them cover funeral expenses, pay off debts, and maintain their standard of living.
The amount of life insurance coverage you need depends on various factors like your income, debts, and financial responsibilities. It is recommended to assess your financial situation and consult with a financial advisor to determine the appropriate coverage.
General insurance encompasses various types of non-life insurance policies that provide coverage for assets, liabilities, and risks other than life, such as property, health, vehicles, and travel.
General insurance is important as it protects individuals and businesses from financial losses arising from unexpected events like accidents, natural disasters, theft, legal liabilities, and medical expenses.
Common types of general insurance policies include home insurance, motor insurance, health insurance, travel insurance, liability insurance, and property insurance.
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities, such as stocks, bonds, and other assets. They are managed by professional fund managers.
Investing in mutual funds offers benefits like professional management, diversification, accessibility, liquidity, and the opportunity to participate in various market sectors and asset classes.
When you invest in a mutual fund, you buy units or shares of the fund. The value of these units fluctuates based on the performance of the underlying securities held by the fund. The returns generated by the fund are distributed among the investors in proportion to their investment. Please note that these are general FAQs, and the specific questions and answers may vary depending on the insurance company and its policies.