Insurance

Life

Life insurance is a financial product that provides financial protection for your loved ones in the event of your death. It is a legally binding contract between an insurance company and a policyholder, where the insurer agrees to pay a sum of money, known as the death benefit, to the designated beneficiaries when the insured person passes away.

The policyholder pays regular premiums, typically monthly or annual, to keep the life insurance policy active. The amount of the death benefit and the premium payments are determined by factors such as the policyholder's age, health, and the type of life insurance policy they choose.

When the insured person dies, the life insurance policy's named beneficiaries will receive the policy's face value, or death benefit. This money can cover final expenses, pay off debts, or provide financial support for the beneficiaries, depending on their needs.

Life insurance is important for protecting your family's financial future and ensuring their well-being in the event of your passing. By understanding life insurance's key features and benefits, you can find the best coverage to meet your family's needs.

Health

Health insurance is a contract between an individual or group and an insurance company. The insurance company agrees to pay all or a portion of the insured person's healthcare costs in exchange for the payment of a premium. This contract is typically renewed annually, during which the policyholder is responsible for paying specific expenses related to illness, injury, pregnancy, or preventative care.

The key features of health insurance include:

• Covers hospitalization expenses: Health insurance plans typically cover the costs of hospital stays, surgeries, and other inpatient medical services.

• Subtypes of health insurance: Options include individual insurance, family floater insurance, senior citizen insurance, maternity insurance, and group medical insurance.

• Preventative care coverage: Many health insurance plans also provide coverage for routine check-ups, screenings, and other preventative healthcare services.

Mutual Funds

Mutual funds are pooled investment vehicles managed by professional money managers. They provide investors with access to a diverse mix of assets, such as stocks, bonds, and other securities, that are selected and managed on the investors' behalf.

Key Features

• Diversification: Mutual funds allow investors to gain exposure to a wide range of assets, reducing the risk associated with individual investments.
• Professional management: The fund's assets are managed by experienced investment professionals who make decisions on behalf of the investors.
• Accessibility: Mutual funds offer an accessible way for individual investors to gain exposure to various asset classes and investment strategies.
• Automatic Investing: Mutual funds enable investors to contribute regularly through systematic investment plans, facilitating consistent long-term investing.

Mutual funds are categorized by the types of securities they invest in (e.g., stocks, bonds, money market instruments), their investment objectives (e.g., growth, income, balanced), and the level of risk they aim to provide (e.g., low, medium, high). Investors can choose mutual funds that align with their financial goals and risk tolerance.

Fixed Deposit

Fixed Deposit is a type of investment in which an individual invests a lump sum amount for a specific period of time. The amount deposited in the Fixed Deposit earns interest at a fixed rate which is set at the time of the account opening.

Key Features

The deposit interest rate is paid by financial institutions to deposit account holders. Fixed Deposits are attractive for investors as a safe vehicle for maintaining their principle, earning a small amount of fixed interest.

Equity

• Equity represents the shareholders’ stake in the company, identified on a company's balance sheet.
• Equity is the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off.
• In addition, shareholder equity can represent the book value of a company.
• It also represents the pro-rata ownership of a company's shares.
• Equity can be found on a company's balance sheet and is one of the most common pieces of data employed by analysts to assess a company's financial health.