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The life insurance definition is simple: it is a financial contract where an individual (the policyholder) pays regular premiums to an insurance company, and in return, the company provides a death cover to the nominee if the insured person passes away during the policy term. This payout, a key aspect of the life insurance definition , ensures the family has the financial support needed during a difficult time. Why is life insurance important? Life insurance is especially crucial for individuals who have dependents—such as spouses, children, or ageing parents. It offers financial security and peace of mind, knowing that your family will have support in your absence. Even if you are single or have no dependents yet, buying life insurance early locks in lower premium rates and ensures lifelong coverage if you choose whole-life or long-term plans. Types of life insurance plans Term insurance This is the simplest and most affordable form of life insurance. It provides pure protection for a...

Choosing the right saving plan involves more than just chasing high returns. It requires a balanced evaluation of three critical factors: return potential, lock-in period, and investment safety. Here is a comparative look at popular saving plans in India to help investors make informed decisions. Fixed Deposits (FDs) Fixed Deposits remain one of the most preferred saving options for conservative investors. Banks offer guaranteed interest, typically between 5.5% and 7.5% per annum. Lock-in periods range from 7 days to 10 years. Tax-saving FDs have a 5-year lock-in and offer benefits under Section 80C. FDs are highly secure as deposits up to Rs. 5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Public Provident Fund (PPF) PPF is a government-backed long-term savings plan with tax benefits. It offers an interest rate of around 7.1%, compounded annually. Although the returns are moderate, the safety is unmatched. The lock-in period is 15 years, with par...