Inderjeet Singh | Tax Services

Life Insurance

Life insurance is a type of insurance that provides a death benefit to the beneficiaries of the policyholder upon their death. It is designed to provide financial protection and support to the policyholder's loved ones in the event of their passing. The policyholder pays regular premiums to the insurance company, and in return, the insurance company pays out a lump sum, also known as the death benefit, to the beneficiaries listed in the policy when the insured person passes away. This money can be used by the beneficiaries to cover funeral expenses, pay off debts, replace lost income, or meet any other financial obligations.

Critical Illness Insurance

Critical illness insurance is a type of insurance that provides a lump-sum payment to the policyholder if they are diagnosed with a specified critical illness covered by the policy. The illnesses covered may include major conditions such as heart attack, stroke, cancer, organ failure, or other serious diseases depending on the policy terms. The purpose of critical illness insurance is to provide financial support to the policyholder during a challenging time, helping cover medical expenses, rehabilitation costs, or any other financial needs that may arise due to the illness. Unlike health insurance, which typically covers medical expenses, critical illness insurance provides a lump sum that can be used at the policyholder's discretion.

Disability Insurance

Disability insurance is a type of insurance that provides income replacement to the policyholder if they become unable to work due to a disability or illness. It ensures that individuals who rely on their income to support themselves and their families have a financial safety net in case they are unable to work and earn an income. Disability insurance policies vary in terms of the definition of disability, waiting periods before benefits are paid, and the duration of benefits. The policyholder pays regular premiums, and if they become disabled and meet the policy's criteria, the insurance company pays out a portion of their lost income as a disability benefit.

Mortgage Insurance

Mortgage insurance, also known as mortgage protection insurance or mortgage life insurance, is a type of insurance that helps protect the policyholder's family or beneficiaries from the financial burden of paying off a mortgage in the event of the policyholder's death. It is often required by lenders when the borrower makes a down payment of less than 20% of the home's value. Mortgage insurance ensures that if the policyholder passes away before the mortgage is fully paid off, the insurance company will pay out a death benefit to the beneficiaries, which can be used to cover the remaining mortgage balance. This helps provide financial security to the policyholder's family and ensures they can keep their home without the burden of mortgage payments.