Life Insurance
Life insurance is a contract between a policyholder and an insurer wherein the insurer agrees to pay a lump sum in exchange for a premium after a predetermined time or upon the demise of an insured individual.
Get Quote
-
A policy or cover known as life insurance allows the policyholder to guarantee the financial security of his or her family members after passing away. Let's say you are the only source of income for your household, providing for your partner and kids.
-
Your passing would ruin the family financially in such a case. By providing your family with money in the event of your demise, life insurance policies prevent such a thing from happening.
Features and
Benefits
If you possess a life insurance plan, you can enjoy the following advantages from the policy.
-
Tax Benefits
According to Sections 80(C) and 10(10D) of the Income Tax Act, you are entitled to tax benefits in India if you pay life insurance premiums. Thus, choosing a life insurance plan can help you save a sizable amount of money on taxes.
-
Encourages Saving Habit
Purchasing such an insurance policy encourages the practise of conserving money because policy premiums must be paid.
-
Secures Family’s Financial Future
The insurance coverage makes sure that even after your death, your family will continue to be financially independent.
-
Helps Plan Your Retirement
Certain life insurance policies also act as investment options. For instance, pension plans offer a lump-sum payout as soon as you retire, helping you to fund your retirement.
Types of
Policies
Unexpected costs are a cruel reality of life. Even if you believe that you are financially secure, an unanticipated or sudden expense might seriously undermine this confidence. You could become indebted as a result of such situations, depending on the severity of the emergency.
Insurance policies provide some support to reduce financial exposure from unanticipated events, even though you cannot prepare ahead for eventualities stemming from such situations.
There are many different insurance policies available, each designed to protect particular facets of your health or possessions.
1. Term Plan
The death benefit from a term plan is only available for a specified period, for instance, 40 years from the date of policy purchase.
2. Endowment Plan
Endowment plans are life insurance policies where a portion of your premiums go toward the death benefit, while the remaining is invested by the insurance provider. Maturity benefits, death benefits and periodic bonuses are some types of assistance from endowment policies.
3. Unit Linked Insurance Plans Or ULIPs
Similar to endowment plans, a part of your insurance premiums go toward mutual fund investments, while the remaining goes toward the death benefit.
4. Whole Life Insurance
As the name suggests, such policies offer life cover for the whole life of an individual, instead of a specified term. Some insurers may restrict the whole life insurance tenure to 100 years.
5. Child’s Plan
Investment cum insurance policy, which provides financial aid for your children throughout their lives. The death benefit is available as a lump-sum payment after the death of parents.
6. Money-Back
Such policies pay a certain percentage of the plan’s sum assured after regular intervals. This is known as survival benefit.
7. Retirement Plan
Also known as pension plans, these policies are a fusion of investment and insurance. A portion of the premiums goes toward creating a retirement corpus for the policyholder. This is available as a lump-sum or monthly payment after the policyholder retires.
Get In touch with an Executive
CONTACT US
