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Life insurance is commonly known as life assurance. It is an agreement between the consumer and the insurer, where the insurance company offers financial protection or coverage to your family so that they can continue to lead a stable life even in your absence. The payment regarding terminal illness and critical illness depends upon the norms of the insurer. The consumer pays a specified premium amount in lump sum or at regular intervals. Here, your life cover premium depends upon various factors such as age, gender and health condition.
1. Peace of mind: It guarantees that a sum assured will be paid by the life insurer to meet future goals of the policyholder or family, in case of any unfortunate event such as death and critical illness.
2. Tax benefits: Under Section 10(10D) of the Income Tax Act in India, the maturity benefits offered by life insurance policies are eligible for tax benefits and under Section 80C, the premiums paid on life insurance policy also get tax deductions.
3. The best way to accomplish your goals: It is a systematic investment where you pay the life insurance premium when due and the life insurance company allocates it against your name. You just need to pay your premium on time and slowly your life insurance policy helps you to increase your corpus and allows you to realize your best dreams without too much effort.
4. Retirement Planning: The life insurance policy helps build up a corpus for retirement and also provides life insurance cover at the same time with a range of payout options - lump sum payment, annuities, and monthly payments.
You should buy an insurance cover, the minute you have people dependent on you. Anyone who is married and has a family to support should think of purchasing the best life insurance policy. The younger the age, lower will be the premium – So even single persons can choose the life insurance plans to get tax benefits and after marriage, they can add their spouse and children as beneficiary in the insurance contract. Also, there is no age limit to start buying life insurance cover.
Every policyholder should review his plan's features on a regular basis so that it is coherent with the current needs. The amount of life insurance that you need depends on various factors such as marital status, earning power of the person, age in the family. The requirement of having an insurance plan changes every few years due to increment in responsibilities.
So, you should keep these points in mind while deciding Insurance cover:
You need to consider a retirement plan for maintaining a respectable living standard and be able to meet the increased medical expenses. It is advisable for you to take the pension plan at an early stage of life; it will help you in getting lower premium amounts. As you secured all your basic and future needs, you would also want to increase your wealth. Judicious financial investment planning can help you in determining the goals related to wealth and the right path to reach it wisely. The life insurance plan that you have can help you in increasing wealth corpus by negating the effects of inflation.
1. Pension Plan: Retirement is an inescapable period of life. Would you want to be dependent on others for your living at the old age? If not, then you should plan for your retirement today itself. Pension Plans essentially help you invest your savings so that it can be used after your retirement. Every individual wants to have a tension free and peaceful retired life after years of hard work. However with the rising inflation and people preferring to live in nuclear families one cannot expect to have a tension free life unless one has accumulated great wealth, inherited a huge sum of money or at least have a retirement plan/pension plan.
Pension plan is nothing but:
Investment + Death Benefit + Survival Benefit + Regular Income + Tax Benefits
2. Child Plan: It is very important for every parent to plan for their children's future in time. They want their dreams to be nurtured fruitfully even if we're not around. A Child plan:
3. Term Plan: Insurance Only - The simplest and cheapest form of insurance that is designed to offer financial protection for a specified tenure, say 15 or 20 years. However, if you survive the term, the insurer pays nothing. The best thing about a term insurance policy is that the premium is quite low for the insurance cover it provides. Some insurance companies in India also offer a life insurance policy product that comes with a money back guarantee.
4. Endowment Policy: Insurance + investment (equities and debt) – Some part of the premium is allocated towards the sum assured and the remaining portion of the premium gets invested in asset markets. It pays a lump sum amount after the specified duration or on the death of the policyholder, whichever is earlier.
5. ULIP - Unit Linked Insurance Product: In ULIP, a portion of the premium goes towards providing the life cover, while the residual portion is invested in equities and debts. The investment portion in ULIP is subject to market volatility. Investing in ULIP inculcates regular saving habit in a person, which is imperative for the creation of wealth.
6. Money Back Life Insurance: It offers periodical payment of partial survival benefits during the tenure of the policy as long as the policyholder is alive. In the event of death of the insured, the insurance company pays the full sum assured along with survival benefits.
7. Whole Life Insurance: Offering the dual benefit of insurance and investment, whole life insurance plans offer insurance cover for the whole life of the person or up to 100 years whichever is earlier. Also the life insurance company calculates bonus on the sum assured, which is paid to the nominee after the death of the policyholder.
Birth Certificate, 10th or 12th mark sheet, Driving License, Passport, Voter ID, etc.(Any one)
Driving License, Passport, Voter ID, PAN Card, Aadhar Card, which proves ones citizenship
Electricity Bill, Telephone Bill, Ration Card, Driving License, Passport, should clearly mention the permanent address
income proof specifying the income of the person buying the insurance
duly filled in proposal form is required
Some companies may require medical check-up in order to make sure that the insured does not suffer from any chronic illness.
Please note that the information provided is collected from sources publicly available & we believe to be reliable. The website doesn't warrant the accuracy, reliability & absolute information available on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and Click2cover.in does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.