Get your spouse an option of ‘better half’ benefit that provides an additional life cover for them when you are not around, ensuring complete security for the entire family. This time, don’t just commit to them for life… Go beyond that.
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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 a lump sum or at regular intervals. Here, your life insurance premium depends upon various factors such as age, gender and health condition.
Life insurance offers numerous benefits that provide financial security and peace of mind for policyholders and their loved ones. One of the primary advantages is the financial protection it offers to beneficiaries in the event of the policyholder’s death. This ensures that dependents can maintain their standard of living, cover everyday expenses, and pay off debts, such as mortgages or student loans.
The other benefit is, life insurance can serve as a valuable tool for estate planning. It helps in covering estate taxes, allowing heirs to inherit assets without the burden of financial liabilities. Some policies also accumulate cash value over time, which can be borrowed against or withdrawn in emergencies, providing a safety net.
Moreover, life insurance can contribute to long-term financial goals. For instance, certain types of policies can be used to fund education expenses for children or supplement retirement income.
Having life insurance can bring emotional comfort, knowing that loved ones will be taken care of financially, even in the worst circumstances. Overall, life insurance is not just a safety net; it’s a strategic financial instrument that enhances overall financial stability.
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 or critical illness.
Income 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.
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.
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.
Retirement is an inescapable period of life. Would you want to be dependent on others for your living at old age? If not, then you should plan for your retirement today itself.
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
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.
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.
In ULIP, a portion of the premium goes towards providing the life cover, while the residual portion is invested in equities and debts.
It offers periodical payment of partial survival benefits during the tenure of the policy as long as the policyholder is alive.
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.
Life offers various group life insurance policies that help employers/trusts meet their employee benefit liability obligations in a simple, efficient and cost-effective manner.
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 require depends on various factors, such as marital status, earning power of the person, and age in the family. The requirement of having an insurance plan changes every few years due to increments in responsibilities.
Immediate financial expenses that your family may require upon your immediate death.
What is life insurance?
Life insurance is a contract between an insurance company and the insured whereby the company guarantees payment of an agreed amount (called death benefit) to the named nominee if something untoward happens during the policy period or at the end of the policy, termed as maturity. The insured needs to pay regular premiums to the insurance company for the policy to be valid.
How do I process a life insurance claim?
In general, beneficiaries and insured persons can make a life insurance claim in either of the two following cases: (a) if something untoward happens to the person for whom the insurance policy has been taken, and (b) the policy matures. You need to inform the insurer, fill in the relevant forms, and submit the documents requested.
What is premium?
It is the money that the policy buyer pays the insurance company on a regular basis (monthly, twice a year, or annually) in lieu of the guarantee of the death benefit.
What if the premium is not paid?
If the premium remains unpaid one month after the due date (that is the ‘grace period’), the policy will lapse. In that case, you, as the insured, will have wasted all the premiums you have paid in previous years. Additionally, your beneficiary will also not receive a payout as the policy will be deemed ‘lapsed’.
Can I create wealth from life insurance?
Absolutely! But for that, look for a policy with maturity benefits. Most people are unaware of the additional benefits apart from the death and disability benefits. So, check out the various types of life protection plans.
Does life insurance not cover any particular type of deaths?
Claims of death due to drunken driving, accidents while inebriated, self-inflicted wounds, murder, death in a war or known violent area, dangerous hobbies like skydiving, and death due to sexually-transmitted diseases are not entertained.
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