A life insurance policy is a contract between a policyholder and an insurance company. In a life insurance policy, the insurance company promises to pay a sum of money to the loved ones of the policyholder in case of death of the
policyholder during a certain period. In return, the policyholder pays a small amount as premium to the insurance company.
In certain types of policies, the policyholder can also opt for critical illness benefits or choose additional protection to cover against an unfortunate event due to an accident. Read more about these features and types of life insurance policies below.
As you head towards retirement, life insurance policy that cover critical illnesses become important. Some life insurance policies offer you features that cover you from severe ailments like heart attacks and cancer. Buying these types of policies can protect you from some of the world’s most deadly diseases.
If you have a spouse and kids, building a safety net for them becomes important. You would want to protect them from financial hardship in case of your untimely demise. You can also get good returns with life insurance by investing in some policies.
In your early years of working, some life insurance plans can be a useful way to save and invest your money. Unit Linked Life Insurance Policies allow you to invest in equity and debt markets. Under current tax laws (which are subject to future amendment), you also get tax^ benefits for investing in a life insurance plan and on the maturity amounts of such policies.
You often take large loans in your working life, especially when it comes to buying a house. An untimely death while the loan is still due can have grave economic consequences for our families. In such a scenario, money from a life insurance pla n in India can be used to pay off the loan. Policies taken under the Married Women’s Property Act
Life insurance plans can offer financial security for your loved ones in case something unfortunate happens to you. If your family depends on you for their day-to-day needs, buying a life insurance plan will ensure that they have a financial cushion to fall back on in your absence.
A life insurance policy can prove to be a saviour when an uncertainty strikes. They are safe savings tools that can help your family in need. Investing in them can offer you peace of mind and reduce your financial stress.
There are different types of life insurance plans available and some of them, like endowment plans, pension plan , and unit-linked insurance plans can also be used as an investment option to build wealth for your future financial goals. These plans also provide a life cover`.
You can choose from the different types of life insurance policies and select a plan for every life-stage. Whether you are saving for a specific goal like retirement or investing for your child’s future, you can plan for all your goals with life insurance plans.
The insured person is referred to as the life assured. In the unfortunate event of the life assured’s death, the nominee receives the insurance money.
This is the duration for which the insurance company provides coverage. Policy tenure for a life insurance plan can range anywhere from 1 year to 99 years (whole life).
This is the money that the insurance company pays to the nominee in the unfortunate event of the life assured’s death.
This is the money that the policy holder gets on surviving the policy term. Although a term life insurance policy does not have any maturity benefits, other life insurance plans offer this feature.
A life insurance plan can get lapsed if the policy holder does not pay the premium on time. In such cases, the policy is referred to as a lapsed policy and the insurer reserves the right to terminate the contract if the policy holder does not pay the premium even during the grace period.
If the policy holder does not pay the premium, the insurance company offers an extension, also known as the grace period. This allows more time for the policy holder to make the payment.
The claim process refers to the steps involved in raising a claim request to the insurance company. It usually includes submitting the claim form, death certificate, FIR, identity proof, KYC information, and other necessary documents to the insurance company.
This is the amount of money that the insurance company promises to pay to the nominee in the unfortunate case of the demise of the policyholder during the policy term. The premium for a policy depends on the Sum Assured you choose.