LIVE YOUR BEST LIFE TODAY AND SECURE YOUR FAMILY’s TOMORROW
One of the most important financial decisions a person can make is buying life insurance. Irrespective of what you earn, it is impossible to predict the future.
Premature death, accidents, and illnesses that the breadwinner may face can rupture the financial well-being of an entire family.
This could lead to devastating consequences for the surviving family members, as they will inevitably struggle to maintain their standard of living. However, if the victim had a life insurance policy, it will cover the outstanding debts or other such financial obligations.
CAUSE OF CONCERN
Life Insurance in India has yet to become popular among the masses, with the total insurance penetration in India being just 3.49% as per the Economic Survey 2018, with life insurance accounting for 2.72%. Non-life insurance accounts for 0.77%. Given these numbers it is easy to understand that a majority of our population is not covered, leaving millions of Indians unprotected.
LIFE INSURANCE
A life insurance policy is a type of insurance that provides coverage against the unexpected death of the policyholder or after a set-period of time when the policy matures. In order to avail this protection, the insured pays a certain amount as premium towards maintaining the policy.
It is a safety net which provides financial security/protection against loss of life. The primary purpose of a life insurance policy is to protect the financial interests of the insured’s family.
MOST IMPORTANT ASPECTS RELATED TO LIFE INSURANCE POLICY
- Premium: An individual is provided cover only if he/she pays a certain sum of money towards the policy. This is termed the premium.
- Death Benefit/Sum Assured: This is the money which the insurer assures to pay to the nominee/beneficiary of the policyholder after his/her demise.
- Term/ Tenure: An insurance policy provides protection for a certain period of time. Normally the tenure is 10 to 40 years.
- Sum Assured: It is the amount that is payable to the nominee after demise of insured. An individual is generally eligible for a cover of 15 times his annual income. This may vary from policy to policy.
- Entry Age: Persons in the age bracket of 18 to 65 are eligible to an insurance cover. Entry Age is also an important determinant in the premium amount.
- Maturity Age: The age at which the policy expires is called as maturity age. Usually, most of the policies have a maturity age of 75 years; however, a few may even go up to the age of 80 years.
Life Insurance Claims Procedure
- Death Claims: In case of a claim under your life insurance policy, your beneficiary needs to submit following documents: A fully filled claim form Original policy bond or contract An original, or certified copy of the policyholder‘s death certificate Proof of identity as the beneficiary.
- Maturity Claim: In order to avail maturity benefits of your life insurance you need to submit the following to your insurer Original policy bond Maturity claim form.
What is Term Life Insurance?
- Term insurance is the simplest and most affordable form of life insurance.
- A term insurance plan is the only plan which allows a substantial coverage against a very low premium outgo. So, if you want a big future security in terms of finance, buy a Term Insurance Plan.
- Term plans also provide additional protection through optional benefits like Critical Illness Cover and Accidental Death Cover.
Benefits of Term Insurance Plans
- Income Protection
Term insurance plans form the essence of life insurance. They come very cheap and cover the insured against untimely death. The premiums against the value of the coverage granted are affordably low, making the plans light on the pocket.
- Cheap
Term insurance plans are very cheap. For a high cover of Rs.30 to Rs.50 lakhs, the premiums amount in Rs.8000 to Rs.10, 000. Thus, they are very small and pocket-friendly investments which provide a very good protection.
- Liability protection
Loans are trending nowadays where every need can be funded by a loan. As attractive as it may sound, loans involve repayments and repayments involve a steady source of income. If the bread-winner dies, besides the loss of income, the family also gets burdened with the outstanding loan repayments. Having a term plan is the answer to this problem as well. The benefits which accrue under the plan can be utilized to pay off the debt burden. The plan thus, provides protection against liabilities too.
Other types of Life Insurance:
- Whole life insurance
- Endowment policy
- Money back policy
- Savings & investment plans
- Retirement plans
- Unit Linked Insurance Plans (ULIPs)
- Child insurance policy
