Life Insurance
Life insurance is a type of insurance policy that pays the policyholder or their beneficiary a sum of money on death. The amount paid out can be used to replace income lost when the breadwinner dies.
The life insurance industry in India is governed by the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The IRDA regulates the life insurance market in India through various measures and guidelines.
The life insurance industry in India is growing at a fast pace and is expected to grow at a compounded rate of 15% over the next five years. The life insurance market in India is worth around $5 billion and has been growing at a compounded rate of 12% over the last few years.
In recent times, the life insurance industry has seen an influx of new players, both from within and outside of India. The number of new players entering this market has risen by 50% over the last three years.
Life insurance has several far-reaching benefits. Some of them are: -
Death Benefit
Death benefits are a sum of money paid out to a beneficiary, or beneficiary, of a life insurance policy, as long as the insured person died while the policy was active. A death benefit is a major reason why people buy life insurance policies; it is a sum of money that your insurance company pays out to your beneficiaries should you die while your policy is in force. The death benefit is one of the most important parts of a life insurance policy: It is the financial support that your beneficiaries will have if you pass away. For life insurance policies, the death benefit is tax-free, and named beneficiaries typically receive the death benefit in a lump-sum payment.
Financial Security
In addition to providing financial security to a policyholder’s loved ones, life insurance offers tax advantages and other uses. There are different types of permanent life insurance products which may provide financial security to beneficiaries, and also serve as a kind of savings vehicle. All types of insurance provide security, but life insurance is an incredibly important benefit that can help protect your family should you pass away. Now that you know how life insurance can protect your family by helping provide financial security, use our life insurance calculator to estimate how much coverage your family needs.
Future Planning
Death benefits are a sum of money paid out to a beneficiary, or beneficiary, of a life insurance policy, as long as the insured person died while the policy was active. A death benefit is a major reason why people buy life insurance policies; it is a sum of money that your insurance company pays out to your beneficiaries should you die while your policy is in force. The death benefit is one of the most important parts of a life insurance policy: It is the financial support that your beneficiaries will have if you pass away. For life insurance policies, the death benefit is tax-free, and named beneficiaries typically receive the death benefit in a lump-sum payment.
Types of life Insurance:
Term insurance
Term insurance covers a fixed period — or a term — and is usually considered temporary insurance. The reason that you may be able to find lower premiums on term life insurance policies is because the coverage is only valid for a certain amount of time. Once a specified term has expired, a policyholder may choose to renew it for another term, convert the policy to permanent coverage, or let the term life insurance policy end. Annual Renewable term life insurance has no specified term, but it can be renewed annually without providing proof of insurability. If the policy is renewable, this means it continues to last an additional term, or number of terms, until the stated age, even though the health of the insured (or some other factor) would result in his or her being rejected if they applied for a new life insurance policy. Annual Renewable Life Insurance may be more expensive, but generally has lower payments since there is less coverage term.
ULIP
A ULIP, or unit-linked insurance plan, is a type of life insurance product which offers customers a unique advantage of having a complete life insurance coverage as well as an opportunity to invest in their choice of mutual funds. While unit linked insurance plans are investments with a dual objective of providing an insurance cover and also earning returns through investing, Balanced Funds are investment vehicles which primarily hoard the investors’ money, then invest it into various assets for earning returns. A Unit-Linked Insurance Plan (ULIP) is a product offered by insurance companies which, unlike a pure insurance policy, provides investors both insurance and investments in one consolidated plan. Unit-linked insurance plans are the kind of plans that offer the benefits of protection from risks through life insurance, while allowing flexibility in managing investments.
Endowment plan:
Any life insurance plan that has both a savings component and an accelerated cash-out benefit at the time of expiration may be called an endowment plan. An endowment policy is a type of life insurance contract that is designed to pay out a lump sum at the end of a specified period of time (at the time of maturity) or at death. An endowment policy is basically a life insurance policy which, in addition to covering the insureds life, helps the policyholder save periodically for a certain amount of time, such that they can receive the lump sum amount at the maturity of the policy, if they live through the term of the policy. As a policyholder, you choose how much you wish to save every month and when you wish your life insurance Endowment to expire.
Savings plan:
The savings plan is a high-deductible plan with an individual deductible and family deductible. The Savings Plan is one of the states two health plans options, with lower premiums and higher deductibles. If you set up a good savings plan and stick to it, you will know that you are looking out for your future self.
If that is the case, then no time is better than now to get started with creating a savings plan that helps you get there. One way to establish a savings plan is by creating a budget and allocating part of your income on a regular basis toward your designated accounts. If your budget is tight and you do not see a lot of savings opportunities, you may be able to look for ways to boost income.
Whole life insurance plan:
Whole life insurance pays out a death benefit, but it also has a savings component where you build up money. As long as you pay premiums, your beneficiaries may be able to collect your policies death benefit upon your passing. Whole life policies promise minimum rate growth for part of the premiums. The insurer you choose may be a factor, too, since rates differ from company to company.
Retirement and pension plan:
A pension plan is a type of retirement plan in which employers commit to paying defined benefits to employees throughout their lives once they retire. With a retirement plan, employers finance and guarantee a defined retirement benefit to every employee, and assume the risk for doing so. A retirement plan is generally known as a defined benefit plan, in which the sponsor of the pension plan, or your employer, supervises the management of investments and guarantees a specific income amount at retirement.
Be it any kind of insurance, we are there for you. To put things in perspective, we are attached with trustworthy organisations like: –
Trust us to deliver the best of services.
