Life insurance is a contract between an individual and an insurance company, in which the individual pays a regular premium to the insurance company, and in exchange, the company agrees to pay a sum of money to the individual’s designated beneficiary upon the individual’s death.
The purpose of life insurance is to provide financial support to the individual’s family or dependents in the event of the individual’s death. The amount of the payout, also known as the death benefit, is determined by the individual’s premium payments and the type of policy they choose.
There are different types of life insurance policies, including term life insurance, whole life insurance, and universal life insurance. Term life insurance provides coverage for a specific period of time, while whole life insurance and universal life insurance provide coverage for the individual’s entire life.
Life insurance policies can also have additional features such as riders, which provide additional coverage for specific circumstances, and cash value, which allows the policyholder to accumulate savings over time.
A Life Insurance Policy is a mutually decided agreement between an insured person and the insurance company, according to which the company agrees to pay the insurance coverage amount to the insured person or the nominated beneficiary, after the completion of a specific term or after the death of the insured person (whichever is earlier). In return, the insurance company asks the insured person to pay a pre-defined specific amount of money (known as the premium) at regular intervals. Additionally, this is also a better way to invest money in which the risk of death gets covered simultaneously.
In this way, a life insurance policy provides you and your family peace of mind through which you all can enjoy financial freedom.
“Family protection cover” is a term commonly used in the insurance industry to refer to a type of life insurance policy that is designed to provide financial protection to an individual’s family or dependents in the event of the individual’s death.
These policies typically offer a lump sum payment, known as the death benefit, to the individual’s designated beneficiary or beneficiaries, which can be used to pay for expenses such as funeral costs, outstanding debts, and ongoing living expenses for the family.
Family protection cover can be purchased as a standalone policy or as part of a broader life insurance policy that includes additional features such as cash value and riders. It is important to carefully evaluate your family’s financial needs and choose a policy that provides adequate protection and coverage.
Each of us wants to multiply our savings and enhance financial buildup. Savings are important because money power is everything. Even if you have started your professional career just now, some life insurance plans can be very useful to save and invest money. If you are interested in the equity and debt market then ULIPs (Unit Linked Life Insurance Plans) are the most suited policies for you. You can also avail tax benefits through investing in life insurance policies.
Today, all of us know that medication and hospitalization are very expensive. In case of any sickness or medical emergency, both of these bring our savings to an end rapidly. Also, as you move towards an older age and retirement, life insurance policies in which critical illness is covered become more important. Various life insurance policies cover you from severe ailments such as heart attacks, Alzheimer’s, and cancer. It is always advised to buy these types of life insurance policies so that you can manage the risk against some of the world’s most deadly diseases.
The best insurance brokers in India will certainly make you understand why you and your family are always in a need of the best life insurance policies in India.
Opting for the best life insurance plan is important for several reasons:
Choosing the best life insurance plan can be a complex process, as there are many factors to consider such as your age, health, lifestyle, and financial goals. It may be helpful to consult with a licensed insurance agent or financial advisor to help you evaluate your options and choose a policy that meets your needs.
If you have the best insurance policy in your hands with a satisfying amount of risk coverage, then your mind can take a rest without any tension. Peace of mind means your family members can now have trust in you for their future needs.
All of us want to grab maximum deductions while paying taxes. Section 80C of Indian law (Income Tax Act, 1961) states that by buying a life insurance policy you qualify for a straightforward tax deduction of 1.5 lakhs annually. The payment which an insured person receives at the time of maturity of the insurance policy is also tax-free (subjected to the conditions stated in Section 10(10D) of the Income Tax Act 1961). Though, the government of India can change the laws as they are subject to amendments from time to time. No matter the insurance provider company is public or private, both of them provide this benefit.
Managing and running a business is a typical job, especially when it is done in a partnership. A sudden demise of a partner who possesses a share in the company increases the chances of ransacks, and the family can also suffer from a great economic crisis. Therefore, some insurance companies give a policyholder an option that at the time of his demise, his partners can legally purchase the policyholder’s share in the company. The amount of money received after selling the share can directly be transferred to the family members of the policyholder. In such a case, the remaining partner of the company who wants to purchase the share has to sign a mutual agreement with the insurance company.
There is no scope for earning a pension in private jobs. Even in many government jobs, the pension scheme is very limited and available to a handful of people. By investing in a life insurance plan with a suitable maturity date and satisfactory coverage, you can easily handle your financial needs after retirement.
In our country, most people are still unaware that if they opt for an online option for the payment of premium then they can avail of a considerable discount. This is so because the insurance company’s administrative and service costs diminish if one chooses to pay a premium online. No involvement of paperwork also reduces the time and monetary charges of the involved parties, the insurer, and the insured person.
Better and higher education is too costly today. Students even had to take a big amount of loans from the banks to cover up their educational expenses. Therefore, with a better life insurance plan and guaranteed returns, you can easily make plans for the higher education of your children.
As mentioned above, ULIPs give you the benefit of cover with the added benefit of market-linked returns on your investment. This can be your supplementary wealth-creating opportunity.
So, these were the reasons why you should always opt for the best life insurance plans.
We are Square Insurance, and we believe in transferring all sorts of important information to our present and prospective customers. We advise you to go through the below-mentioned important terms and read them briefly. You should understand these terms before purchasing any life insurance policy.
This is a period during which the insured person is given coverage under any policy of life insurance. The insurance coverage period can be different from a premium period. During which you are paying the premium of your policy to the insurance company. This period can also be termed as policy tenure, after which the policy becomes mature.
The person who is the possessor (the person who purchases the policy) of the life insurance policy is termed as the policyholder. Generally, this is the person who is insured under the life insurance policy. At other times, the policyholder can be a different person who is other than insured, such as a family member or a relative. In the case of Corporations and Partnership companies also a policyholder may not be as same as the insured person. The policyholder enjoys all the rights and privileges that are mentioned in the life insurance contract or policy document.
This is the person whose life is insured against the risk of death in the insurance policy by the insurance provider. As mentioned before, the life assured can be different from the policyholder.
This is the amount of money you decide to pay at regular intervals to the insurance company to keep the policy active, in return for which it provides you the life coverage. The amount of premium payable depends on several factors such as sum-assured, age and lifestyle habits of the insured person, period of the policy term, etc. In case, a policyholder does not pay the amount of premium on or before the due date (and during the grace period), the policy gets lapsed.
In the world of life insurance, a nominee is a person to whom the amount becomes payable in case of the death of the insured. Policyholder or buyer is free to choose the person to whom they want to nominate a nominee. The nominee can be any family member of the policyholder or could be any other person. Generally, the nominee’s name is mentioned while purchasing a life insurance policy.
Date of maturity means the last date of your policy tenure. On this date policy becomes mature and the sum assured becomes payable to the insured person by the insurance provider.
Riders are those additional benefits that a policyholder can choose to include in his policy by paying an extra amount of premium. These benefits are optional and flexible. They increase the coverage and financial safety of the family members and decrease the risk factor of the economic crisis that happened due to the untimely death of the insured person.
This is the selected option by a policyholder that whether he is ready to pay his premium online or offline. This also clarifies the time when the premium should be asked such as half-yearly, quarterly, or annually. This is decided at the time of purchasing the policy and is always mentioned in the policy documents.
Death benefit means if the policyholder or the insured person dies during the term period of the policy, then the insurance company will pay the death benefit to the nominee. Death benefit and sum assured are two separate entities. This could be lesser than or more than the sum assured, as it may also include the riders’ benefits.
A policyholder has to pay a timely premium on or before the due date. If he fails to pay the premium after the grace period also, then the policy gets lapsed. This is known as a lapsed policy. Some insurance providers also give an option to their policyholders to generate the lapsed policy again, if they agree to pay the premium dues on time.
A policyholder has to pay a timely premium on or before the due date. If he fails to pay the premium after the grace period also, then the policy gets lapsed. This is known as a lapsed policy. Some insurance providers also give an option to their policyholders to generate the lapsed policy again, if they agree to pay the premium dues on time.
Is the process of documentation through which the nominee received the sum assured in case of the death of the insured person. The nominee has to file a claim to receive the money.
Certain things are not included in the policy and remain uncovered. These points are clearly mentioned in the policy document and should be known to the policyholder. At the time of death of the insured, if the claim is made on these situations then the company is not liable to pay the sum assured or other benefits to the nominee.