Insure The Happiness Of Your Loved Ones – Get Life Insurance!


Insurance industry in India is one of the largest in the World, partially because of the population in India. But why do people invest in insurance? What makes life insurance s important? What are premiums and why do we need to pay this every month or in regular intervals? There are several questions that you may have when you want to know about life insurance. So, here are some of the most important life insurance questions answered.

Life-insurance

What is life insurance?
Under a particular life insurance scheme, a company offers a sum of money that is payable to the policy holder’s nominated under particular conditions dictated by the policy. But where does this money come from? Premiums are collected from all the policy holders of a particular scheme and saved, so that when an individual claims it in the hour of need, it is readily available. This may sound like a kitty conducted by the housewives of a society, but it isn’t too different from it in reality. You simply have an insurance provider who manages the kitty. A life insurance pays off the sum assured to the nominated individuals, in the case of the policy holder’s demise. It is generally, a large amount to help the nominated sustain their lifestyle.

Who can apply for life insurance?
Anyone can apply for life insurance, based upon the requirements of the company’s scheme which generally includes age limit, minimum and maximum sum assured and other requirements such as employment details, etc. Else, they can apply as long as they are an Indian citizen.

What is the difference between life insurance and general insurance?
A life insurance policy guarantees a life benefit payable in the case of an individual’s death to their nominated. General insurance, on the hand is available for anything, including for car, home or any other electronic device. In the case of general insurance, the sum assures is payable based on the scheme’s specific claim circumstances which are related to the object, place or thing that has been insured.

What are the major types of life insurance policies available to Indian residents?
There are 3 major types of life insurance available in India:

  1. Term Assurance: Cheapest premiums, short policy terms, generally comes without maturity benefits.
  2. Whole Life: Sizeable premiums, coverage for long periods of time and may be renewable, more benefits and features.
  3. ULIP: Unit-Linked Insurance Plan: Some money from the premium is used in for investment instruments while the rest is used as sum assured.

Benefits and features of life insurance policies, in India
We are all aware that there are these times that we feel to invincible in our skin. But life insurance is essential for our loved ones, without any doubt. In case you have doubt, the following things about life insurance is expected to clear it:

  1. A premium is payable for a particular period of time called the term for premium payments.
  2. A policy term is referred the period of time under which the life insurance sum assured may be claimed.
  3. Most life insurance policies provide a survival benefit if the policy term is completed unless it is a term life insurance policy or a whole life insurance with no maturity benefits.
  4. The amount invested on a life insurance policy can be tax redeemed up to a particular amount each year, based on the tax policies dictated by the Income Tax Act in India.
  5. Some insurance policies come with regular income, where in regular intervals, a certain amount of the sum assured, accrued earnings and bonuses are paid out.
  6. After the maturity term, a maturity benefit may be paid out for some schemes.
  7. Accrued bonuses may be earned through investment in the company or other investment units in the case of ULIPs.

How to get life insurance?
This is fortunately not a million dollar question. There are life insurance agents available from the company as well as policies are available for application online and the company offices or branches. However, one needs to be well informed to choose the appropriate policy and make sure that the terms and conditions are clear.

How to claim life insurance?
Life insurance claim forms with the appropriate documents are required to be submitted by the policy nominations or the policy holder, based on the claim conditions dictated by the policy. Most claims need to be approved by the company, after which the amount will be transferred to the nominated.

Summary
Article Name
Insure The Happiness Of Your Loved Ones - Get Life Insurance!
Description
Insurance industry in India is one of the largest in the World, partially because of the population in India. But why do people invest in insurance? What makes life insurance s important? What are premiums and why do we need to pay this every month or in regular intervals? There are several questions that you may have when you want to know about life insurance. So, here are some of the most important life insurance questions answered.
0

Leave a comment

Your email address will not be published. Required fields are marked *

92 − 88 =

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Current day month ye@r *