Insurance Companies
What is a Life Insurance Policy?
A Life Insurance Policy protects your loved ones in the event of unfortunate demises of the insured. When you buy a Life Insurance cover, a premium is paid to the insurance company that assures to provide a compensation to your Loved ones in the event of a sudden death. It provides a financial protection and stability in the absence of the policyholder.
Different Types of Life Insurance Policies
Term Insurance Plan
A Term Life Insurance Plan is one of the cheapest Life Insurance Cover which provides full protection in the event of the Death of the Policyholder.
Endowment Plan
An Endowment Plan offers dual benefits of Insurance and Investments. It provides a Lump Sum Benefit either when the policy holder dies or when the policy matures.
Unit Link Plans (ULIPs)
In a ULIP, the financial worth of the policy is dependent on the Net Asset Value of the invested fund. A part of the premium goes towards the Life Cover and the rest towards equities and debts.
Money Back Plan
This plan offers a periodic payment of the survival benefits if the insured is alive during the policy term. In the event of death, the nominee will receive the Full Sum Assured.
Whole Life Plans
A Whole Life Plan Offers dual benefits of Investment and Insurance. They are generally taken for the entire duration of an insured's life.
Annuity/ Pension Plan
Pension Plans are designed to help the insured build a Corpus for their retirement. It helps the individual to lead a financially secured life.
Types of Life Insurance Riders are Available in India
The customer can opt for any of the below Add-on benefits by paying an additional premium. This helps the insured to customize his cover as per their needs under a single policy. Generally, while buying a basic policy one needs to opt for a rider. However, there are certain insurers who allow adding the rider at a later date. Let us look at the most common riders available under a Life Insurance Policy:
Accidental Death Benefit
In the event the insured dies due to an accident, an additional compensation is paid on tops of the policies regular death benefit.
Hospital Cash Benefit
Daily allowance for the each and every continuous and consecutive 24 hours spent as an inpatient hospitalisation.
Critical Illness
The insured is entitled to receive a financial benefit on being diagnosed with a Listed Critical Illness.
Premium Waiver
In the event of Total Disability if the insured is unable to work all the future premiums will be waived off.
Life Insurance Premium is Determined by
A Life Insurance Premium is determined on the basis of below factors:
Your Current Age
The younger you are, the lower will be your premium. As the age increases the risk will increase, so does your Premium.
Gender
Premium for men and women are different. Since women live for a longer period, there is a discount on the premium.
Medical History
Poor Health Status can affect your premium. Factors considered are smoker/ chewing tobacco, drinking habits, overweight, etc.
Tenure of Cover
Premiums for limited pay policies are more expensive as compared to long term policies. Plan according to your requirement.
Life Insurance Cover Amount Depends on
(Multiplying your current annual income between 15-20 times is a useful way to determine the coverage required.)
Number of Dependants
City in which the Insured Resides
Your current & future lifestyle
Current Investments & Outstanding Liabilities
Life Insurance Claim Process
Claim Settlement is one of the most important services that is offered by the insurance company to their customers.
To get a detailed information about the different life insurance company process please click below.