Life Insurance is the most secure contract between insurance companies and insured individuals. As it can help your family against financial uncertainties that may arise post the unfortunate event of your untimely demise.
In this contract, the insurer promises to pay a sum assured in exchange for a premium, upon the death of an insured person.
What is Life Insurance Policy?
A life insurance policy is an agreement between the policyholder and insurance company that provides financial coverage. In this agreement, the insurance company guarantees to pay a certain amount in the unfortunate event of the insured person’s.
Why Need of Buying Life Insurance?
As we all know, life is unpredictable and we cannot guess what happens next.
In case of the sudden death of a person who is an income producer of a family, his family faces a loss of income.
In order to make sure that your family doesn’t have to make any compromises due to financial crunches; one should buy a suitable life plan:
Unpredictability – Life is unpredictable. The only solution is to buy life insurance so that the financial goals set for his family can be accomplished even when he isn’t alive.
Financial Cushion – It provides financial support to the insured’s family by compensating the loss of income.
Debt-Proof Future- With an insurance policy, you can pay any outstanding debt.
Retirement goals – Life insurance plans offer many investment opportunities.
Tax benefits – A policyholder can get tax-benefits from the type of life insurance he buys.
Mental peace – It offers peace of mind to the policyholder by providing financial help to his family.
Savings tool- This amount of money is invested in the insured’s preferred fund and so acts as a savings tool.
Future expenses of children- This plan takes care of all the expenses of a policyholder’s children.
Business security – There are some insurance plans available in the market that offer support to the insured’s business.
Benefits of Life Insurance Plans
Loan against life insurance policy – One can get a loan from the same company or a bank.
Online payment rebate – Insurance Company charges less when you pay premiums online.
Refund on the sum assured – Higher the sum assured means a lower the service fees, for the insurance company.
Rebate as per the periodic payment chosen – Every insurance company offers a periodic payment option to its customers.
Taking care of one’s business – Some insurance companies provide an option in which if policyholder owns a business, his business partners can easily get his share.
- Tax benefits – Under section 80C, the amount of life insurance paid by a policyholder is eligible for a tax rebate.
Types of Life Insurance Policies
Term insurance plans
- Unit-linked plans
- Endowment plans
- Money-back life insurance plan
- Whole life insurance plan
- Child plans
- Retirement plans
Exclusion Of Life Insurance Policy
- Death as a result of lifestyle disease
- Self-inflicted Injuries
- Involvement in Extreme Sports Activity
- Man-Made Disasters
- Intoxication and Overdose of Drugs
- Criminal Intent
Which is the perfect age to buy life insurance?
- The right age for Individuals up to the age of 40 should have a life cover equal to 15-20 times their annual income.
- For the ages between 40 and 50, a life cover of 10-15 times their annual income should suffice.
- For age above 50, try to buy life cover of five times the annual income.
How to Claim a Life Insurance Policy?
- Contact the insurance company or agent.
- Get copies of the death certificate
- Fill out the paperwork and send it in.
- Specify how you want to be paid.
Benefits of Purchasing Life Insurance Policy Online
- You can easily compare policies of different insurance companies online.
- Online insurance companies or agents provide 100% transparency to their customers.
- You can make an Informed Decision by analyzing different policies.
- Online insurance companies or agents offer easy access to policies.
- Cost of the online insurance company or agents is lesser than offline agents.
- Online insurance agents provide flexibility to their customers.
The process to Buy Life Insurance Plans Online
- Provide Basic Details
- Pay the Premium
- Furnish Relevant Documents
- Pre-policy Health Test
- Issue of Policy
Documents Required For Life Insurance Policy
- Last 3 to 6 months’ salary slips (depending on the insurer)
- Income Tax Returns (ITR) of the last 2 to 3 years
- Last 6 months bank statements with continuous entries of 3 months credited salary
- If the person is self-employed then CA certificate
- Latest Form 16
Address, Age & Identity Proof
- Voter ID card
- Aadhaar Card
- Saving bank statement
- Passbook with latest 6 months entries
- Latest 3 months Credit Card Statement
- Driving Licence
- 3 months Utility Bills
- Ration Card
Buy Top Health Insurance Policy Online
Buy Life Insurance from the most trusted company “Invest Market”. Investmarket.in can be the best platform for choosing the best Life insurance policy plan which can cover most of your requirements.
Our professionals are having more than 10+ years of experience in the same field. So they can provide the best Life insurance plans according to your budget with high sum assured.