The life insurance market in India is very competitive. There is still scope to grow in the market. Which clearly means that not all the expected people in India are insured till now. If you are one of the potential candidates to get a new life Insurance for yourself, you need not limit yourself to one kind of life Insurance plan only. There are many kinds of Life Insurance plans available in the market. Each type of plan has different benefits.
- Endowment policy – These types of plans come with a specified maturity period. The insurer decides the maturity period for the insurance plan. In case of the death of the policyholder, the sum assured will be paid to the nominee. In case the insurer survives the life term, the sum assured will be paid to the insurer upon maturity.
- Term Insurance Plan – This is a low premium insurance plan for a few years. During the term, if the insurer faces a sudden death or temporary or permanent disability, the term insurance pays the sum assured through the pay-out option Chosen at the time of insurance enrolment. In case the survivor survives the insurance term, there will not be any payment for insurance maturity.
- Money or Cash plans – A portion of agreed and payable sum assured is paid to the insurer on a period basis. Once the plant matures, the remaining amount will be paid to the insurer. If the insurer dies during the term, the remaining sum assured will be paid to the dependents.
- Whole Life Insurance – Unlike any other life insurance plans, whole life insurance provides coverage for the entire life. It comes with both maturity benefits and financial support to your family members in case of the insurer’s sudden death. The premium paid is huge as compared with other insurance plans.
- Children’s benefit – This type of insurance plan is used only to protect the life of your child. The policy can be taken on the parent’s name or on the name of the child. Once the child reaches a particular age, he/she can use the money.
- Annuity plans – This is a constant source of income plan after retirement. After retirement, there are no sources for constant income. If you enroll in this plan today, you do not have to worry about your life after retirement. At the end of each month, you get a monthly amount.
You choose a plan according to your requirement. In each of the plan type, there will be numerous insurance providers with a variety of coverages. Think through and choose the best plan for yourself.
Tax Benefits of Life Insurance
Life Insurance definitely protects you from any kinds of uncertainties or mishaps by helping you cover all the expenses through the insurance plans. Along with this coverage, it also helps you to save taxes from your hard-earned money. According to the income tax act, any premiums paid for the life insurance plans will be eligible for deduction up to INR 1, 50,000 under the section 80. For pure term policies. For pension-related policies, income tax act 80CCC offers a tax benefit up to INR 1, 50000. At the end of the year, you just have to claim the policy plan and you will have exemptions on the premium paid from the total taxable income. However, you should not opt for a plan just for the tax benefit even though you do not need the coverages offered by the insurance plans.
Is your Life Secure?
How can you assure someone that your life is secure? The questions are life security comes as a financial security or emotional security. In fact, Life security deals with both financial security and emotional securities. If you are insured yourself with a Life Insurance, you will be able to secure your life completely. The life Insurance will help you to save money in a long-term through money back and endowment insurance plans. Through these policies, you make sure that whatever you invest, you will get a return someday and that day you would be needing the money the most. Through whole life insurance plans, you make sure that you get financial support in terms of the insurance for your family in a long term. No money can replace a person but some financial help is needed to your dependents when you are not around. The term insurance plans help you to take advantage of the premium paid to get additional returns for your family in case of your sudden death.
All the life insurance plans have some or other benefits. You have to compare them online on Coverfox and then choose the plan for yourself very carefully to secure your life.