People do not usually talk about life insurance while having a walk in the park with the people you love. And it is generally because you do not wish to talk about it considering these are the topics to be discussed when your hair starts to turn grey. But imagine, you are coming back to your home while following your normal routine, and BAM! Everything turns wrong.
Your life took a U-turn. Insurance is the airbag in your car that protects you from the car accident and reduces the intensity of damage. The insurance ensures that your family continues to live the same living standard even in your absence.
What is Life Insurance?
It is unison between an insurer and insured person where the insurer promises to pay an assured sum of money to the nominated beneficiary of the insured person in the case of sudden unfortunate death of policy holder during the time period of the policy. The insured person pays a predetermined sum of money as premium either regularly or on lump sum basis. Critical illness or a terminal illness or any other condition, if included in the contract can also affect the payment of benefit.
Reasons to Have a Life Insurance-
- Even if you do not get the insurance money until something really unfortunate happens, you should not stop yourself from buying life insurance when you care about your loved ones. Choose your plan wisely since insurance is a long term security.
- You can choose a life insurance if you wish to boost the funding after your retirement. Your life Insurance policy can help you live your post-retirement stage peacefully.
Types of Life Insurance Policies-
- Term Insurance-
This policy offers financial protection for a specific tenure like 15 or 20 years thus making it the simplest and cheapest form of insurance. It ensures that your family gets a large lump sum amount in case of your sudden demise so that your family can lead a financially stable life. However, if you survive the term period, the insurer does not pay anything. In this the premium is quite low for the insurance cover provided.
- Endowment Policy-
This policy offers the dual benefits of insurance and investment. A part of premium is directed towards the sum assured and the other part of the premium gets invested in the asset market- equities and debt. A lump sum amount is paid for a specific duration or on the death of the policy holder whichever is earlier. It also offers bonus periodically which is either paid on maturity or on the death of the insured person.
- Unit Linked Insurance Plans (ULIP)-
In this a part of the premium helps in providing the life cover, while the remaining portion is invested in equities and debts. The investment in ULIP is related to market volatility. This builds the habit of regular savings in a person, which helps in creation of wealth.
- Money Back Life Insurance-
In this periodical payment of partial survival benefits are made during the time period of the policy as long as the policy holder lives by. The insurance company pays the full sum assured along with survival benefits in case of sudden death of the insured person.
- Whole Life Insurance-
The whole life insurance plans offer insurance cover for lifetime of the person or up to 100 years whichever is earlier. In this, the bonus is calculated on the sum assured, which is paid to the beneficiary after the demise of the insured person.
How Does Your Single or Married Status Affect Insurance-
There are various benefits of being single while buying insurance plan, but consider the situations of being married. Imagine if your partner stays at home and does not have any earning. If you are insured, then insurance will secure your partner as well. Insurance for only earning member or higher earning member can be useful in long run.
Insurance Policies Available in India
|Life Insurance Plans||Entry Age (Min/Max)||Policy Term (Min/Max)||Sum Assured (Min/Max)|
|Aegon Life iTerm Plan||18/75 years||5/40 years||10 Lacs/NA|
|Aviva I-Life Plan||18/55 years||10/35 years||25 Lacs/NA|
|Bajaj AllianziSecure||18/70 years||10/30 years||20 Lacs/NA|
|Bharti AXA eProtect Term Plan||18/75 years||10/30 years||25 Lacs/NA|
|HDFC Click2Protect Plus||18 /65 years||10/30 years||10 Lacs/10 Crores|
|HDFC Life Sanchay||30/45 years||15/25 years||1,05,673/NA|
|HDFC SL Crest||14/55 years||10/10 years||(7 or 10) x Annual Premium/20 x Annual Premium|
|ICICI Pru iProtect||20/75 years||10/30 years||3 Lacs/NA|
|Kotak Life Preferred e-Term||18/75 years||10/40 years||25 Lacs/NA|
|LIC AmulyaJeevan||18/60 years||5/35 years||25 Lacs/NA|
|LIC New JeevanAnand||18/50 years||15/50 years||1 Lac/NA|
|LIC Term Plan||18/75 years||10/35 years||50 Lacs/NA|
|Max Life Online Term Plan||18/70 years||10/35 years||25 Lacs/100 Crores|
|SBI eShield Plan||18/70 years||5/30 years||20 Lacs/NA|
|SBI ShubhNivesh Plan||18/60 years||5/30 years||75000/NA|
Life insurance will protect your family financially in case of your sudden demise. It will help you fund your child’s higher education or live a peaceful retirement life. And it is also better to buy Life Insurance plans at a younger age so that you can avail lower premium rates.