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Are you worried about who will take care of your family who is dependent on you after your death?
I am sure you are.
Have you ever thought of buying a life insurance policy, that can help your family wellbeing?
Might be, yes.
But due to certain misconceptions including Life Insurance is too expensive or you don’t need life insurance because you are healthy or it is for elderly etc. you are not buying such options.
Have you ever thought what are the consequences which an individual can face for not having life insurance?
Let me directly come to the fact.
Mr. Sharma is the only bread earner in his family at the age of 3o years. The family includes four members: Mr. Sharma, his wife, and two children. And he is not having his life insured because he is completely fine.
At age 35, he suffered a sudden attack and died. He saved something for his family, but that was not sufficient. The situation would have been entirely different if he had taken the policy.
What is Life Insurance Policy?
A policy between a person and an insurance provider whereby the insurer promises to pay a certain amount to the named beneficiaries if the insured person passes away.
Life insurance aims to give the insured's loved one’s financial security in the event of an untimely death. The insurance plans are intended to assist in paying for expenses like funeral costs, unpaid debts, and living expenses for the decedent's dependents.
Now, let us know what all types of life insurance available?
Term life insurance offers different types of protection to an investor for a predetermined amount of time, typically one to 30 years. It is the most cost-effective life insurance and is perfect for people who only require temporary protection.
Whole life insurance protects the insured for their life till the insurance premium is paid. It has a growing component of the cash value that can be withdrawn or borrowed.
Universal life offers more flexibility in terms of premiums and death benefits, and the policyholder can modify the bonuses and death benefits depending on their evolving needs.
With Variable life insurance, the policyholder can invest a portion of the premiums in securities like stocks and bonds. The success of these investments determines the policy's death benefit and cash value.
Do you know what are the top companies serving life insurance options?
Term life insurance, whole life insurance, and unit-linked insurance plans are only a few of the life insurance options provided by the companies. It's crucial to research and compares plans to discover the one that best suits your needs because the terms and coverage provided by each business may differ. For making wise choices about life insurance coverage in India, it is also beneficial to speak with a professional insurance agent or financial counselor.
Below are the top 10 companies for life insurance policies.
Insurance Company | Premium Approx. | Claim Settlement Ratio (CSR) |
Life Insurance Corporation of India (LIC) | Rs. 15,000 – 16,000 | 98.74% |
HDFC Life Insurance | Rs. 14,000 – 16,000 | 98.66% |
SBI Life Insurance | Rs. 15,000 – 17,000 | 93.09% |
ICICI Prudential Life Insurance | Rs. 14,000 – 16,000 | 97.90% |
Max Life Insurance | Rs. 13,000 – 16,000 | 99.34% |
Bajaj Allianz Life Insurance | Rs. 14,000 – 16,000 | 98.48% |
Aditya Birla Sunlife Insurance | Rs. 14,000 – 16,000 | 98.08% |
Kotak Life Insurance | Rs. 14,000 – 16,000 | 98.50% |
TATA AIA Life Insurance | Rs. 14,000 – 16,000 | 98.02% |
PNB Met life India Insurance | Rs. 13,000 – 16,000 | 98.17% |
The claim settlement ratio (CSR) measures how many claims are satisfied by an insurance company as a percentage of all claims received during a specific time. CSR is crucial when selecting a life insurance provider since it shows the company's capacity to pay claims and help policyholders and their families financially.
Do you know what are the benefits of having a Life insurance?
Financial security for your loved ones: One of the main advantages of having a life insurance policy is that it offers your family financial security in the event of your untimely death. The amount assured can assist your family in paying for day-to-day expenditures, unpaid bills, and funeral fees.
Ease of mind: Knowing that your loved ones will be comfortable financially even if you pass away. Without worrying about what would happen to your family if something were to happen to you, it can enable you to concentrate on your life and profession.
Tax benefits: Life insurance policies may provide favorable tax treatment, and Section 80C of the Income Tax Act of 1961 permits tax deductions for premiums paid for life insurance policies. Subject to certain conditions, the life insurance policy may also be tax-free under Section 10(10D) of the Income Tax Act of 1961.
Investment and savings opportunities: Several life insurance policies, such as unit-linked insurance plans (ULIPs), provide investment and insurance coverage. These policies offer a life insurance benefit and let you invest in various fund choices.
Loan options: Certain life insurance policies, like endowment plans, provide lending facilities based on the policy's surrender value. When money is tight, this can be handy.
In conclusion, it is an essential financial product that provides financial security to your loved ones in unforeseen events. After conducting extensive research, we have compiled a list of the top 10 life insurance policies. Each policy has its unique features and benefits, which cater to specific needs and requirements of individuals.
Investing in a life insurance policy is a smart move to safeguard your family's future and secure their financial well-being. Therefore, it is crucial to choose a policy that provides comprehensive coverage and long-term benefits. With the options listed in this blog, you can make an informed decision and choose a policy that meets your needs.
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