Life Insurance

Purchasing life insurance online can be a very easy task but some people have doubts while purchasing a life insurance policy online. Below mentioned are some reasons why you should purchase a life insurance policy online:

Convenient: One can purchase a life insurance policy online as per their convenience i.e. one can purchase a life insurance policy anytime, anywhere. You can purchase a life insurance policy from the comfort of your home without having to visit the branch office of the insurance company. Purchasing a life insurance policy is very convenient as it is hassle-free, completely digital, time saving and payment can be made through different payment gateways.

Freedom of Choice: Many times agents can influence your purchasing decision, when you choose to purchase a life insurance policy online you have the freedom to choose the life insurance plan according to your budget, requirements and preferences without anybody else influencing your decision.

Quick Comparisons: You can use an online life insurance premium calculator to calculate the premium for life insurance policy and compare several life insurance plans according to your needs and budget. You can make quick comparisons as the premium calculator tool displays life insurance plans according to the information you enter. You can easily compare several life insurance plans at once.

Secure Payments: Many times people think that providing your bank details or card details online on a website may lead to misuse of the information but payment gateways are always encrypted to ensure full security for customers. The payment for life insurance policies are safe and completely encrypted.

Nobody has an idea which way their life will go. Life is very uncertain, nobody can predict the event of their life. To stay financially secured from the uncertainties of life one should consider purchasing life insurance. If you are not sure about whether life insurance is a good choice for you, below mentioned are some reasons why investing in a life insurance policy will help you ensure financial security for your loved ones:

Helps In Saving Taxes: One major advantage of purchasing a life insurance policy is that you avail tax deductions on the premiums you pay. Under the Section 80C and 10(10D) of the Income Tax Act, 1961 one can avail tax benefits for the premiums paid towards life insurance policy.

Helps In Planning For Retirement: Not every type of life insurance policy can help you create a corpus for retirement. Some life insurance providers have retirement plans that can help you build a corpus for retirement while providing life cover. The earlier you choose to purchase a retirement plan the more money you will have to fulfil your financial requirements post-retirement.

Will Help You Loved Ones Pay Off Your Debts: In case of your untimely demise of the life assured during the policy, a death benefit amount is provided to the nominee/family of the life assured. In case of your untimely demise your loved ones may have to deal with your debts, the death benefit amount can help your loved ones to pay off your debts.

Provides a Financial Safety Net: In case you are the sole breadwinner of the family your untimely demise will not only emotionally affect your family member but also financially. Under such circumstances a life insurance policy can help you provide a financial safety net for your loved ones even in your absence.

Provides Mental Peace: Biggest advantage of purchasing a life insurance policy is that a life insurance policy provides peace of mind. When you purchase a life insurance policy you ensure financial security of your family and you ensure you’ve done whatever you could to secure the future of your family in case you are not around.

Can Act as an Savings Tool: A life insurance policy encourages disciplined savings habits in an individual. Apart from encouraging disciplined savings habits some life insurance policies offer loans against the policy facility which can help you at times when you require immediate funds.

Can be Customised: Depending on different life insurance providers one can customise their life insurance policy by adding riders which are additional coverage that come in exchange of additional premium. Riders help you customise your life insurance plan according to your requirements.

The most important question while purchasing a life insurance policy is whether you have financial dependents or not. Below mentioned are some types of people who are most likely to purchase a life insurance policy:

Young Adults: It is always advised to purchase a life insurance policy as soon as you start making a living. As soon as you start earning a living for yourself and your family you should consider purchasing a life insurance policy because it can not only help you avail tax benefits but also help you attain financial security from the uncertainties of life. It is said that life insurance should be purchased when a person is young because premiums for physically fit people are less and it also helps in early tax savings.

Parents: Many adults start considering purchasing a life insurance policy as soon as they become parents because they want to ensure a financially secured future for their child. As parents would always want to provide the best for their children, a lie insurance plan can help you create a financial plan to secure your child’s future. You will require coverage that can help take care of household expenses and potential expenses that arise from raising a child. A life insurance policy provides a death benefit in case of an unforeseen demise of the life assured during the coverage period, with the help of a life insurance you can ensure financial security of their child in case an unforeseen event takes place.

Married People: People who are married who have spouses that fully depend on the income of their partner often purchase life insurance policies to ensure financial security of their spouse in the absence of the life assured. As the sole breadwinner between two married people one should consider purchasing life insurance. The death benefit provided under a life insurance policy can help your wife/husband to fulfill their financial requirement and maintain a healthy standard of living even in your absence.

Sole Breadwinner of the Family: Usually the sole breadwinner of the family is most likely to purchase a life insurance policy to ensure that his/her family members are financially unbothered in case of an unfortunate demise of the life assured during the policy tenure. In case the primary income source of the family passes away, a life insurance policy can help the family member of the life assured to maintain a decent standard of living and fulfill daily financial obligations until they are able to arrange funds or start earning themselves. Life insurance policy can help an individual create a financial cushion for his/her family members in case an unforeseen event takes place.

Retirement Age Adults: People who don’t have a large savings amount such as people who wish to retire or have retired may also wish to purchase a life insurance policy. Some life insurance policies offer whole life coverage which can help an individual who is retiring ensure a financially secure future for their dependents such as child, husband/wife etc. In case of an unforeseen demise of the life assured, the death benefit amount paid under a life insurance policy can help the family of the life assured to fulfil immediate expenses.

Business Owners: If you own a business you must worry about what will happen to your dependents and employees in case of your unforeseen demise during the policy tenure. In case of an unforeseen demise of the life assured, the financial dependents of the life assured can use the death benefit amount to pay to creditors, manage payments, pay off life assured’s dues and maintain a decent standard of living in the absence of the life assured.

The main objective of purchasing a life insurance policy is to ensure that your family has financial support to maintain a healthy lifestyle if you were to meet an untimely demise during the policy tenure. However a valid question to ask here is, ‘How much life insurance cover do I need?’ A specific sum assured for life insurance coverage may not be suitable for many people. Hence, one needs to look at several factors such as income, expenses, number of financial dependents and liabilities (if any at the time of purchasing a life insurance policy) while deciding your coverage amount.

Although, it is advised that the sum assured of a life insurance policy should be 10-15 times the income of the life assured. A sum assured equivalent to 10-15 times the income of the life assured can help the family of the life assured to fulfil immediate expenses, daily financial requirements and fulfil their goals in case of an untimely demise of the life assured during the policy tenure. It is advised to choose a sum assured amount which can help your family to fulfill financial requirements in the absence of the life assured. Some factors that you can consider before deciding your sum assured are your income, current financial liabilities, estimated working years, estimate of future expenses etc.

Life insurance policy is a financial tool which is essential for an individual who wants to ensure a financially secured future for their loved ones. The benefits that come under a life insurance policy help family of the life assured build a safe and secured future even in the absence of the life assured. Moreover, under Section 80C and 10(10D) of the Income Tax Act, 1961 one can avail income tax benefits by investing in a life insurance policy. Under Section 80C, premiums paid towards the life insurance policy qualify for tax exemptions for upto Rs. 1.5 Lakh and under Section 10(10D) provides tax exemptions on income on maturity if the premium is not more than 10% of the sum assured.

In case the sum assured is less than 10 times of the premium you can avail tax exemptions on the premium up to 10% of the sum assured. In case of untimely demise of the life assured, the sum assured paid to the nominee also qualifies for tax exemptions.

Under Section 80C(5) in case the policyholder voluntarily surrenders his/her life insurance policy or in case the life insurance policy is terminated before 2 since the date the policy was issued then the life assured shall not receive any benefits on the premiums paid.

Under Section 10(10D) of the Income Tax Act, the sum assured amount plus bonus (if any) paid in case of death of the life assured or at the time of maturity will be entirely tax-free for the receiver.

While calculating premium for life insurance policy certain factors such as age, gender, lifestyle, profession, way of living, BMI (Body Mass Index), coverage amount, health conditions, medical records etc. are taken into consideration. One can easily calculate life insurance premium online with the help of an online premium calculator tool. Many life insurance providers have premium calculators that help in calculating premiums for the life insurance policy based on the information provided by you.

Using a life insurance premium calculator is very easy - you provide your details such as annual income, birth date, lifestyle, gender, coverage amount. You also select the choice of life insurance plan, premium payment frequency and policy tenure. After mentioning these details, the life insurance premium calculator will determine and display the amount of premium payable for the life insurance policy. You can review the quoted premium for the life insurance policy and use it to compare different policies before selecting a life insurance plan that fulfils your requirements.

Following is the list of documents required at the time of application for a life insurance policy:

• Salary slips of last 6 months
• Bank statements of last 6 months with entries of 3 months of salary credited continuously
• Income Tax Returns (ITR) of last 2 years
• Certificate issued by CA in case the individual is self employed
• Form 16 (Latest)

• Birth Certificate
• Aadhaar Card
• Voter ID Card
• PAN Card
• Passport
• Driving Licence
• Marriage Certificate
• Ration Card

• Aadhaar Card
• Passport
• PAN Card
• Voter ID Card
• Address Proof
• Passport
• Aadhaar Card
• Voter ID Card
• Ration Card
• Driving License
• Passbook with 6 months of latest entries
• Bank statement of savings account
• Latest 3 months of utility bills

• Apart from KYC documents there are few other documents required at the time of application of life insurance policy. Following is the list of other documents required at the time of policy application:
• Application/Proposal Form
• Policy Declaration in case the proposal form had not been filled by the life insured
• Final Declaration stating that the information provided is true and in case anything is found to be incorrect the insurance provider has the right to reject the application

There are different plans offered by different life insurance companies in India and at times it can get difficult to choose a good plan from several options. Below mentioned are some key points that you can consider while purchasing a life insurance policy:

Identify the Type of Life Insurance Policy you Need: There are several types of life insurance plans which have different purposes. Different types of life insurance plans are Term Insurance, Unit Linked Insurance Plans, Whole Life, Endowment, Money Back, Retirement/Pension and Child Life Insurance plans. Term insurance is the basic life insurance plan as it is pure risk that other life insurance plans provide an investment component. It is very important to identify the type of life insurance according to your requirements.

Sum Assured Amount: Before purchasing a life insurance policy one should determine the sum assured which is the coverage amount of the life insurance policy. One should consider a sum assured which is 10-15 times their income. Before deciding a sum assured for your life insurance policy you consider your current lifestyle, expenses, liabilities, goals and number of financial dependents etc. Ideally the sum assured of a life insurance policy should be enough to let your loved one maintain a decent lifestyle in your absence.

Incurred Claim Settlement Ratio: Claim settlement ratio of the insurance provider is one important factor that one must consider before purchasing a life insurance policy. You should consider a life insurance provider with a high claim settlement ratio because a high claim settlement ratio depicts the number of claims settled by the insurance provider against the number of claims received. One must consider an insurance provider with a high claim settlement ratio so that they are able to fully rely on the insurance provider.

Compare Several Plans: Comparing several life insurance plans based on your requirements and budget. Comparing different life insurance policies offered by different insurance providers will help you analyse which policy best suits your requirements . this way you will be able to make an informed decision.

In case of an unforeseen demise of the life assured during the policy tenure, the nominee can file for a death claim. As a nominee/beneficiary of the life insurance policy you should be aware of how to file a death claim and about the claim settlement procedure. You can easily file a claim online or choose to visit the branch office of your chosen life insurance company. Below mentioned are some steps you can follow to file a claim for the life insurance policy:

Online - You can visit the official website of your chosen life insurance company and log in using your registered email ID/policy number and password. You register a claim online easily on the website and submit supporting documents along with the claim form. Your claim will be assessed and settled as soon as the underwriters have approved the claim. The online process is very convenient. Some life insurance companies also let the nominee to file a claim by sending an email at the official email address.

Visit the branch office - You can also visit the branch office to directly intimate and file a claim at the office of the life insurance company. You can submit the claim form along with supporting documents at the branch office.

SMS/Call - Some life insurance companies provide an option to intimate the claim to your life insurance providers through SMS/Call facility. You can send a SMS to the provided number by the life insurance provider and call the helpline number or customer care number provided by the life insurance provider to intimate the insurance provider about the claim.

Life insurance policy is a well known financial tool which helps an individual to financially safeguard their loved ones in case an unforeseen event takes place such as an unpredictable demise of the life assured during the policy tenure. Before you purchase a life insurance policy you should know some things about life insurance policy:

Life insurance policy does not put a monetary value on an individual: People often think that life insurance policy puts a monetary value on an individual which is however not true. Life insurance policy provides life cover to an individual in exchange for the life assured pay the premium for the life cover. In case of an unforeseen demise of the life assured a sum assured known as death benefit is provided to the nominee. At the time of purchasing a life insurance the applicant/life assured decides the sum assured according to their budget and coverage requirements.

There are several types of life insurance plans to choose from: There are several types of life insurance policies available in India such as Term Life, ULIPs, Endowment, Retirement, Money Back, Child and Whole Life insurance plans. One can choose from the different types of life insurance policies according to their coverage requirements and budget. Different life insurance plans have different features and benefits which serve different purposes. Some life insurance plans provide investment components and some provide basic risk coverage.

Life insurance premium depends on certain factors: The premium payable for the life insurance policy depends on various factors such as one’s age, occupation, medical condition, type of life insurance policy, sum assured, policy tenure, personal habits like consumption of alcohol/tobacco etc. Age plays an important role in determining the premium of a life insurance policy, elder people are prone to life threatening diseases so the premium of life insurance policy increases as elderly people require more coverage. Thus, it is advised to purchase a life insurance policy at a young age.

Life insurance can also act as an investment instrument: Some life insurance policies provide an investment component under which part of the premiums paid are used for life cover and the remaining are utilised for the life cover. These life insurance plans let the life assured invest part of the premiums paid in different market linked fund options and the returns are purely based on the performance of the market linked fund.

Premiums paid for life insurance qualify for tax exemption: Life insurance policies can help an individual to save taxes as premium paid towards a life insurance policy qualify for tax exemptions under Section 80C and 10(10D) of the Income Tax Act. One can save upto Rs. 1.5 Lakhs for the premiums paid towards a life insurance policy.

You can customize your life insurance with riders: Life insurance can be customized with the help of life insurance riders. Riders are additional coverage that one can purchase along a life insurance policy in exchange of additional premium. These riders can help in increasing the coverage of the base life insurance policy.

Life insurance is a good financial tool that can help you ensure financial security of your loved ones while providing you life cover. A life insurance policy provides financial assistance to the life assured and their family members in difficulty. Keeping the current scenario in mind, a life insurance policy is essential for individuals who have financial dependents, if anything were to happen to an individual amid COVID-19 outbreak a life insurance policy can be very handy under such circumstances. Below mentioned are some reasons which justify why life insurance is important:

To Pay Off Debts: Usually most people during their professional life take loans to fulfil some financial requirements such as purchasing a house or vehicle. Some people also take loans to fund their child’s education, marital expenses etc. In case of your untimely demise the burden to pay off your debts will fall onto your family members. To avoid the direct financial impact on your family you must consider a life insurance policy, in case of your untimely demise a death benefit shall be provided to the nominee/your family members which can help them pay off your debts. A life insurance policy can help your family members take care of liabilities without compromising their financial requirements.

To Ensure Financial Security of Your Loved Ones: One primary reason to purchase a life insurance policy is to ensure financial security of your loved ones in case an unforeseen event occurs such as your unfortunate demise during the policy tenure. Your family members such as your parents, your child or your spouse who were dependent on your income will continue to be dependent on somebody or your remaining savings in case of your untimely demise during the policy tenure, a life insurance policy can help take care of your family’s essential needs. In case of your unforeseen demise during the policy tenure, a sum assured known as death shall be provided to the nominee/family members of life assured helping them to maintain a decent lifestyle and pursue their dreams in the absence of the life assured.

To Save Tax: Besides providing financial protection to your family members, the other main reason people often purchase life insurance policies is to avail tax benefits. According to the current provisions of Section 80C of the Income Tax Act, 1961 once can avail tax exemptions of upto Rs. 1.5 Lakh for the premiums paid towards the life insurance policy. According to Section 10(10D) of the Income Tax Act, 1961, the death/maturity benefits received also qualify for tax exemptions.

There are several reasons why one must consider purchasing a life insurance policy, especially someone who is the sole breadwinner of the family. If you are worried about your family's future then you should not delay purchasing life insurance.