Life Insurance Your Life Matters, Insure It.
Life is very unpredictable, there might be cheerful celebrations on achieving certain milestones or multiple unforeseen circumstances that you can never think of. So it’s always better to be prepared for these days. In such cases, life insurance can work as a strong financial shield for you and your loved ones with you or in your absence. Life Insurance Plans are essential financial tools that go beyond just providing a death benefit. They serve as robust financial instruments that cater to various needs and goals, offering a combination of protection and savings.
- Life Long Coverage
- Secure Your Family's Future
- Flexible Payment Option
- Additional Add ons Benfits
- Instant Quotes and Policy Issuance
- Tax Savings Under Sec 80 & 80 D
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What is a Life Insurance?
A life insurance policy serves as a crucial agreement between an individual and an insurance company. In this contract, the insurer commits to paying a predetermined sum of money in exchange for regular premium payments. The purpose is to provide financial security to the insured's family in the event of an unforeseen circumstance, offering a lump sum payout or maturity benefits.
We offer a range of life insurance policies to help you secure your family’s future, ensuring they can meet their daily expenses, pay off debts and reach their life goals. We provide a variety of insurance products, including term insurance, retirement plans, children’s plans, investment plans and more. Choose the right type of insurance to live a worry-free life.
Need and Importance of Life Insurance
Life insurance provides financial protection and stability to you and your loved ones during the most difficult times. It helps in maintaining the lifestyle, cover expenses, and helps in achieving long-term goals in your absence. Life insurance is important for below several reasons:
Financial Protection for Loved Ones
Life insurance provides a financial safety net for your loved ones during your untimely death. It can help cover expenses such as funeral costs, outstanding debts (e.g., mortgages, loans), daily living expenses, and education costs for children.
Debt Repayment
Life insurance can help settle any outstanding debts or loans you leave behind, such as mortgages, car loans, or credit card debt. Without life insurance, your loved ones may be burdened with these financial obligations.
Peace of Mind
Having life insurance offers peace of mind, knowing that your loved ones will be financially protected if something happens to you. It provides a sense of security, allowing you to focus on other aspects of life without worrying about the financial well-being of your family.
Income Replacement
Taking an income replacement policy helps to replace a portion of the insured person's income, for a specific period to maintain their financial stability.
Types of Life Insurance Plan
There are various types of life insurance available in India. The following are the different types of life insurance plans available in India:
Term Investment
Pure Protection Plan
Term insurance is the most simple and basic type of life insurance plan. Affordable coverage for a specific duration with a lump sum payout in case of the insured's death. This type of plan provides financial security to the family and loved ones in case of the absence of the policyholder.
Term Return of Premium (TROP)
This is a particular type of term life insurance that comes with the additional advantage of survival benefit where all the premiums paid by the insured will be paid back if the insured survives the entire policy term.
Savings & Investment Plans
Unit Linked Insurance Plan (ULIP)
A unique market-linked plan that combines wealth creation through investments with a life insurance cover, offering returns based on market performance. High-performing ULIPs have shown significant returns, making them popular among medium to long-term investors.
Guaranteed Return Plan (Endowment Policy)
Endowment plans are also known as traditional life insurance plans.It's a combination of savings and insurance, this plan allows systematic savings with a lumpsum amount on maturity of the policy and also provides death benefits in case of demise of the policy holder.
Retirement Plans
The retirement plan is also known as a pension plan. It is a combination of savings and life insurance plans. Retirement plan helps you to secure your post-retirement life financially. This plan helps you to get regular income even after retirement and helps you to become financially independent to enjoy post-retirement life.
Whole Life Insurance
Coverage until the age of 100, ensuring financial security for the family. Whole life insurance remains active till the policyholder is alive (up to 100 years of age). If the policyholder dies during the policy term, the insurer pays the sum assured under whole life insurance to the nominee of the policy. If the policyholder survives till the age of 100 years, the insurer pays the matured endowment coverage to the policyholder in the form of maturity benefit.
Child Plan
Ensures financial security for a child's future needs through life cover and investment returns.A child insurance plan is a combination of life cover and investment plan. It secures multiple stages of your child’s future. The plan offers a lump sum amount at the end of the policy term and this amount can be used for your child's education and marriage.
Money Back Plan
The money back plan is a combination of both insurance and an investment plan. Under money back plan, the policyholder gets regular payouts every 5 years as a survival benefit. These regular payments are usually equal to some percentage of the sum assured amount.
The table below will highlight and compares key aspects related to the different types of life insurance policies in India:
| Type of Plan | Policy Term | Maturity Benefit |
|---|---|---|
| Term Plan | 5 Years to 85 Years | Maturity Benefit is only accessible if the Return of Premium option is selected |
| Endowment Plan | 5 Years to 35 Years | Yes, when the policy's term expires |
| ULIP | 10 Years to 20 Years | Yes, when the policy's term expires |
| Annuity/ Pension Plan | Entire Life | Regular Earnings until servival |
| Whole life Insurance | Until you attain the age of 100 years | When you attain the age of 100 years |
| Term Return of Premium plan | 5 Years to 65 Years | Benefits of survival on maturity |
Key Benefits of Life Insurance
Life is uncertain and we need to be prepared for them. To avoid such uncertainties, you can buy a life insurance that provides financial security to you and your loved ones in your absence. There are various benefits of buying a life insurance policy in India. Below mentioned are the benefits of buying a life insurance plan in India:
Financial Security
Life insurance ensures the long-term financial protection of your family. In the unfortunate event of your demise, the policy guarantees a payout to your beneficiaries.
Death Benefit
The death benefit is a crucial component of life insurance, providing a lump sum payment to your nominees. This includes the sum assured and any accrued bonuses over time.
Guaranteed Returns
Life insurance plans often come with guaranteed returns. This fixed amount, received after a specific term, can be instrumental in meeting various financial obligations such as loan payments or funding a child's education.
Maturity Benefits
Depending on the type of life insurance policy, maturity benefits may be offered at the end of the policy term. In plans like Term Return of Premium (TROP), premiums paid throughout the term are returned to the policyholder if they survive the entire policy period.
Wealth Creation
Certain life insurance plans, such as Unit Linked Investment Plans (ULIPs) or endowment plans, offer wealth creation benefits alongside protection. These plans allow policyholders to invest in market-linked instruments, providing an opportunity for long-term wealth growth.
Tax Benefits
Life insurance plans offer tax benefits under various sections of the tax laws. Premiums paid are eligible for deductions under Section 80C, and the maturity amount is exempt from tax under Section 10(10D).
Benefits of Buying Life Insurance Plans Online
Buying life insurance plans online offers several benefits, making the entire process more convenient and efficient for policyholders. Here are some key advantages:
Convenience
Online access and purchase offer unparalleled convenience, allowing individuals to explore and choose plans from the comfort of their homes.
Comparisons
Online platforms facilitate easy comparison of different life insurance plans, empowering individuals to make informed decisions based on features, benefits, and premiums.
Instant Processing
Online plans streamline the policy issuance process, providing quick documentation and instant processing for policyholders.
Cost-Effectiveness
Online life insurance plans often come with lower premiums, making them a cost-effective option for individuals seeking financial protection.
Transparency
Online platforms provide real-time access to policy details, updates, and relevant information, ensuring transparency in the entire insurance process.
Customer Support
Robust online customer support is available to address queries and concerns, offering assistance throughout the policy purchase and management journey.
Factors to Consider Before Buying Life Insurance Plan
Before purchasing a life insurance plan, it's crucial to consider several factors to ensure that the chosen policy aligns with your needs and provides comprehensive coverage. Here are key factors to evaluate:
Financial Goals
Aligning the chosen policy with long-term financial objectives is crucial. Whether it's securing a child's education or planning for retirement, the policy should support these goals.
Coverage Amount
Adequate coverage is essential to meet the financial needs of your family in your absence. Calculating the right coverage amount based on current and future expenses is a key consideration.
Premium Affordability
Ensuring that the premium payments fit within your budget is vital. Striking a balance between coverage and affordability is crucial for a sustainable life insurance plan.
Policy Term
Aligning the policy term with your financial goals is essential. Consider the duration for which you need coverage, whether it's until retirement or a specific milestone.
Riders
Choosing additional benefits through riders is an important decision. Critical illness riders, waiver of premium riders, and accidental death benefit riders can enhance the coverage based on specific needs.
Claim Settlement Ratio
Evaluating the claim settlement ratio of the insurance company is critical. A higher ratio indicates a higher likelihood of claims being settled, providing confidence in the insurer's reliability.
Factors that Influence Cost of Life Insurance
Following are the factors that are taken into consideration by life insurance companies for the calculation of premiums:
Age
Gender
Health Records
Medical History
Drinking
Type of Policy
Income
Smoking
Profession
Lifestyle Choices
Weight & Obesity
Inclusion and Exclusions in Life Insurance Plan
The inclusions and exclusions under life insurance plans may differ from one policy to another. However, there are certain exclusions that almost all policies agree with. Below are some important ones:
Life Insurance Riders
Life insurance riders are additional benefits that enhance the basic coverage offered under the base policy which comes at an additional premium. There are different types of riders offered by life insurance companies, and each rider has some unique benefit. Some of the most common riders available with life insurance plans are as follows
Critical Illness Rider
This rider provides coverage for specific critical illnesses, offering financial support during challenging times.
Waiver of Premium Rider
In the case of disability, this rider waives off future premium payments, ensuring the policy remains in force without financial strain.
Accidental Death Benefit Rider
Offering an extra payout in case of accidental death, this rider enhances the overall coverage, providing additional financial support to the family.
Terminal Illness Benefit Rider
With the Terminal Illness Benefit rider, the entire sum assured is paid out in advance if the policyholder is diagnosed with a terminal illness during the policy term. The money can be used to pay for medical expenses and provide financial support during the challenging period of a terminal illness.
Permanent Disability Benefit Rider
The Permanent Disability Benefit rider waives off the future premiums if the policyholder has permanent disability due to an accident. This ensures continued life insurance coverage if the policyholder is unable to work and earn due to the disability.
Our Partners
India's insurance sector has seen a remarkable growth due to the increased awareness about insurance policies and providers. The recent pandemic has highlighted the need for insurance coverage, and high claim ratios offered by insurance companies have incentivized individuals to opt for insurance as a means of supporting their well-being and livelihoods. Presently, there are numerous insurance companies operating in India. Let’s have a look at few of them listed below.
FAQ's
As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming. To help you with this, We have tried to address common doubts for a seamless journey with Bimasure;
Assess your financial responsibilities and multiply your salary by 10 as a rule of thumb.
Monthly costs vary based on factors like age, health, coverage, and policy type.
Yes, term life insurance offers standalone coverage for a specified period.
Payout timelines range from weeks to months, depending on the insurer and claim complexity.
It’s a contract providing a payout to beneficiaries upon the insured’s death.
They include term life insurance, whole life insurance, and universal life insurance.
They encompass life insurance, health insurance, property insurance, and liability insurance.
It offers financial protection to beneficiaries, covering expenses and providing stability after the insured’s death.
Complete an application, possibly undergo a medical exam, and provide relevant personal and financial information.
It promises a death benefit to beneficiaries, with some policies also accumulating cash value over time.
