Life Insurance Policies in India
Insurance forms a critical part in our lives these days. Insurance investment is seen as an added security to you and your family in later years. When you buy an insurance policy you are giving protection for your family even when you no more exist on this earth. To meet the demands of people from various walks of life there are different life insurance plans. Read on to know more on this.
Different Types of Life Insurance
Listed below are some of the most widely accepted life insurance plans, let’s take a short walk through them.
Term Insurance
Term Insurance Plans are the simplest and cheapest Insurance policies as the premium rates are very low. This plan provides coverage only for limited period thus the benefits of this policy can be used only for minimal period and after the maturity times you are not eligible for any profits or allowances. However during the coverage time if an insurance holder dies, a specific lump sum amount will be paid for the family or guarantor. This policy is usually available for 5, 10, 15, 20 0r 30 years.
Some of the Life Insurance companies offering Term Insurance Plans are
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Life Insurance Companies
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Policies
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ICICI-Prudential
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iProtect
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HDFC Life
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Term Assurance Plan
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LIC
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Anmol Jeevan
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Endowment Insurance Plans
Endowment Insurance Plans are one of the best saving plans which provide certain amount at the end of specific term or on death of the insurance holder. Even after the maturity of the plans the client will get added benefits such as bonuses and profits. Usually this plan will have maturity for 10, 15 and 20 years or up to certain age limit.
Some of the noted companies providing Endowment Insurance Plans are
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Life Insurance Companies
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Policies
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Met Life
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Met Suvidha
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SBI Life
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SBI Life Sudarshan
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Kotak Life
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Endowment Plan
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ULIP
Unit Linked Insurance Plans or ULIPs are popular in today’s world as it provides benefit of life insurance as well as mutual benefits. In this plan certain part of your premium is invested in bonds, equities or debt funds and the remaining amount is used for life coverage. However if you are applying for this plan then you should be ready for the risks related to stock market.
Follow the table below to know more on various ULIP plans offered by different companies
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Life Insurance companies
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Policies
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Max-New York Life Insurance
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Life Maker
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Bajaj-Allianz
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Unit-Gain
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TATA-AIG Life Insurance
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Invest Assure
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Pension Plans
To lead a happy and respectful retirement life a good pension plan is must. Pension plans are nothing but an insurance policy which will help to provide better pension days by saving amount during your earning years. Here the policy holder can pay lump sum amount or premiums for certain years to get annuity in later years.
Here are some of the Pension Plans
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Life Insurance Companies
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Policies
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LIC
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Jeevan Nidhi
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Aviva Life Insurance
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Secure Pension
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Kotak Life
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Retirement Income Plan
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Money-Back Plan
For people who look for both insurance coverage and savings, money-back plan is the best. In this policy you are asked to pay certain premiums for fixed period and during the process you are benefited with reasonable rate of returns along with the finally lump sum return.
Some of the prominent money-back plans are
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Life Insurance Companies
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Policies
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Aviva Life Insurance
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Aviva Money back
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LIC
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Jeevan Surabhi
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SBI
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Sanjeevan Supreme
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General Benefits
Almost all the above mentioned life insurance policies serve as a boon to face the uncertainties in life boldly. Some of the general benefits of these plans are as follows.
- Death Benefits: Most of the Life Insurance Policies provides protection to the family or the guarantor in case of unfortunate death of the nominee.
- Maturity Benefits: During the time of maturity you will get the guaranteed money back plus other added benefits mentioned in the plan. In some of the plans there is also an option to withdraw certain money during regular interval.
- Tax Benefit: As per section 80C of Income Tax Act the amount you pay as a premium is benefited from your tax amount, however this is limited upto Rs. 1,00,000 per annum. Additionally in case of physical handicapped Rs. 50,000 more is non- taxable and in case of severe handicap problem this amount is increased upto Rs. 75,000.Further according section 10D any returns obtained as death benefits or maturity benefits is tax free. However in case of maturity benefits the premium per annum should not exceed 20% of assured sum.
- Loan Facility: Some of the Insurance Policies allow you to take loan against your policy. In this case loan amount depends on the life insurance policy, premiums paid and the overall term.
- Riders: Riders are some added benefits along with the life insurance coverage. Some of the insurance policies allow you to invest part of your premium amount on market shares thereby helping to gain extra bonus.
Contributed By: B C Shetty & Co |
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Established in 1985 by Mr.Chandra Shekar Shetty, operating from 3 branches, B.C.Shetty & Co. is a firm dedicated to serving their clients with utmost transperancy by offering qualitative professional service. | |
I am having Max life insurance policy. Which categories i will get the tax benefits.
Thanks & regards
Yogendra Lad