Find your suitable insurance plan
93
5 min read
Updated on Jan 23, 2023
Life insurance policy is a contract between an insurance company and the policyholders. Policy benefits are paid by the insurance companies to the policyholders. If the policyholder passes away, the nominee is paid the benefits. However, to avail of the benefits, the policyholders must pay the premium on a regular basis.
Everyone needs to buy a life insurance policy as it ensures the financial stability of you and your family. Even if you are not there anymore, an insurance policy will help take care of the financial needs of the family. So, whether you are there or not, you will not have to be bothered about the financial future of your family.
The life insurance coverage should be at least eight times your annual income. The maturity benefits depend on the premiums that you pay for the policy during the term. The amount depends on various factors which include your lifestyle, income, regular expenses, and debt obligations.
Life insurance comes with several benefits such as financial security for your family in your absence, a loan against your life insurance policy, and tax benefits of INR 1.5 Lakh under Section 80C.
Yes, as you buy a life insurance plan, you can choose from the various options to pay the premiums such as monthly, quarterly, half-yearly, or annually. You also may come across some life insurance plans that may give you the option of a one-time payment of premium.
If you do not pay the premium on time, you will get 30 day grace period from the insurance company. If you pay each month, the grace period will be of 15 days. If you do not pay the premiums even during the grace period, you will not be able to claim the benefits and the policy will become defunct. If you want to restart the coverage, you would be required to clear all the overdue payments.
Yes, as you buy a life insurance policy, you will get tax benefits under Section 80C of the Income Tax Act, 1961.
To calculate the insurance premium, the following factors are considered.
You can use a policy premium calculator to find out the premium that you will be required to pay upon buying a life insurance policy.
It is not mandatory for anyone to buy a life insurance policy. However, as you grow older and have your family, you would want to take care of them at every stage of life. This is when you will find a life insurance policy helpful. Even if you are not there with your family anymore, you will not have to worry about their financial well-being.
In the case of a Unit Linked Insurance Plan, you have to keep paying a premium for 5 years to receive tax benefits. If you stop paying premiums before 5 years from the date of commencement of the policy, you will not get any tax benefit.
There is no tax deduction on the maturity benefit of your life insurance policy.
Conclusion
These questions are surely going to be helpful for you while buying a life insurance policy. You can go through each of these questions and find answers to your questions.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
Life insurance is a contract between an insurance company and the policyholders. Policy benefits are paid by the insurance companies to the policyholders. If the policyholder passes away, the nominee is paid the benefits. However, to avail of the benefits, the policyholders must pay the premium on a regular basis. Everyone needs to buy a life insurance policy as it ensures the financial stability of you and your family. Even if you are not there anymore, an insurance policy will help take care of the financial needs of the family. So, whether you are there or not, you will not have to be bothered about the financial future of your family. The life insurance coverage should be at least eight times your annual income. The maturity benefits depend on the premiums that you pay for the policy during the term. The amount depends on various factors which include your lifestyle, income, regular expenses, and debt obligations. Life insurance comes with several benefits such as financial security for your family in your absence, a loan against your life insurance policy, and tax benefits of INR 1.5 Lakh under Section 80C. Yes, as you buy a life insurance plan, you can choose from the various options to pay the premiums such as monthly, quarterly, half-yearly, or annually. You also may come across some life insurance plans that may give you the option of a one-time payment of premium. If you do not pay the premium on time, you will get a 30 day grace period from the insurance company. If you pay each month, the grace period will be 15 days. If you do not pay the premiums even during the grace period, you will not be able to claim the benefits and the policy will become defunct. If you want to restart the coverage, you would be required to clear all the overdue payments. Yes, as you buy a life insurance policy, you will get tax benefits under Section 80C of the Income Tax Act, 1961. To calculate the insurance premium, the following factors are considered. It is not mandatory for anyone to buy a life insurance policy. However, as you grow older and have your family, you would want to take care of them at every stage of life. This is when you will find a life insurance policy helpful. Even if you are not there with your family anymore, you will not have to worry about their financial well-being. In the case of a Unit Linked Insurance Plan, you have to keep paying a premium for 5 years to receive tax benefits. If you stop paying premiums before 5 years from the date of commencement of the policy, you will not get any tax benefit. There is no tax deduction on the maturity benefit of your life insurance policy.
FAQs on Life Insurance Policy, India
What is life insurance?
Why life insurance is so useful?
How the amount of life insurance cover should be decided?
What are the various benefits of life insurance?
Will I get different options to pay the premium amount?
What if I skip paying the premium on time?
Will I get any tax benefits on buying a life insurance policy?
How do we calculate life insurance premiums?
Age: The primary factor that is considered while calculating a life insurance premium is age. Young people are considered to fall sick lesser. This will make them acquire medical expenses lesser. As a result, the total premium amount gets lesser.
Coverage type: To buy an insurance policy, you will get several options. Depending on how comprehensive your coverage is, the premium rate is decided.
Coverage amount: The premium amount depends much on the amount of coverage, which is also called sum assured. If the coverage amount is higher, the premium amount will certainly be higher.
Personal information: This is another factor that is taken into account while calculating the premium of a life insurance policy. Information like gender, marital status, occupation, smoking habit, annual income, and the place where you live are considered.
You can use a policy premium calculator to find out the premium that you will be required to pay upon buying a life insurance policy.Is buying a life insurance policy mandatory?
Will I get tax benefits for discontinuing a ULIP?
Is there any tax deduction on the maturity benefit of life insurance?
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
If you want to calculate the maturity benefits of a Rural Postal Life Insurance (RPLI) policy before purchasing it, you can do that using the.
Jan 27, 2023
5 min read 
If you are financially independent and want to plan your finances ahead, you must buy a Life Insurance Policy . It will give you coverage.
Jan 19, 2023 5 min read 
Whether you are single or someone with a family, an insurance policy can always be helpful. When you have a family to take care of,.
Jan 19, 2023 5 min read 
From ordering groceries to opening an FD account, everything these days can be done online. And like all these, with LIC as well, you can.
Jan 18, 2023 5 min read 
A PLI Calculator or Postal Life Insurance Premium Calculator is a tool available online to calculate and compare the premiums of different Postal Life Insurance.
Jan 16, 2023 5 min read 
Whether you have already started a family or not, buying a life insurance policy can never be the wrong idea for anyone. It in fact.
Jan 01, 2023 5 min read 
While buying a life insurance policy comes with a lot of benefits, some of the questions hover in the mind of the policyholders. One of.
Dec 29, 2022 5 min read 
Surrendering a LIC policy is not recommended. However, sometimes policyholders want to surrender policy to invest in other products with greater returns. In this post,.
Dec 28, 2022 5 min read 
You know that your life insurance plan can serve a dual purpose of offering lifetime financial security and helping you borrow money in difficult times?.
Dec 16, 2022 5 min read 
New to buying life insurance? Confused about all the different terms stated in your policy document? We’re here to help you understand the basic terminologies.
Dec 13, 2022 5 min read Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Get A Call Back