Find your suitable insurance plan
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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.
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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.
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