What is Life Insurance?

Life insurance is a tool that offers you cover for your life. Life insurance policies provide compensation to the nominee in case of loss of life of the insured person during the plan’s term. In order to claim this cover, a life insurance premium is paid to the company in a lump sum or throughout the tenure of the plan. There are several provisions (known as riders) under a life insurance plan that offer coverage against accidents, critical illnesses, etc. These can be purchased by paying an additional amount over the policy premium.

*Religare Broking Ltd having license number CA0581 is a Corporate agent with ICICI Prudential Life Insurance, HDFC Life Insurance & Future Generali Life Insurance.

What are the benefits of life insurance?

Financial support after death

Surviving in the absence of a loved one can bring many hurdles. Religare’s Life Insurance offers financial assistance to the grieving family and allows them to live an economically stable life.

Health cover

At an additional cost, you can get health cover along with your online life insurance plan. This will secure you against the expenses of critical illnesses, accidents, hospitalisation, etc.

Guaranteed sum assured

In the unfortunate event of loss of life, the insurer pays a guaranteed sum assured to the nominee. This allows you peace of mind, knowing that your nominee will receive the necessary funds to continue their life with dignity.

Tax savings

Life insurance premium can be used as a tax-saving tool. You can claim deductions on up to Rs. 1.5 lakhs in a year under Section 80C of the Income Tax Act of 1961.

Possibility of loans

Some of the traditional insurance plans offer the option of taking a loan against the policy. If you are ever in need of some financial assistance, you can borrow money from your insurer.

Wealth creation

Life insurance plans can also double up as savings plan. They promote long-term savings and allow you to build a significant corpus over time.

What are the various types of life insurance plans?

Term life insurance plan

A term insurance plan offers protection for a fixed term like 10, 15, or 30 years. There are no maturity benefits, and the nominee is paid the cover only in the event of the insured person’s demise.

Unit-linked life insurance plan (ULIP)

Along with the benefits of life insurance, ULIPs also let you build your wealth over the course of the policy term. A portion of the premium paid for such plans is invested further. The other part is used for the purpose of insurance.

Whole life insurance plan

As the name suggests, the plan extends the cover to the entire life. Its features include survival benefits, loan provisions, and the option to withdraw the funds partially.

Pension life insurance plan

This plan acts as a pension plan. The cover is paid to the person insured in the form of post-retirement income or pension as an annuity or lump sum.

Money back life insurance plan

A money back plan works like an endowment plan. However, while endowment plans only offer a lump sum amount at maturity, money back plans offer a fixed portion of the sum assured at pre-decided intervals throughout the policy term.

Child life insurance plan

Child life insurance policies are specifically meant for children’s expenses, such as higher education or marriage. The sum assured is either paid in a lump sum at maturity when the child turns 18 or in regular payouts.

How to choose the best life insurance policy?

Affordability

Researching various online life insurance plans can help you opt for the most cost-effective and comprehensive plan. You can compare different policies and pick out the one that suits your requirements and budgetary constraints.

Premium options

Selecting a flexible policy that allows you to pay premiums monthly, semi-annually, annually, or in a lump sum can be an advantage. You can select the method that aligns with your ability to pay.

Claim settlement ratio

Buying life insurance is a long-term commitment. Therefore, it is crucial to choose a reliable insurer. One way to check the credibility of the company is by their claim settlement. The higher the ratio, the better are the chances of your claim not being rejected.

Lock-in period

The lock-in period allows you to return or replace the policy if you are not satisfied with it. If you buy a policy with a lock-in period, you will be able to change it for up to a certain time, if you are unhappy with the service.

Frequently Asked Questions

In order to buy a life insurance policy, you need an identity, age, address, and income proof.
It helps to pick a brand that is trustworthy and enjoys a good reputation in the market. The claim settlement ratio is one of the best indicators of a company’s performance. The higher the ratio, the better are the chances of your claim getting approved.
Death as a result of personal habits like drinking, smoking, or consuming tobacco is not covered under life insurance. In addition to this, self-abuse, psychological issues, death while enjoying an adventure sport like sky-diving, involvement in criminal activities, or overdose of drugs are also not covered.
The cost of life insurance can differ based on the plan you pick. It will also depend on your age and the duration of your policy. Term plans are generally considered the most cost-effective. However, the final cost of the life insurance premium can be determined using an online calculator.
Yes, riders like critical illness protection, accident or permanent disability protection, etc. can be added to life insurance policies at an extra charge.