Life Insurance

In simple terms, this plan is one of the most common, straightforward and affordable plans that provide financial protection.

The Term insurance plan works as follows:

• The policyholder pays the insurer a fixed premium for a specific term
• If the policyholder does not survive this period, the insurer offers the death benefit to the assigned beneficiary (typically wife and kids)
• There are no survival or maturity benefits
• You can buy term insurance for a specific year as you wish; it could be 10 years, 20 years, 30 years or more.

Term insurance works on the concept of income replacement for your financial dependents in your absence, i.e., ensuring that the family's expenses related to loans (personal, home, education, etc.), kids' education, daily expenses, and lifestyle expenses (travel, car, etc.) are taken care of. 

Since the purpose of term insurance is income replacement, it is recommended that you opt for this plan until you reach retirement age, i.e., when you are expected to continue to work.

Various term Insurance plans offer additional protection through riders like accidental death benefit, accidental total permanent disabilities, and critical illness. These riders add an extra layer of financial protection on top of the sum assured provided by the term plan. One such term plan in the market is the ACKO Life Flexi Term Plan—Unmatched Flexibility for Your Peace of Mind. 

A Whole Life Insurance plan, also known as permanent life insurance, is a unique and long-term plan that provides life coverage until the policyholder turns 100.

Under this policy, the policyholder makes consistent premium payments throughout in exchange for lifetime coverage. Upon the policyholder's passing, the designated beneficiary receives the death benefit per the policy's terms. The primary purpose of this policy is to provide financial protection to the policyholder's family. However, if the policyholder lived beyond the maturity age, i.e. 100 years, the insurer pays the endowment coverage to the policyholder. 
 

A Term Plan with Return of Premium, or TROP, is a type of life insurance that provides death benefits plus guarantees the return of all the premiums paid if the policyholder survives the term. In simple terms, TROP works like a regular term plan, but it has only one thing that sets it apart from all others—it returns all that was given upon maturity.

With TROP, the policyholder pays premiums on a schedule that suits them - monthly, quarterly, half-yearly, annually, or in a single payment schedule. It is often considered one of the ideal options for many who want a life cover as well as guaranteed returns. 
 

ULIPs gives more than one benefit, besides providing life cover, they also give an opportunity to invest in a way where the policyholder is allowed to place the money in some Investment provided by the Insurer, such as Equity or Debt or balance between both. They provide the policyholder with strong investment flexibility in terms of choosing where to invest, as there is an opportunity to set aside premium payments in different funds, such as bonds, hybrid funds, equity funds and the like, which depend on its investment goals and defined risk tolerance.

Basically, ULIPs are long-term investment plans with a lock-in period of 5 years. A ULIP is equipped with a function that divides a policyholder's premiums into two halves. Some of the premium goes to life coverage, and the rest is invested in the market. 
The following are the life insurance benefits of ULIPs: flexibility, market-linked returns, dual benefits, fund-switching, partial withdrawals, death benefits, etc. However, it is crucial to gain an in-depth understanding of each factor associated with it to make informed decisions. 
 

Popularly known as the Guaranteed Return Plans, they are useful for those who need life coverage and fixed returns. If you outlive the policy term, your insurer pays a lump sum of money.

An endowment plan is designed to provide life cover and help build savings habits over time. On the other hand, in case of death at any time before maturity by accident or natural causes, etc., your nominees will receive the death benefits.

Pension plans are considered to be long-term investment plans that provide financial protection as well as post-retirement incomes. With a pension plan, the policyholder pays regular premiums, and after retirement, the insurer provides the insured with a consistent income. The designated beneficiaries will receive the death benefit in the event of the policyholder's demise, either before or after retirement.

Parenting involves several responsibilities, including ensuring financial protection for children.

Child Insurance Plans are a smart financial solution. With this plan, the policyholder pays premiums, and financial protection for their children is guaranteed. It provides maturity benefits when the child reaches 18, either as annual instalments or a lump sum. In case the policyholder passes away, an immediate payout covers the child's expenses. 
 

The age at which an individual purchases a life insurance policy plays a crucial role in determining the premium and gender, as women typically live longer. The younger the policyholders are, the lower the premiums, as they are often less risky to insure.
 

The sum assured, which is the amount the insurance company agrees to pay upon the policyholder's death, directly affects the premium. A higher sum assured leads to a higher premium.
 

The policy term, i.e., the duration the policy provides coverage, influences the premium amount. Longer policy terms may result in higher premiums.
 

The type of policy chosen impacts the premium.

Insurers assess the applicant's medical history and current health condition to determine the risk involved. Individuals with pre-existing medical conditions may face higher premiums.

Certain habits, such as smoking or excessive alcohol consumption, can increase the risk factor and, consequently, the premium amount.
 

The nature of the policyholder's occupation is taken into account. For example, individuals in hazardous professions may pay higher premiums.
 

A family medical history of hereditary diseases may raise the premium amount.
 

Policyholders can opt for additional riders, such as critical illness or accidental death benefits, which can increase the premium.
 

Whether premiums are paid monthly, quarterly, annually, or as a lump sum can affect the premium amount.
 

The city or region where the policyholder resides may influence the premium due to varying risk factors.
 

Yes, a lot of insurance providers offer life insurance coverage online. From the convenience of your home, you can compare policies, determine rates, and purchase policies online.
 

You can add a rider to increase your life insurance coverage. Some of the most common riders include Premium Waivers, accidental death, critical illness and disability riders. 
 

Several types of life insurance plans, including whole life and endowment policies, allow policyholders to take out loans against them. The loan amount is typically limited to a portion of the policy payout and has an interest charge.
 

The minimum age to buy a life insurance policy in India is 18 years.
 

Every individual has different requirements. So, yes, a person can buy multiple life insurance policies in India based on needs. 
 

Yes, there are several tax benefits. Premiums paid towards your life insurance policies are also eligible for tax benefits under Section 80C of the Income Tax Act. The maximum limit is Rs. 1.5 lakh.
 

It depends entirely on factors such as age and the policy's sum assured. Generally, a medical examination is often required for higher sum assured or older age groups.
 

Yes, many life insurance companies in India offer the convenience of purchasing policies online through their websites or mobile apps. Find the right insurer based on your needs and stay protected.

Life insurance is a crucial financial plan. It provides financial security for your family, replaces lost income, and helps achieve their future goals in your absence. Plus, it offers you with tax benefits and peace of mind.
 

To determine your coverage needs, you must consider factors like your family's daily expenses, debts,  income replacement, etc.

A life insurance premium is the regular payment amount you make to your insurance company to ensure financial protection for your family in case you’re no longer there to provide for them. 
 

Life insurance is crucial for your family's financial stability. Buying a life plan is a responsible way to prepare for unforeseen circumstances and secure your family's future.
 

Yes, life insurance benefits are typically paid out as a lump sum, offering immediate financial support to loved ones.
 

If your nominee passes away before you, you can easily update the nominee's details.  Contact your insurance company to get the process done.