Life Insurance Provides financial protection to your family after life. Among various insurance products, LIFE INSURANCE has been the most popular. It is an important part of financial planning. Life insurance provides financial protection to the family in case of the death of the breadwinner of the family. It enables the family to lead the same standard of life even after the demise of the head of the family.
This is the first and foremost benefit of life insurance. It provides financial protection to the family in case of death of the policyholder.
It offers an opportunity for investment through the Unit linked plans. There is a possibility of accumulating a huge sum at the end of the term of the policy.
The premium paid for the insurance policies are eligible for the income tax deductions under Section 10,80C and 80 CCC of the Act.
Before buying a policy track record of the company is to be checked about its promoters, claim settlement ratio, customer service, etc.
Terms and Conditions of the policy are to be read carefully – whether any exclusions are there or not.
Some companies offer a free look period from 15- 30 days. The policyholder has an option to return the policy if not satisfied within the free look period.
Company offers to pay a premium in Monthly, Quarterly, Half yearly, and yearly instalments. The company also offers a discount on Yearly payment of premium. Payment option to be chosen based on income.
Claim settlement ratio is an indicator of companies’ promptness of settlement of claims. The higher the ratio, the better is the company. This can be checked on the web site of the companies.