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You Can Buy Life Insurance in Lesser Time than These Things

Life insurance can be defined as a financial cover for a contingency that is linked with human life, such as retirement, disability, accident, and death.  People's lives are subjected to risks of disability and death due to distinct accidental and natural causes. As an earning member of a family dies or becomes temporarily or permanently dialled, there is a loss of household income. This loss of income causes a great financial burden to all the members of the family. It may hinder them from maintaining their living standards or accomplishing certain goals (like getting enrolled in a reputed university of choice). Life insurance policies provide a definite sum of money in case the insured meets with an unfortunate death during the policy term or becomes due to an accident. 

Key Features and Benefits of Life Insurance

A life insurance policy comes packed with a whole set of core benefits and features. They are as follows:

  • Death Benefit

    Life insurance policies enable people to ensure their families' financial well-being in case of their unfortunate death. The insurance company would pay a sum amount equivalent to the sum assured mentioned in the policy contract along with relevant bonuses to the dependant/ nominee of the insured, in case he/she meets with an unfortunate death during the policy term.

  • Maturity Benefits

    Life insurance policies typically act as a savings instrument as well by providing maturity benefits. If the insured individual survives the policy term, and no claims have been made, the total amount of premiums paid is returned at the time of policy maturity. In such a scenario, life insurance plans act as a savings component and provide a protective cover.

  • Tax Benefits

    People can reduce their tax liabilities by investing in particular life insurance products as per Section 80C of the Income Tax Act, 1961.  According to this section, the premium paid for life insurance would be eligible for attaining a maximum tax deduction for up to Rs 1.5 Lakh. Apart from this, under Section 10(10D) of the income tax act, any payouts that people receive from their life insurance policy shall be tax-free (subject to the fact that the premium does not exceed 10% of the Sum Assured annually).

  • Loan Collateral

    Based on the time of life insurance policy and the surrender value, such plans can even be used as loan collateral. Policyholders may opt to take a loan from a bank or NBFC (Non-Banking Financial Company), as per the terms and conditions applicable.

Everyday Things that Take More Time than Buying life Insurance

Buying life insurance has become extremely simple these days, and can be done with just a few clicks of the mouse. Many top insurance companies sell a host of life insurance policies online, and people can invest in them right from the comforts of their home within a few minutes.

A lot of people delay buying life insurance because they believe that comparing life insurance, identifying the perfect plan among them, and ultimately investing in it will take too much of their time. But so is not the case. It would take much less time to buy a life insurance policy than to complete various daily tasks of life. Here are certain everyday activities that tend to take more time than purchasing life insurance.

  • Commuting

    It takes people around 40-60 minutes on average, to reach their workplace. People can easily surf 40-60 life insurance quotes within this period and even choose the plan that perfectly fits their requirements.

  • Charging the Phone

    Imagining life without a mobile phone is next to impossible in contemporary times.  However, while mobile phones hold an important place in people's lives, so do life insurance policies. One can easily skip a 5 min call to their best friend for one day and go through 5-10 insurance quotes within that time.

  • Waiting for Pizza

    While one might get a free pizza delivered after 30 minutes of placing an order, it is the time to think about what they would prioritize more, a free pizza, or the financial security of their loved ones? One can skip their pizza treat for a day, and compare life insurance plans offered by various renowned insurance companies in less than half the time.

  • Grocery Shopping

    Spending 20 minutes at the grocery store is enough to compare 20-30 quotes on their phone.

  • Making Tea

    Making a delightful hot cup of tea would make as much as time in finding the perfect insurance plan on the web.

    People can find all the information they need about life insurance plans easily on the web now. They would just be required to explore the quotes and details about various life insurance policies available, compare them, and ultimately opt to invest in a policy that perfectly fits their requirements and needs.

    Below are some important questions that are often asked by an insurance seeker. We have tried to answer the most common questions here: 

FAQs

  • Q: How much life insurance policies cost per month?

    Ans: The expenses incurred in a life insurance policy would depend on several factors, such as the insurance plan chosen by the insured, their financial needs, the extent of coverage provided by the policy, and the gender, age, and overall health of the policyholder. The occupation, lifestyle, and the results of the pre-medical tests (if any) can also impact the premium amount that one has to pay for their life insurance plan.
  • Q: What is the maximum age for life insurance?

    Ans: As there is no universal age limit, the maximum age for life insurance plans are set by respective insurance companies. The typical maximum age limit set by life insurance firms ideally falls between 75 to 80 years.
  • Q: What is the average life insurance payout?

    Ans: A life insurance payout depends on multiple factors, some of the key ones being: 
    • Paid premium
    • Terms and conditions
    • Applicant’s age
    • Gender
    • Nature of the occupation
  • Q: Who can claim a life insurance death benefit after the demise of the insured?

    Ans: After the death of the insured, their legal heir or nominee would be able to claim the death benefit.
  • Q: Would the nominee get death benefit in case the policyholder commits suicide?

    Ans: In case the policyholder commits suicide within 12 months of purchasing the life insurance policy, the nominee won’t be able to claim any death benefits. However, the insurance service provider shall have to pay the life insurance premium paid by the policyholder to date, after deducting any kind of processing fee, administration charges, and service charges involved.
  • Q: What is TPA in insurance?

    Ans: TPA stands for Third Party Administrator basically in an organization or agency that has a license from (IRDA) Insurance Regulatory Development Authority of India to process insurance claim requests. 
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