What Is Life Insurance?
At its essence, a life insurance policy is a contract signed between the life insurance provider and a policy holder.
IndiaFirst Life Insurance, a leading life insurance company in India, offers various types of life insurance plans and policies to ensure your loved ones' protection and financial health. A life insurance policy need not be difficult to understand. At IndiaFirst Life, we take pride in creating life insurance solutions that are simple, affordable, and effective.
Choose from various types of life insurance policy options that are tailor-made to suit your life insurance needs. The arena of life insurance of India is a robust one, and IndiaFirst Life Insurance offers a life insurance policy to match your requirements at every stage of life.
At its essence, a life insurance policy is a contract signed between the life insurance provider and a policy holder. Life insurance plans offer a substantial life cover in the form of an assured sum that the insurer pays to the nominees/beneficiaries listed in the life insurance policy if the insured person dies during the life policy term. In return for this guarantee, the policy holder agrees to pay a specific premium amount at regular intervals during their lifetime.
To safeguard the legally-binding nature of a life cover contract, it is essential for the policy holder to accurately divulge all details about their past and present health conditions. No medical life insurance plans allow you to start life insurance without medical tests. However, accurate disclosure of pertinent details is mandatory.
While a term life insurance policy offers life cover for a specific term, permanent life insurance policies continue to remain effective until the death of the policy holder at any age, the payment of life insurance premiums stops, or the life insurance investment is surrendered.
Life insurance provides financial security to your loved ones after your demise. There are many reasons to buy life insurance, depending on the stage of your life you are at. Different types of life insurance policies fulfil different needs. However, one of the prime benefits of life insurance is the guarantee that your surviving dependents will have the financial support they need in the future.
Every single person faces the same two fears—the fear of dying too soon and the fear of living too long. If you die too soon, you leave behind dependents who do not have the financial wherewithal to take care of themselves. If you live too long, you are likely to run out of money and become dependent yourself. Life insurance plans help ease both these fears.
One of the fundamental reasons to buy life insurance is to ensure that your nominees or immediate family members have financial support in case of your demise. Often, responsibilities do not end even after you are gone. Different types of life insurance policy options serve to ensure that you replace your family's lost income, pay for your children's education, and financially support your spouse even after your death.
Most adults have at least a liability or two to pay off. If you have an outstanding home loan, car loan, credit card dues, or personal loan payments to make, you are in debt. In case of your untimely demise, your family will be burdened with these financial liabilities. Life insurance policy plans provide lump sum death benefit payments and life cover to take care of these debt payments after your passing.
It is a misnomer that life cover policy options only help when you die. What happens if you live too long? With medical advancements and improved access to medical facilities, most humans live way past their 80s. If you retire at the age of 60, do you have enough savings to maintain your living standard and beat inflation for 3-4 decades after retirement?
A permanent life insurance policy stays in effect for as long as you live and continue making life insurance premium payments or surrender the permanent life insurance investment policy. A whole life assurance policy is a type of permanent life insurance that accrues cash value over the years. This makes the insurance whole life policy an attractive life cover option at any age. Retirement life insurance plans provide guaranteed monthly pay-outs to safeguard your golden years.
A life insurance investment policy is designed to keep you systematically invested for an extended period of time. Different types of life insurance plans are connected to different investment instruments. Some life insurance plans are market-linked for higher returns, while other types of life insurance policy options offer profit-participation and bonuses. If you opt for life insurance with cash back, you reap the dual benefits of life insurance cover and periodic cashback to meet your expenses.
While saving for retirement, you hope that your savings last as long as you do. However, when you factor in increasing health-related expenses and inflation, your savings alone are unlikely to meet your needs. Whole life insurance in India serves to fulfil this gap and supplement your retirement corpus. With the right types of life insurance plans, you can ensure that a second stream of income is created to replace your professional income after retirement.
Life's uncertainties are the only certainty in life. Plans that offer life insurance with cash back provide you periodic payments of a percentage of the sum assured that you could use to meet financial contingencies and other expenses with ease. Depending on the chosen types of life insurance plans in India, you can avail of many benefits of life insurance to meet your specific requirements.
Irrespective of their age, your children will always be your responsibility. When your children are young, life insurance investment plans and life insurance with cash back help you provide for their education expenses and other lifestyle needs. The power of compounding plays out in life insurance investment policies to ensure that your money grows at a guaranteed pace. In the case of special-needs children, their age is irrelevant—they are likely to require lifelong physical and financial help. Life insurance cover can ensure that their needs continue to be taken care of after their primary caregivers/parents' death.
In your old age, life comes a full circle. The children you raised now have the responsibility to take care of you. However, as parents, the goal is to help your children thrive and not be a burden for them to carry. Various types of whole life policy options ensure that a portion of your life insurance premium is directed at earning cash value and interest that you can withdraw or get a loan against. Life insurance with cash back and retirement life cover ensure a stream of income that provides you financial independence.
In order to understand life insurance policy details and buy life insurance, there are a few basic life insurance terms you should know.
Life insurance plans are tax-efficient instruments.
Under provisions of the IT Act – Section 80C, you can claim a tax deduction of up to Rs. 1.5 lakhs on premiums paid for life insurance of India. Pension life insurance cover premiums are eligible for deductions under Section 80CCC. A maximum deduction of Rs. 25,000 is allowed under Section 80D for health insurance plans.
One of the best benefits of life insurance plans is that the claims received are tax-free under Section 10(10D).
Under Section 10(10A) of the IT Act, 1/3rd of the sum withdrawn as cash from deferred annuity life insurance policy plans is called commuted pension and is tax-free.
There are many types of life insurance plans in India that you can opt for depending on your needs.
Life insurance plans are tax-efficient instruments.
The first step to choosing the best life insurance plans is to consider your needs. Take into account your budget, the policy term you would like, future goals, liabilities, and dependents.
Your lifestyle today will cost much more to maintain in a few decades. Consider the rate of inflation before you decide on a sum assured.
By cutting out intermediaries, you can ensure that you get the best life policy deals. An online life insurance policy is typically cheaper than offline plans pushed by agents.
Do your due diligence to ensure that you understand life insurance policy details, types of life insurance policy options on offer, and benefits of life insurance before you buy life insurance plans.
Analyze your financial situation—income, liabilities, and future responsibilities before you buy life insurance. Calculate the life insurance cover you need based on your current income, potential growth prospects in terms of salary, current living standards and expenses, projected future living costs, inflation, financial liabilities such as loans, and responsibilities such as children's education and marriage.
The life insurance premium you pay depends on several factors, such as:
Buying online life insurance offers many advantages. If you buy life insurance online, you are purchasing directly without paying commission to intermediaries. You can make an informed choice by checking online life insurance policy reviews, comparing types of life insurance policy options, and the benefits of life insurance plans. You get access to online services and 24x7 customer support when you buy online life insurance policy plans. As compared to offline purchasing, you can buy life insurance online quickly, easily, and in a paperless manner.
IndiaFirst Life Insurance provides different types of life insurance policy options, including whole life assurance policy, permanent life insurance plans, pure protection life cover, and life insurance investment plans. The primary categories or types of life insurance plans offered by IndiaFirst Life include:
The confirmation letter will be sent to your registered address within 7-10 working days from the request processing date. In case you still do not receive the confirmation letter within the given period, you could contact us to place a request for resending the confirmation letter.
Following are the charges applicable on your ULIP plan:
You may refer to your policy document for details of the charges applicable.
Please find the list here
The primary benefit of having a life insurance policy is that financial security in the form of the sum assured is paid to your dependents in the case of the insured person's demise while the policy is in force. There are many different types of life insurance plans that offer a range of benefits.
For instance, term life insurance plans offer life cover at affordable rates, so you can rest assured that your family's financial future remains secure even in your absence. An endowment plan is a traditional risk-free savings plan with a life insurance component, so it serves the dual purpose of being a tool for both saving and insurance needs. Whole life insurance plans typically cover you for the rest of your life.
IndiaFirst Life insurance plans can be customised to suit your specific needs, so you get the benefits you want from your life insurance policy.
Looking through different types of life insurance plans and getting life cover at 30 is a smart and practical idea. You get the benefits of buying life insurance at a relatively younger age, so currently, your premiums are the lowest they will ever be.
At this age, you are making more money than you used to, and you have a family or are planning one. Also, your health plays a significant role in how much premium you are required to pay. Since younger, healthier individuals present a low risk to the insurer, they are also offered lower rates. The smartest thing to do is lock in a reasonable rate when you are healthy and earning a professional income.
For most types of life insurance plans, there is no defined upper limit on the amount of life insurance you can avail of. The maximum sum assured is typically subject to underwriting. The goal is to ensure that you are getting a life cover that satisfies your needs and is financially manageable. Generally, a ballpark limitation of 10-20 times your annual income is recommended.
Whether you are interested in purchasing an offline or online life insurance policy , a few factors help determine the life insurance premium amount. Age is a primary factor because the younger you are, the lesser risk you present to the insurer. Gender is another pivotal life insurance factor because women generally live longer than men, so they pay less for premiums.
Other influencing factors include personal health history, family history of illness, smoking habit, risky hobbies or occupations, and the different types of life insurance you could opt for. An online life insurance premium calculator helps you understand how these factors affect your life insurance plan and what you can do to get the right life insurance policy at the right price.