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insurance digest

Published by vraghavendra1966, 2021-03-09 13:57:27

Description: insurance digest


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Unit Linked Insurance Plan (ULIP) 47

Unit Linked Insurance Plan (ULIP) There are various benefits of having a life insurance cover. Ÿ Peace of Mind/ Financial Security - Having life insurance provides the ultimate peace of mind. This is because if someone were to meet with their demise, they know their family and loved ones will have a financial safety net. All of us have some financial liabilities, but an adequate life insurance cover ensures that your debts or loved ones will be financially taken care of in the event of death. 48

Ÿ Wealth Creation - Some life insurance plans also offer the opportunity to create wealth. Apart from life cover, these policies invest premium in different investment classes to deliver superior risk-adjusted returns that beat inflation and grow your corpus. Ÿ Tax Savings - Life insurance plans offer dual tax benefits. The premiums paid offer tax deduction under Section 80C of the Income Tax Act. This means up to ₹ 1.5lakh premium paid annually is deducted from gross income, thus lowering tax outgo. Separately, the maturity insurance plans may be entirely tax-free. This tax benefit is under Section 10(10D) of the Income Tax Act. Ÿ Buy Young, Save More - Life insurance plans give you the ability to lock in low premium rates while you're young. If you buy the same policy when you are older, you will be paying a much higher premium compared to, if you bought the same plan when you were younger. 49

Age group wise classification of Insurance requirement Most of individuals in their 20s think that they don't need life insurance as it's too early to get insured and they don't have any dependents yet. These notions are absolutely wrong. It's never too early to get insured. There are merits of buying a life insurance plan in 20s. Ÿ Can enjoy the low premium rates Ÿ The earlier to start, the better corpus will accumulate through the policy term Ÿ Can experiment with higher risk forms of investment 20s Starting a retirement plan becomes all the more important in 20s as appetite for savings at this age will set up a foundation for the savings habit will develop for all the years to come. Ÿ Consisting primarily of newlyweds and families with young kids, 30s is the favourite age group of insurance marketers. 30s is the time for an individual when his own personal needs take a back seat, giving way to the family concerns such as financial security of your family, future planning for their children and so forth. Ÿ 30s is an ideal age bracket to get insured as an individual is free of the financial obligations that comes with the subsequent ages. 30s Ÿ Individuals in this age group can go for a Term Plan or alternatively a Money Back Plan.. The latter suits those investors who prefer getting returns at periodic intervals so as to meet their immediate financial needs. 50

Ÿ The only catch to getting insured in 40s is that an individual 40s is more burdened than ever as he is stretched between children's educational expenses and parents' medical expenses. It is advisable that in this age, a term plan and in case of looking to buy an insurance-cum-investment plan, endowment policies can be bought. Ÿ 40s is perhaps the best time to start planning for retirement as there would be enough time to collect a substantial corpus at retirement age. Ÿ In 50s, children are financially independent, the living costs are low and life is slow and easy. All in all, there would be no dependents to worry about. Ÿ At this age it is best to buy a retirement plan rather than a term plan at this age. Starting with a retirement plan at this point will help to attain a sound corpus till the point to get retired. 50s Ÿ As soon as an individual touches 60s, he begins to get bugged by 'it's too late to get insured' syndrome. But just like it's never too early to get insured, it's never too late to get insured. So if still haven't bought a life plan, better do it now. Ÿ The goal of insurance is not just financially securing the loved ones but also to make up for the lost income as well as to pay off the outstanding loans if any. 60s 51

Ÿ The fact, that most of the insurers have set the upper cap on 70s the entry age at 65 years, discourages such individuals even more. & above Ÿ In 70s, it becomes more and more difficult to get a decent insurance cover or even to get the existing policy renewed. Earlier, most of the insurers set the upper cap of the renewability age at 75 years. Ÿ IRDA intervened and made it mandatory for the insurers to offer lifelong renewability feature. 52

Select the best life insurance plan/ policy in 3 easy steps: Compare insurance plans Calculate the life cover Engage an insurance advisor Once the policy holder has identified the need to take life insurance, they should know about getting some basic steps right to select the best life insurance policy. Ÿ Engage an insurance advisor: While this may seem trivial, engaging a reliable and competent insurance advisor at the initial stage in your quest for life insurance is critical. Most individuals are not capacitated to take a decision by themselves and need the expertise of an insurance advisor. We the Integrated make sure to provide the best insurance advises as per the policy holder. 53

Ÿ Calculate the life cover: The insurance advisor will help to calculate the amount of life cover – or the sum assured. He will assess sources of their income, number of dependents, their debts and liabilities and their expenses based on their lifestyle and arrive at a life cover. He will also decide the best plan be it – a term plan, endowment plan, unit-link plan or a combination of plans, to help provide them with an optimum life cover. Likewise, if one has other needs like planning for their child's education or marriage, pension for their retirement or a woman's insurance plan for women, trust the advisor to do the math and come up with an ideal solution. Ÿ Compare insurance plans: Since there are many insurance companies in the market offering a variety of plans, one need to be sure to select the most suitable one? The insurance advisor will do the homework by comparing life insurance plans from various insurers across relevant parameters recommending the most apt plan based on their needs. Determining the right insurance coverage for your needs is an important decision. To help with understanding the types of life insurance policies and choosing life insurance make sure to seek out for guidance if required.. 54

Contact We have opened all our branches after lockdown. For the safety of our customers and employees, we request you to transact Digitally. In case of any difficulty, you can always visit our branches. We are giving below our branch / teams contact for your reference.




Life Insurance who should get it? The sooner you buy life insurance, the less it may cost over time. Having life insurance makes sense for these individuals: Life insurance may never be cheaper or easier to come by than now, while you are young and healthy. Help protect your loved ones today.

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