Life Insurance

Life insurance is a contract between an insurance policy holder and an insurer where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.

Benefits of Life Insurance
  • Risk Coverage:
    Insurance provides risk coverage to the insured family in form of monetary compensation in lieu of premium paid
  • Difference plans for different uses:
    Insurance companies offer a different type of plan to the insured depending on his need for insurance. More benefits come with the more premium.
  • Cover for Health Expenses:
    These policies also cover hospitalization expenses and critical illness treatment.
  • Promotes Savings/ Helps in Wealth creation:
    Insurance policies also come with the saving plan i.e. they invest your money in profitable ventures.
  • Guaranteed Income:
    Insurance policies come with the guaranteed sum assured amount which is payable on happening of the event.
  • Loan Facility:
    Insurance companies provide the option to the insured that they can borrow a certain sum of amount. This option is available on selected policies only.
  • Tax Benefits:
    Insurance premium is tax deductible under section 80C and 80D of the income tax Act, 1961.