Life Insurance - Buy Best Life Insurance Policy online at Policychayan

Features and Benefits of Life Insurance Policy

The benefits of a Life insurance policy vary from person to person and family to family. It all depends on individual needs and requirements. Some of the common benefits that a life insurance policyholder can avail are:

01Death Benefit: In case of the policyholder's death, the nominated beneficiary receives a lump sum amount as per the terms and conditions of the policy.
02Maturity Benefit: If the policyholder survives till the end of the policy term, they receive the maturity benefit.
03Tax Benefit: Life insurance policies offer tax benefits to the policyholder under section 80C of the Income Tax Act.
04Surrender Value: If the policyholder decides to surrender the policy before its maturity, they receive the surrender value.
05Loan Benefit: A policyholder can avail of a loan against their life insurance policy. The loan amount is generally a percentage of the policy's surrender value.
06Bonus Benefit: Many life insurance policies offer bonus benefits to the policyholder. This bonus is generally a percentage of the total premiums paid and is added to the death benefit.

BENEFIT 1

Flexible Premium Payment

Life insurance policies offer flexibility in premium payments. The policyholder can choose to pay the premium monthly, quarterly, half-yearly or yearly as per their convenience.

BENEFIT 2

Pay-out on Death Maturity

Life insurance's vital feature is that the service provider pays out the insured amount only in one of two situations: when the policyholder dies or when the life insurance plan matures.

BENEFIT 3

Ability to Assign Nominee

Nominees are the persons who will receive the assured amount in the event of a policyholder's death. In most cases, nominees must be designated at the time of purchase of a life insurance policy.

BENEFIT 4

Investment Component

Not all life insurance plans are limited to providing a death benefit. Aside from life coverage, ULIPs and savings programs include an investment component. This feature ensures that you receive benefits when the policy matures.

Frequently Asked Questions

A life insurance policy guarantees your family financial security in case of your untimely death. It is a contract between you and the insurer, wherein you pay regular premiums to keep the policy active. In return, the insurer agrees to pay a lump sum amount to your nominees upon your death. In case of your survival until the policy term, you get back the sum assured along with bonuses, if any, the insurer agrees.

Term insurance is a type of life insurance policy in India that provides coverage for a specified term, typically ranging from 10 to 40 years. If the policyholder dies during the term of the policy, the death benefit is paid to the designated beneficiaries. If the policyholder survives the term, the policy will typically not provide any payout. Term insurance is often the most affordable type of life insurance and is generally purchased to provide financial protection for one's dependents in the event of the policyholder's death.

- Go to the life insurance page on Policy Chayan website
- Fill in your details and click on get quotes
- Compare and select the plan that best suits your needs.
- Pay the premium online and enjoy the policy.

The amount of life insurance coverage required to protect your family depends on various factors such as your current financial situation, dependents, debts, and future financial goals. A general rule of thumb is to have coverage that is equal to 7-10 times your annual income, although this can vary depending on individual circumstances.

It's important to consider factors such as your current debts and future financial obligations, such as children's education or mortgage payments, when determining the appropriate amount of life insurance coverage. Consulting with a financial advisor can also help you determine the right amount of coverage for your specific needs.

In India, premiums paid for life insurance policies are eligible for tax deductions under section 80C of the Income Tax Act, 1961. This deduction is available for a maximum of Rs. 1.5 lakhs per financial year.

It's important to note that there are certain conditions and restrictions that apply to these tax deductions. For example, the policy must have been taken out on the life of the taxpayer, a spouse, or a dependent child. Additionally, the policy must have been taken out for a term of at least 5 years.

Accidental death is typically covered under most life insurance policies in India, including term insurance policies. The accidental death benefit is a separate benefit that is paid out in addition to the standard death benefit in the event of the policyholder's death due to an accident.

It's important to carefully review the terms and conditions of your life insurance policy to determine if accidental death is covered, as well as the specific benefits and restrictions that apply. Some policies may require an additional premium to be paid to receive accidental death coverage, while others may provide it automatically as part of the policy.

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