An overview of life insurance in India

1
An overview of life insurance in India
2

• These days, life insurance policies have not been
  restricted to the old traditional plans. The life
  insurance industry has been showing a massive
  growth in the past few years. Many companies have
  come into existence in order to add to the
  betterment of the masses. Insurance policies with
  all new features is offered by some of the
  leading providers. There are various types of
  insurance policies such as plain/basic life
  insurance cover, money back plans, pension plans,
  investment plans to name just a few. So what
  should one choose? Which plan will be the best to
  cover your requirements? While thinking of buying
  a policy, you may have to tackle these questions
  that come to your mind. Below are a few useful
  things which should help you find out an
  appropriate policy, according to your budget and
  needs

3

• The first thing that you should consider is the
  fact that so you actually require a life cover?
• If you are the bread earner of your family and
  you have dependants than you definitely need to
  go for an insurance to take care and protect your
  family financially.
• What to expect from the best life cover?
• In case of unforeseen situations like the death
  of the policy holder, his/her family is provided
  with a financial cover. Purchasing a life
  insurance is a also one of the great ways of
  saving for the future of your children, such as
  their education, marriage and your retirement as
  well. An insurance cover also helps in tax
  saving.
• How should one begin?
• Understand your needs now as well as in the
  future, set your budget accordingly and then
  proceed further to shop for the right life cover.
• Determine the importance of life cover
• Seek the answers to some basic questions to
  understand why a life cover is needed.
• The current lifestyle expenses of your family.
• What are your savings and how will they be
  helpful when you are no longer with your family.
• Expenditures that will arise in the future for
  your family such as marriage, education and other
  desires of your loved ones.

4

• When to buy an insurance?
• Life insurance needs change with every stage of
  an individuals life. The one common fact among
  all the buyers of an insurance policy is that you
  should choose a cover that suits your
  requirements and is also priced reasonably. It is
  often suggested by financial experts that you
  should buy an insurance at an early stage of your
  life and seek for wider options too.
• Life insurance policies are of many different
  types such as term insurance, whole life
  insurance, endowment plan, unit-linked plan,
  money back plan. Thus, it becomes essential to
  know what you require before buying a cover.

5

• Term insurance High risk cover is provided under
  a low premium. In case of the death of the policy
  holder, the insurer will pay the sum assured to
  the beneficiary/nominee mentioned in the policy
  by the policy holder.
• Whole life insurance This type of insurance
  covers you for your entire life which means you
  need to pay the premium until you die. In case of
  your demise, the nominee will get the sum
  assured.
• Endowment plan The premium is usually high and
  it gets invested in the markets- equity and debt.
• Unit linked plan A plan that provides investment
  along with assurance. The assured sum is paid in
  the event of death.
• Money back plan A certain portion of the sum
  assured is paid regularly. In case the policy
  holder survives, he/she gets the balance sum
  assured and in case of his/her death, the nominee
  will get the full sum assured.
• Review your income changes and growing needs on a
  regular basis to understand whether you are
  getting the most out of your life insurance or
  not.

6
Follow us on
https//www.facebook.com/bajajallianzlifeinsurance
ltd
https//www.linkedin.com/company/bajaj-allianz-lif
e-insurance-co-ltd-
http//plus.google.com/bajajallianz/posts
https//twitter.com/bajajallianzLIC
https//www.youtube.com/user/jiyobefikar
https//instagram.com/bajajallianzlifeinsurance
7
Click to know more on Life Insurance
https//www.bajajallianzlife.com
Thank You