Life is uncertain and full of risks. According to the studies, almost 22,500 people die every day in India. Life of someone special in the family is always the biggest loss for all the family members and other relatives. For the middle-class families, it can be worst because there may be financial problems after the death of earner in the family.
For the protection of future of the family in such kinds of situations, Life Insurance plans are available as the best solution. Life insurance policies are most secure and safest away for the protection of family future against any kind of financial problems due to such unfortunate events in life.
What is Life Insurance?
When it comes to understanding Life Insurance in simple words, it is like a contract between the insurance company and policyholder. In this contract, the policyholder pays the premiums on the monthly or annual basis and the insurance company will pay sum assured amount as a protection against family financial problems in case of death of the policyholder.
Lots of insurance companies are available to provide Life Insurance plans for the individuals in the country. All these companies have their own terms and conditions and they provide the sum assured benefits as per the terms and conditions. To understand the life insurance, you will need to understand the following aspects basically:
- Premium: Premium is the money paid by a policyholder to the company as per the terms of the plan selected. It is like an investment on the monthly or annual basis for the protection of future with life insurance plan.
- Sum Assured: It is the amount paid by the insurance company to the policyholder’s nominee after death. The money will be beneficial for the better future of nominee and other family members of the beneficiary.
- Term: The insurance company also provides protection benefits on the certain time period and it is known as a term. It can be different as the terms and conditions of company and policy.
The life insurance plans are must buy for everyone because it helps to protect the future of family by preventing the financial problems in case of death of earner of the family. In some of the insurance plans, they also cover the cost of a funeral if included. The policyholder will also get lots of tax benefits under section 80C of Income Tax Act 1961. Before selecting the life insurance plans, the buyer should know that if you want higher sum assured amount, you have to pay a higher amount of Premium for it.
Best Life Insurance Plans in India 2018
To avail the best benefits of a life insurance plan for the better protection of future of the family in any kind of such emergencies, it is important to make choices for the right insurance plan. Lots of companies are providing life insurance policies for the consumers. At verified policy, we are always available to provide help when you want to make choice for the best life Insurance plan to ensure the protection of your family members from all kinds of financial problems.
|Life Insurance Plans||Entry Age (Min/Max)||Policy Term (Min/Max)||Sum Assured (Min/Max)|
|Aegon Life iTerm Plan||18/75 years||5/40 years||10 Lacs/NA|
|Aviva I-Life Plan||18/55 years||10/35 years||25 Lacs/NA|
|Bajaj AllianziSecure||18/70 years||10/30 years||20 Lacs/NA|
|Bharti AXA eProtect Term Plan||18/75 years||10/30 years||25 Lacs/NA|
|HDFC Click2Protect Plus||18 /65 years||10/30 years||10 Lacs/10 Crores|
|HDFC Life Sanchay||30/45 years||15/25 years||1,05,673/NA|
|HDFC SL Crest||14/55 years||10/10 years||(7 or 10) x Annual Premium/20 x Annual Premium|
|ICICI PruiProtect||20/75 years||10/30 years||3 Lacs/NA|
|Kotak Life Preferred e-Term||18/75 years||10/40 years||25 Lacs/NA|
|LIC AmulyaJeevan||18/60 years||5/35 years||25 Lacs/NA|
|LIC New Jeevan Anand||18/50 years||15/50 years||1 Lac/NA|
|LIC Term Plan||18/75 years||10/35 years||50 Lacs/NA|
|Max Life Online Term Plan||18/70 years||10/35 years||25 Lacs/100 Crores|
|SBI eShield Plan||18/70 years||5/30 years||20 Lacs/NA|
|SBI ShubhNivesh Plan||18/60 years||5/30 years||75000/NA|
Some of the Statistics and Facts about Life Insurance
In India, there are about 57 of insurance companies offering these services for the consumers. 24 companies are in life insurance and 33 other companies are available to provide General Insurance services. Among all these companies, LIC Life Insurance Corporation is only company working in public sector of the country.
According to Union budget 2017, the government recorded 10% of increased in life insurance. In the countries like India, the death rate is high so it is always a good investment to buy a life insurance policy for the protection of family future.
Why Choose Life Insurance?
The insurance plans are available to provide benefits in cases of uncertain events like accident, retirement, disability, health problems and death etc. Because of various kinds of risks in life, you never know what can happen in next moment. In such cases, the family members can face the financial problems due to the loss of income source in the family.
You may stay prepared for the future and may have a financial backup but you know that it will not be enough in most of the cases. If you do not want to put your family members in a financial crisis, just go with life insurance plan as a good option. Due to the benefits of life insurance policies, the family members will not have to compromise on the regular needs and due to the financial problems.
The Need for Life Insurance for Individuals:
When it comes to investing for a better future for your family after you, just invest your money in a good life insurance policy. Life Insurance plans are made to provide lots of benefits to the Nominees of policyholder after death. Here are some of the best reasons that you should invest in life insurance plan:
- The unpredictability of life: As you know, life is very unpredictable and you can’t know about the next moment in your life. In such cases, you never want to leave your family without good financial protection. Even if you are not available to financially support your family, the life insurance plan will do it for you. It is the right step that you should take for the financial protection of family due to any such kind of unpredictable moment in your life.
- Secure future of a family: Life Insurance plans are available to provide the essential financial support to all the family members of the policyholder. In the cases of such uncertain death, the source of income may lose for the family and it can cause various financial problems in future. Death of someone special is always a big emotional crisis for family members but there will be another one in the form of financial requirements. They may face problems to pay the personal loan, home loan, not alone and other regular needs. In such cases, life insurance policy will be beneficial in the best way for every individual in the family.
- Better retirement planning: With the plans of your life, you should also stay prepared with retirement plan so that you can leave a better and comfortable life after your retirement. By selecting the perfect life insurance plan, it is also possible to fulfill the goals of your retirement. With many insurance plans, they offer lots of additional benefits for the retirement.
- Tax benefits: The life insurance plans are also known to provide lots of tax benefits to the buyers. When you will purchase Life Insurance plan, there will be tax benefits under section 80c of Income Tax Act 1961. Therefore, you can save on premiums by availing these tax benefits on it.
- Peace of mind: The policyholder will be able to find peace of mind because you do not have to take stress about the financial needs in the future for your family. If you are getting a basic life insurance plan, it will be helpful to take the complete care of financial needs in the future of your family.
- Future expenses of children: It not only provides the financial support to the family members but it also takes complete care of future needs of the kids and family. If you do not want to text Trance about the future needs including education and wedding of your kids, just get the life insurance plan as a perfect solution. Today, the study and education expenses are very high for the middle-class family so insurance plans are perfect option to fulfill these expenses and requirements in future.
- Savings tool: If you want to make the investments as well as you want to find the benefits of life insurance plan for a better future, just go with unit linked plan as a good option available with the insurance companies. It is a perfect savings tool to fulfill the requirements of every buyer.
To avail all these kinds of benefits, Life Insurance plans are must buy for all the individuals who want to live a stress-free life without any kind of tension about the future of the family.
Types of Life Insurance Plans
A single life insurance plan will not work for everyone because all the individuals have different needs and requirements. To fulfill the needs and requirements of all the clients, the insurance companies provide lots of different planets by analyzing the requirement of customers in the market.
Before making the selection for a life insurance plan, you will need to know about different kinds of insurance policies available in the market with different companies. At Verified Policy, we always provide the complete information that is essential for all the individuals before choosing the life insurance plan. There are different kinds of insurance plans for a stress-free life of individuals:
- Term Plans – Pure risk cover
- Unit-linked Insurance Plans – Benefits of Insurance + Investment
- Endowment Plans – Insurance cover + Savings options
- Money Back Plans – Insurance cover with periodic returns
- Whole Life Insurance – Life insurance coverage for a lifetime
- Child Plans – Beneficial for children’s education, wedding etc.
- Retirement Plans – Financial solution aiding post-retirement financial independence
Before making the right choice, you will require the details of all these insurance plans. Verified Policy is the perfect online platform where you can get the detailed information about all these Life Insurance plan types before making the right choice:
Term Insurance Plans:
Term insurance plans are considered as the most basic plans in life insurance policies. It is one of the most affordable policies that everyone can get without a big hassle. In this life insurance policy, the individual will get coverage in the case of death. The insurance company will provide the pre-decided amount or will pay monthly or annually installment to the nominee as per the terms and conditions of term insurance life plan.
The term insurance plans can be short term as well as long-term ranging from 5 years to 60 years depending on the terms and conditions of the company. The policyholder will be able to avail the benefits in the certain terms and most of these plans are not available with maturity benefits.
Unit-linked Insurance Plans:
Today, it is possible to get single plan having the benefits of investment as well as insurance. The unit-linked plan is available for people who want a return on the investment as well as wants to secure the family future with Life Insurance benefits. These plans are available for people who want a long-term investment opportunity and want to find insurance coverage benefits as well as return on the investment at the certain time period.
Endowment plans are available as the combination of Savings and insurance for the policyholders. In this plan, the particular amount is invested for the benefits of insurance coverage and the remaining amount is invested by your Insurance Company. It is possible to fulfill your financial requirements with the benefits of this investment and it is a perfect option where you will get the return on your investment at the time of maturity. It is two in one option that is available to offer both of these benefits in a single insurance plan.
Money Back Plans:
Money back insurance plans very unique policies available to provide the benefits of life insurance. Under these plans, some of the percentage of sum assured is given back to the individual at the certain time intervals. It is known as survival benefit. If you have short-term investment needs for your financial goals, you can pick money back plans as a perfect option to avail the benefits. You can easily get a return on your investment on the time of maturity with this insurance plan.
Whole Life Insurance:
With whole insurance life policy, the policyholder will get insurance coverage benefits as long as he lives. Some of the insurance companies also provide the coverage up to 100 years however, these plans are available with higher premium and it is selected by the individuals who are looking for long-term benefits with these plans. You do not have to worry about eligibility criteria because there are no age limits to get the benefits of this insurance plan. The nominee will get coverage amount after the death of insured person.
Today, it is always a big headache for the parents to arrange the funds for expenses of their children including education and wedding expenses. When it comes to getting these benefits for a child, plans are available as a good option. The case of death of a parent of insurance kid, there will be immediate payment by the insurance company. For the security and safety of future of the kids, this plan is available as the best option that every parent can pick.
A retirement plan is also known as a pension plan that is available to provide the benefits to the policyholder at the time of retirement. Basically, the insured will be able to get payment on an annual basis or there will be one-time payment as per the terms and conditions of the company. These retirement plans are available as a good option for people who want long-term savings and want to find financial help after retirement. It will also provide death benefits to the nominee, therefore, you can pick this insurance plan for a stress-free retirement with all these benefits.
Compare Life Insurance Plans Online
Today, life insurance plans are necessary for all the individuals because of its benefits and protection of family financial requirements in future. When you plan to get a new insurance plan as per your needs and requirements, you will need to know about the benefits and eligibility including terms and conditions of all these plans. Here comes the work of Verified Policy. We are providing the best solution to compare all these types of life insurance plans in the table given below:
|Term Insurance Policies||Whole Life Insurance Policies||Endowment Plans||Unit Linked Insurance Plans||Money Back Plans||Pension/Annuity Plans|
|Overview||These plans are the simplest form of life insurance policies||These insurance plans have participatory nature and come with saving plus protection plans||Investment plus protection plans||These insurance plans have participatory nature and is unit linked. Such plans are insurance cum investment plans||These insurance plans have|
nature with saving plus protection plans
|Non-participatory in nature. These are the traditional form of plans|
|Term*||Usually ranges from 5 to 30 years||This plan covers the whole life of the insured. Policy term can be 40 years||Generally ranges between 10 to 35 years||Term ranged between 10 to 20 years||Generally ranges from 5 to 25 years||No fixed term|
|Maturity Benefits||No maturity benefit on the survival||Paid maturity benefits when you reach a certain age (basically between 80 to 100 years)||You will be paid the maturity benefits on your survival at the end of the policy term||You will get the maturity benefits on your survival at the end of the policy term||The survival benefits on the maturity of your policy||No maturity benefit is offered. You have entitled a regular pension for the specified policy term|
|Death Benefits||In case of death, during active policy, a sum assured is paid to the beneficiary.||Death benefits are paid to the beneficiary.||The death benefit is paid to the beneficiary on your demise.||The death benefit is paid to the beneficiary||Death benefits are paid to the beneficiary. This benefit is not included in the other pay-outs||A few plans provide a provision to return the amount invested in case of your demise.|
|Additional Benefits||Term Insurance offers the maximum cover at a lower premium. You can choose from the variants of the pure term schemes which offer maturity benefits.||Benefits paid on death or maturity comprise of bonus component with the sum assured.||Profits are made from the Investments that are paid in the form of a bonus.||Profits are made from the Investments that are paid in the form of a bonus.||You will get the regular monetary benefits while the policy is active, with such amount not having any impact on the death benefit.||A source of regular income after the retirement.|
|Premium Costs||You will get Cost-effective premiums with the term insurance plans. This is the lowest among all the classes of policy.||These plans usually come with the options of high premiums||These plans have higher premium costs||The premiums of these schemes are higher owing to the investment cost.||Affordable and cost-effective premiums||These schemes have moderately priced premiums, with many plans requiring single premium payment|
|Ideal for||These plans are ideal for the individuals who want to safeguard the financial interest of their loved ones without paying high|
|The whole life insurance plans are ideal for people who want to safeguard the interest of their loved ones and secure the future of their loved ones regardless of what might happen to them||These schemes are perfect for the individuals who can pay higher premiums and seek to secure themselves and boost their investment||This is a perfect plan for those with a medium-term investment goal to expand their portfolio. Moreover, it is an ideal scheme for people with high income and an extraordinary investment sense.||People who are looking for the security of their life but want to earn money at regular interval of time. Best-suited for individuals seeking protection plus investment plans.||This scheme is an ideal option for the individuals who worry about their retirement life and the ones who want to produce a source of regular income after retirement.|
Important Life Insurance Rider Plans
For the policyholders, it is also essential to make the right choice for right insurance Rider plan. If you do not want to get regret of a wrong decision, just get the complete information regarding the important Rider plans at verified policy important. The insurance Rider plans are available to provide the additional benefits and features as compared to the basic coverage to the policyholder. Everyone has different requirements and require the different rider plan as compared to other individuals.
- Accidental death rider plan:
India is one of the crowded countries and there is always a big risk of road accident for the travelers. In most of the cases, there will not be on the spot death of the policyholder. If you are getting accidental Rider plan, you will find the coverage options for a nominee during the death in an accident even after many days of the accident. If you are a regular traveler in your vehicle, this rider plan can be a perfect choice for you.
- Accidental total and permanent disability Rider plan:
In the accidents, there can be a temporary or permanent disability of the person. In such situations, this Rider plan is available as a good option because the policyholder will not be able to or the regular income in such cases. With this Rider plan, there will be a good source of income in the case of disability in an accident. All the companies have different terms and conditions and provide the benefits for a pre-decided time period as per the terms of the plan.
- Critical illness rider plan:
At the present time, the risk of critical diseases is increasing in the countries like India. In the situation of a critical disease including paralysis, kidney failure, cancer, heart attack stroke or anything else, the treatment can be very expensive for the common people. When it comes to getting the financial benefits in the case of critical illness, critical illness Rider plans are available with your life insurance plan. On the detection of any critical disease, the insurance company will provide the benefits for the treatment and hospitalization.
- Hospital cash rider plan:
In the case of hospitalization for treatment of any emergency health problem, you never want to face any kind of financial problem for treatment. In such cases, Hospital cash Rider plan will be very effective to cover all the expenses during the emergency hospitalization. Different companies, you will find options for different benefit amount and terms and conditions in this Rider plan.
- Accelerated death benefit rider plan:
In the cases of critical illness right cancer, leukemia, AIDS, Ebola and much more, there may be a short lifespan of the policyholder. In such situations, the insurance company will provide the advanced sum assured benefit that can be used for the monthly expenses or treatment of the disease. The remaining sum assured amount will be paid to the nominee or family of the policyholder.
There are many more rider plans available for the policyholders that can be very beneficial in the case of emergency of critical diseases or accidents. All these plans are very beneficial when it comes to getting help in case of such emergencies with your insurance plan.
Exclusions in Life Insurance Plans
Before making the choice for a life insurance policy, it is always important for the individuals to know about all the inclusions as well as exclusions. You never want to face any kind of inconvenience to claim the benefits of your insurance plan. Therefore, you should have complete knowledge about the following exclusions in life insurance policies:
- Deaths due to the lifestyle diseases:
It is important for all the policyholders to provide the information related to the daily habits and health problems while applying for this plan. If there comes any kind of health problem due to your lifestyle including smoking, drinking, blood pressure, diabetes, obesity or heart disease, there will not be certain benefits for your life Insurance plan by the company. Such people will need to provide a higher amount of premium to avail the benefits.
- Self-inflicted injuries:
If there is any kind of case related to self-abuse, self-harm or psychological disorder then it will not be covered in life insurance policy. If the policyholder dies due to any of these reasons, there will not be claim benefits in these cases.
- Involvement in extreme sports and activities:
If the person is involved in the extreme adventure sports including Rock climbing, Skydiving, Scuba Diving, water sports, paragliding or anything else like it, he will not be able to avail the benefits of life insurance plan due to injury or death in these kinds of sports.
- Man-made disasters:
If the insured dies in man-made disasters, it will not be included in the life insurance plan. It can be any war, riot or any kind of attack on the person. In such cases, there will not be covered in most of the cases.
- An overdose of drugs or intoxication:
If the policyholder dies in any case of drug overdose, alcohol overdose, medicines or other serious intoxication problems, there will not be coverage benefits in life insurance plans. While going to get life Insurance plan, you should know about all these exclusions.
- Criminal activities:
If a person is involved in any kind of criminal or unlawful activity, there will not be the inclusion of life insurance benefits for him. Death during the criminal activities is excluded from the benefits of life insurance plans.
There may be some more exclusion in life insurance plans so you should always know about all the terms and conditions related to the exclusions in your insurance plan before getting it.
Life insurance Companies and Claim Settlement Ratio in India
At the present time, there are 24 companies offering Life Insurance plans to the individuals in India. Among all these 24 life insurance companies, only LIC Company is public sector organization and other 23 companies are working as private life insurance providers. Most of these companies also have a partnership with various International insurance companies.
When it comes to selecting the life insurance company, it can be judged with claim settlement ratio.
Claim settlement ratio:
Claim settlement ratio is the ratio of total claim settled by the company and the total number of claims received by the company in here. Claim settlement ratio of all these insurance providers is created by IRDA in India every year. When it comes to understanding the claim settlement ratio in a better way, you can understand it with the formula given below:
Claim Settlement Ratio = Total number of claims approved and paid by the insurer/Total number of claims received by the insurance company x 100
Claim Settlement Ratio of Companies in 2016/17 in India:
|Insurer||Death Claims Received||Death Claims Paid||Claims Rejected/Repudiated||Claims Written Back||Claim Pending||Claim Settlement Ratio (CSR in %age)|
|Life Insurance Corporation of India||769,386||756,399||7,432||2,352||3,203||98.31|
|Max Life Insurance Company Ltd||9,821||9,606||212||0||3||97.81|
|HDFC Standard Life Insurance Company||12,725||12,421||244||0||59||97.62|
|AegonReligare Life Insurance Company||588||571||17||0||0||97.11|
|SBI Life Insurance Company||17,610||17,027||451||0||132||96.69|
|ICICI Prudential Life Insurance||10,901||10,539||305||21||36||96.68|
|Exide Life Insurance Company Ltd||2,973||2,866||107||0||0||96.40|
|Tata AIA Life Insurance Company||2,707||2,599||108||0||0||96.01|
|Canara HSBC Oriental Bank of Life Insurance||653||620||32||0||1||94.95|
|Birla Sunlife Insurance Company Ltd||6,048||5,727||240||33||48||94.69|
|Reliance Nippon Life Insurance Company||11,079||10,473||529||42||35||94.53|
|Edelweiss Tokio Life Insurance Company Ltd||164||153||11||0||0||93.29|
|Bharti AXA Life Insurance Company Ltd||878||811||33||0||34||92.37|
|Bajaj Allianz Life Insurance Company Ltd||16,239||14,887||932||357||63||91.67|
|Kotak Mahindra Life Insurance Limited||2,831||2,583||99||130||19||91.24|
|DHFL Pramerica Life|
Insurance Company Ltd
|IDBI Federal Life Insurance Company Ltd||1,065||962||96||0||7||90.33|
|Sahara Life Insurance Company Ltd||725||654||45||0||26||90.21|
|Future Generali India Insurance Company Ltd||1,366||1,233||126||0||17||89.53|
|PNB Metlife India Insurance Company Ltd||3,879||3,380||357||34||108||87.14|
|Star Union Daichi Life Insurance Company Ltd||1,473||1,238||200||16||19||84.05|
|India First Life Company Ltd||1,741||1,439||273||0||29||82.65|
|Shriram Life Insurance Company Ltd||2,926||1,859||774||0||293||63.53|
Top 10 Life Insurance Companies in India Based on Premium Collection
|Insurer name||Premium amount|
|Life Insurance Corporation of India||Rs.3,00,487.36 crore|
|ICICI Pru Life||Rs.22,354 crore|
|HDFC Standard Life||Rs.19,445.49 crore|
|SBI Life||Rs.21,015.13 crore|
|Max Life||Rs.10,780.4 crore|
|Bajaj Allianz||Rs.6,183.32 crore|
|Birla Sun Life||Rs.5,723.96 crore|
|Reliance Life||Rs.4,026.82 crore|
|Kotak Mahindra||Rs.5,139.55 crore|
|PNB MetLife||Rs.3,236.08 crore|
How does Life Insurance Work?
Before getting the services of life insurance companies to select the best plan, it is essential for every policyholder to know about the working of life insurance policies. However, it is not difficult to understand the working of insurance plan. At verified policy, we are providing the detailed information for every consumer who is looking to make a choice for Life Insurance plan for the security and projected future of the family. You can check the complete process of working with life insurance below:
- Determine the needs and requirements:
Before getting any of the insurance plans, it is always essential to consider your needs and requirements as an individual. Everyone has different needs and requirements and you will need to consider all these factors to make the best choice for a good insurance plan. You will find lots of types of life insurance plans where you can make your choice as per your needs and requirements.
- Choose the insurance company and plan:
Considering your requirements for the insurance plan, you will need to make choice for a good insurance company as well as policy. Because of so many companies available in the market, you will need the help of other professionals to compare the services of these companies. You will need the help from our professionals to compare the services of these companies. We will provide complete information regarding all the insurance companies as well as policies.
- Pay the premium:
After getting the insurance plan by a company, you will need to pay the premium amount. With the different companies, you can use the different time period to make the payments for the premium. Whether you can pay a monthly or annual premium as per your terms and conditions of the company.
- Avail the coverage benefits:
The life insurance plans are available with different kinds of coverage benefits for go policyholders. Once you have paid Premium for your policy, you will be eligible to avail these coverage benefits. There will be certain benefits as per the terms and conditions of the insurance company. On the death of the policyholder, the nominee will avail the coverage benefits.
- On maturity/ survival:
On the survival of your life until the time of maturity, you will be able to avail the maturity benefits from your Insurance Company. The maturity benefits will also depend on the type of insurance plan that you have chosen with Insurance Company.
By following these simple steps, every policyholder will be able to get the insurance plan and avail the benefits whenever it is required as per the terms and conditions of the insurance company.
Things to Consider Before Getting Life Insurance Plan
A life insurance policy can be a great investment if you are making the right choice to get the best plan available in the market as per your needs and requirements. Because of so many companies and plans available in the market, the consumers may find it hard to choose the best policy according to their requirements. If you want to get help to make the best choice to choose the best insurance plan available in the market, the professionals of verified policy are always available to help you in the best way. You just need to keep the following things in your mind while going to get a new life insurance plan for a secure future:
- Get it as per your needs:
The different Life Insurance plans will match the requirements of different individuals. You should not see someone else and that the exact same plan even if you have the different requirements. First of all, you have to consider the requirements and needs according to your current family condition, requirements, health and much more. You have to understand if you want to get it for the future of your kids, your family or for your own retirement period.
- Consider your financial situation:
With your needs and requirements, it is also important to consider your current financial situation. The benefits and sum assured amount of your insurance plan will depend on your premium amount. In such cases, you can use the premium amount wisely as for your financial situation and future financial situation. If you have enough financial status to afford the high premiums, you can go with a better plan for better protection of us the future of your family.
- Make a selection for the coverage benefits:
With the financial situation, it is important for every individual to make the selection of right coverage benefits according to the future situation of the family. You have to pick the right plan where they can provide enough financial support to your family to fulfill all their needs and requirements. You should also check if they are able to provide some of the additional benefits to your family on the maturity or coverage.
- Compare the plans:
It is always beneficial at the present time to make online research and compare all the plans available in the market. By comparing the different plans of different companies, the customers can always make a right choice and can get the additional benefits on all these plans of life insurance. When it comes to comparing the best plans, Verified Policy is available as the best online platform to provide the complete information about all the companies and policies of life insurance.
- Selecting the proper insurer:
You should not only focus on the insurance plan but you should also focus on the service quality and reliability of insurance company. Because of so many companies available in the market, it will not be easy to make a right choice. You can compare the claim settlement ratio, service quality and other features of all these insurance companies to pick the best plan as per your needs and requirements.
- Give it a second thought:
Before making the selection, it will be beneficial to get a second opinion or idea. You can contact any of the people who have knowledge about the insurance plans and companies for the second opinion. It will be always beneficial when you need the best plan available in the market as per your needs and requirements.
- Read all terms and conditions:
The insurance agent will not provide the detailed information about all the terms and conditions. All the companies have some of the terms and conditions that you should know before making the choice of the insurance plan. It will be beneficial always to read all the terms and conditions carefully before making the choice for an insurance plan available with these companies.
- Pay the premiums continuously:
After getting the insurance plan, it will be your duty to maintain it to get the desired benefits. You should always pay the premiums on time and you should not skip any of the premiums otherwise it can be bad when you want to avail the benefits of your life insurance plan at the emergency time.
If you are considering all these factors before getting Life Insurance plan with any of the companies, you will be able to avail the desired benefits for the protection of future of your family members and the nominee with it.
How to File the Claim for Your Life Insurance Plan
For every policyholder, it is essential to know about the complete process to file the claim of life insurance plan. Without taking the right steps, you may find difficulties to claim the benefits of your insurance plan. The insurance claims can be filed in the following common situations:
- On the death of the policyholder
- On the maturity of the policy
At verified policy, we try to provide the complete information about the process of claim settlement with write steps to file your claim with the company:
Inform the insurance company:
First of all, you will need to contact the insurance company as soon as possible to inform about the claim in the case of death of policyholder or maturity of the policy. You can use their toll-free number or Email to contact them to inform.
The policyholder or nominee will need to share all the essential details with the company during the filing process of life insurance plan. You will share the information like:
- The policy number
- Name of the policyholder
- Name of insured person
- Place of death
- Name of the claimant
The required documents to be submitted:
During the process of claim of your life insurance plan, you will need to submit the documents given below to the insurance company
- The original copy of the insurance policy
- The claim form and the death certificate of the deceased person
- If someone other than the assignee or the nominee makes the claim, the insurance company can ask for the legal title of succession.
- Deeds of assignment, if any
- Discharge form signed by witnesses
- Supplementary documents like post-mortem reports, hospital certificate and doctors certificate (if required)
- The investigation report (in case of police inquiries)
In the case of natural death or accidental death, the nominee will submit all the required documents to the company and it will be the part of claim settlement process. The claim support team will evaluate and verify in all the documents for the settlement of the claim if everything is right.
Approval and pay-out:
- After the submission of all documents, the company will verify the documents and will approve the claim as per the terms and conditions
- For the pay-out, the company may need the bank accounts of beneficiary including bank account passbook
- They will also require proof of Identity of Nominee
- The claim settlement process may take up to 30 days. However, the insurance company will immediately pay the beneficiary after approval of the insurance.
- The insurance company may also use electronic clearance service in the cases of bulk payments.
Online Vs offline Life Insurance
At the present time, the individuals will find options to get the life insurance plan online as well as offline. When it comes to knowing about the best way to choose the best life Insurance Plan, you can use it online as the best option. It will be beneficial in the following ways for the individuals:
- Compare the life insurance plans easily:
Before choosing any of the life insurance policies, you always want to know about the best plans available in the market. If you are getting online services, it will be beneficial because you can make the right choice by comparing all the insurance plans available in the market easily. You can also know about the sum assured, premiums and terms and conditions of all the insurance service providers online.
By visiting the website of the insurance company and checking all the policy related documents and terms and conditions, you can easily know about all the benefits as well as limitations. There will not be an agent to hide the terms and conditions so everything will be in your hand and you will not find this appointment due to the hidden terms and conditions by the agents.
- Make the better decision:
By visiting the online website to get a new life insurance plan, the consumer will be able to make a better decision in the best way. Whether you want to compare the claim settlement ratio or wants to know about the service quality of the insurance companies, everything will be at your fingertips.
- Easy to access and flexible:
By getting the online services for Life Insurance, you do not have to wait for the life insurance agent while looking to get another policy. They are available 24/7 to provide the support so you will get it easy to access. It is also beneficial because of flexibility that you will get online. The consumer can make choice from lots of plans as per the needs and requirements.
To know better about the service of the company as well as the plan benefits, you can also check the reviews of other clients of the company by visiting the online website.
The Documents Required for Life Insurance Policy:
If you are going to get a new life insurance policy, you will need information about all the required documents. The different companies will require different kinds of documents from the consumer. Here is the list of all the common documents that will require basically to get a life insurance plan
- Last 3 to 6 months salary slips (depending on insurer)
- Income Tax Returns (ITR) of last 2 to 3 years
- Last 6 months bank statements with continuous entries of 3 months credited salary
- If the person is self-employed then CA certificate
- Latest Form 16
- Driving Licence
- 3 months Utility Bills
- Voter ID card
- Aadhaar Card
- Latest 3 months Credit Card Statement
- Ration Card
- Saving bank statement
- Passbook with latest 6 months entries
You can provide the following documents as ID proof:
- PAN Card
- Aadhaar Card
- Voter Id card
- PAN Card
- Aadhaar Card
- Voter Id card
- Driving License
- Ration card
- Marriage certificate
- School/College leaving certificate
- Birth certificate
Other Documents of Life Insurance Policy
With the KYC documents, here are some other documents that you may require. These include:
- Insurance application or proposal (first document in the insurance contract)
- Policy declaration
- A final declaration stating that all the provided information is true and that if anything is found untrue, the insurer has the right to reject the application
- In case the policy is required to be registered under Married Women’s Property Act, you will need to fill and submit a separate form to the insurer, mentioning the information of nominee and trustees.
- Policy proposal also includes a personal statement. Any incorrect statement may lead to rejection of the application.
Life Insurance – FAQs
What will be the cost of life insurance and per month?
The monthly cost of life insurance will depend on the selected plan by the insured. With different plans, the company will provide different coverage options and your monthly premium will also depend on it.
Why is whole life insurance not good for everyone?
Whole life insurance plan is considered as a permanent Life Insurance and the consumer will need to pay more Premiums for a lifetime to the company. If you are going to get a short-term insurance plan, you should completely avoid whole life insurance plan.
How much of coverage will be sufficient for me?
Well, it is not that easy to understand the coverage amount in any insurance plan for you. There are many factors that you will need to keep in mind when you want to know about the best coverage amount for your family. After that, you will also consider your financial situation so that you can choose the premium amount as per the required coverage amount.
Why should I compare the life insurance plans online?
To avail the best benefits of a life insurance plan, it is always important to make a right choice by choosing the best plan available in the market. Because of so many plans and companies, it is essential for every buyer to compare the life insurance plans online. We are here to provide the detailed information about the top Insurance plans available with the best companies. By comparing the online plans, you will not only save money on premiums but you will avail the better benefits and get the services of a good company.
What is the impact of GST on Life Insurance plans?
In India, GST changed the way of business now. If you are going to get a life insurance plan, you must know about the effect of GST on the life insurance plans. You can check the effects of GST on the different Life Insurance types:
|Product/Service||Old service tax rate||New rate post-GST implementation|
|Premium for Annuity Plans (single premium)||1.50%||1.80%|
How much will a life insurance plan cost?
The complete cost of a life insurance plans factors and it is important to consider all these factors to know about the complete cost. It will differ from insurer to insurer and plan to plan. It will also depend on your age because the buyers having younger age will need to pay a lower amount of premium as compared to the buyers having an older age. It will also depend on your lifestyle, habits, and type of plan that you are choosing. Here is the complete information to estimate the difference in cost for the different consumers:
|Age||Smoker (Y/N)||Sum Assured||Annual Premium|
|25 years||Yes||Rs.50 lakh||Rs.7,500 for male Rs.6,900 for female|
|25 years||No||Rs.50 lakh||Rs.5,000 for male Rs.4,800 for female|
|40 years||Yes||Rs.50 lakh||Rs.20,500 for male Rs.17,500 for female|
|40 years||No||Rs.50 lakh||Rs.13,000 for male Rs.11,000 for female|
Is it beneficial to compare claim settlement ratio of Companies?
Yes, when you want to make the right choice and wants to get the reliable services of life insurance companies, you should always compare the claim settlement ratio. It will always provide help to make the right choice of insurance company. The company is having high claim settlement ratio will provide the successful claim benefits more easily to the consumers.
When will the coverage benefits begin?
When you will get Life Insurance plan, there will be a mentioned effective date at the documents. With different companies, there may be the difference in effective date and you should check it on your insurance policy document when you are getting it.
Will I get the tax-related benefits with life insurance policy?
Yes, the Life Insurance plans are known to provide lots of tax-related benefits to the policyholder. You do not have to worry about any kind of tax on the premiums that you are paying. It is possible to get the money saving tax benefits under section 80C of Income Tax Act 1961 with Life Insurance plans.
Is it beneficial for me to get the Rider plans with my policy?
Lots of rider plans are available that the consumers can find with life insurance plan. With your life insurance policy, you will not get many benefits in the cases of critical diseases, accidental injuries and much more. To avail all these additional benefits with your plan, just go with a rider plan as per your lifestyle and needs and requirements.
Is it possible to get a loan against my life insurance plan?
Yes, you can avail the benefits of loan against your life insurance policy. However, you will not find the option of loan against all the life insurance plans so you should check the terms and conditions of your insurance service provider to avail these kinds of benefits with your insurance plan.
Can I directly pay the premium amount to the life insurance agent?
First of all, it is always important to consider if the insurance agent is authorized or not. You could always that the authorization documents of the insurance agent. The insurance companies authorized some of the agents to collect the premium so you can pay them directly if you have authorized life insurance agent.
Can I make the changes in my life insurance plan?
Yes, it is possible for the people to make some of the changes to the insurance policies. The changes will depend on the type of plan that you have and the insurance company. You are permitted plan:
- Changing the premium payment mode
- Changing the policy term
- Changing the sum assured (only an increase in this amount is possible)
- Switching between funds
- Redirecting the premium
If you want to make any kind of additional changes, you will need to contact the insurance service provider for it. They will give detailed information about it as per your selected plan.
Why does my premium increase with my age?
You will always notice the higher premiums with the increasing age of the policyholder. It is because the older you get the chances of that will also increase. In such cases, the insurance will increase your premium so that you can find the benefits of your plan after that for the better protection of your family.
Can I get money during the policy term with any of the plans?
Yes, you can avail the benefits of making money during the policy term. You just need to make toys with the money back plans available in the market and you will get a return on your premium certain time period as per the terms and conditions of the insurance company.
When should I get Life Insurance plan?
It will be better if you are able to get Life Insurance plan as soon as possible. At the younger age, you will need to make the low amount of premiums as compared to the older age. So you should try to get life insurance at the younger age.