Due to increasing uncertainties and fast-paced life, the rate of buying life insurance policies go high. But again, due to the availability of an abundance of policies, people often get confused which plan to buy. Sometimes, your colleagues and friends push you towards a particular plan which you are not aware of, and you buy it just for the sake of others. But, before opting for any life insurance policy, you must be mindful of the pros and cons of it. Endowment policies are also trending nowadays along with term insurance plans. This article aims to focus on four things that you must consider before buying endowment policy. Requirements for an Endowment Policy An endowment policy is designed for them who seek a lump-sum amount after a specific period and have steady as well as regular income. The endowment policy enables saving your hard earned money in a disciplined way so that the corpus built through the policy can be utilised in case of any situation. If you have comparatively less risk appetite and don’t mind getting smaller returns from the investments, endowment policy is for you! Best time to buy an Endowment Policy We always take care of our loved ones. We often need a risk-free tailback that will provide a bunch of money at a particular instance of time. This will be helpful in case of an emergency that you need not worry about. Endowment policies are designed in such a way to help you build a corpus for the long-term goals. It offers not only a mass but also the insurance cover. You can opt for an endowment policy, anytime considering you are capable enough of paying the premium amount regularly. You can choose for single-pay premium instead of regular pay if you are not able to forecast your future. Benefits of an Endowment Policy The most useful function of an endowment policy can be stated as it helps you achieve your financial goals by savings your hard earned money in a disciplined way. When it comes to the financial safety of your loved ones, and you are the only wage earner in the family, the endowment policy helps a lot. In case of unfortunate demise of the life insurance, the endowment policy offers full sum assured as decided at the inception of the policy. With the help of the corpus, the lifestyle of your family will be sustained even in your absence. The returns gained through the policy may seem lesser, but indeed, they are guaranteed. Last but not the least, tax benefits! You are entitled to get tax benefits under Section 80C and 10(10D) of Income Tax Act. How to Choose the Perfect Policy? Currently, the market is cluttered with lots of endowment plans from which you need to choose the perfect one. The factors to be considered while opting for an endowment policy are the current as well as future financial needs of your family, the lifestyle, risk hunger, and the income state. Also, don’t forget to compare the premium rates and the claim settlement ratios of the insurance companies. Remember, a small mistake may result in disturbing the entire budget for a long run. These are the four necessary things that you have to understand while buying an endowment policy. Considering all these things and your readiness of taking the risk, select the appropriate plan best suitable to your needs.
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In this fast-paced life, having a life insurance policy has become essential. But the market is quite cluttered nowadays, and you may get confused which life insurance policy to buy. When it comes to premium rates, it is always seen that the premium should be minimum, but at the same time, the benefits would be higher. To get the insurance matching your requirements ideally, you need a tool which can assist in this process. Life insurance premium calculator helps you to determine the benefits of the insurance plans. Read further to know more. Life insurance premium calculator is a user-friendly tool that computes and analyses the user requirements and provides an ideal quote for the life policy. All you need to enter the required details such as your name, date of birth, blood group, smoking/drinking habits, and other particulars. At the next instant, you will be asked the details of the desired plan such as tenure, life cover etc. At last, you will get a quote for the plan. The same process will give you different quotes by changing the requirements, and you can choose one that suits you best. There are several life insurance premium calculators when different policies are concerned, such as- Term Insurance Premium Calculator Using this calculator, you can calculate the premium amount you will have to pay for a specific life cover and particular tenure. Child Insurance Premium Calculator This type of calculator helps you to determine the future financial requirements for your child, such as his/her education, marriage and different kind of necessary expenses. With the help of this tool, you can plan appropriately and secure your child’s future financially. Pension Plan Premium Calculator Retirement is the stage of your life when you need to have a corpus which will help you to sustain the lifestyle. Pension plan premium calculator enables you to analyse the required investment in order to get the desired amount of pension after your retirement. Investment Plan Premium Calculator Investment plans allow you to build a corpus along with the insurance policy, hence to calculate the investment and desired benefits, investment plan calculator helps you best. In short, life insurance premium calculators help you a lot to get quotes for your desired insurance policies. Term plan calculator is offered by almost all the insurance providers on their websites. Choose the right plan with the help of life insurance calculator and provide financial security to your loved ones. We always try to be prepared for unforeseen event by implementing some contingency plan. Our life is no exception to the uncertainties, hence we always care about our family, especially their financial security behind us. In the earlier times, purchasing a life insurance policy was just to gain life cover; but the cut-throat competition has urged insurance industry to offer more and more to the customers. This led into providing savings and investments provisions along with the life cover. Nowadays, you can also purchase the life insurance online. Considering the needs of savings, investments, child goals, and retirements, the insurance companies have introduced several plans fulfilling the needs of the customers. Following are the 7 types of life insurance plans that are generally offered by insurance companies in India. Whole Life Policies As the name suggests, whole life insurance policies are designed to provide the life cover throughout the life of the policyholder, considering the life expectancy till the age of 100 years. If the life insured outlives the tenure of 100 years, the survival or maturity benefits are paid as soon as he completes his 100 years. In case an event occurs before completing 100 years, the death benefits are paid to the beneficiaries. Term Insurance Policies Term insurance is the basic life insurance which aims to provide life cover to the life insured up to a certain period. These plans are pure life policies that do not provide any maturity or survival benefit of the life insured outlives the policy term. Hence, the premiums are very low when compared to other life insurance policies. Endowment Policies Endowment plans are nothing but a combination of savings and life cover. In these plans, a particular amount of your premiums is used for the life cover, and the rest is invested in the market. On the survival of the life insured, the insurer offers maturity benefit at the end of the policy tenure. These plans can be said as low risk investment tools that may offer bonuses periodically. ULIPs Unit Linked Insurance Plans are a blend of investments and insurance. Like Endowment plans, some part of the premiums is used for the life cover whereas the rest is invested in market funds. You can choose your fund and invest into it depending on your risk appetite, also you can switch between the funds when the policy is initiated. Money Back Policies In this type of the life insurance, a percentage of the desired sum assured is paid periodically to the life insured as a survival benefit. The insurer may declare bonuses depending on the performance of market. Retirement Policies Retirement plans or pension plans are designed in such a way that help you build enough corpus for your retirement. This helps you live financially independent even after your retirement. Child Plans Child plans are specifically designed to build the corpus for your child’s educational expenses and marriage. The benefits are paid out only when your child completes 18 years of his age. Though the name sound like insurance for the child, the life cover is offered to the parent which on his unfortunate demise, takes care of the child. These are the most common types of life insurance policies offered in India. Many insurance companies offer term life insurance online on their websites. Depending on your risk appetite, your current and future financial goals, and your lifestyle, you can opt for one that suits your needs best. Nowadays, people being cautious of their life, have understood the significance of Life Insurance. And thus, in last few years, the number of life insurance providers in India is considerably increased. At present, LIC of India is the only public sector insurance provider company; whereas all the other players are private insurance providers. Several companies are joint ventures between banks and insurance companies. This article aims to focus on five major life insurance companies in India. Life Insurance Corporation of India (LIC) LIC of India, established in 1956, is known as the oldest life insurance company in India and offers a wide range of life insurance policies to the customers. The company is the merger of more than 245 insurance providers and provident societies, headquartered in Mumbai with 8 zonal offices and 113 divisional centres. LIC is not only oldest but largest life insurance provider in India with over 2,048 branches and 14 Lakh insurance agents to cater the business. The company has Claim Settlement Ratio of 98.19% according to IRDAI. Bharti AXA Life Insurance Company Bharti AXA Life Insurance is a joint venture between Indian corporation Bharti Enterprises and the AXA Group, a Paris based investment-banking company with the stakes of 74% and 26% respectively. Bharti AXA Life Insurance commenced the operations in 2006, is headquartered in Mumbai and has a presence in 123 cities across India. The company offers different insurance products, ranging from Child Plans to Pension Plans, and Term Plans to Investment Plans. The grievances fixed by the company are high, and the Claim Settlement Ratio published by IRDAI is 80%. The age criteria for the life insurance policies is 18 years minimum and 65 years maximum. ICICI Prudential Life Insurance ICICI Prudential Life Insurance is a joint venture of ICICI Bank Ltd and UK based private financial services organization Prudential Plc., started its operations in December 2000. It is known as the first private sector life insurance company in India. ICICI Bank possesses 74% of the stakes whereas Prudential Plc. holds 26%. Future Generali India Life Insurance Future Generali Life Insurance is a joint venture of three market players’ viz. Future Group, Generali Group, and Industrial Investments Trust Ltd (IITL). The company initiated its operations in 2007 and currently has a network of 95+ branches all over India. The various insurance products served by the company can be issued for minimum 18 years and maximum 56 years of age. The Claim Settlement Ration of the company as per IRDAI is 90.61%. Birla Sun Life Insurance The company is a joint venture between Aditya Birla Group and Sun Life Financial Inc., having 560 branches over 500 cities across India. Known as a pioneer of ULIPs, the company offer a range of life insurance products such as Term Insurance, Savings Plans, ULIPs, Pension Plans, and many more. The company has a Claim Settlement Ratio of 88.45% as per IRDAI. These are the five major life insurance companies in India that cater to life insurance business and offer a wide-ranging list of products to the customers. Considering the various parameters, you can choose the best-suited insurer for you, and buy an appropriate life insurance policy. |
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February 2022
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