Your life insurance plan is more than just protection against unforeseen events; it is also a long-term investment option with guaranteed benefits. While insurance can help ensure cash flow during difficult times, it is also true that poorly chosen plans can be useless in times of need.
As a result, make a checklist of your requirements and compare all life insurance plans provided by the leading companies.
What Is A Life Insurance Plan?
A life insurance plan is an agreement between an insurance company and a policyholder under which the policyholder pays monthly premiums, and the insurer provides a death benefit to the policy’s beneficiaries when the policyholder dies.
The best life insurance plan can assist you in obtaining sufficient coverage to replace your income, settle loans, or cover expenditures that your family will encounter, such as paying for your children’s education or caring for aged parents.
Benefits Of Life Insurance Plan
The benefits of purchasing a life insurance policy extend beyond simply protecting the policyholder’s family in difficult times. Without a doubt,a breadwinner must protect their dependents in the event of their untimely death, accident, or physical disabilities that result in a loss of income. When you’re entering retirement or if you become terminally ill, you also have the option of cashing in your policy to help with unforeseen expenses
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Having said that, there are a slew of other advantages that make it a must-have. Unfortunately, most people are unaware of the numerous advantages provided by a life insurance plan. All they are concerned with are the death and disability benefits. However, there are numerous other benefits provided by life insurance policies, such as maturity benefits, tax benefits, and so on.
1. Can Be Used As Loan Collateral
Many people are unaware that life insurance policies can be used as loan collateral. The policyholder can apply for a loan from a bank or an NBFC (Non-Banking Financial Company) based on the type of life insurance policy and the surrender value.
The loan amount is typically a percentage of the surrender value of the life insurance policy, and it can reach up to 90%. There are a few companies that only allow for a loan of up to 50% of the policyholder’s total premium amount.
2. Online Payment Benefit
The majority of people are unaware of the convenience of online payments (the payment mode chosen by an individual drastically affects the policy’s premium). When a person decides to pay his premiums online, a company’s administrative costs are significantly reduced.
This is due to the absence of any paperwork-related costs. In addition, the life insurer can save a significant amount of money on commissions paid to agents for offline life insurance purchases and renewals.
3. Tax Benefits
A policyholder is eligible for a tax rebate under Section 80C of the Income Tax Act of 1961 for paying a life insurance premium. The premium paid for parents and in-laws is exempt, regardless of whether they are themselves, their spouse, or their children.
This benefit is provided by all life insurers, whether private or public sector life insurers. Furthermore, the maturity benefit of life insurance policies is tax-deductible under Section 10 (10D) of the Income Tax Act of 1961.
Top 5 Next-Gen Plans For Life Insurance In India
If you are looking for life insurance in India, then here is the compiled list of the best life insurance plans:
1. iSelect Star Term Plan – Canara HSBC Oriental Bank of Commerce
The life insurance plan of Canara HSBC Oriental Bank of Commerce, i.e., the iSelect Star Term Plan, protects you from all of life’s uncertainties. A highly adaptable term plan that can be tailored to your life stage and insurance requirements by providing various options for coverage and premium payment and benefits payouts.
iSelect Star Term Plan provides various options such as whole life coverage and spouse coverage in the same policy. It also offers multiple premium payment options such as short tenure, such as 5 or 10 years. You will also get the chance to pay during your working years, i.e. until you reach 60. The plan also includes the opportunity to receive a return of premium benefit, which means that all of your premiums will be returned if you outlive the policy’s term.
● You can choose to cover yourself for a set period or the rest of your life.
● Additional inbuilt coverages such as accidental death benefit, child support benefit, accidental total, and permanent disability benefit are available to supplement coverage.
● There are several ways to receive benefits: as a lump sum, monthly income, or a combination of the two, with the option to choose between level and increasing revenue.
2. Aditya Birla Sun Life Protector Plus Plan
Aditya Birla Sun Life Protector Plus Plan is a comprehensive life insurance plan that provides financial security to the insured’s family in the event of death. Along with the benefit of insurance coverage, the plan also allows the insured to build a financial cushion in the long run.
● The plan has a minimum entry age of 18 years, and the policy has a maximum entry age of 65 years.
● The insurance holder is eligible for a tax exemption under Section 80C of the Income Tax Act.
● The plan includes a rider benefit for total and permanent disability.
3. Bharti AXA Life Monthly Advantage Plan
Bharti AXA Life Monthly Advantage Plan is a traditional participating plan with a limited premium payment that provides guaranteed monthly income to the insured until the policy matures. Along with the benefit of a guaranteed return, the plan also provides insurance coverage to the insured’s family against unforeseen events.
● The plan allows you to select one of three policy tenure options.
● The policy provides three different rider benefit options to supplement the policy’s coverage.
● Following the completion of the premium payment tenure, the insured is provided with a fixed guaranteed monthly income until the policy matures.
4. HDFC Life 3D Plus Life Option
HDFC Life 3D Plus Life Option is a great life insurance plan that can be purchased online and is one of the life insurance policies in India. The 3D in plan refers to three distinct uncertainties: disease, disability, and death. The plan protects the family’s financial future at a low premium rate.
● The plan allows you to increase your coverage every year by using the top-up option.
● The life stage protection feature allows you to increase the basic sum assured amount on certain key life milestones without the need for medicals.
● Policyholders can select from the policy’s nine different plan options.
5. India First Smart Save Plan
This is a non-participating unit-linked savings life insurance plan that helps an individual accumulate funds over a long period as one of the life insurance plans in India. The plan helps establish the habit of systematic savings with the goal of wealth creation by investing in four different fun options based on one’s preferences and risk tolerance.
● The insurance holder can invest in one of four different funds.
● The plan allows for the accumulation of funds over a long period and the benefit of investment returns.
● In the event of the insured person’s untimely death, the death benefit is paid to the policy’s beneficiary.
Wrapping It Up
The best life insurance plans provided by the life insurance company are designed to meet the needs of the insurance seekers. Furthermore, you can select the policy of your choice online and purchase it in a simple and hassle-free manner.
Aside from the above-mentioned life insurance policies, the market offers a plethora of other options. Make your decision and select a company that provides services that are most appealing to you.
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