Are Life Insurance Policies a Good Investment?

There are many reasons why life insurance is a good investment, including:..Read More

  • A healthy lifestyle can save you money in the long run.
  • Insurance policies can help with expenses associated with death.
  • Your family will be taken care of if you die unexpectedly.
  • You could save up to 50% on your taxes by investing in an insurance policy.

What are the advantages of Life Insurance Policy?

There are many advantages of life insurance such as Return on Investment: Many life insurance schemes in India provide decent returns as well as bonuses. Death Benefits: In case of any unexpected event to the insured, the insurance company provides compensation in the form of the death benefit to the family. Income tax exemption: The premiums paid under the life insurance policy are eligible for income tax exemption under section 80C. Loan availability: In the event of any emergency such as a college fee or property purchase, a loan can be availed against your life insurance policy. Retirement Income: Life insurance policies can also be taken for the purpose of regular income after retirement.

What are the advantages and disadvantages of life insurance Policy?

There are many advantages of life insurance such as Return on Investment, Death Benefits, Income tax exemption, Loan availability, Retirement Income. Disadvantages are high premiums for aged people, difficulty to calculate the returns, awareness of exclusions, and hidden clauses.

What are the Disadvantages of Life Insurance?

Disadvantages of Life Insurance are High premiums for aged people, Difficult to calculate the returns, Awareness of Exclusions, Hidden clauses. One of the best ways to overcome the uncertainties in life and ensure that you and your loved ones are protected financially at the time of adversity is to invest in good life insurance. Apart from providing protection and financial security to your loved ones, there are many other benefits offered by life insurance.

What are the types of Term Insurance Available in India?

Term insurance is available in many types in India, they are:-

  • Increasing term insurance- The coverage increases each year in a specified percentage i.e. 5% or 10% and the total increased sum insured doesn’t cross the basic sum insured chosen by the insured customer.
  • Decreasing term insurance – As the name suggests the coverage is decreased each year over a period of time. The sum insured decreases at certain percentage each year.
  • Money back term insurance – The premiums paid are returned to the customer at the time of maturity and in case of death of the customer the claim is paid.
  • Pure term insurance – In pure term insurance, claim is paid only on the death of the policy holder. No survival benefits are paid to the customer in case of survival till the end of the policy period.
Are there any Age Limits for Buying a Term Policy?

Most of the insurance companies restrict the maximum entry age to buy a term insurance policy to 65 years. This is due the general practice that most of the people retire at the age band 60-65 and also would be free from all the financial obligations and liabilities, hence there would be no need to have a term insurance policy. The minimum entry age for a term insurance policy is 18 years while the maximum entry age is 65 years. Once the term policy is taken the term can be chosen by the proposer, the younger the proposer higher the term period.

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