Introduction of Best Life Insurance Policy in Jaipur
Life insurance is the best way to create wealth & secure the family’s future in the event of the policyholder’s unfortunate death. Life insurance Policy in Jaipur can be availed either through “Term plans” that offer life cover for the family’s protection or through “Investment Plans” that help in wealth creation with financial security to meet an individual’s financial goals. The Best life insurance policy in Jaipur refers to the contract between an insurance provider and an individual. As per the agreement, the policyholders pay a certain amount as the policy premium while the insurer pays a specific amount to their family on the untimely demise of the life insured. best life insurance policy in jaipur
A life insurance policy helps you safeguard your family’s financial interests when you are not around. Millions of people buy life insurance for often complicated reasons to put into words. With death being the only sure thing in life, buying the best life insurance policy that suits your financial needs is crucial.
It would help if you prioritized buying life insurance quotes before making any other investments because the insurance benefit will help you secure your family’s financial future in case of your untimely demise. Adding Life Insurance to your list will not only get you additional benefits such as year-on-year tax savings up to Rs. 1.5 lakh under Section 80C as per prevailing tax laws and rider options to enhance your life cover against critical illnesses or a sudden loss of income due to accidents.
Moreover, it helps increase your risk tolerance. The primary goal of any investor is to grow money over the long term. Determining your risk tolerance and, subsequently, the appropriate asset allocation (the blend of stocks, mutual funds, and cash) is crucial. With life insurance in your financial portfolio, you can take more risks with your investments.
There are several reasons why Life Insurance policies are essential for every person in Jaipur. Some of such reasons are highlighted below.
1. Financial Protection for Family
A life insurance policy will provide a specified sum to your family (the chosen nominee) at the time of your untimely demise. They can use the sum assured to fulfill various financial needs.
2. Critical Illness Benefit
You can opt for a critical illness rider with a life insurance policy, which offers protection against critical health ailments, such as cancer, kidney failures, and cardiovascular issues. This way, you or your family need not worry about the financial side of medical emergencies.
3. Tax Deductions
The premium you pay for a life insurance policy is eligible for tax deductions up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
4. Peace of Mind
With the best life insurance policy by your side, you get peace of mind, knowing that there is a financial safety net your loved ones can bank upon after you.
5. Extensive Coverage at a Low Cost
Insurance companies offer significant payouts for life insurance (like term plans) at a low premium, depending on your age and health condition.
6. Opportunities to Create wealth
Life insurance plans like ULIP (Unit Linked Insurance Plan) give you the benefit of life cover along with market-linked returns from your investment.
Different Types of Life Insurance Policy in Jaipur
When you get your life insurance, you can begin planning to ensure that your loved ones remain financially secure throughout their lives, even if something serious happens to you. At the same time, your life insurance plan helps you maximize your tax savings and work towards creating wealth and ensuring financial protection in your absence. Like you cannot build your house without a firm foundation, you need life insurance to serve as the foundation to better and secure tomorrow for your family.
It would be best to spend maximum time buying the most suitable life insurance plan at this stage. The life insurance quotes for your financial profile will help you decide. Although the best life insurance policy in Jaipur offers the flexibility to choose the benefits, the ultimate choice lies in your hands. You can select any life insurance plan below mentioned as per your need. best life insurance policy in jaipur
1. Term Insurance Plan
The term insurance plan is one of the most sought-after types of life insurance policies in Jaipur. This is one of the types of life insurance policy in India that you can buy for a specific period of 10, 20, 30 or more years, hence the name. While other life insurance policies offer maturity benefits, term insurance does not. It is one reason why term insurance, being the best insurance policy in India, is comparatively cheaper than other types of life insurance schemes.
Term insurance is pure life cover, unlike other types of life insurance policies which have a saving component. You can also opt for a significant life cover at a lower premium compared to other life insurance policies that are costlier but have built-in saving components.
2. Term Insurance with Return of Premium
A term insurance plan is among the life insurance policies that provide a death benefit but no maturity benefit. If you live a healthy lifestyle, the probability of outliving the best insurance policy in Jaipur you have bought also increases. For you, among the many life insurance types, term insurance with a return of premium is one of the best insurance policies in India, which also give you maturity benefits. It is one of the types of term insurance plans that give back the premiums you pay on surviving the policy period. Besides, you can easily calculate premiums for term insurance using an online term insurance calculator.
If you want to support long term goals in life, for example, you could opt for whole life insurance, and the factors to be considered here will be different. Keep in mind that your age and personal needs determine the most needed types of life insurance policies.
3. Unit Linked Insurance Plan (ULIP)
A ULIP is one of the types of life insurance policies in India that fulfill both aspects– investment and insurance. Amongst different types of life insurance, it is the one that offers life cover along with investment opportunities. Being one of the types of life insurance, it has a lock-in period of five years, which makes it a long-term investment instrument that comes with risk protection. ULIPs also allow you to balance your funds as per market dynamics.
4. Endowment Policy
Endowment policies are the life insurance policies that provide you with the combined benefit of life insurance and savings. Along with giving you the life cover, these types of life insurance help you save money regularly over a period to get a lump sum at maturity.
One of the most valuable types of life insurance policies is that they help fulfill long-term goals in life. You will also get the maturity amount if you survive the policy tenure.
Endowment policies also help you create a financial cushion for your family to meet various financial objectives in life.
5. Money back Policy
Investing in a Life insurance policy in Jaipur for your loved ones can be to create wealth over an extended period. However, most life insurance types do not provide any provision to get funds before their tenure ends. It is where a money-back policy plays a vital role in solving the problem of liquidity.
As the name suggests, money-back policies are one of the popular life insurance policies in Jaipur that regularly give money back. It pays a percentage of the assured sum throughout the policy tenure, unlike other life insurance plans that offer no returns until maturity.
6. Whole Life Insurance
As a life insurance policyholder, you get the benefits depending on your chosen life insurance policy. What distinguishes a whole life insurance plan from other life insurance types is that it provides insurance coverage to the insured for the entire life, up to 100 years of age.
Typically, the death benefit, under whole life insurance, is payable to the beneficiary in the case of the policyholder’s untimely demise. On the other hand, you can receive a maturity benefit under a whole life insurance policy if you cross 100 years of age.
Another significant feature of such whole life insurance plans is that some offer the option to pay a premium for the first 10-15 years while you get the benefits for the entire life.
7. Group Life Insurance
As group health insurance, group life insurance is one of the types of life insurance policies that cover a group of people under one master policy. Such life insurance types are generally provided as part of an employment benefit.
A unique feature of these types of life insurance products is that you will get the insurance cover if you remain a part of the group. It is different from the individual types of life insurance plans in which the coverage continues throughout the chosen policy tenure. best life insurance policy in jaipur
8. Child Insurance Plans
A child plan is an investment+insurance plan that helps you meet your child’s financial needs when it comes to life insurance types. A child insurance plan will help you create wealth for your child’s future needs like education.
You can start investing in these plans from the birth of your child. You get the flexibility of investing your hard-earned money into several funds based on your financial condition and goals in mind.
9. Retirement Plans
Retirement Plans are among the types of life insurance policies that provide financial security and help you with wealth creation after your retirement. With Retirement Plan, you will get a sum of money as a pension in the vesting period.
Your nominee will get the death benefits in case of your untimely demise during the policy term. Retirement Plans come with death benefits and vesting benefits protecting you and your family members.
Things to Consider Before Buying Life Insurance Policy in Jaipur
As your responsibilities grow, it becomes increasingly important to protect your current and future plans. Life Insurance is an effective financial planning tool that provides multiple benefits ranging from Protection, Savings, and Tax Benefits. But before you purchase a life insurance policy in Jaipur, it’s essential to be well equipped to choose a plan that meets your needs and requirements.
Keep these five things in mind as you go about your life insurance buying decision:
Buy for the Right Reason
Understand the purpose of buying insurance. Remember that you are buying insurance to plan for some specific goals, cover your life and safeguard the financial future of your dependents. Do not buy insurance only for secondary benefits like tax savings.
Amount of Life Cover
The premium amount is generated based on the life cover amount that you opt for. You should have a life insurance cover of at least ten times your annual income as a rule of thumb. You can also use our premium calculator to arrive at a premium estimate.
Policy Tenure
The ideal tenure of your Life Insurance Policy should be your ‘Retirement Age minus your Current Age’. This means that if you are currently 35 years old and wish to retire by the age of 65, your policy tenure should be 30 years or more. Popular term plans also offer long term life insurance coverage until age 85 years.
Additional Coverage & Benefits
Add-ons are additional benefits along with the base cover, such as critical illness rider, accidental death benefit rider, waiver of premium rider, a disability rider, etc. These are beneficial additions which can be opted for by paying nominal premiums.
Credentials of the Life Insurance Company & its Claims Experience
Before buying a life insurance policy, it’s essential to assure yourself about the credentials of your chosen life insurance company.
1. Claims Settlement Ratio – This refers to the no. of claims paid by an insurance company for every 100 claims that were registered.
2. Assets Under Management (AUM) – This refers to the current market value of the funds managed by the financial services company. A higher AUM suggests that the portfolio is strong and performing well.
3. Solvency Ratio – This is a ratio used to measure the financial stability of a company. It reflects the company’s ability to settle its long-term debts. A higher solvency ratio means that a company is comfortably placed to pay out claims.
In addition to these, excellence in customer service, reviews and corporate governance practices give vital information about the overall performance of the company. Read more to learn about treasure equity as an organization. Also, you can talk to our consultant about the different types of plans we offer and meet with our licensed agent and get covered.
FAQs
Several insurers offer different types of plans. This makes life insurance confusing. Here are some frequently asked questions (FAQs) associated with life insurance to help you get better clarity about the same:
1. What is life insurance?
This question is the basic life insurance FAQ. Life insurance is a contract between you and the insurance company. The insurer agrees to pay the policy benefits to your nominees in case of your untimely demise.
2. Why is life insurance valuable?
Life cover is helpful to ensure the financial stability of your family in case you are unable to earn due to an accident or illness. The policy also pays the benefits to your beneficiaries in case of an untoward event. Procuring such coverage ensures that your family can to meet their expenses and sustain their lifestyles even in your absence.
3. Is life insurance necessary?
One of the things to know about life insurance is that while it is not necessary, purchasing a policy is an intelligent investment decision if you have dependents such as a spouse, parents, and children. The life plan will provide financial security to your family if you are not around.
4. How do I decide on the amount of life insurance cover I need?
The maturity benefits primarily depend on the premium you pay during the policy term. This amount depends on several factors such as your lifestyle, spending habits, income, expenses, and debt obligations.
5. How much does life insurance cost?
The insurance cost depends on the type of policy chosen. In addition, factors like the sum assured, premium amount, age, and coverage influence the insurance cost. The total insurance costs include mortality charges, administrative charges, and investment fees. To know all about life insurance costs, you must read the policy document.
6. Are different options available to pay the premium?
Yes, insurers provide several options for premium payment. You may choose monthly, quarterly, semi-annually, or annual payment options. Some policies are available with a one-time premium.
7. What are the consequences if I do not pay the premium on time?
A grace period of up to 30 days is available from the premium due date. If you do not pay the same within this period, the policy becomes defunct, and all benefits are lost. You need to pay the revival premium when you want to restart the coverage.
8. How can I calculate term life insurance?
One of the common questions is about term insurance and how it is different from regular life policies. The former is a pure life cover and offers only death benefits to your nominees. If you survive the policy duration, there are no maturity benefits available. It is an affordable and convenient way to avail of higher coverage.