What Is Life Insurance

life insuranceWhat is life insurance?

Life insurance can be defined as a contract, in which an insurance supplier will help the person to provide financial coverage in exchange for the regular duration payable period of premium name. The insurance provider will give a lump sum amount to the beneficiaries or nominees of the policyholder after his/her death. This bill will include the sum assured, for which the policy you have purchased and the company will give you the least amount of money to pay before the bonus is added. Without the death benefit, if the policyholder survives throughout the policy term, the maturity benefit of life insurance policy payouts will be paid. In addition, Life Insurance policies are also known to provide tax benefits under Section 80C of the Income Tax Act, 1961.

Types of Life Insurance Policies:

Term Insurance Plans

It is a life insurance policy that provides a scope for a specific period or for specific “fixed” years. If the insured dies during the period mentioned in the policy and the policy is active or is in force, death benefit will also be paid.

Term insurance is less costly than a permanent life insurance. Unlike most types of permanent insurance, term insurance is no cash value.

Endowment Policy

An endowment plan is a life insurance policy that provides you with both bills, for example: insurance cover, and savings plans if the policyholder survives on the policy term, you are able to take a lump sum amount on a policy term, so that it helps in saving regularly over a certain period of time.

Policyholders receive the sum insured on a fixed time according to future due date and conditions. However, in case of sudden death of the policyholder, the insurance company will pay the sum assured (and bonus, if any) to the nominee of the policy. Apart from this, it is also useful to protect yourself or your family after retirement or to meet various financial needs such as financial support for the education of children and / or the marriage or the purchase of a home.

Unit Linked Insurance Plans(ULIP)

ULIPs basically have an insurance policy that gives you the opportunity to create wealth in addition to giving life cover protection. The premium payment given to a unit linked insurance plan is different and one part of it is sent to the life cover of the policyholder and the remaining amount is dedicated to the large money pool known as fund, and then this money is invested in debt, equity, or both, and the return of investment will be decided How well you make the funds you choose.

Money Back Policy

Money back policies that can give the name of the policy, are those that pay a lump sum amount to the nominee of the beneficiary or the policyholder when the premature death of the policyholder comes to the nominee of the policyholder or the policyholder. The maturity benefit paid by a money back insurance policy will be in the form of “survival benefits” with a large number of guaranteed policies. Keep it straightforward, a money back insurance plan is an endowment policy that offers regular cash flow.

Whole Life Policy

A normal life, or a straight life insurance plan, also called a Whole Life Insurance Policy, whose policy terms and conditions do not change in the full term of the policy, the policyholder has made the necessary premium payments. If the policyholder prematurely dies at the time of policy term, a specific predetermined amount will be paid to the beneficiary or nominee. However, the policyholder has the freedom to withdraw money against the whole life insurance policy, or to withdraw the policy at any time. Since the maturity age of the whole life insurance policy is 100 years, if he / she survives the maturity date, then the policyholder will get maturity benefits in the form of a matured ad-liberation.

Annuity/Pension Plans

An annuity life insurance policy is a long term agreement that can be bought by insurance providers. Annuities are created in such a way that they help in assessing income for the retirement income. However, their limitations are that in the case of early withdrawal, consumers will have to pay penalty and the annual income is taxable as per the normal income.

Top 10 Life Insurance Companies In India

LIC (Life Insurance Corporation of India):

LIC, or the Life Insurance Corporation of India, which is known in its expanded form, is the only Indian Life Insurance Company in the public sector. With the commencement of work in 1956, LIC is the oldest life insurance company in the country and thanks to the consolidation of 245 Provident Societies and Insurance Companies. The company’s headquarters are located in Mumbai, and currently 8 divisional offices, more than 14 lakh insurance representatives and more than 2000 branches

SBI Life Insurance:

SBI Life Insurance was registered in 2001 and started work as a joint venture between BNP Paribash Cardiff and State Bank of India – two of the largest service providers so far are related to the finance sector. BNP Paribas Cardiff has 26 per cent stake, while SBI has 74 per cent shareholding.

ICICI Prudential Life Insurance:

ICICI Prudential Life Insurance Company was established in Prudential PLC’s joint venture, which is the UK’s largest financial services group and ICICI Bank is one of the largest and most successful private banking institutions in India. ICICI Prudential Life Insurance Company holds 74% stake in ICICI Bank and Prudence PLC is 26%.

HDFC Standard Life Insurance:

HDFC Standard Life Insurance Company is one of the best life insurance providers in India, which is a private organization that provides long term insurance solutions to customers in almost 1000 cities across the country. Registered in 2000, the company is headquartered in Mumbai and currently employs 14,000 employees in addition to more than 400 branches to ensure that all installments of their insurance premiums are reached.

Bajaj Allianz Life Insurance:

Bajaj Allianz Life Insurance Company was established as a joint venture between Germany’s Alienz SE and Bajaj Finserv in India. The company was registered in 2001 by the name of Bajaj Allianz Life Insurance Company and is one of the best and most trusted life insurers in the country. In addition to life insurance products, the company offers many general insurance products and other financial services in 70 countries around the world.

Max Life Insurance:

In 2001, Mitsui Sumitomo Insurance Co. Ltd. – a general insurance company, is a member of MS and AD Insurance Group and Max India Ltd – India is a multi-business corporate company. Max Life Insurance Company has become one of the most efficient and appreciable private life insurance providers in the country.

Birla Sun Life Insurance:

Birla Sun Life Insurance Co. Ltd. And was formed as a joint venture between Aditya Birla Group and is currently one of the best global financial services providers. The company has gained a strong reputation for significant contribution in the development of life insurance sector, making it one of the largest insurance providers in India. The company currently has more than two million subscribers because it has a broad range of policies, including security plans, child’s future, health and welfare products, wealth with protection plans, protection plans and savings with retirement packages.

Kotak Life Insurance:

One of the largest life insurance providers in India, Kotak Mahindra Life Insurance Company is a joint venture between Old Mutual Fund and Kotak Mahindra Bank Limited. Old Mutual Fund is 26% of the company while Kotak Mahindra Bank Ltd. 74% The company’s headquarters are located in Mumbai and  the company has started in 2001. In fact, it is India’s fastest growing insurance supplier and is currently claiming over 40 lakh customers. While highlighting the company’s quality business practices, the company’s Clam Settlement ratio is highest in the industry.

Reliance Life Insurance :

Reliance Life Insurance Company Limited is one of the most important subsidiaries of Reliance Capital, one of the best financial services companies in the country. The company has a diversified business portfolio, and customers can find products in a variety of categories, including products, all types of insurance, mutual funds and asset management.

PNB MetLife Insurance :

PNB MetLife India Insurance Company Limited, also known as PNB MetLife, was established in 2001, recognized as the most successful and trusted life insurance supplier in India. Some of the key stakeholders of this program include MetLife International Holdings LLC (MIHL), Jammu & Kashmir Bank Limited (JKB), Punjab National Bank Limited (PNB), M. Pallonji & Co. Pvt. Ltd .

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