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Important Life Insurance Terms You Should Know
Riders: Riders are additional insurance covers which can enhance the cover of your policy with either an additional sum assured or by covering an additional risk. For example, if you are looking for the best life insurance plan, you can include accidental death and disability rider to your term life insurance policy.
6 Factors to Consider Before Buying a Life Insurance Policy:
Additional Benefits of the Life Insurance Policy: Be sure to take note of the benefits involved in the policy. These can be bonuses, riders, etc. Some of the riders include a waiver of premium rider, an accidental death benefit rider , a critical illness rider, and more. Riders enhance the scope of the policy. Make sure that your policy contains these benefits before buying.
Tax Benefits of Insurance Plans
Schedule II (Table S.No. 2) (previously known as Section 10(10D) ): The death benefit received by the nominee under a life insurance policy is generally tax-free under Section 10(10D). Additionally, maturity proceeds from eligible life insurance policies may also qualify for tax exemption, subject to the conditions prescribed under the Income Tax Act.
What is Life Insurance and Why is it Important?
Tax Benefits: Life insurance premiums are eligible for tax deductions under Section 80C of the Income Tax Act, making it a tax-efficient way to secure your family’s future. The death or coverage benefit remains tax-free under Section 10(10D) .
2. Unit Linked Insurance Plans:
Unit-Linked Insurance Plans (ULIPs) are versatile investment plans from life insurance companies. These plans offer life cover and also let you invest in funds with different risk levels. You can build your investment portfolio while availing all the tax benefits available with these types of life insurance policies.
6 Factors to Consider Before Buying a Life Insurance Policy:
Type of Policy: When choosing a life insurance policy, it's essential to align your selection with your specific financial goals and needs. There are various types of life insurance policies, each catering to different objectives. Term life insurance is ideal if you're seeking substantial coverage at affordable premiums, even without maturity benefits. Endowment life insurance combines savings and life coverage into one plan, making it suitable if you want both benefits. A Unit Linked Insurance Plan (ULIP) is preferable if you aim to integrate investments with life insurance. Whole life insurance offers coverage until age 99, ensuring long-term security. If planning for your child's future milestones like education and marriage, a child insurance plan fits best. An annuity plan is suitable if you seek a life insurance policy that also provides retirement benefits. Assessing these options against your financial objectives will help you choose the most fitting policy.
Why is Life Insurance Important?
Life insurance offers more than just financial protection, it can help secure your family's future, support long-term financial goals, and provide peace of mind throughout different stages of life. Here are some of the key benefits of life insurance:
What are the Advantages of a Life Insurance Policy?
Life insurance is a crucial financial product that offers several benefits to individuals and their families. It's not merely an insurance option, but it also helps generate wealth over time. Listed below are some of the advantages of a life insurance policy:
Why Buy Life Insurance Online?
Child Support Benefit is a rider available under the iSelect Smart360 Term Plan . This rider allows you to provide a lump sum amount for your child’s important future goals. This amount is separate from the base sum assured of the policy and is always paid in a lump sum. This is regardless of the mode of the base sum assured payment. Under the iSelect Smart360 Term Plan, you can choose to pay the death benefit as a regular income to your family. Thus, a lump sum amount will help safeguard the child’s future goals without affecting the family’s financial needs.
What are the Advantages of a Life Insurance Policy?
Assured Income Benefit: Assured income is another important benefits of life insurance plan. iSelect Smart360 Term Plan offers a regular income payout option for your family after your early demise. Similarly, Life Insurance Plans can offer a long-term guaranteed income to you and your spouse.
Life Insurance Riders
Child Support Benefit Rider: Child Support Benefit is a rider available under the iSelect Smart360 Term Plan . This rider allows you to provide a lump sum amount for your child’s important future goals. This amount is separate from the base sum assured of the policy and is always paid in a lump sum. This is regardless of the mode of the base sum assured payment. Under the iSelect Smart360 Term Plan, you can choose to pay the death benefit as a regular income to your family. Thus, a lump sum amount will help safeguard the child’s future goals without affecting the family’s financial needs.
What are the Advantages of a Life Insurance Policy?
Assured Income Benefit: Assured income is another important benefits of life insurance plan. iSelect Smart360 Term Plan offers a regular income payout option for your family after your early demise. Similarly, Life Insurance Plans can offer a long-term guaranteed income to you and your spouse.