Death and critical illnesses are uninvite d guests in anyone’s lives. It has a significant impact on the individual in the case of critical illnesses and on the family in case of death. However, the family suffers in both cases. As a responsible individual and an earning member of the family, you would want to protect your family from the adversities of these life situations. Life insurance enables you to have a protective shield from life’s difficulties.
One can get life insurance plans to diversify its investment portfolio as well. The premiums paid for this life insurance are available for a tax deduction, and it can help you save taxes. There are several other benefits of having life insurance, which makes it a must-have for your family and your investment plans. Life insurance ensures a lump sum payment to the assigned beneficiary which will be very helpful for your family in difficult situations
What is Life insurance?
Life insurance is a financial protective shield one has for their family. Life insurance plans ensure a lump sum payment to the beneficiary on the occurrence of the death of an insured person. This is done to cushion the family members from the sudden loss. In the wake of emotional and physical damage, the family is still financially protected in exchange for individual premiums from the insured person. These premiums can be monthly premiums for some years or a lump sum amount. The details of the insurance can vary from policy to policy. However, the policyholder should make sure that they yield maximum benefits from the investment they are making in the plan in the form of premiums.
Several benefits can be added to life insurance like funeral costs and other coverage. These can be looked into in-depth while understanding what life insurance is? The benefits of life insurance can also be availed in extraordinary situations like that of a critical illness. Life insurance serves both as a protective as well as an investment plan. In the case of the sudden death of the only earning member of a family, life insurance policies help the family to keep afloat while they try to get back on their own. Life insurances can be great investment sources as well since premiums are eligible for a tax deduction.
Term Insurance Premium
Why do you need Life insurance?
Life insurance is an essential part of your coverage and investment plan. These are some of the primary reasons why you need life insurance:
Finances for Children’s Education
Higher education can be expensive. In case of an unfortunate event like the death of a parent, the child might not be able to cope with the expenses of the same. Life coverage helps the family to sponsor education for their children
Solid Post Retirement Plan
Life insurance can become a constant source of income after retirement. This adds security to the investment portfolio of an individual
With the critical illness coverage, the individual has medical bills covered and also has a source of income in these times when the individual has to stop working in several cases.
The life insurance will take care of other lifestyle requirements of the family members in case of the demise of an individual.
Life Insurance Plans by Bharti AXA Life
Bharti AXA Life brings to you several options under life insurances, each with a different purpose and a unique set of benefits.
Premier Protect Plan
This plan offers not only financial protection to the policyholder’s family but also provides the option of increasing the protection as per the requirements at different milestones.
This policy is specially designed for individuals who want to secure their child’s needs, especially education. Shining stars help you to achieve your child’s future in case of an unfortunate demise
With this life insurance policy from Bharti AXA you can arrange a regular income for your family for a period of 15 or 20 years after the occurrence of the sudden demise of the policyholder
There are several other plans and policies provided by Bharti AXA Life to give youthe best life coverage and added benefits that you can avail of with life insurance policies.
Benefits of Life Insurance
Here are some of the benefits of life insurance. These life insurance benefits will help you decide why you should get life insurance?
All the premiums that you pay for life insurance are considered for a tax deduction so you can avail significant tax benefits from the policies that you have taken
Life insurance plans offer a complete life cover which provides a full life cover to the policyholders unlike term insurance where the individual has to be pay premiums until the policy matures
Unfortunate events cannot be seen coming. However, it is crucial to be prepared for the same. critical illness coverage can help you cope financially with a particular situation
These are some of the most common benefits of life insurance plans.
Features of Life Insurance Plan
Some of the most common features of life insurance plans are:
Every life insurance waives further premiums in case the policyholders has a severe illness or are disabled under any circumstances.
Accelerated Death Benefits
In case the policyholder gets a terminal illness, they can claim for cash advances in exchange for the death benefit. This can help pay for the treatment and other expenses
Spouse & Child Riders
This feature helps you to add a cover for your spouse and your child until they are 26 years of age. This feature is useful if you cannot afford to get separate covers
Several life insurances has a mortgage protection cover. The insurance pays your mortgage in case the policyholder dies.
How to Calculate Life Insurance Premium
Here is a way to predict your insurance premium amount. To do this, you can also use a life insurance calculator. Several factors are considered to determine the policyholder’s monthly premium amount. The major ones are:
Age is an essential factor since most medical services availed by policyholders are based on the age of the individual. Older people tend to avail more medical services than the youth and hence are charged higher premiums.
Type of Coverage
The type of coverage you opt for impacts your monthly premium amount. The more benefits you add on to the policy the higher is your premium amount
Amount of Coverage
The amount of coverage varies in different policies, and that impacts the monthly premium amount as well. The higher the coverage amount, the higher will be the monthly premiums.
Your lifestyle details are collected under ‘personal information’ by the insurance companies. These details also impact your monthly premiums, given the probability of your possible requirements for health services.
Your health history has a significant impact on your monthly premiums. If you have an account of accidents or pre-existing ailments, your monthly premiums will be higher than a comparatively healthy individual
These are some of the primary factors to consider while calculating your monthly premiums for life insurance. Use our term plan calculators to see your monthly premiums as well.
Who should buy a Life insurance policy?
There are several groups of people who MUST have a life insurance policy. Here are some groups who should buy a life insurance policy:
Couples who are about to get married or have been married recently should get a life insurance policy. Newlyweds have lower premiums and several added benefits like maternity coverage and others.
Families with a single breadwinner and children can have several benefits from life insurances. The policyholders can add benefits to the insurance and protect their family and the future of their children.
Home Plan Policyholders
Individuals who have home loan premiums going on can get a life insurance plan. Life insurance plans cover up the pending premiums for the home loans in case of the sudden demise of the policyholder
Employees with Company Insurance
Several companies offer life coverage to their employees. Still, it is essential to have separate coverage since the insurance gets terminated in case an employee leaves the job.
Several life insurance plans have additional benefits of insuring your business. This cover helps you to claim the insurance in case of significant losses in your industry. It helps to recover from loses with financial security
Usually young individuals do not invest in life insurances, but mortgage protection and critical illness protection can help the policyholders in unfortunate circumstances.
Anyone other than these groups of people can also opt for life insurance since it protects several areas such as a mortgage, critical illnesses, home loans, and others.
How to choose the best Life insurance plan?
Choosing the right life insurance plan can be a long process. Here are some tips to keep in mind while selecting the best life insurance plan. These factors majorly impact the process of choosing a life insurance plan:
Every policyholder should make sure that they engage with an experienced and a qualified insurance advisor to consider several factors while choosing the perfect life insurance for you
Calculate Life Cover Amount
factors like income sources, dependent members, debt, liabilities, plans, and others should be considered while choosing the perfect life cover amount. Insurance advisors can help individuals with this.
Compare Different Plans
While getting an insurance plan, it is essential to compare different plans and see what various benefits do these plans provide. Once you compare and analyze several different strategies, you will be able to decide which is the perfect one for you
Frequency of Premiums
Before getting life insurance, make sure you decide if you want to pay the premiums monthly, annually, or lump sum amount at once. This will have a significant effect on your monthly budget so plan this while choosing a plan
Go For Medical Tests
Even if the insurance company does not insist, go for medical tests before getting insurance. The premium rates are lower if the medical tests show that you are in good health.
Add Accidental Death Rider
While getting life insurance to add accidental death rider in your life insurance to protect your family in case of any accidents. This add on is significant to avoid unpredictable situations where the family might face financial situations.
These are some of the significant factors one needs to keep in mind while choosing the best life insurance plans for themselves and their families.
Life Insurance Claim Process
The first step involves informing us about your intention to file the claim. Get a hold of the claims form which you can find both at our physical outlet as well as Bharti AXA’s online portal. The claims form will involve filling in details such as cause of death, name of the beneficiary, the location of the death, and personal details such as date of birth of the beneficiary, policy number and name of the beneficiary amongst other aspects.
The next step involves arranging all the necessary documents that you will need in order to ensure that your claim goes through successfully. Some of the main documents that you need to keep handy if you are looking to file a claim include the death certificate pertaining to the deceased registered under the policy, age of the deceased, original copies of the policy document, ID proof of the beneficiary, and any medical reports/records pertaining to the beneficiary’s demise.
Once the claims form and the necessary documents are submitted, the claim will be processed within a duration of 30 days. In some cases, additional steps will be undertaken by the insurer. This is especially true in cases where claims are made within a period of 3 years since the purchase of the policy, in lieu of which additional investigation is undertaken. This includes checking with the hospital where the deceased registered under the policy was admitted prior to his/her demise.
Life Insurance FAQ's
- It will give immediate financial support to your family in case of your demise
- The future needs of your children including higher education are covered
- It will act as a constant source of income after your retirement
- It works as both a protection plan as well an investment plan
- It provides financial help in case of critical illnesses
- Simplicity : Life insurances are simple to understand to manage than several other savings plans in the financial world
- Competitive pricing : Life insurance policies offer better benefits and pricing than any other savings plans
- Tax benefits : Any premiums paid for a life insurance plan are eligible for a tax deduction
- Flexibility : Opting out of these life insurance policies is more comfortable than other savings plans. You also do not lose a lot in case of premature of the opt-out
- Lowest premiums : Life insurance plans have the lowest premiums that yield the best result than any other savings plans
- Term life insurance : Term life insurances are life cover including several add-ons like mortgage cover, accidental rider, and more
- Endowment Plans : This plan combines the benefits of savings and life cover. The lump-sum amount is given to the family members in case of the demise of the policyholder.
- ULIP : ULIP invests risk cover and investment. A part of the premiums paid by the policyholders is spent in markets to get better results for the policyholders
- Whole Life Plans : Unlike term life plans, entire life plans cover you for your whole life and provides you with benefits of the insurance.
- Retirement Plans : As the name suggests, this policy acts as a regular source of income once you get retired. These insurances cover the benefits of life insurance as well
- The sum of all the premiums you have paid
- Any bonuses you have received from the premiums that were invested in the market
- The compound interest on the premiums you have paid through the term
- Think carefully about the main requirements and expectations before buying a policy and analyze all the options carefully.
- Make sure you understand your needs clearly and choose a policy that fits your needs. Seek advice about different policies and make sure you know all the policy details.
- Be very careful while filling the application form, and try to fill it yourself to avoid any mistakes. Make sure to fill the form honestly and correctly to prevent disputes during claims. Also, keep a copy of the application form and the term and conditions agreed upon for personal records.
- Don’t just blindly believe anyone about the policies and doesn’t buy a policy impulsively.
- Make sure to ask a lot of questions about it before deciding on the best one for you.
- Don’t leave any columns of the proposal/application form blank.
- Do not conceal or lie about any facts that you fill in the form.
- Do not miss or delay the Premium due dates to avoid policy getting defunct.
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale
Consult with your financial advisor before making any decisions on insurance purchase.
*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time.