What is Life Insurance ?
Life can be unpredictable and planning for unforeseen events is an essential part of financial planning. Life insurance ensures that the family and loved ones are covered in the unfortunate event of the insured’s demise. It is a contract between the insured and the insurance company, where the insurer promises to pay a sum of money in exchange of the individual paying a premium at regular intervals. The insurer pays the family if the insured passes away or after a stipulated period.
What are the types of Life Insurance
There are a wide range of life insurance products available in the market, ranging from pure protection to saving, from wealth creation to retirement plans. The needs of every individual is different at different stages of life, therefore, we at MIBL suggest products and solutions which are designed to address the diverse needs of our customers.
Why TATA AIA
TATA AIA Life Insurance is a renowned private sector insurance company in india. They provide a range of Insurance products, including life, savings, wealth, and retirement plans, to safe guard the financial future of individuals and families during life’s uncertainities. With an impressive 99.43% Claim settlement Ratio (CSR) in the financial year 2021-22, Tata AIA Life Insurance is among the country’s most reputable and trusted insurers.
Choose the plan that best suits you FRom TATA AIA...
Term Insurance
Sampoorna Raksha Supreme
Tata AIA
♦ Get Rs.1 Cr. Life Cover @Rs.547/month*
♦ Get 105% premium back**
♦ Life cover till 100 years
Wealth Solution
Param Rakshak Plus
In this policy, the investment risk in investment portfolio is borne by the policyholder
♦ Grow wealth with market linked returns
♦ All funds rated 4 or 5 star by Morningstar
♦ Comprehensive Life Cover
Child Solution
Guaranteed Return Insurance Plan
Tata AIA
♦ Get 6.32% guaranteed tax free income
♦ Guaranteed % additions to support child education
♦ Save Tax up to Rs 46,800
Health Plans
Pro-Fit
In this policy, the investment risk in investment portfolio is borne by the policyholder.
♦ Get cover up to 10 lakhs for Surgery
♦ 24.45% Returns to grow your wealth
♦ Extensive global cover for 57 multi-stage Critical Illnesses
Retirement Plan
Fortune Guarantee Pension
TATA AIA
In this policy, the investment risk in investment portfolio is borne by the policyholder.
♦ Get guarante Lifetime income for your retirement
♦ Single and joint life option
♦ Return of purchase price
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Savings Plan
Savings plans encourages systematic savings while giving steady returns to help you achieve specific financial goals while providing life cover protection.
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Protection Plans/ Term Plans
These plans have a definite tenure and pay a death benefit when the insured dies within the selected tenure. Term life insurance is very affordable when compared to another type of life insurance and provide high coverages at very low premiums. In this type of insurance policy, the sum assured is offered to the family or dependents of the policyholder, thereby helping them in managing finances after the primary earner passes away.
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Child Plans
Child plans are to secure your child’s future so that they can pursue their dreams without hesitation. These plans ensure that your child can pursue education and the career of his/her choice. These plans provide both traditional and unit linked child insurance plans that you can choose based on your risk appetite.
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Unit Linked Insurance Plans (ULIPs)
The Unit Linked Insurance Plans (ULIPs) is a type of life insurance that is structured to offer dual benefits of coverage and investment. A part of the premium paid is invested in different options, offering the insured market linked returns. The remainder of the premium is used as life coverage. These are Wealth creation plans.
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Retirement Plans
Retirement plans helps in creating a corpus for the golden years of life. It provides financial security post retirement to help customers live with dignity and pride by maintaining the same lifestyle, manage medical expenses etc.
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Combo Plans
Combo Plans bundle life insurance and health insurance in a single plan, offering the benefits of both in just one policy.
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Group Life Insurance
A Group Life Insurance policy is a collective cover for a group of people. The people need to be part of the same company, association, a group of depositors at the bank, etc. These are popular as the cost of insuring a group of people is significantly lower than individually insuring each member of the group. Most employees are offered Group Life Insurance Schemes to incentivise them. In India it is mandated by the Employee Provident Fund Organisation for employers to insure their employees under the Miscellaneous Provision Act 1952 and the Employee’s Provident Fund. Subscription to the group life insurance scheme can be either contributory or non-contributory. The contributory group insurance requires the member to contribute in some proportion towards the premium. The non-contributory group life insurance, on the other hand, does not require members to pay anything to avail of the benefits of the insurance policy.
Who all can Buy Life Insurance Policies?
Men and women between the ages of 18 and 65 can buy life insurance in India as per the terms and conditions of life insurance policies.
AGE BRACKET | BENEFITS OF BUYING LIFE INSURANCE AT A CERTAIN AGE |
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20-30 | More coverage at a lower premium, which will provide financial assistance for payments such as education loans, etc. |
30-40 | Financial security for the family along with regular income based on the policy invested in. |
40-50 | Plan for life’s milestones such as children’s higher education, retirement, etc. |
50 and above | Helps in paying financial debt as well as earn other benefits. |
What are the Benefits of Life Insurance?
Secure Financial Future
Life insurance policies offer a secure future for the family by providing an assured sum in the event the insured passes away. The money claimed can help the family stay afloat in the insured’s absence.
Tax Benefits
The premiums paid on life insurance policies are eligible for a tax deduction under Section 80C of the Income Tax Act, 1961, to the amount of Rs. 1.5 lakhs.
Financial Planning & Life Goals
As life insurance policies are aligned with the financial goals, the policy provides the financial support to achieve them even in the case of the insured’s untimely demise. Investing early will help plan for all of life’s milestones.
Return on Investment
With an average annual rate of return on a whole life policy is 1.5% as reported by Consumer Reports, it offers a better return on investment than the interest rate of other banking instruments including savings accounts and money market accounts.
Invest to Create Wealth
Life Insurance policies that invest part of the premium such as ULIPs, provide the insured life cover as well as the returns on investment.
Higher Education Plan for Children
Planning, saving and investing for a child’s higher education is a priority for most parents. Life insurance policies can help achieve this milestone securing a child’s future financially.
More Coverage for Low Cost
Life insurance policies, especially the term insurance, provides significant coverage at a considerably lower premium, based on the insured’s age and health.
Loan Options
Taking a loan against certain life insurance policies is becoming a popular choice as it offers a lower rate of interest than a personal loan. Along with providing protection coverage, return on investments, this is an additional benefit.
Critical Illness
The critical illness rider can be opted for when getting life insurance to provide coverage in the case of critical health ailments, such as cancer, heart disease, kidney failures, etc. This benefits the insured in the case of an emergency as the finances are taken care of.
Factors You Should Keep in Mind While Choosing the Cover
When selecting a life insurance policy, these are the factors that should be taken into consideration.
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Active Working Years
A life insurance plan works as an instrument to replace income. Calculate the number of active working years that need to be replaced when selecting the assured sum.
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Identify Recurring Expenses
The assured sum will need to cover all the long-term expenses, such as household expenses, utility bills and loan EMIs. The expenses will highlight how much the sum assured should be.
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Age
It is never too late or too early to invest in a life insurance policy. At every stage of life, starting from the 20s, it is beneficial to provide cover and security through life’s different situations.
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Family Milestones
Milestone events such as weddings, retirement, buying a house require a large investment. The sum assured should be able to cover them within the stipulated time.
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Regular Income
With the right life insurance coverage amount, one can support their family financially with a premium that aligns with regular expenses.