Life insurance, if taken as per needs can possibly protect you from undesirable situations of life, at least financially. It offers full protection and financial stability to your family in case of any unfortunate event of your death. Under this product, the nominee will get the assured amount, if something happens to the customer who has taken the policy. In life insurance, you need to pay a pre-decided premium amount for a fixed term every year so that your family will get the financial protection against critical illness or death. It not only provides your loved ones financial stability, but it can be a good saving medium for building your financial equity over the period of time.
While choosing an insurer you should select and compare different insurance companies to get the best deal. You should compare your policy on the basis of- premium, cover, benefits, tenure, claim settlement, add-on facilities, etc. In life insurance, you have-joint life policy, convertible whole life & term assurance policy and multipurpose policy.
The minimum sum assured that you can get is 1 Lakh for 5 years and maximum is 10-12 times of your annual income for 35 years.
Premiums paid for life insurance are exempt from tax up to Rs 1Lakh under Section 80C of the Income Tax Act, 1961.
To claim the life insurance policy in case of death, you need to submit few documents like filled-up claim form, certificate of death, policy document, etc. Whereas, in case of maturity claim the process and documentation varies.