Significance of Life Insurance and Its Features

Life Insurances 235 views

When it comes to life insurance policy, it is nothing but a contract between an insurance company and the policy holder. In life insurance policy, you need to pay a pre-decided premium amount every year for a fixed term. Moreover, by doing so your family members will get the protection cover in return to tackle the unfortunate events like critical illness or death.

With the help of availing a life insurance policy, you can give your family the financial independence in case of any unexpected situation. Thus, it's important for an individual to get one life insurance policy as it is an integral component of life planning. Furthermore, an insurance policy ensures sustenance of your beneficiaries. Yes, it means that the dear ones you have mentioned in the policy will be looked after, if any unforeseen circumstances occur.

It helps in providing the financial support as well as complete assistance to your loved ones such as spouse, children, parents or even employee & business partners.

How Much Life Insurance Cover Do You Need?

Well, how much life insurance cover one actually needs is a difficult thing to determine because your only concern is to make sure that your coverage will be adequate. Furthermore, an excess coverage  creates a direct impact on your finances because of the higher premium payments, and being under insured is never considered ideal.

Thus, to make the things easier, there is only one elementary thumb rule that you need to follow, and i.e., your life insurance cover should be 10-12 times of your annual income.

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More to the point, here the best way to know about your policy coverage is through an insurance consultant, who will do the financial needs analysis for you. Through this way, you can have an estimated coverage, and can give your loved ones a secured future. And, as they say-'Prevention is Better than Cure'. So, apply this rule in your real life also, and give your family a complete protection.

Features & Benefits of Life Insurance Policy

Life insurance policy comes to you with plenty of unmatched features, thus making it a much needed life- planning tool.

  • You can easily choose a perfect coverage option, and can pay with affordable premium.
  • As per your lifestyle needs and choices, you can choose the best life insurance policy from many, ranging from pure insurance to hybrid insurances products.
  • Life insurance gives financial security to your loves ones, in case of unexpected eventuality.
  • You can also enjoy the tax benefits on different types of life insurance policies.

Why You Need Life Insurance

  • Pay for Illnesses and Accidents
  • Get Loans
  • Fulfill your Family's Financial Requirements
  • Pay Off Loans and other Expenses
  • Tax Benefits

Few Insurers that Offer Life Insurance

InsurerCoverPremiumMaximum Maturity Age 
PNB MetLife1 CroreRs.567-Rs.683 monthly75 years
Kotak Life Insurance1 CroreRs. 13.97 per dayNA
Policy Bazaar1 CroreRs. 17 per dayNA
HDFC Life1 CroreRs. 535 monthly75 years
Aegon Life1 CroreRs. 675 monthly75 years


Personal Loan Interest Rates May 2018
Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 10.99% - 20.99%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 10.99% - 16.00%
Kotak Bank 10.99% - 20.99%
RBL 13.00% - 18.00%
Standard Chartered Bank 10.99% - 14.49%
Tata Capital 10.99% - 18.00%
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HDFC 8.40% - 9.10%
Bank of Baroda 8.40% - 9.40%
LIC Housing 8.45% - 8.90%
PNB Housing Finance 8.40% - 8.99%
ICICI Bank 8.45% - 8.95%
Axis Bank 8.40% - 8.75%
Citibank 8.40% - 9.25%
Indiabulls Housing Finance Limited 8.45% - 9.75%
Kotak Bank 8.35% - 8.50%
DHFL 9.00% - 10.00%
Reliance Home Finance 8.75% - 10.00%
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