• brightvisioninvestmentservice@gmail.com
  • +91 9003387837 / 7904464373
Brightvision
×
Life Insurance Advisor Online - Bright Vision

Life Insurance:

Life Insurance:


Life insurance policy is a legal agreement between a person and an insurance company, in which the insurance provider guarantees the policyholder's financial security in return for a set amount of money paid each month.
According to the definition of life insurance, in exchange for the premium payments made toward a life insurance policy, the insurer (insurance company) pays a sum insured to the policyholder or to the designated nominees in the event that the policyholder passes away unexpectedly.
According to the agreement, the insurance company will give the individual or his family a lump sum payment in the case of the policyholder's death or if the policy matures after a specific amount of time.
 

What Are the Advantages of Life Insurance?


There are three key benefits to purchasing the greatest life insurance policy that you should be aware of. The three main advantages that each form of life insurance policy provides are as follows:
 

1. Stability financially


Because of how unpredictable and uncertain life may be. A terrible occurrence like death is tough to make less likely. In this case, the family's financial struggles are brought on by the lack of a reliable source of income.
Early life investment in the best life insurance coverage serves as a safety net in such a situation. The insurance company is required by the definition of life insurance to pay the nominee or beneficiary the pre-specified sum assured. As a result, his family is safeguarded even when the policyholder is not present.
 

2. Long-Term Investments


It's crucial to consider the purpose of life insurance while making long-term investments. Such insurance policies assist you in systematic saving and corpus creation, which can be used for many purposes, including the construction of a new home, paying for your child's quality education, and covering a child's wedding costs.
Additionally, if you understand the meaning of life insurance, you'll realize that certain types of policies frequently include annuities, which are a great method to plan for and reach retirement goals.
 

3.Financial Options


Your ability to effectively plan your investments will depend on your ability to comprehend the significance of life insurance in the context of your finances. Unit-Linked Investment Plans (ULIPs), which are primarily investment instruments based on market-linked returns and life insurance, are offered by life insurance companies. This allows you to obtain two financial benefits from a single product.
These market-linked life insurance plans yield sizable gains at maturity, making ULIPs a trustworthy tool for investing.
 

4.The Tax Benefits


You must continue to make premium payments in order to maintain the policy's validity, as stated under the definition of life insurance. In accordance with current regulations and the Income Tax Act of 1961, life insurance plans also provide tax advantages. Under Section 80C of the Income Tax Act of 1961, the life insurance premium payment may be claimed as a tax deduction. Section 80C allows you to deduct up to Rs. 1.5 lakh.
 

Types of Life Insurance policy


1.Term Life Insurance plans


The most straightforward and basic type of life insurance is term insurance. It offers the most cost-effective family financial safety. With term insurance, you can obtain a sizable amount of life insurance (also known as the sum assured) for a relatively small premium cost. In the event of the insured person's passing while the policy is in effect, the benefit amount is paid to the nominee.
 

2.Endowment policy


An endowment policy is made to pay out a lump amount when it matures or when the insured person passes away. Building a risk-free savings fund with the help of an endowment policy can also secure your family's finances in case of an unlucky event.
 

3.Unit Linked Insurance Plans [ULIP]


A ULIP is a type of insurance plan that combines life insurance and investment opportunities to help you achieve your long-term objectives and provide for your family financially in the event of the unthinkable. There are two portions to the premium paid for a ULIP.
 

4.Money Back Policy


A form of life insurance plan called a money-back policy, it offers both investment and protection. With a money-back policy, you can get pay-outs periodically throughout the policy term. It also offers a life insurance component, keeping your loved ones financially secure in the event of an unforeseen circumstance.
 

5.Whole Life Insurance


Whole life insurance is also known as permanent life insurance, in exchange for timely premium payments, the insurance policy remains in effect for the whole policy duration. An entire life insurance policy offers both life coverage and a maturity benefit. In this way, you can safeguard your loved ones in your absence and establish a savings account to achieve your long-term objectives.
 

6.Annuity/Pension Plans

After investing a lump sum, an annuity plan is a financial contract that offers you guaranteed recurring payments for the rest of your life. Your money is invested by the life insurance company, which then returns the profits. You may compare it to a pension Payout that you receive.
 

Comparison of Different Types of Life Insurance Plans

Basis Term Life  Endowment Policies ULIP
Money Back
Policies
Whole Life Policy
Annuity/ Pension
Plans
Policy Length 5-85 Years 5-35 Years 10-20 Years 5-65 Years Till You Turn 100 Yrs. Old Whole Life
Premiums Single, Quarterly, Monthly, Semi-Annually & Annually Lumpsum, Monthly, Quarterly, Half Yearly & Annually Single, Monthly, Quarterly, Half Yearly & Annually Monthly, Quarterly, Semi-Annually & Annually  Single, Monthly, Quarterly, Semi Annually & Annually Monthly, Quarterly, Semi Annually & Annually
Death Benefit Life Cover Sum Assured Sum Assured Life Cover Life Cover Offered by few plans
Maturity
Benefits
Maturity benefit is available only if return of premium is chosen Yes, when the policy expires. Yes, when the policy expires. Benefits of Survival on Maturity Plan matures when you reach 100 years of age Regular income until "survivor".
Ideal for People who want Financial security for the family at an affordable price To leave a legacy for their family Safe and guaranteed returns for a stress-free investment A diversified investment portfolio provides good returns and life insurance Guaranteed benefit at maturity + life insurance
To secure retirement through regular income.

Documents Required for Buying a Life Insurance Policy


Following is the list of documents required while applying for life insurance policy:
v  Duly filled Proposal Form
v  Photograph of the Proposer/Life Assured
v  Age Proof of the Proposer/Life Assured [Driving License, 10th or 12th Mark Sheet, Birth Certificate, Passport, Voter ID, etc.…]
v  Photo Identity Proof of the Proposer/Life Assured [Aadhar Card, Voter ID Card, Passport, Driving License, etc...]
v  Address Proof of the Proposer/Life Assured [Electricity Bill, Telephone Bill, Ration Card, Driving License & Passport]
v  Medical Examination Report of the Proposer/Life Assured
v  Income Proof of the Proposer/Life Assured [Latest form 16, Salary Slips of Last 3-6 Months, ITR (2-3 Years), etc.…]
v  PAN Card of the Proposer/Life Assured
 
 

How to Buy Life Insurance Policy Offline?


1.   Visit the Nearest branch or contact a Life Insurance Agent.
2.   Select the Policy of Your Choice and fill the Proposal Form.
3.   Pay the first premium through any accepted mode of payment like check or demand draft.
4.   A staff member or agent at the branch will help you complete the rest of the process.
 

How to Claim Life Insurance


Life Insurance Claim Can be Classified into Two Categories: -
1.   Maturity Claim
2.   Death Claim
 
Steps Involved in Life Insurance Claim:
          Step1: Intimation of Claim
          Step2: Submit Proper Documentation
          Step3: Claim Settlement
 

Formalities for a Death Claim:


When a person holding a life insurance policy - called the life assured - dies, a claim must be sent to the insurance company as soon as possible. This can be done by an assignee or nominee under the policy. So, any close relative or agent handling the policy can do so.
The claim notice should include information such as date, place and cause of death. The insurance agent should help the family/assignee of the life insured to complete the formalities for the claim by contacting the insurance company.
The insurance company will respond to this notice and ask for the following documents:
v  Filled-up claim form (provided by the insurance company)
v  Certificate of death
v  Policy document
v  Deeds of assignments/ re-assignments if any
v  Legal evidence of title, if the policy is not assigned or nominated
v  Form of discharge executed and witnessed
Other documents such as Medical Assistant Certificate, Hospital Certificate, Employer's Certificate, Police Investigation Report, Postmortem Report are applicable.
 

Formalities for a Maturity Claim:


When a life insurance policy matures, the insurance company usually informs the policyholder about the maturity amount payable along with the discharge voucher two or three months before the maturity date.
The policyholder has to sign the discharge voucher - which is like a receipt - his signature attested and returned to the insurance company along with the original policy deed.
If the policy is assigned in favor of any other person or entity – such as a home loan company – the claim amount is paid only to the discharging assignee.
 

Documents Required for Beneficiaries Claiming Life Insurance:


The following documents are generally required to file maturity claim:
v  Policy discharge form
v  Original policy document
v  Your ID and age proof
v  Proof of your bank account and details (submit passbook copy or cancelled check)
If you have taken out the policy for loan, also submit details of the assignment.
 

Have you lost your life insurance policy?


v  As a policyholder, it’s your right to obtain a duplicate copy of your policy document if you lose the original policy.
v  You should inform your insurer about the loss of the original policy document as soon as possible
v  submit the application to your insurer asking for a duplicate copy of your Policy bond


Let’s take an example:

Mr. Akhil was living with his loving wife and two children. He was in service and getting a salary of Rs 1,00,000/- per month. He was fulfilling his family’s requirements to the fullest and enjoying every moment of their lives.
Unfortunately he expired at age of 35. The surviving member did not have any source of income after his death, but fortunately he had a Life Insurance Cover. So his wife got the money (Sum Assured) from the insurance which she wisely invested. The loss of her husband cannot be compensated but with the money she got from the insurance company she was able to run her house smoothly.

Mr. Bhaskar whose income and family circumstances were the same as Mr. Akhil’s. Mr. Bhaskar expired at age of 35, but unfortunately he did not have a Life Insurance Policy. So their situation was completely opposite. His wife and children had to face a lot of problems with no such income. They had compromise with the many important things in life like studies, children’s marriage, their health, standard of living etc.

The fact is, it is always a loss which you suffer when you lose someone you love. But your emotional struggles do not need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you are not there to care for them yourself.

In short, Life Insurance is the way to keep your family independent with you and after you.
Take your very first step towards financial security and secure your family today with premium insurance plans available. Insurance companies in India offers various life insurance plans to meet individuals goals and needs. Choose from a range of best Life Insurance Policies available and invest. Birght Vision are reputed as best Life Insurance Plans & Insurance Policy Advisor in Delhi NCR.