Life Insurance is protecting your family and contingencies that may arise post any unfortunate event of your untimely demise. In India, under a Life Insurance contract, the insurer assures to pay the definite sum to the policy holder’s family on his demise during the policy term.
Except for death benefits, Life Insurance plan also provides maturity benefits. These benefits are provided in the form of a payout if the insured survives the entire term of the policy.
iYojana provides a variety of life insurance plans and policies to meet the individual’s insurance needs and requirements.
Different insurance products are provided by us like Protection, Savings & Investments, Children education and marriage, Retirement, Health-related and women specific. We help you become financially independent so that you live your life on your own terms.
We’re here to help you make important decisions about insurance planning to protect your loved ones because life Insurance is all about what your family needs in your absence.
For buying a life insurance policy, it is important that you choose the right amount of coverage. There’s no use spending more for protection you don’t need. Nor do you want to have too little, leaving your loved ones under-protected.
Types of Life Insurance Policies we offer:
1) Term Insurance Plan: This is the most basic & affordable plan of Life Insurance which one can buy easily. The Term Insurance Plan offers a death cover for a stipulated period of time. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary. Among life insurance plans, term insurance provides the highest life insurance coverage for the lowest premiums during the period of the term plan. In your absence, not only does your family remains financially independent, but also able to fulfil its future needs like your younger child’s higher education.
Benefits of buying a term plan:
- The sum assured is high and the premium amount is low. Also, the premium amount does not change under any circumstances.
- A term plan can be bought with additional riders such as waiver of premium rider, permanent disability rider, critical illness rider, accidental death benefit rider, women critical illness rider and accidental death benefit rider.
- Policy term can be for a term of 5 years up to 60 years.
- The minimum age to buy a term insurance plan is 18 years and the maximum age limit is 65 years.
- One can avail coverage from 25 lakh up to 5 crore and above.
Tenure of Term Insurance Plan:
Factors that affect Term Insurance Premiums:
- Age – Age is a primary factor that decides your premium. Premiums are much lower at a younger age than an older age.
- Gender – Some companies offer rebates to women as studies have shown that the death risk is lower than men.
- Sum assured – The coverage decides the premium. For a higher sum assured premiums are high.
- Lifestyle – Non-smokers get discounts on premiums, while smokers end up paying a higher premium.
- Payouts – Depending on the payouts, the premium amount may differ. If you opt for increasing sum assured premium increases over a period as compared to the level sum assured.
- Term – The longer the duration of protection, the higher will be the premium.
The Term Insurance policy depends on how long you want to protect your family in case of unfortunate occurrences.
In the 20s – You can opt for a term of 40 years. At a younger age, you can fix the premiums for 40 years at much lower premiums. It is advisable to go for a long policy period when young, as with age the responsibility increases, and dependents too.
In the 30s – You can opt for a term of 35 to 40 years. It depends on how many dependents you have, how long you are planning to work till the time you retire and how long your liabilities will last.
In the 40s – You can opt for a term of 20 to 25 years. By 40s, the time frame of liabilities reduces.
In the 50s – By the time you hit a half-century, your children would be grown up and become less dependent, and liabilities are lower. Thus, it is advisable that you can opt for a term of 10 to 15 years.
A smart approach is to buy the term insurance plan early on in life, opting for the longest possible coverage. This ensures you benefit from the low premium during the long tenure of the term plan.
It is not only important for you to have adequate life insurance coverage but also to ensure that it stays that way till the time your family needs it. It is your responsibility to ensure that your family is financially prepared to face any eventuality.
2) Unit Linked Plans: ULIP is a cost-effective market-linked product that gives you dual benefit of insurance & investment.
ULIP is a life insurance product, which provides risk cover for the policyholder along with investment options so that you can invest in any number of qualified investments such as stocks, bonds or mutual funds.
Investment in ULIP:
- Research & find out about ULIP plans and understand as much as you can
- Make sure you interact with the sales call centre to clarify all the doubts about ULIP charges & payout structure for the fund value as well as the cover amount
- Understand the charge structure that applies at the time of purchase as well as throughout the life of the ULIP plan
- Don’t make any decision which is based on just the features, rather identify a plan and fund that best suits your financial risk appetite and life stage. If you have a high-risk appetite, invest in a high-risk, high-return equity fund.
Benefits of ULIP plan:
- It offers benefits of Insurance as well as Investments
- It offers various Investment options for Insurance buyers
- It offers the complete autonomy of selecting the preferred investment option to the insurance buyers.
3) Endowment Policy: Endowment policy is a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term. This maturity amount can be used to meet various financial needs of a family such as funding one’s retirement, children’s education, marriage or buying a new house.
Endowment policies are also known as traditional Life Insurance. These plans come with an element of investment as the risk involved is lower compared to the risk factor with other investment products, the returns are lower as well.
Benefits of Endowment policy:
- It acts as a long-term financial planning tool which offers Returns on Investment at the time of maturity.
4) Money back Life Insurance plan: One of the smarter ways to plan your life investment cover is the Money back policy. The policyholders under these plans receive frequent payouts as the death benefit, in case the policyholder survives.
5) Whole Life Plan: Under the whole life insurance policy, the insured is covered until death or on reaching 100 years of age. If in case the assured individual survives beyond the age of 100 that person receives a life insurance Maturity Benefit. In case of an unfortunate event, a death benefit is paid to their nominees.
Benefits of Whole Life Plan:
- Lifelong Insurance coverage is offered to the policyholder
- Facility of partial withdrawals is offered on the completion of the premium payment period
- This policy comes without an age limit with respect to the eligibility criteria.
