Life Insurance Plans and Policies in India is a protection to a family against early death of the earning member and it acts like a ’safety-valve’.

Life Insurance is an agreement between two entities– the insurer and the insured.  The insurer sells products i.e. Insurance policies. The insured payees (called premium) to buy it.

Life insurance plans and policies in India.

IMPORTANCE of LIFE INSURANCE

To be or not to be—is a dilemma in human life. Man is mortal. So we have to die one day. We generally think that I will live up to the age of 70 years. After attaining age 20-25 years, it is expected that you will take charge of your family and carry the burden of your existing family members—support your aged parents, minor /enable brother or sister, wife and child/children. You love them very much. They are totally /partially dependent on you, to be more precise on your income.

If you die earlier your earning will be zero (exclude pension holder—they will be hard (4- 5) % of the total population.). But your family desperately need money for their existence. Without sufficient money they will be in a miserable state If you try to imagine their situation without money in your absence, you will be trembling and crying visualizing their miseries.

If you have taken the suitable policy and paying the premium timely both you and your family will remain safe and happy and peaceful and joyous.

If you survive the total span of the policy, you will get a lump sum amount for your future security or complete some needs or fulfill your dream.

The total money you or your family get from insurance companies is totally tax-free i.e. there will be no deduction.

Besides the premium amount is tax-free under 80C of Income Tax Rule.

The insurer is the company who is selling/offering some benefits, called plan. For example,

These plans are known as policies. Every policy is identified with its no., called table.

Every policy has details of the followings-

• Product Summary- Plan name and Table no., linked/ non linked, with/without profit, single/regular premium, etc.
• Age limit—minimum and maximum age to take the policy
• Premium payment mode—yearly/half-yearly/quarterly/monthly
• Term—for how many years you have to pay and when you will get the return amount i.e. maturity time/age.
• The maximum age for maturity
• Sum Assured— The amount of life risk. The bonus is calculated on this sum assured or S.A.
• Maturity Amount- At the time of maturity if the policyholder survives he will get this S.A. plus total bonus accrued in this time period (less the amount he already received in case of money back policy).

/The amount a policy holder’s nominee will get at the time of the insured person’s unfortunate death along with a bonus if any. Other benefits such as Accidental Death /Disability benefit rider/term rider etc. will be written in the manual.

The insured person is the policyholder who purchases a policy of his choice/necessity and capacity. He has to pay regular premium throughout the term.

REMEMBER: You Must pay Insurance Premium for at least 3 completed years, otherwise, your hard earned money will be forfeited.

IRDA- Insurance Regulatory Development Authority controls and regulates all the insurance companies in India. IRDA is a regulatory authority of the Indian Government. So all the companies and policies are genuine. Go through the written pops and corns (terms and conditions and benefits) before taking a policy.

  Life Insurance Corporation of India(L.I.C.) holds no. 1 position who alone holds around 60% of insurance business in India. One can easily see its branches, premium-points, agent anywhere and everywhere in India. It is running since 1956