Life insurance in India: Life insurance India offers you a way wherein you can replace the income loss that happens when someone dies. It is basically a contact between you and the insurer. How this works? It’s simple, really.
For example, if you die while the contract is still on then the company or the insurer will pay a specified amount of money to a person or persons who are named as beneficiaries by you. This money is exempted from income tax and enjoys all cash benefits.
If your Life insurance India program is really good, it will provide you with more than just amount that is generally termed as loss of income. In fact, it should cover all other costs that arise after your death like Probate costs, Funeral expenses, Taxes, Child care and so on.
These benefits have to reach your family’s future as well. What this means is that it should cover the college education of your child, spouse’s retirement needs and so on. In other words, the cash benefits can be used in whichever way your beneficiary wants to and without any restriction.
Like other forms of insurance covers, Life insurance India policies are of different types. One of the types, Permanent life insurance, enables you to get a cash value that you can avail either by borrowing against it or by cashing out from the policy. While few consider this alternative has an attractive one, others believe it otherwise.
There’s one more type of insurance in this category. These are often referred to as Term life insurance policies. They are called so because they are generally set for a specific period or time span. You might as well ask do I really need one such insurance. The answer is: Yes. After all, you wouldn’t like to leave your near and dear ones in lurk once you pass away. Do you? |
