Life Insurance
Features Of Life Insurance
Guaranteed Income
Guaranteed Income with Risk Cover
Sovereign Guarantee
Indian government support
Death Benefit
(usually family members)
Tax Benefits
tax deduction up to ₹1.5 lakh
Loan Facility
Whole Life and Endowment plans
Cash Value
Grow in cash value over time
Benefits
About Life insurance
Life is unpredictable, but your family’s future doesn’t have to be. At Your Wealth Wisher, our life insurance policies are designed to provide a financial safety net for your loved ones in case of any unforeseen circumstances. Whether you’re looking for term insurance for pure protection or whole life insurance for lifelong coverage and savings, we have the right solutions tailored to meet your needs.
Guaranteed Income with Risk Cover:
Provides Guaranteed Income with Life Risk coverage for your entire policy term.
Sovereign Guarantee:
It means that the Indian government promises to support and ensure the financial stability of LIC. If LIC faces any financial difficulties or is unable to fulfill its obligations, the government will step in to help cover any losses or payments. This guarantee adds a layer of security for policyholders and investors, assuring them that LIC’s operations are backed by the government’s support.
Death Benefit:
This is the core purpose. If you pass away while the policy is active, your beneficiaries (usually family members) receive a lump sum of tax free money. This helps them financially when they lose your income.
Tax Benefits:
Life insurance offers tax benefits under Indian tax laws:
- Section 80C Deduction:
- Premiums paid for life insurance policies are eligible for tax deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act.
- Section 10(10D) Exemption:
- Effective from April 1, 2024, the maturity amount received from a life insurance policy with an annual premium of up to ₹5 lakh is tax-free.
- Death benefits received from any life insurance policy are also fully tax-free under Section 10(10D).
Loan Facility:
Some life insurance plans (like Whole Life and Endowment plans) accumulate cash value over time. This can be accessed through loans.
Cash Value:
Some life insurance plans, like whole life and endowment plans, grow in cash value over time. You can access this cash value by surrendering your policy early. But remember, surrendering early may lead to financial losses. It’s usually best to avoid surrendering your policy unless absolutely necessary.
Why to take life insurance?
It is advisable for every person to have life insurance, because a single unexpected event can create significant financial hardship for a family.
Life insurance is essential for securing your family’s financial future and providing peace of mind.
Financially:
Financial Security:
Unexpected events can be financially devastating. Life insurance provides a crucial financial safety net, protecting your family from potential financial hardship and safeguarding their future.
Income Replacement:
In the event of your passing, life insurance replaces your income, enabling your family to maintain their standard of living, cover essential expenses, and fund important obligations such as education.
Mitigation of Life's Uncertainties:
Death can occur unexpectedly. Life insurance ensures your family’s financial stability even in your absence.
Emotionally:
Reduced Anxiety:
Knowing your family is financially protected offers significant peace of mind, allowing you to focus on living your life fully.
Demonstration of Love and Responsibility:
Life insurance demonstrates your love and commitment to your family by ensuring their well-being should you no longer be there to provide for them.
Strengthened Family Bonds:
The knowledge that your family is protected from financial hardship provides comfort and reinforces family bonds.
Add-ons:
Life insurance riders are additional benefits or features that you can add to your base life insurance policy for extended coverage. Common riders include
ADB (Accidental Death Benefit):
Provides a payout to your beneficiaries if you die due to an accident.
ADDB (Accidental Death and Disability Benefit):
- Accidental Death: If you die in an accident, your family gets additional money.
- Accidental Disability: If you become disabled due to an accident, you get a sum of money. The amount usually depends on the severity of the disability.
PWB (Premium Waiver Benefit):
If you become totally and permanently disabled due to an accident or illness, this waives your future premium payments, but your coverage continues.
Term (Term Insurance Rider):
Provides a specific amount of life insurance coverage for a set period (“term”). If you die within that term, your beneficiaries receive the payout.
Critical Illness Cover:
Pays a lump sum if you’re diagnosed with a covered critical illness (e.g., cancer, heart attack).
- Secure Your Child’s Future
Our child-specific life insurance plans help you prepare for your children’s future by securing funds for their education, marriage, and other milestones. With guaranteed payouts at key stages, these plans provide both financial security and emotional comfort, knowing your child’s financial future is well-protected, even if you are not around.
- Anyone can have mild to severe symptoms.
In addition to basic health insurance, we also offer critical illness policies that provide a lump-sum payout if diagnosed with life-threatening diseases like cancer, stroke, or heart disease. This benefit ensures that you can focus on recovery without worrying about finances during a tough time. Our goal is to help you live a stress-free life, knowing your health is in good hands.
It is very important for you to know.
- When Buying Insurance:
- Assess your needs: Determine the appropriate coverage amount based on your financial obligations, such as outstanding loans, future expenses (children’s education, marriage), and family’s living expenses. Consider factors like your income, number of dependents, and existing assets.
- Research and compare: Compare policies from different insurers, considering factors like premium rates, policy features, claim settlement ratios, and the insurer’s financial stability.
- Understand different policy types: Familiarize yourself with term life insurance (pure protection for a specific term), whole life insurance (coverage for your entire life with a cash value component), and other variations like unit-linked insurance plans (ULIPs). Choose the type that best suits your needs and financial goals.
- Read the policy document carefully: Understand the terms and conditions, exclusions, premium payment options, and surrender value (if applicable).
- Disclose all relevant information accurately: Provide complete and accurate information about your age, health, occupation, and lifestyle habits. Hiding or misrepresenting information can lead to claim rejection.
- Choose the right policy term: If opting for term insurance, select a term that aligns with your financial obligations, such as the duration of a loan or until your children become financially independent.
- Nominate a beneficiary: Clearly nominate a beneficiary or beneficiaries to ensure the smooth transfer of the death benefit.
- Don’t hide any information: Never conceal any health conditions, smoking habits, or other relevant details. Non-disclosure can invalidate the policy.
- Don’t solely focus on low premiums: While affordability is important, don’t compromise on adequate coverage or choose an insurer with a poor claim settlement record just for lower premiums.
- Don’t delay buying insurance: The cost of insurance increases with age, and health issues can make it more difficult or expensive to obtain coverage.
- Don’t buy more than you need: Avoid over-insuring yourself. Calculate your needs carefully to avoid paying unnecessary premiums.
- Don’t let the policy lapse: Ensure timely premium payments to keep the policy active. A lapsed policy may require reinstatement, which can be difficult or costly.
By following these do’s and don’ts, you can make informed decisions when buying a life insurance policy and ensure a smooth claim process for your beneficiaries.
- When Making a Claim:
- Inform the insurer immediately: Notify the insurance company as soon as possible after the death of the insured.
- Gather all necessary documents: Collect the death certificate, policy documents, identification proof of the beneficiary, and any other required documents.
- Submit the claim form promptly: Fill out the claim form accurately and completely, and submit it along with the required documents.
- Cooperate with the insurer: Provide any additional information or documents requested by the insurer during the claim process.
- Keep records of all communication: Maintain copies of all correspondence with the insurance company.
- Don’t delay informing the insurer: Delays in informing the insurer can complicate the claim process.
- Don’t submit false or misleading information: Providing false information can lead to claim rejection and legal consequences.
- Don’t discard any documents: Retain all original documents and keep copies for your records.
- Don’t hesitate to seek assistance: If you encounter any difficulties during the claim process, seek assistance from the insurer or a legal professional.
By following these do’s and don’ts, you can ensure a smooth claim process for you and your beneficiaries.
01.
Why & When to Take Life Insurance?
Covering your life value doesn’t make you rich, but it ensures that your family doesn’t face financial hardship during challenging times.
All your decisions regarding the future should prioritize the well-being of your family. Ignoring life insurance means exposing your family to financial risk, should anything happen to you. While life insurance may not buy all the happiness, not having one can certainly take it away from your family during tough times.
The modern advancements in healthcare have led to longer life expectancies. This means that people are living longer, which also means the need for money in your later years increases, especially when you may not have a regular source of income. Expenditures, particularly for healthcare, often rise as you age. This makes systematic financial planning through life insurance essential to ensure you have sufficient funds for your retirement and medical needs.
The best time to get life insurance is when you think you don’t need it. If you wait until you’re older, you might find yourself ineligible due to age, health, or income limitations. Life insurance is about planning ahead and ensuring that your family’s financial future is secure, no matter what happens.
02.
Who Should Be Your Life Insurance Advisor?
Selecting the right life insurance advisor is crucial. Here’s what you should look for:
Professional Expertise: Someone who can assess your liabilities against your assets and calculate the right life insurance value for you.
Step-by-Step Planning: An advisor who can help you reach your life coverage in stages if immediate full coverage isn’t possible.
Ongoing Support: A professional who is available to answer all your queries, even after you’ve purchased the policy.
At Your Wealth Wisher, we pride ourselves on offering these essential services to ensure you have the right coverage.
The best time to get life insurance is when you think you don’t need it. If you wait until you’re older, you might find yourself ineligible due to age, health, or income limitations. Life insurance is about planning ahead and ensuring that your family’s financial future is secure, no matter what happens.
FAQ - Frequently Asked Questions
Life insurance is an agreement between an individual (Policyholder) and an insurance company. The policyholder pays premiums for a certain period. The insurance company promises to pay benefits to the nominees/beneficiaries upon the policyholder’s death or at the end of the policy term. It provides financial protection for the policyholder’s family in case of untimely demise.
The Human Life is invaluable, a humble attempt to derive your minimum commitment to your loved ones and to get you covered for the minimum required Sum Assured for you to have peace of mind is just a click away.
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There are various types of Life Insurance Policies available in India, like
- Term Insurance: Provides pure life coverage for a specific term. It does not offer any maturity benefits but provides a lump sum payout to the beneficiaries in case of the insured’s death during the policy term.
- Whole Life Insurance: Offers coverage for the entire life of the insured and provides a death benefit to the nominees whenever the insured passes away.
- Endowment Policies: Combines life coverage with savings and provides maturity benefits if the insured survives the policy term. In case of death during the policy term, the death benefit is paid to the nominees.
- Unit-Linked Insurance Plans (ULIPs): Offer both life coverage and investment opportunities. Part of the premium is invested in various funds, and the policyholder can switch between funds based on their risk appetite.
- Money Back Policies: Provide periodic payouts during the policy term and pay the balance as a lump sum upon maturity or death of the insured.
- Child Plans: Specifically designed to secure a child’s future by providing financial support at crucial milestones of their life.
Disclaimer:
Please note that the information provided here is for general understanding and might not cover all specific scenarios or recent changes in regulations. For detailed and accurate information, it is recommended to contact an insurance provider or consult the Insurance Regulatory and Development Authority of India (IRDAI) website. www.irdai.gov.in
