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Life Insurance

Life insurance is protection for you and your family. If the main breadwinner of your family were to get seriously ill or die, this would have a huge financial impact. Life insurance can help give your family peace of mind that if something terrible does occur, then insurer provides you lumpsum fund equitant to sum assured

Concept of Life Insurance

A life insurance policy is a contract between a life insurance company and a policyholder that provides financial protection under which the insurer pays a specific amount to the beneficiary of the policy on the untimely death of the insured person. As per the agreement, the policyholder pays a predefined amount as the policy premium and the insurance company provides a life cover. A lump-sum amount is paid in case of an untoward incident with the life insured. Some policies also pay you a maturity benefit at the end of the policy term.This nominal sum of money is the premium amount you pay to secure the cover. In its raw form, the cover should only last for a year, and the premium amount for the next year can change. However, you can continue the modern life insurance cover for decades at a level annual premium.

The sum which the insurer promises to pay in the case of the unfortunate event is the sum assured or the benefit amount.

Death Benefits

Life insurance enables individuals to protect themselves and their families, in case of any unfortunate happening in the life of the insurer. The insurer pays an amount equivalent to the sum assured as specified in the contract along with applicable bonuses. This is known as the death benefit.

Wealth Creation through Investment Components

A few life insurance policies offer wealth creation benefits as well. In such life insurance plans, you can invest your premiums in different funds based on your risk appetite. These life insurance plans are excellent wealth builders in the long run.

Financial Security

The primary importance of a life insurance policy is that it provides your family with long-term financial security. Life insurance policies provide a lump sum money to financially support your family in the case of your early demise. which look after the family’s regular expenses, future goals and any ongoing debts after your death.

Loan Option

A cheaper loan facility is one of the important benefits of life insurance plans. You can use your life insurance policy with the investment part for a loan as well. Life insurance plans like guaranteed savings plans, money back plans and whole life insurance policies acquire a cash value over time. You can borrow at a low rate of interest against this cash value.

Life Stage Planning

The importance of life insurance grows as you progress through your life stages. Life stages refer to the multiple major stepping stones like marriage, childbirth, home purchase, retirement, etc. You can use life insurance plans to prepare for each of these life stages. For example, term insurance for protection, child plan for child’s marriage and education, ULIP for building wealth, the pension plan for retirement, etc.

Assured Income Benefit

Assured Income benefit is another important benefit of life insurance plans. offer a regular income payout option for your family after your early demise. Similarly, life insurance pension plans can offer a long-term guaranteed income to you and your spouse.

Builds Saving Habit

To keep your life insurance policy active, you are required to pay regular amounts known as premiums. Without the payment of premiums, your policy can get canceled. Thus, by investing regularly, you inculcate a habit of savings which benefits you in the long run.

Helps in Tax-Savings

To promote savings and investment, the government has made many investment instruments eligible for tax savings. Life insurance is one such instrument. You can avail of a tax deduction of up to Rs 1.5 lakh towards the premium you pay in a year u/s 80C of the Income Tax Act 1961. Thus, you have the benefit of investment as well as tax savings.

Peace of mind

Insurance plans give you peace of mind knowing that your savings would not be threatened in emergencies. This gives financial independence to you and your family.

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region. For the financial year 2021-22, the total premium income of Tata AIA Life increased to INR 14,445Cr., a growth of 30%. For the same period, the Company registered a Retail New Business Weighted Premium of INR 4,455 Cr. The 13th month persistency of the Company was at 87.8%, and the Individual Death Claims Settlement ratio was at 98.53%. One of the fastest growing companies in the Life Insurance sector, Tata AIA Life maintained its rank no. 5, based on Individual Weighted New Business Premium.

There are various types of life insurance policies that one can choose, remember that it is important to consider your financial goals when you are planning to buy the best life insurance plan. Listed below are the different types of life insurance plans

Term Life Insurance

Term insurance is the most popular one in life insurance category. It has a specific period and expires at the end of the term. The best things about a term plan are the premiums are quite affordable. These plans can be bought by people who have just started their career as the premiums are low. Some of the best term life insurance plans offer critical or terminal illness cover – that means the policyholder will be paid a lump sum amount on diagnosis of life-threatening diseases to help them cover the medical expenses.

Endowment/ Saving

This is a type of life insurance policy that offers you a life cover along with an avenue for savings. If you buy the best saving plan, you can save regularly over a period and this will lead you to get a lump sum amount at maturity. Buying an endowment or saving plan is beneficial if you have long-term financial goals such as funding your child’s education, buying a new house, or spending a carefree retirement life.

Whole Life Insurance

As the name suggests, it is a policy that covers you till you turn 99. That means, you can be protected till you are 99 years of age. Whole life insurance plans have a death benefit along with cash value. The life insurance policy’s cash value will grow over time and can be withdrawn by the policyholder when it accumulates enough value. Or, it can also be withdrawn if the policyholder opts for a loan on the life insurance policy.

Money Back Policy

Money back Policy is a type of life insurance policy that gives money-back at regular intervals. A percentage of the Sum Assured is paid back at intervals during the policy tenure. These life insurance plans offer Survival Benefits, which are paid out during the plan tenure and at maturity. If the policyholder passes away when the policy is in force, the entire Sum Assured is paid to the beneficiaries irrespective of the Survival Benefits already paid.

Retirement Plans

These life insurance policies help you build a retirement corpus so that you can enjoy your post-retirement life. You can make your spouse the beneficiary to your life insurance plan. So, in case, something happens to you, they can be financially independent. Also, having the best life insurance plan will help you pay for medical expenses during retirement.

Unit Linked Insurance

ULIPs are investment plus insurance plans so that you can enjoy best of both the worlds. This is a type of life insurance policy that offers life cover along with investment opportunities. Most of the ULIPs have a lock-in period of 5 years, hence, it can be considered as a long-term investment plan. It function as per market dynamics and you should understand your risk appetite before buying a ULIP.

Child Insurance

Child insurance plans are life insurance policies that are opted to safeguard the future of your child. Along with providing a life cover, it helps in building an education fund to support your child’s dreams and aspirations. Child plans are investment plus insurance plans designed to assist you in creating wealth for your child’s future needs. You can invest in these plans right when your kid is born to build a strong financial cover.

All above mentioned plans are available with Tata Aia Insurance

Explore more Link : https://www.tataaia.com/


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Disclaimer

We are only distributor of Tata Aia Life Insurance Insurance products and NOT product manufacturer

We are only distributor of Tata Aia Life Insurance Insurance in Individual capacity not registered as corporate entity

We are acting only as a facilitator and claims settlement shall be at the sole discretion of the Insurer.

Insurance cover is available under the product.

The products are underwritten by Tata AIA Life Insurance Company Ltd.

The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

This content is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry

The contents herein mentioned are solely for informational and educational purpose only

The information provided on this website is to help investors in their decision-making process and shall not be considered as a recommendation or solicitation of an investment or investment strategy.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

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The above calculation and illustration of figures are indicative only and not on actual basis.

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Benchmark Investments only acts as a mediator between its clients and the company inviting/accepting deposits, known as Principal Company.

The contents herein above shall not be considered as an invitation or persuasion to trade or invest. We accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

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