Apply For Loans

Sagun Finance Life Insurance

  • Life Insurance :
    • Life is full of uncertainties, but you need to devise ways to manage the risks arising out of these issues. A life insurance policy is one such means of providing financial security to the family in case of any eventuality like the sudden demise of the breadwinner. To get the benefit when needed, you should know and understand life insurance plans & policies in India.

  • What is Life Insurance? :
    • Life insurance provides financial protection to the family in cases like the sudden death or the permanent disability of the main earning member of the family. Thus, it is an assurance that the insurance company will take care of the financial well-being of the family members even when the breadwinner is not around. This is done by paying the sum assured to the nominee or the beneficiary. The insurance can also cover other contingencies like critical illness and permanent or temporary disability. The policyholder is called the insured, while the insurance company is called the insurer.
      A life insurance policy helps in meeting three goals in life. Let us look at them :
      Protection : A life insurance policy provides financial security to the family on the untimely demise of the insured.
      Investment : Along with protection, life insurance also helps in investment so that the money can be used for meeting various financial goals.
      Savings : Along with protection, through life insurance, you also get to save money which can be used during retirement or for other financial needs.

  • What is Life Insurance Premium? :
    • A premium is the amount paid to the insurance company for getting a life insurance policy. The premium or the cost of the insurance is an important aspect to be considered before finalising a policy. It depends on various factors like age and gender. To reap the benefits of the insurance policy, it is important to pay the premium on time. In case of a non-payment or a payment delay, the policy can be considered as a lapsed policy. However, before a policy happens to expire, you usually get a grace period of 30 days. The payment mode can be regular or single. A regular payment can be monthly, annually and so on. Let us understand some factors on which the premium depends.
      Age :This is an important deciding factor while buying an insurance policy. Older you are, higher the premium amount. Accordingly, younger people have to pay lower premium amount for a life insurance policy.
      Gender : Premium amount for women is lower compared to that for men.
      Smoker/Non-smoker : In case you are a smoker, the premium will be higher because you are prone to higher risks in life. Thus, a non-smoker has to pay lower premium.
      Sum assured :Higher the sum assured or the death benefit, higher the premium amount to be paid.
      Policy term : If the policy is for a longer duration, the premium amount will be higher.

  • Types of Life Insurance Policy :
    • Life insurance is of 7 types. And each has its own features and specialties. You can choose them as per your need and requirement. They are: Term Insurance, Whole Life Insurance, Endowment Policy, Money Back Policy, Child Plan, Retirement or Annuity Plan and United Linked Insurance Plan (ULIP).
      Term Life Insurance
      Whole Life Insurance
      Endowment Policy
      Money Back Policy
      ULIP (Unit Linked Insurance Plans)
      Children's Policy
      Retirement Plans

  • Other Types of Life Insurance :
    • Group Life Insurance :

      Group life insurance is a type of life insurance that covers a group of people. It is mostly provided by companies to its employees. As the insurance is done in a group, a group life insurance is considered cost-effective. The group can comprise lawyers, members of cooperative banks, societies, doctors, etc. This life insurance can be contributory, where the employees contribute along with the employer in the payment of the premium, or non-contributory, where the employer pays the entire premium amount.

      Life Insurance for Senior Citizens

      You can brave various situations of life when you are young; however, in old age you need more protection and security. To manage such circumstances of life in old age, life insurance for senior citizens can be a good option. The insurance also provides financial coverage at times of need. For instance, in case you do not have any support for your spouse, life insurance for senior citizens can provide financial security to the spouse in case of your sudden demise. The death benefit can also be used to manage loans, debts and other financial needs.

  • What Life Insurance Covers? :
    • Along with the standard coverage which varies with plan to plan, you can further enhance the protection with the help of riders, such as accidental death benefit rider, total or permanent disability rider and many more. The additional benefits can be availed on payment of some extra amount. Following are some common riders :

      • Accidental death benefit rider : Nominee gets this financial benefit along with the sum assured, if the insured happens to dies in an accident
      • Accidental total and permanent disability rider :Insured gets financial assistance if he/she is not able to earn due to some disability mentioned in the policy
      • Critical illness rider :This covers major critical ailments like cancer, heart attack
      • Hospital cash rider :A fixed amount is paid to meet the expenses of non-medical items in case of any hospitalisation
      • Waiver of premium rider :Once you have this rider along with your life insurance policy, the company waives off the remaining premium payment on the sudden demise or total permanent disability of the insured
  • Documents Required For Claim Process :
    • Following are the standard set of documents required to process a claim :

      • Duly filled in and signed claim form
      • Original policy certificate
      • Death certificate issued by local authority
      • FIR
      • Post-mortem reports
      • Hospital discharge summary
      • KYC documents of beneficiary like copy of photo ID and address proof
      • Copy of cancelled cheque and bank statement
      • If the claim is made by someone other than the nominee or assignee, the person making the claim has to submit a legal proof of his or her title
  • Claim Process :
    • In case of untimely demise of the insured, the nominee or beneficiary can file a claim to get the sum assured :

      • Inform the insurance company as soon as possible with details like time of death, place of death and cause of death along with required set of documents given above
      • Once these documents are submitted, insurance company would verify the details and accordingly settle the claim
      • Sum assured would be transferred to the bank account of the beneficiary
      • In case the company finds some problem while verification, it might reject the claim
  • Advantages of Buying Life Insurance Policy :
      • Managing unpredictability : Everyone wants one’s family to lead a good life even after his/her demise. No one can fill the void of one’s death, but financially, one can secure his/her family’s future so that the members don’t have to be dependent on someone else. This is when the sum assured of the life insurance policy helps
      • Financial cushion :Life insurance policy helps bailing out the family from the financial troubles like loans and debts after the untimely demise of the breadwinner of the family
      • Retirement :One needs to secure his/her old age, when various sources of income might start drying up. An annuity plan can help in such a situation. The money invested or saved through ULIPs or endowment plans can also be used in old age
      • Tax benefits :Tax benefits can be enjoyed for the premium payment and the returns given by the company under Sections 80C and 10(10D) respectively of the I-T Act, 1961. You can get tax benefits even on riders.
      • Mental peace :Once all the finances are sorted, a person is relieved from all the tension and thus, can concentrate on other aspects of life
      • Savings tool :Along with the term plan, one has an option to choose a plan which will be a combination of protection and savings. This will help to create a corpus for future financial needs
      • Safeguard children’s future :Things like education cost and marriage expenses can be a big concern while raising a child. Child plans can help in bailing you out from such situations
      • Loan against policy :With certain insurance policies, one can even take loan against the sum assured or the paid up value, depending on the type of the insurance plan taken. Usually these loans are taken on lower interest rate
      • Protection against other eventualities:The riders or additional facilities offered through these policies can provide financial help in cases like accidents and disabilities