In different types of life insurance in India

In different types of life insurance in India

Life insurance is one of the fastest growing financial services industry in India. Currently, there are 24 life insurance companies in India to offer a variety of life insurance offers many benefits and riders. The main purpose of life insurance is in the case of his death, the family members of a person for financial security.

Some have integrated wealth creation plans or investment, as well as a policy of life insurance coverage. In addition, these products offer specific products tailored some products of the different stages of life, children, retirement plans, pension plans, life insurance plans to provide debt financing. In addition, all life insurance premiums, tax benefits provided by the insurer in accordance with the Tax Act on income.

Below are the different types of life insurance in India.

Insurance policy on a regular basis:
Term life insurance case, his sudden death, the family of the insured person to provide financial security. This is the least expensive, high sum assured life insurance cost. The provisions of this policy is to buy insurance for a certain period of time. In India, almost all insurance companies to provide life long term insurance products name. Long-term policies usually provide five years, 10 years, 15 years, 20 years or 30 years. After the completion of the long-term policy, policyholders do not receive the protection of life insurance. In addition, pay insurance premium in India is a term tax-exempt status under section 80C of the Act income tax.

Refund Policy:
Under this policy, a certain proportion or percentage of the insured amount is returned to the insured policyholders in case of survival. In case of death during the policy period, the policy of candidates is equal to the death benefit and the insured amount of cash benefits accumulated. The insurance long term, the refund policy premium is very high.

Refund policy provides for a period of time, usually up to 25 years, the lessee paying a premium to the insurance period on a regular basis (monthly, quarterly, yearly). Insurance premium paid refund policy is eligible for tax exemption under section 80C of the Income Tax Act on income.

Whole life insurance:
As its name suggests, the policy, including the risk of the entire life cycle of policy holders. This policy will continue as long as the policyholder is alive. The case of the death benefit policy that the death of the insured, the beneficiary or the generation of celebrities. This policy does not improve survival. Therefore, the whole life insurance policy is to create wealth for the heirs of the insured, the policy provides for the payment of the sum insured plus bonuses in case of death of the policyholder. Whole life insurance premiums are expensive, the long-term plan.

Premiums throughout the life of the insured up to age (80 years) and 35-40 years the terms and conditions of the policy on the basis of a period. Premiums paid in whole life insurance contract is eligible exempt under section 80C of the Income Tax Act on income.

Endowment insurance:
Endowment insurance is a type of savings insurance coverage within a specified period. Assured of the sum insured in the policy premium or profit to survive. This is the best of those people who do not have the habit of regular savings or investment policy. The recipient policy political maturity of the policy holders before death, than to receive the amount of the sum insured.

Pension insurance premium in India is expensive than term life insurance and whole life insurance. In addition, pension premiums of insurance paid under the income tax qualification Indian Income Tax Act section 80C.

Insurance units of account:
Apart linked insurance policy (ULIP) is a particular type of investment tools and life insurance together, linked insurance policies. In this strategy, a portion of the premium to enter the life insurance coverage and certain premium part of the investment.

Policy portfolio, including a certain percentage of premiums may go up to 100% equity funds or debt funds of 100% or a mixture of both. Here, provided an option to select funds, he can choose the investment strategy. Policyholders can also convert from one fund to another fund selection. Only returns based on the performance of funds ULIPs to. ULIPs to main drawback is that it contains a higher fee (commission) funds management.

India, ULIPs allow it to claim the benefits of tax relief on the payment of two ways. Section 80C invest in ULIPs under the Income Tax Act, you can claim, you should be taxable income lakh rupees, you can be exempted from gross income under section 10 (10) D any amount received from the company insurance.

Insurance policies have an important role in providing tax savings. Accordance with the policy of India, the entire policy life insurance premiums (in addition to the pension plan), published in April 2012 in India, should be provided at least 10 times the annual income of shield benefit tax benefits under Section 80C and 10 (10) D.

Choice and get the best life insurance policy to protect your family's finances in your absence.