Life insurance covers the premature loss of life and compensates the financial loss incurred due to loss of life.
Moreover, there are different types of life insurance policies which aim to fulfill the different financial needs that individuals have.Buying a life insurance policy is important if you want to ensure financial security for you and your family.
Life Insurance Companies Plan Types
At the time of buying life insurance, you should choose a policy which fulfills your needs and requirements.
The different types of life insurance plans and the needs that they fulfill are as follows –
Term plans are pure protection insurance plans which cover the risk of premature death. These plans have a definite tenure and pay a death benefit when the insured dies during the selected tenure. Term plans are needed for creating a financial security in case of death of the bread-winner. Term plans are offered by almost all life insurance companies.
Whole life plans
Whole life plans are those which cover individuals lifelong till they reach 99 or 100 years of age. Whole life plans, therefore, provide coverage for an indefinite period and are needed for creating financial security for the family when the bread-winner dies prematurely
If you are looking for insurance as well as savings, you can choose endowment plans. Endowment assurance plans provide insurance coverage over the chosen policy duration.
They also help in creating a savings corpus which is paid when the term comes to an end. Endowment plans are, therefore, useful for individuals who want to create a financial corpus along with insurance coverage.
Money back plans
Money back plans are savings oriented insurance plans wherein the sum assured is paid in installments over the policy tenure. Money back policies, therefore, provide regular incomes, insurance coverage and also savings.
Child plans are specifically designed for the secured financial future of children. Under these plans the parent is the policyholder and if the parent dies, the policy does not stop. It continues and the company pays the premium on behalf of the parent.
When the policy matures, the plan benefit is paid as promised. Thus, child plans ensure that the child has a financial corpus even when the parent is not around.
Pension plans are retirement plans which helps you create a corpus for retirement. You can, therefore, create a retirement fund through pension plans.
Unit linked plans
Unit linked policies are those which provide market linked returns along with insurance cover. The policy offers different types of flexible benefits allowing you to enjoy insurance and also maximize your wealth. ULIPs are also offered by almost all life insurance companies.
Read: Top Reasons you should Buy a Life Insurance Policy
These are the different types of policies offered by life insurance companies. There are more than 20 life insurance companies which offer the above-mentioned types of life insurance plans.
Best Life Insurance Companies In India
Among the different companies, choosing the best life insurance companies can be a difficult task. That is why here is a list of life insurance companies in India which offer some of the best policies –
|Name of the company||Salient features of the company||Claim settlement ratio|
|ICICI Prudential Life Insurance Company Limited||1. The company offers some of the best life insurance policies in the market|
2. The company guarantees one day death claim settlements in many cases
|98.58% for the financial year 2018-19|
|HDFC Life Insurance Company Limited||1. Some of the best term plans are offered by the company|
2. The plans are comprehensive and the premiums are affordable
|99.03% for financial year 2018-19|
|Max Life Insurance Company Limited||1. The company has a strong financial base with an AUM of INR 62,798 crores|
2. A wide range of policies are offered
|98.74% for the financial year 2018-19|
|Kotak Life Insurance Company Limited||1. The company offers need specific insurance plans for customers|
2. Life insurance claims are settled quickly
|97.40% for the financial year 2018-19|
|TATA AIA Life Insurance Company Limited||1. The company has won the Best Employer Award 2019|
2. The company has a range of life insurance policies
|99.07% for the financial year 2018-19|
|Edelweiss Tokio Life Insurance Company Limited||1. The company has various awards under its belt|
2. The claim process is simple and quick
|95.24% for the financial year 2017-18|
|AEGON Life Insurance Company Limited||1. The company was jointly launched by AEGON Group and Times Group in 2008|
2. The company has a range of protection plans in its kitty
|96.45% for the financial year 2018-19|
|Bharti AXA Life Insurance Company Limited||1. The company was formed in 2006 as a venture between Bharti Enterprises and AXA Group|
2. Online plans are also offered by the company
|97.28% for the financial year 2018-19|
|Bajaj Allianz Life Insurance Company Limited||1. The total AUM of the company stands at INR 56,620 crores as on 31st March 2019|
2. The company has won different awards in the life insurance sector
|95.01% for the financial year 2018-19|
|Canara HSBC OBC Life Insurance Company Limited||1. The company has more than 6 crore customers in India|
2. It has a range of comprehensive life insurance policies
|94.04% for the financial year 2018-19|
Best Life Insurance Companies FAQs
⭐ What are the benefits of Life Insurance?
The paramount advantage of investing in a life insurance policy is to secure you and your family from facing any financial instability which may rise under unpredictable circumstances.
It assures to provide a specific amount in a situation of premature death of the insured, thus making sure that the family does not suffer any financial constraint, even in the unavailability of the income provider of its family.
Leadingly, life insurance policies come in various types and each variant assists in fulfilling your life goals. Lastly, life insurance policies are tax saving in nature. The amount you acquire from the policy is entirely tax exempted in nature under Section 10(10D) and also the premiums paid are permitted as a deduction from your taxable income under Section 80C.
⭐ Are there any benefits if buying the term plan at an early age?
The premium payments of your insurance plan would be less if you purchase a term plan at an early age. Additionally, you will have an access to avail the sum assured from a young age and generate a financial shelter for your family without causing delay.
As you purchase the plan early, you would be exempted from any medical impediments and thus, the policy would be provided at the earliest with affordable premiums. Concluding, the premiums that you pay would be permitted as a tax-free deduction and can be availed to lower your tax liability.
⭐ When does grace period start in life insurance?
Succeeding the due date of the premium payment, the grace period to deposit the due premium amount commences. For instance, if due date of premium deposit is 15th, grace period would start from 16th.
The duration of the grace period is based upon the frequency of premium payments. If premiums are paid annually, quarterly or half-yearly, you are provided with a grace period of 30 or 31 days. A grace period of just 15 days is permitted under monthly premium payments.
⭐ What is the loan value of a life insurance policy?
According to your life insurance policy, the loan amount may vary among different plans and is dependent upon the surrender value obtained by the policy. Loans up till 90% of the surrender value can be availed. Hence, the amount of loan would be increased if its surrender value is high.
⭐ What happens when life insurance reaches maturity?
In a situation where the insured is alive at the time of completion of their life insurance policy, it is called as maturity of the policy. In such a case, a maturity benefit, as promised under the policy is rewarded. Leadingly, the coverage gets concluded post the payment of the maturity benefit.
⭐ What is maturity benefit in a life insurance policy?
If the insured is alive on the date of conclusion of the tenure period of its life insurance policy chosen by the policyholder, an amount known as maturity benefit is rewarded to the insured by the insurance company.
⭐ Who performs the medical exam while buying a Term Plan Online?
If required, a licensed medical practitioner performs the medical examination at a certified clinic or hospital which are generally linked with the insurance provider to carry out pre-entrance health diagnosis of candidates who wish to acquire a policy from the company.
⭐ Is medical test compulsory in life insurance Term Plan?
Based on the chosen coverage level and the age of the candidate applying for insurance, medical tests are run only if necessary and depending upon the above mentioned factors.
Additionally, if the life insured currently prevails or has suffered from a medical complication, the insurance company might run a medical check-up before issuing the policy. Hence, it becomes mandatory to undergo a medical check-up only if your insurance company asks for it. Otherwise, it is not necessary under all policies.
⭐ What happens if there is any issue in medicals while buying a Life Insurance policy?
The insurance company offers many other variants in case in case if any issue in medicals arises. It might imply an escalated premium for the increased medical risk of the insured.
In such a situation, if you approach the higher premium, the policy would get issued. On the other hand, the insurance company can impose coverage restrictions. In case if the medical threats are too much to be covered, the provider can straightaway decline the policy.