Page 34 - Insurance Times Octoberr 2022

Why should you have life insurance? To fulfilling-term insurance premiums under Section 80Cof the Income Tax
financial goals, for protecting children's future, service loans Act, 1961. Pay-outs for death claims are tax-free under
and liabilities, children's education planning, helping Section 10(10D) of the Income Tax Act, 1961.
dependent spouse, leaving a tax-free legacy, and retirement
planning. What are the important aspects of buying an
insurance policy?
While considering life insurance, you must evaluate the
Sum Assured, the first and foremost thing to look at is the
merits of Term Insurance, which is the simplest and purest
amount you will be covered through your insurance. You are
form of life insurance. It provides financial protection to your
required to choose the sum assured before the
family at the most affordable rates. With term insurance,
commencement of the policy. You need to assess all the
you can get a large amount of life cover (i.e. sum assured)
future needs and expenses of your family members before
at a relatively low premium rate. The benefit amount is paid
deciding on an amount.
out to the nominee in case of the death of the person
insured during the term of the policy.
Duration of the Policy, the time for which your policy will be
active. These can range from 10 years to even covering for
Life insurance plans are not only- Zindagi ke baad
you till the age of 100.The longer the policy the lower can
bhi! These are Zindagi ke saath bhi!!
be your premium.
All of us want to have a good life and going forward want Flexibility, this can be in the form of providing multiple
to give a good life to our children, for which we need to payment options, freedom to choose the mode and duration
accomplish some goals.
of payments, etc. The more flexible a policy is the more it is
easy for you to customize according to your own.
To accomplish these goals, money needs to be saved. Life
insurance plans help you achieve your goals by helping you
Terms and Conditions, make sure you do read the terms and
build a financial corpus with the protection of a life cover.
conditions part associated with the policy thoroughly.
Life insurance plans inculcate a habit of disciplined saving.
Paying a little amount as an insurance premium each month
Claim Settlement, Last but not least is to consider the claim
will help you accumulate funds. What's even better is that
settlement process of the insurer. Go through the process
this small monthly amount only keeps growing. So, years
so that you know the steps involved to get the claim. Also,
from now, you'll have enough wealth accumulated to
check the claim settlement ratio of the company.
accomplish your more substantial and long-term financial
goals. These are Insurance - cum- Investment plans.
All these aspects will make your choice of life insurance policy
easier. The need of the hour is to increase the life insurance
Besides, you can claim an income tax deduction on your life
penetration manifold considering the untimely deaths being
witnessed during Covid 19.

I back my statement with the research report released this
year by CARE Ratings which projects the industry to continue
to grow at around 14%-15% per annum. The momentum is
expected to be maintained in the life insurance industry due
to factors such as growing awareness, increasing
urbanization, product innovation, multi-channel distribution,
tax benefits, etc.

Look at life, & beyond with a promise!

You can connect with your Insurance Broker immediately
to cover your life, to make the slogan true - Zindagi ke saath
bhi, Zindagi ke baad bhi by LIC of India.

34 The Insurance Times, October 2022