What is Life Insurance?
Life insurance is a contract wherein the insurance company pay a pre-defined amount known as sum assured to the beneficiary of the insured against a premium. In other words, life insurance offers financial coverage in case of sudden demise of the insured.
Apart from providing life coverage, life insurance policies also help you build a corpus for goals such as children’s higher education, their marriage and your retirement. You pay a certain premium against which you are offered coverage.
How to apply for Life Insurance with us?
At SBICAP Securities Ltd., you get to choose from a range of life insurance policies as per your requirements. We are your one-stop destination for any type of life insurance plan you need. With us, you get a comprehensive life insurance policy that safeguards your family against the uncertainties of life, including death, disability and accident.
Contact with your nearest SBICAP Securities Branch Ltd., to know more.
Types of Life Insurance products
A term insurance is the purest form of life insurance which provides your nominee the sum assured in case of your demise within the policy term. While a pure term insurance plan has no maturity benefits, there are term insurance plans which return the entire premium paid in case you survive the policy term.
Such plans are known as term insurance with return of premium (TROP) plans. A term plan offers a large coverage against a nominal premium.
A whole life insurance plan offers coverage until the time of the life insured’s death. In case of death of the insured, the sum-assured is paid to the nominee. Generally, whole life insurance plans provide coverage till the age of 100.
There are two types of Whole Life Insurance plans – participating and non-participating. The former entails low premiums and doesn’t pay any dividends. On the other hand, in the latter, the insured is paid dividends.
A money-back insurance plan, apart from providing life cover, also pays out a certain sum at regular intervals. The payout is a percentage of the sum assured. It is a type of endowment plan that provides an additional benefit of liquidity.
In case of death of the insured, the nominee gets the sum assured without deduction of the survival benefits.
A unit-linked insurance plan or ULIP weaves insurance and investment into a single product. In this type of insurance plan, a part of the premium paid goes towards offering life cover while the other portion is invested in various underlying funds to generate returns.
ULIPs have a lock-in period of 5 years which means that you can’t withdraw money from it for a period of 5 years. ULIPs also give you the flexibility to choose your own funds based on your risk appetite and allow partial withdrawal after the end of the lock-in period.
How does life insurance help?
Tax benefits under section 80C of the Income Tax Act, 1961
Tax-free pay-outs on maturity, subject to certain conditions
Life insurance plans maturity benefits can be used as collateral for availing loans
Life insurance provides a financial cushion to your dependents in case of an untoward incident. The proceeds received from a life insurance policy can help your family members stay financially independent when you are no longer around.
Life insurance plans also help you build a corpus for various life goals such as your children’s education and your retirement. Also, ULIPs being market-linked help you enhance your riches in the long run.
Damages, both natural or man-made, can pose significant risks to your assets and cause extensive financial damages. Unlike other financial instruments, insurance can be earmarked for specific purposes so that you can utilize the funds to get adequate coverage from losses and damages to your prized assets.