Life insurance in India been working since 100 years for all people.
In our country, which is one among the foremost populated within the world, the prominence of insurance isn’t as widely understood, because it need to be. What follows is an effort to acquaint readers with a number of the concepts of life assurance , with special regard to LIC. It should, however, be clearly understood that the subsequent content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges.
For more details, please contact our branch or divisional office. Any LIC Agent are going to be glad to assist you select the life assurance decide to meet your needs and render policy servicing.
what’s Life Insurance?Life insurance may be a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. life assurance is universally acknowledged to be an establishment , which eliminates ‘risk’, substituting certainty for uncertainty and involves the timely aid of the family within the unfortunate event of death of the breadwinner.
By and enormous , life assurance is civilization’s partial solution to the issues caused by death. life assurance , in short, cares with two hazards that stand across the life-path of each person:
A contract of insurance may be a contract of utmost straightness technically referred to as uberrima fides. The doctrine of exposing all material facts is embodied during this important principle, which applies to all or any sorts of insurance.
At the time of taking a policy, policyholder should make sure that all questions within the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document resulting in the acceptance of the danger would render the insurance contract null and void.
Savings through life assurance guarantee full protection against risk of death of the saver. Also, just in case of demise, life assurance assures payment of the whole amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the quantity saved (with interest) is payable.
Life insurance encourages ‘thrift’. It allows long-term savings since payments are often made effortlessly due to the ‘easy installment’ facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly referred to as SSS, provides a convenient method of paying premium monthly by deduction from one’s salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is right for any institution or establishment subject to specified terms and conditions.
In case of insurance, it’s easy to accumulate loans on the only security of any policy that has acquired loan value. Besides, a life assurance policy is additionally generally accepted as security, even for a billboard loan.
Life Insurance is that the best thanks to enjoy tax deductions on tax and wealth tax. this is often available for amounts paid by way of premium for all times insurance subject to tax rates effective .
Assesses also can avail of provisions within the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.
A policy that features a suitable insurance plan or a mixture of various plans are often effectively wont to meet certain monetary needs which will arise from time-to-time.
Children’s education, start-in-life or marriage provision or maybe periodical needs for cash over a stretch of your time are often less stressful with the assistance of those policies.
Alternatively, policy money are often made available at the time of one’s retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).
Any one that has attained majority and is eligible to enter into a legitimate contract can insure himself/herself and people in whom he/she has interest .
Policies also can be taken, subject to certain conditions, on the lifetime of one’s spouse or children. While underwriting proposals, certain factors like the policyholder’s state of health, the proponent’s income and other relevant factors are considered by the Corporation.
Prior to nationalization (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalization of life assurance , the terms under which life assurance is granted to female lives are reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases, a subordinate clause is imposed, as long as the age of the feminine is up to 30 years and if she doesn’t have an income attracting tax.
Life insurance is generally offered after a checkup of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover with none checkup , subject to certain conditions.
An policy are often ‘with’ or ‘without’ profit. within the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along side the contracted amount.
In ‘without’ profit plan the contracted amount is paid with none addition. The premium rate charged for a ‘with’ profit policy is therefore above for a ‘without’ profit policy.
Keyman insurance is taken by a firm on the lifetime of key employee(s) to guard the firm against financial losses, which can occur thanks to the premature demise of the Keyman.