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Overview Life Insurance in Bhopal

Bhopal, the capital city of Madhya Pradesh is a beautiful city and is famously known as the ‘City of Lakes’ due to the presence of various natural and artificial lakes in the city. The city is also selected as one of the smart cities to be developed under the Smart City initiative, set up by the Government of India. This has led to a lot of development taking place in Bhopal giving rise to rising pollution levels in the city. The people of the city have been experiencing various health issues on account of this and due to the ongoing Covid-19 pandemic issues.  This has seen a huge demand for life insurance policies among the residents of Bhopal.

To meet this booming demand, various prominent life insurance companies in Bhopal like Aviva Life Insurance, HDFC Life Insurance, LIC of India, Kotak Life, Max Life Insurance to name a few of them, have brought out attractive life insurance plans, including providing cover for the ongoing pandemic.

Additional Reading:  What is Life Insurance?

Bhopal is a traveller’s delight owing to the beautiful landscape. Being the capital of Madhya Pradesh, the city is always bustling with various kinds of activities. People in Bhopal are always on the move resulting in a hectic lifestyle and a lot of stress. The ongoing pandemic has also led to uncertainty on life and health. This has impacted their overall life expectancy.

Such challenges have made people of Bhopal realize the importance of purchasing a good life insurance plan to help them and their families during times of adversity or due to the untimely demise of the primary policyholder.  In such times, a life insurance policy will not only provide financial security to the family of the deceased but also help them realize their long term goals.

If the insured survives the term of the life insurance policy, then depending on the policy type, they would be able to get back the sum assured or other benefits. Some life insurance policies act as investment options also. In order to receive benefits from their policy, the life insurance policyholder has to ensure that they are regular in paying the premium on the life insurance policy either as time-specific instalments or as a lump sum.

Additional Reading: What are the benefits of Life Insurance?

What is the difference between Term Insurance vs Whole Life Insurance Plans?

Term insurance plans and Whole life insurance plans are two different types of life insurance plans offered by insurance providers in India. These plans have different features as seen below and cater to the varying needs of the policyholders. These plans are also available for the people of Bhopal.

FeaturesTerm Life InsuranceWhole Life Insurance

Plan Terms 

Easy to understand

More comprehensive as they act as both savings and protection plans

Tenure coverage

Fixed tenure coverage like 10 years, 15 years etc.

Whole life plans have flexible tenures normally till the insured reaches 100 years. Benefits are paid on the insured reaching 100 years of age.

Death of policyholder

Death benefit paid to beneficiaries in the event of death of the policyholder, the provided policy is still in force

The death benefit is provided to the beneficiary of the policyholder in the event of the death of the holder.

Pricing

Affordable insurance plans whose premium changes upon renewal or advancing age

Expensive as compared to term life insurance but pricing remains the same over the life of the policy.

Premium value

Low as compared to whole life insurance plan but premium value changes on renewal

Higher value but the premium is constant over the life of the policy

Flexibility

Flexible plan which can be renewed or converted, offering flexible premium  

Flexible plan with respect to tenure, sum assured etc.

Refund of Premium

Not available

Available in case the policyholder survives the tenure of the selected policy

Cash Value

There is no cash value component, including bonus

Premium paid are invested in protection and investment options, including bonuses available

Loans

No surrender or loans are available

Loans can be availed on whole life insurance plans

Benefits on Maturity

Pure life insurance policy where no survival/maturity benefits are available on the maturity of the policy

Survival or maturity benefits are applicable

Consider Additional Reading: What are the types of Life Insurance Schemes?

Conclusion

Bhopal is host to various life insurance providers who offer attractive insurance policies to the residents of the city. Understanding the various benefits of a life insurance policy would help the potential customer to evaluate how a specific life insurance plan will help their family in case of their untimely death or to meet their financial needs.

Life Insurance in Bhopal FAQs

1. Am I eligible for a tax deduction on the life insurance premium paid?

Yes, a policyholder of a life insurance premium can claim tax deduction under Section 80C of the Income Tax Act, 1961, up to a maximum of Rs.1.5 lakhs per annum. The tax deduction on the premium paid is available for the policyholder, their spouse and dependent children.

2. What are the different modes of buying a life insurance plan?

Life insurance policies can be purchased through both offline modes by visiting the respective branch of the insurance provider nearest to your location or online by visiting the respective company official website.

3. What are the compulsory documents required for buying Term Plan online?

The common mandatory documents, as listed below, are required to purchase a term insurance plan online.

  • Income/ employment Proof
  • Age Proof
  • Identity Proof
  • Education Proof
  • Address Proof (Residence and Correspondence)
  • Photograph
  • Copy of PAN Card

4. How much time is required for the settlement of claims by a life insurance provider?

Under normal conditions, the settlement of a life insurance claim by the insurance company takes place between 8 – 15 days, which is also dependent on the existing conditions of your medical claim.

5. Should I purchase an accidental death benefit cover, if accidental deaths are already covered in the original plan?

Even if you have accidental deaths covered under the base plan, having an additional accidental death benefit cover is a good idea. If an accident occurs, then along with your base life for the tenure of the policy an additional amount is also paid by the insurance company. This helps a policyholder to take care of their medical expenses during an accident.

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