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Overview Life Insurance in Faridabad

The city of Faridabad comes under the Delhi NCR region group. It is relatively less popular as compared to other cities such as Delhi, Gurgaon, Noida which are located in the NCR. However, despite being a small city, it boasts of a metro facility and fast infrastructural development. Today, it makes for a good place to live in among the various urban residential areas of India.

With urbanization comes various risks, one among which is the risk to life. Therefore, buying a life insurance policy is an important financial decision. However, only 10% of Indians today are known to be insured.

So, why is life insurance important in cities like Faridabad? The answer is that no matter how much you earn, the future is often unpredictable. People tend to meet untimely death due to some illnesses or accidents and for sole breadwinners of families, it could have devastating consequences. From meeting household expenses to repaying debts and even maintaining a certain standard of living becomes difficult.

Therefore, the least one can do is to secure one’s family financially by buying a life insurance policy. There are many benefits of life insurance during one’s lifetime, especially if an individual is relatively young. Here, we will try to understand the concept of life insurance along with factors like its importance, life insurance providers in Faridabad, etc.

What is Life Insurance?

Life insurance provides financial protection to the family of the life insured in case he/she meets an untimely death or a permanent disability. With a life insurance cover, one can have an assurance that the insurance provider will look after the financial well-being of the family members in case the breadwinner of the family is not around. The financial support mainly comes from the sum assured paid to the nominee or the beneficiary.

Life insurance can also provide for other contingencies such as critical illness and permanent or partial disability. A life insurance policy provides for three main life goals:

  • Protection: It provides financial security to the family in case of the untimely death of the insured.
  • Investment: Apart from protection, life insurance also encourages investment such that funds can be used for achieving various financial goals of the life insured’s family.
  • Savings: Life insurance buyers can also save money to be used during retirement or for catering to other financial needs.

What does Life Insurance in Faridabad Cover?

Apart from the standard coverage that could vary from plan to plan, residents of Faridabad can choose to enhance their protection by using riders. These can include accidental death benefit rider, total or permanent disability rider, etc. Additional benefits can be availed by paying an extra premium. Here are some of the common rider options available:

  • Accidental death benefit rider: Under this, the nominee receives financial benefit apart from the sum assured, in case the insured meets an untimely death due to an accident.
  • Accidental total and permanent disability rider: Insured can get financial assistance in case he/she is unable to earn because of a disability stated in the policy.
  • Critical illness rider: This provides cover for certain critical ailments like cancer, heart attack, etc.
  • Hospital cash rider: A fixed amount can be paid to get cover for expenses of non-medical items during hospitalisation.
  • Waiver of premium rider: Under this, the company waives off any remaining premium payment upon the sudden death or total permanent disability of the life insured.

Eligibility Criteria for Life Insurance in Faridabad

Some of the common eligibility criteria for life insurance plans are:

ParticularsDetails

Entry Age

18-75 years

Policy Term

5-75 years

Premium Payment Option

Regular, limited and single premium

Sum Assured

Rs. 3 Lakhs – Rs. 100 Crores

How does Life Insurance work in Faridabad?

While purchasing a life insurance policy, one should thoroughly understand individual needs while analysing the personal financial situation and also appropriately select a beneficiary. Here are some of the other critical points on how a life insurance plan works:

  • The first step is to select an insurance company and the right policy after a detailed comparison.
  • Choose the right policy term. The policy premium is based on various factors such as age, lifestyle, gender, policy term, etc.
  • A policyholder is required to pay a fixed premium to the insurance provider for a fixed term.
  • The premium is accumulated by the insurance provider to offer a sum assured upon an untimely demise of the life insured.
  • In case the life insured meets an untimely death, the claimant must immediately inform the insurance company and furnish the required documents combined with the claim form.

If the insurance claim gets approved, the beneficiary receives the sum assured. The claim may be rejected in case of non-payment of premium, reason of death not covered in the policy, etc.

What are the Benefits of Buying a Life Insurance Policy in Faridabad?

Some of the benefits to be availed from life insurance covers in Faridabad are:

  • Dealing with unpredictability – Every individual wishes well for their family and expects a good life for them even in case of his/her demise. One can secure the family’s financial future by guaranteeing a sum assured from the life insurance policy in case of an untimely death of the life insured.
  • Financial support: A life insurance policy can easily bail out the family by averting any financial troubles such as outstanding loans and debts in case of the untimely demise of the breadwinner of the family.
  • Retirement: To financially safeguard one’s old age, an annuity plan can come in handy when all financial channels have dried up.
  • Tax benefits: Tax benefits can be availed on the premium paid towards life insurance and the sum assured given by the insurance company under Sections 80C and 10(10D) respectively of the I-T Act, 1961. Tax benefits can also be availed on riders.
  • Savings component: Apart from a term plan, one can buy a plan that is a combination of protection and savings. This can help in setting up a corpus for future financial needs.
  • Cover for children’s future: Big-ticket expenses such as education costs and marriage expenses may worry many parents. Child plans can bail one out from such expense-rated stress, especially in urban cities like Faridabad.
  • Loan against policy: Certain insurance policies allow the life insured to take a loan against the sum assured or the paid-up value as per the type of insurance plan chosen. Such loans are also available at lower interest rates.
  • Cover for eventualities: The additional riders or facilities available under these policies can offer financial assistance in situations like accidents and disabilities.

Companies Offering Life Insurance Policy in Faridabad

There are many insurance companies available in Faridabad. Some of the top insurance providers are listed here:

  • Max Life Insurance
  • HDFC Life Insurance
  • Tata AIA Life Insurance
  • Pramerica Life Insurance
  • Exide Life Insurance
  • Reliance Life Insurance
  • Canara HSBC Life Insurance
  • Bajaj Allianz Life Insurance
  • Aegon Life Insurance
  • ICICI Prudential Life Insurance
  • Aditya Birla Sun Life Insurance

Life Insurance in Faridabad FAQs

1. What are the documents required to buy a life insurance policy in Faridabad?

Some of the commonly required documents for buying a life insurance policy in Faridabad include income proof, address proof, and identity proof.

2. How can one increase the benefits offered by an insurance policy?

One can increase the benefits offered by a life insurance policy by availing riders such as accidental death benefit rider, accidental disability benefit rider, critical illness rider, income benefit rider, etc.

3. Do life insurance policies return the premium paid in case the policyholder survives the plan?

Pure life insurance plans do not pay back premiums paid in case of a policyholder’s death. For such benefits, one should avail of term plans with return of premium, whole life plans, etc.

4. Does the family of the deceased get any claim amount in case the policyholder commits suicide?

Depending on specific terms and conditions of a policy, death by suicide may or may not be covered under the plan. An individual should carefully check the terms of the plan before enrolling for one.

5. If I cancel my life insurance policy now, will I get the premium amount back?

Only if an individual cancels the life insurance policy within the policy grace period, he/she can get the premium back depending on the policy terms and conditions.

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