Interested in financial products
CreditMantri
Processing

Overview Life Insurance in Ghaziabad

Life insurance acts as a financial cover for contingencies related to human life, such as death, disability, accident, retirement etc. Human life faces risks of death and disability due to natural and accidental reasons. Whenever a human life is lost or a person gets disabled permanently or temporarily, loss of income may follow and bring financial troubles for the household.

Urban Indian cities like Ghaziabad often see a higher risk to life due to rising population, stress levels, fast-paced lives, lifestyle-related ailments, etc. Ghaziabad is located in Uttar Pradesh and due to its proximity to the national capital of Delhi, it has gained popularity among people looking for good residential areas. As more and more people continue to migrate to this city each year, Ghaziabad is fast becoming the preferred choice for shelter in a good locality and within budget.

Here, we will discuss the importance of life insurance in cities like Ghaziabad and highlight some of its features while understanding the core meaning of life insurance for first-time buyers.

Why you should buy Life Insurance in Ghaziabad?

Human life in urban cities like Ghaziabad tends to face the following risks:

  • Dying too soon
  • Living too long

Therefore, life Insurance is essential:

  • To ensure that an individual’s immediate family gets financial support in the event of his/her death
  • To have sufficient finances for children’s education and other needs of the family
  • To have sufficient savings for the future which can act as a constant source of income post-retirement
  • To have extra income in case an individual’s earnings are reduced or stopped due to a serious illness or an accident
  • To cover for any financial contingencies and lifestyle needs

Who needs Life Insurance in Ghaziabad?

In urban cities like Ghaziabad, any individual who has a family to support and is the sole breadwinner of the family must have a Life Insurance cover. The same goes for housewives of the family as they contribute to many aspects of the household. Children can be considered eligible for life insurance as they have their future earning potential can be at risk.

How much Life Insurance is needed in Ghaziabad?

The amount of life insurance cover required in Ghaziabad depends on many factors such as:

  • How many dependants one has
  • The lifestyle of an individual and his/her family
  • Finances required for children’s education
  • Investment needs of an individual
  • Individual’s affordability

Important Factors of Life Insurance Plans

Some of the key factors to know about life insurance plans are:

  • A policyholder is an individual who makes a premium payment towards the life insurance policy and enters into a contract along with a life insurance company.
  • Premium is the cost that the policyholder has to pay towards life insurance for financially covering his/her life.
  • Maturity is the time at which the policy term comes to an end and the life insurance contract is terminated.
  • Life insured is the person whose life is secured under the life insurance policy. In the event of death, the insurance company is accountable to provide a financial amount to the dependents.
  • The amount the insurance company pays the dependents of the insured if those events occur which are specified in the life insurance contract.
  • The policy term is the specified duration (listed in the life insurance contract) for which the insurance company provides a life cover and the period during which the contract is active (listed in the life insurance contract).
  • A nominee is an individual listed in the life insurance contract who is entitled to receive the predetermined compensation, as a part of the policy.
  • On the insured's demise, the nominees can file a claim with the insurance provider to receive the predetermined payout amount.

Additional Reading: What factors affect my life insurance premium rates?

What are the Advantages of life Insurance Policy in Ghaziabad?

Some of the benefits of buying a life insurance cover in Ghaziabad are:

Death Benefits

Life insurance protects individuals and their families, in case of any unfortunate event in the insured individual’s life. The insurance provider pays the sum assured to the beneficiary or family of the insured as specified in the insurance contract along with any applicable bonuses. This death benefit comes in handy to meet any financial needs of the family.

Investment Components

Some whole life insurance policies provide dual benefits of insurance and investment. Half of the insurance premium goes toward insurance and the other half is invested in equity, debt or hybrid instruments. Thus, the insured gets the benefit of protective coverage and high returns on investment. One can further benefit from this aspect by investing in funds that are in line with one’s investment horizon and risk appetite. Certain policies also allow switching between funds as per one’s changing goals.

Maturity Benefits

Life insurance policies can also act as a savings instrument since some of these offer maturity benefits. In case the life insured survives the policy term and no claims are made, the total premiums paid are returned during the maturity of the policy. Thus, the life insurance plan provides a savings component while offering a protective cover.

Tax Benefits

Under Section 80C of the Income Tax Act (ITA), individuals can minimise their tax liabilities by choosing specific investment instruments. One such is term life insurance. Under section 80C, the premium towards a life insurance policy is eligible for a maximum tax deduction of up to Rs. 1.5 lakhs. Additionally, under Section 10(10D), any payouts received from an insurance policy are entirely tax-free (as long as the annual premium does not exceed 10% of the total Sum Assured). Those who have opted for a health-related rider, like critical illness or surgical care rider can also avail of tax deductions under 80D of the ITA.

Additional Reading: Best Loans That Can Give You Great Tax Benefits

Cover for Liabilities

To achieve some dreams or life goals, there is always certain financial support required. For this, one may take loans, mortgages and use other debt sources. Dealing with such debt obligations can be a financial strain, especially in the absence of an income source. While one could arrange funds to party pay off the loans, the borrower’s family may find it difficult to repay liabilities in case of his/her unfortunate demise. Thus, a life insurance policy can ensure that the dependent’s family has sufficient financial means to repay loans and mortgages even in the individual’s absence.

Conclusion

Life insurance is an absolute necessity in crowded cities like Ghaziabad. It minimises risk and acts as a protection tool for the insured and their dependents in more ways than one. By looking at the key features and benefits of a life insurance policy, people in Ghaziabad can make an informed decision while buying a life insurance plan.

Life Insurance in Ghaziabad FAQs

1. Which are some of the best insurance providers in Ghaziabad?

Some of the well-known insurance providers in Ghaziabad include Life Insurance Corporation of India, Max Life Insurance company, HDFC Life Insurance company, ICICI Prudential Life Insurance company, etc.

2. What are the four common types of insurance available in Ghaziabad?

Some of the commonly opted insurance categories in Ghaziabad are life insurance, health insurance, home insurance, and car or vehicle insurance.

3. What is the oldest age to buy life insurance?

Most insurance providers issue a policy to individuals within the age of 85. In general, many insurers also set the maximum age as 75 for those seeking life insurance.

4. What's a better term or whole life?

Term plan only protects for a limited number of years, whereas whole life offers lifelong cover if one can continue the premium payments. Whole life premiums may cost far more than term policies that offer the same death benefit. Thus, whole life may not be an ideal option for budget-conscious insurance seekers.

5. How many insurance policies a person can buy in his/her life?

There is no defined limit to the number of life insurance policies one can buy in India.

×Thank you! Your comment will be reviewed and posted shortly.

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.