Life Insurance in Guwahati

Overview Life Insurance in Guwahati

Guwahati is a metro city situated in the state of Assam and is one of the fastest-growing cities in terms of infrastructure and developmental projects. The city is strategically important too as it is often considered to be the Gateway to North East. Apart from this, it is known to be the city of temples as there are multiple Hindu temples that showcase the rich culture and history of Hinduism. The city also boasts to have huge and diverse wildlife and the inherent beauty of the North East to make it one of the many attractive tourist destinations of the North East Region.

The people of Guwahati are among the most literate people in the country with the average literacy rate in the state being over 90%. However, not every person in the city has the benefit of term insurance for themselves or their family members.

Given below are a few details related to life insurance in the city of Guwahati and the need for the same.

What is life insurance?

Life Insurance acts as a safety net that can be used to secure the future of the family of the insured person in the event of their death. Life insurance provides many benefits along with a life cover. Such benefits include tax benefits, financial safety, peace of mind, returns on investment in the case of ULIPs.

There are multiple life insurance providers in the country that caters to the vast population and provides them with many options of life insurance depending on their respective needs.

What are the benefits of life insurance in Guwahati?

Life insurance is a very crucial investment for every individual in Guwahati. There are many benefits of life insurance that make it an important investment for every citizen of the country.

Tax benefits

One of the many benefits of having a life insurance plan other than a life cover is the tax benefits. Insure persons can claim the amount of premium paid for life insurance as a tax deduction from their gross total income. The tax deduction for premium on life insurance is up to Rs.1,50,000 under section 80C of the Income Tax Act, 1961.

Option to avail loan 

Life insurance also gives the benefit of getting a loan against the policy. Insured persons can use the life insurance policy as collateral with the banks or other financial institutions provided, they have the provision to accept same for such purpose. The amount of loan that can be sanctioned to the policyholders depends on the guidelines of the lender. Usually, the amount to be sanctioned is from 70% to 90% of the policy value depending on the lender’s policies in this regard.

Frequency to pay the premium 

The premium amount to be paid for every policy depends on various factors. There are many options for the policyholders to make payment of the premium for the life cover. This frequency to make premium payments is decided as per the convenience of the policyholder and the agreement between the insurer and the policyholder. The available frequencies to make premium payments is monthly, quarterly, semi-annually and annually.

Getting returns through ULIP plans 

ULIP plans offer the benefit of higher returns of the mutual fund market as well as the benefit of insurance. There is a minimum lock-in period of 3 to 5 years under these plans. This is an added advantage provided to the insured persons along with the benefit of life cover for themselves and their family members.

Option to cover self and family members

Life insurance provides the benefit of coverage for self as well as joint cover for the spouse or other eligible family members. The number of people that can be insured in a single policy depends on the guidelines of the insurer.

What are the types of life insurance available in Guwahati?

There are many types of life insurance covers that can be opted for by the residents of Guwahati. Some of the basic types of life insurances offered by most insurers are mentioned below.

Term plans

A term plan is the most common type of life insurance available to people. It provides basic risk cover for life. The tenure of the policy is fixed and no benefits are paid on maturity. Benefits are only paid to the nominee in the event of the death of the insured person.

ULIPs

ULIPs are Unit Linked Investment Plans that provide the benefit of investment along with insurance. Investors can opt for the fund to invest their corpus and get returns for the same. The minimum lock-in period for these plans is 3 to 5 years.

Money Bank plans

This type of insurance is used to get a portion of the sum assured at regular intervals. Upon maturity, the insured person can receive the balance amount of the sum assured.

Endowment plans

This is another plan that provides the benefits of insurance and investment. Policyholders can gradually build a corpus fund that can help them realize their financial goals like the wedding in the family, travel, child’s education.

Whole life insurance plans

This type of insurance can be used to insure the whole family and the tenure of the policy is usually long term like 100 years. Most policies provide the benefit of paying a premium for the first 10-15 years and enjoy the benefits of the plan for life.

Child plans

These plans can be taken from the time of birth of the child to secure their future and meet their needs like higher education, wedding, etc.

Retirement plans

These plans provide financial security along with the benefits of insurance. The policyholder can get a fixed amount as pension and death benefits are provided to the nominee.

Group life insurance

Group life insurance is taken by the employer of an organization for their employees. This policy can be converted to a personal life cover when the employee leaves the organization.

Life Insurance in Guwahati FAQs