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Overview Life Insurance in Hyderabad

Hyderabad is a metro city in the state of Telangana. This city is one of the most prominent cities not only in the state as well as in the country. It is considered to be among the top technology hubs in India and has a strong industrial sector. The city was famous by the name of ‘City of Pearls’ and has a very rich culture and historical importance.

Hyderabad is among the most populous cities in India and a metro city as well. However, not all residents have access to good life insurance plans in the city. This number is gradually increasing with increased investor awareness and access to life insurance policies through online-offline modes. Given below are a few details about life insurance in Hyderabad.

What is life insurance?

Life Insurance is the coverage provided to the insured person for their lifetime or till the maturity of the policy. Upon the death of the insured person, the death benefits are paid to the legal heir or the nominee of the insured person.

Life insurance is available in many variants depending on the need of the policyholders. Some of the common types of life insurance available for the residents of Hyderabad are mentioned below.

  • Term plans
  • Whole life insurance plans
  • Child plans
  • Group life insurance
  • Endowment plans
  • ULIPs
  • Term Plan with a return of premium
  • Money Bank plans
  • Retirement plans

What are the parameters to consider while choosing a life insurance plan in Hyderabad?

There are multiple insurance providers in the city of Hyderabad. These insurers also have multiple insurance plans that can be opted for by the customers based on their individual needs. This makes it essential for the customers to first compare the available options for the insurance policies so they can get the best option for themselves or their family members.

Some of the most common parameters to choose a life insurance policy are,

Insurer’s reputation

The reputation of the insurer is the starting point for considering an insurance plan. This will help them weed out such insurers that may not be good at claim settlement or may not provide adequate coverage to the policyholders.

Claim settlement process

The claim settlement process of the insurer should be quite standard at the same time should not be cumbersome or tricky. This may result in the claim not being processed on time or may not be honoured.

Coverage provided by the insurer

The coverage provided by the insurer should be enough to cover the financial loss on account of old age or the death of the insured person. It is to be noted that the insurance cover should account for the inflation factor along with adequate coverage.

Premium amount to be paid and frequency of payment 

The amount of premium that is to be paid to get the life cover depends on many factors. Some of the factors include the age of the applicant, employment status of the applicant, income level, tenure of the policy, etc.

Claim settlement ratio

The claim settlement ratio is the ratio of the claims raised and the claims actually settled. This ratio allows the customers to know if the insurer is good at settling the claim and providing the benefit of the insurance claim on a timely basis. If the insurer does not have a favourable claim settlement ratio, it is better to avoid such an insurer.

Availability of riders

Riders are the additional benefits that can be added to an existing plan at a relatively lower cost than getting a separate cover for such needs. The insurers that provide maximum riders at relatively lower costs should be preferred by the customers to get life insurance options.

Tenure of policy

The tenure of the policy should be sufficient to provide coverage to the policyholders at the time of their need, especially in old age. If a policy provides coverage for limited tenure, the purpose of the insurance policy is not truly met. Hence, customers should prefer policies that provide long term coverage for themselves and their family members.

What are some of the important riders that can be added to the insurance policy?

As mentioned above, riders are the additional benefits that can be offered on the existing plan by the insurer. This makes the policies tailor-made to the particular needs of the policyholder. Some of the important riders available for the policyholder are mentioned below.

Accidental death accidental rider

This rider provides the accidental death benefit along with the sum assured in the event of the accidental death of the policyholder. Most insurers also cover the period between the accident and the ultimate event of death. Hence it is necessary to check the clauses for such benefits with utmost diligence.

Accidental total and permanent disability rider

This rider provides the benefit of a monthly income in the event of temporary or permanent disability on account of an accident. Policyholders can opt for varying benefits under this rider for a set period.

Waiver of premium rider

This rider benefits at the time when the policyholder is unable to make premium payments due to any financial loss. This rider can be opted long with critical illness rider and accidental disability rider to provide extra coverage for the policyholders and their family members.

Critical illness rider

This rider is especially beneficial to cover for major illnesses like cancer, heart ailments, kidney failure, paralysis, etc. every insurer has a specific set of critical illnesses that are covered under this rider. It is essential to get information about critical illness coverage before opting for the same.

Hospital cash rider

This rider is used to provide a specified amount of cash in the event of an emergency hospitalization. The benefit provided under this plan is different from every insurer.

Additional Reading: Customize Your Life Insurance Policy To Fit Your Specific Needs With Riders

Life Insurance in Hyderabad FAQs

1. What are the documents needed for a life insurance claim?

A. The documents needed for life insurance claim are mentioned below,

  • Policy number
  • Policyholder name
  • Death certificate of the policyholder (in case of a claim for death benefit)
  • Name of the claimant
  • Relationship with the claimant
  • Original copy of the policy
  • Duly filled claim form
  • Deeds of assignment
  • Hospital certificates
  • Doctor’s certificates
  • Post mortem reports
  • Investigation report in case of police inquires

2. What are the documents needed for buying a life insurance cover?

A. The documents needed for buying a life insurance cover are mentioned below,

  • Income Certificates
  • Proof of age
  • Proof of identity
  • Proof of address
  • Duly filled application form
  • Mandatory declarations are needed as per the insurer’s guidelines

3. Can a person buy a life insurance policy through online or offline modes?

A. Yes. A person can easily buy life insurance through online or offline modes for themselves or their family members.

4. What is the ideal age for buying life insurance?

A. There is no perfect or ideal age for buying life insurance. It is advisable to get life insurance at the earliest.

5. Are life insurance premiums tax-deductible?

A. Yes. Policyholders can claim a tax deduction of up to Rs. 1,50,000 under section 80C of the Income Tax Act, 1961.

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