Overview Life Insurance in Jaipur
Jaipur is one of the most famous cities not only in India but also in the world. It is one of the most prominent tourist destinations attracting tourists from across the globe. Jaipur is the capital city of Rajasthan and the most populous city in the state. The city is known as the pink city in the country and rich culture. The city is close to the capital of the country and along with Agra, they make a Golden triangle for the tourists to visit.
The life insurance industry in the city is one of the many important industries. The coverage for life insurance in the city has still a long way to go. Even today, there are many individuals that do not have a good life insurance plan for themselves and their family members. Life insurance can be availed by any person at nominal premium payment each month and the coverage provided can be for a limited tenure or for the lifetime of the individual.
What are the benefits of life insurance plans in Jaipur?
Life insurance is an essential investment for securing the future of the individual and their family members. Many plans also provide the benefit of a regular income as well along with a life cover. The amount of cover can be at the discretion of the policyholder according to their needs and premium paying capacity.
There are multiple benefits of getting life insurance. Some of such benefits are highlighted below.
Coverage for self and family members
Life insurance plans are not available only for individuals. They can provide life cover for the family members as well. The amount of cover should be enough to meet all the financial needs of the individual and their family members. It is important to note that the coverage is going to be received at a future date after a period of a couple of years. Hence it is important to account for inflation for such a time period and opt for coverage amount.
Loan option
Many banks provide the option to avail a loan against the life insurance policy. The amount of loan that can be provided to policyholders against the life insurance policy depends on the guidelines of the banks or other lenders. Life insurance can be used as collateral and the amount of loan provided is usually in the range of 70% to 90% of the policy value.
Tax benefits
Tax deductions are one of the main attractions for making any investment even today for the majority of investors. The tax benefits available for premium payment on life insurance is eligible for a tax deduction of up to Rs. 1,50,000 under section 80C of Income Tax Act, 1961.
Frequency to pay the premium
The amount of premium that has to be paid for the life insurance of self and family members is based on various factors. The guidelines of the insurer and the coverage amount are the prime factors that determine the premium amount. Insurers offer different options for the policyholders to make premium payments. The frequency of making premium payments is decided by the policyholder and the insurer at the start of the policy term. Some of the options for premium payments are monthly, quarterly, semi-annually and annual basis.
Getting returns through ULIP plans
Insurance plans also have the option to tap into the mutual funds market. Such options are known as ULIP plans that offer the benefit of higher returns of the mutual fund market as well as the benefit of insurance. The minimum lock-in period for such plans is 3 to 5 years.
Additional Reading: What Is The Benefit Of Life Insurance
What are the types of life insurance available in Jaipur?
There are multiple types of life insurance plans that can be opted for by the people of Jaipur. These plans cater to the different needs of the individuals and their family members. Some of the options of the insurance plans are mentioned below.
Term plans
These are the most common type of life insurance in the Indian market. It is a long-term insurance plan that provides basic risk cover for a fixed tenure. The policy provides maturity benefits at the end of tenure and death benefits to the nominee of the insured person in the event of the death of the policyholder.
Retirement plans
Retirement plans are another common type of life insurance plans. These plans provide financial security in the retirement of the policyholder in the form of regular income at fixed intervals or a lumpsum corpus fund at the discretion of the policyholder.
Money-Back plans
These plans provide the benefit of paying back the sum assured to the policyholder at regular intervals. The balance amount of the sum assured is given to the policyholder at the time of maturity of the policy.
Endowment plans
These plans offer the dual benefit of insurance and investment in a single plan. These plans offer the policyholders the benefit of gradually building a corpus fund. This fund can then be utilized to realize the financial goals of the family-like wedding in the family, travel, child’s education.
ULIPs
Another important category of insurance plans is the ULIPS (ULIPs are Unit Linked Investment Plans). These plans offer the benefit of long-term investment along with insurance. Investors can choose the fund that they want to invest in and a portion of the premium paid will be invested in such fund. The minimum lock-in period for these plans is 3 to 5 years.
Whole life insurance plans
Whole life insurance plans are plans that provide coverage for the whole family. The tenure of the policy is usually for the long term with a maximum tenure of 99 years. Policyholders also have the option to make premium payments for a period of the first 10-15 years of the policy term and enjoy the benefits of the plan for life.
Child plans
Child plans offer coverage for the children specifically. These plans can be opted from the time of their birth till the time they reach adulthood. The amount received at the time of maturity can be used to meet the needs of the children like higher education, wedding, etc.
Group life insurance
This type of insurance is taken by the employer of an organization for all their employees as blanket cover. When the employee leaves the organization, they also have the option to convert this policy to a personal life cover provided such benefit is agreed by the insurer.
Life Insurance in Jaipur FAQs
1. What is the usual tenure for term plans?
A. The usual tenure for term plans is between 5 years to 50 years.
2. Does the policyholder get any maturity benefits in the case of term plans?
A. No. Term plans do not provide maturity benefits at the end of the policy term.
3. What are the factors influencing the premium amount?
A. The factors influencing the premium amount are,
- Age of the policyholder
- Location of the policyholder
- Marital status of the policyholder
- Number of persons insured under the plan
- Coverage amount
- Policy tenure
4. What is the grace period in a life insurance policy?
A. Grace period is the number of days after the due date of premium payment where the policyholder can make the premium payment and keep the policy active.
5. What are the common exclusions under life insurance policies?
A. The common exclusions under life insurance policies are suicide, death on account of any critical illnesses specifically excluded from the plan, etc.