Life Insurance in Jamshedpur

Overview Life Insurance in Jamshedpur

Jamshedpur is an industrial hub and the most prominent city in the state of Jharkhand. The city is known as the first planned industrial city in the country. It was founded in the pre-independence era by Mr. Jamshetji Tata in the year 1900. The original name of the city was Sakchi but was renamed after Mr. Tata to honour his contributions in the year 1919. The city is famous for its cleanliness and has been consistently ranked high among the cleanest city in the country. It had topped this list in the year 2020.

Life insurance in Jharkhand has been hugely popular as an investment option for the residents but there is still a section of the society that does not have a good life insurance coverage for themselves and their family members. This can be rectified by increase in investor awareness, better accessibility to insurance plans, affordable plans, etc.

Given below is the importance of life insurance and the various plans available for residents of Jharkhand.

What is life insurance?

Life insurance is the financial safety that can be provided to an individual at the end of the policy term or to their family members in the event of death of the policyholder. The tenure of the life insurance can be from 3 years till the lifetime of the policyholder.

There are multiple life insurance providers in the market today from the private sector and public sector. These insurers provide many types of life insurance plans that meet the specific needs of the customers like long term benefits, retirement benefits, child care plans, etc.

What are the different types of life insurance plans in Jamshedpur?

As mentioned above, there are multiple types of life insurance plans that are available for the residents of Jamshedpur. Some of the common types of plans that can be opted by the customers are,

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

Additional Reading: What Are The 3 Types Of Life Insurance

How to choose a life insurance policy in Jamshedpur?

As there are many options for the customers to choose an insurer and the type of policy, it is important for them to consider certain important points while opting for a life insurance plan.

Some of the most common points to consider while opting for a life insurance policy are,

The reputation of the Insurer

The insurer’s reputation should be the starting point for any person to consider a life insurance plan. Customers can get information about such reputation through many sources like past experience of existing customers, reviewing the claim settlement ratio, etc.

Claim settlement ratio

As mentioned above, the claim settlement ratio is an important parameter while considering a policy. It is the ratio of the claims raised and the claims actually settled. A good claim settlement ratio implies that the insurer is quick to settle the claim and the process is hassle-free. When the claim settlement ratio is not favourable, it may be better to avoid such insurers.

Claim settlement process

It is important to understand the claim settlement process of the insurer. This process has to be simple to understand and quite standard. Customers should also keep in mind that such process should not be cumbersome or tricky which may result in the delay or denying the claim settlement.

Amount of coverage

The amount of coverage that is provided by the insurer has to be sufficient to cover the financial needs of the family and meet the financial loss on account of old age or the death of the insured person. Policyholders have to consider inflation as well in deciding the policy amount for themselves and their family members.

Tenure of policy

Policy tenure is the time period when the policy is in effect or coverage is applicable. Policyholders should ensure that the life insurance policy stays in effect at the time when they need it the most i.e., after retirement or for meeting their short term or long-term objectives as the case may be.

Premium amount to be paid and frequency of payment 

The amount of premium to be paid for life insurance coverage is based on many factors. Some of these factors include

• Age of the applicant, 
• Employment status of the applicant
• Income level
• Tenure of the policy
• Location of the applicant
• Marital status
• Policy amount
• Number of persons included in the plan

Availability of riders

The list of riders that is provided by insurers is different for every insurer in the country. These riders are the additional benefits that can be opted for by the policyholder on an existing policy. The cost of such riders is relatively lower than getting a new policy. The number of riders that can be opted is not fixed and will depend on the insurer guidelines. Customers should opt for insurers that provide maximum riders at relatively lower costs.

Life Insurance in Jamshedpur FAQs