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Overview Life Insurance in Navi Mumbai

Navi Mumbai is the largest well-planned city in the entire world and is equipped with good infrastructure and amenities. The city was formerly known as New Bombay and is situated in the two districts of Thane and Raigad. The city has many top educational institutions in various faculties and boasts a strong industrial belt as well. The city has a good network of roadways and railways connecting it to all the major parts of mainland Mumbai and Thane. Navi Mumbai also has some of the busiest ports in the country.

The average population of the city is quite young and is cosmopolitan with an average literacy rate of over 90%. The city has a huge network of hospitals and health care facilities that provide round the clock health care facilities for the citizens but there is still a lot of scope for improvement. This is where life insurance can be a huge help. It can provide the crucial financial backing to the family of the policyholder in the event of their untimely death.

Given below are the few details of life insurance in Navi Mumbai and the need for the life insurance in the city.

Who can take life insurance?

Life insurance is the most common and simplest form of insurance available to people pf Navi Mumbai. This insurance can be bought by any resident Indian for themselves or their family members. Insured persons will have to pay the specified premium to keep the coverage of the policy active during the tenure of the policy.

The cover can be from multiple insurers for the same person but the premium on each policy has to be duly paid to keep it active. The policyholders can even taker a loan against such life cover. Most lenders accept life insurance as collateral and give loans up to 90% of the policy value.

Customers need to provide a set of basic documents to verify if they are eligible for the life cover. These documents can vary as per the insurer guidelines. The most common set of documents needed by insurers are mentioned below.

  • Proof of age (Ration Card, Aadhar Card, Passport, etc.)
  • Proof of identity (Voter Id, Driving License, Aadhar Card, Passport, etc.)
  • Proof of address (Aadhar Card, rent agreement, utility bills, Passport, etc.)
  • Employment proof (salary slips, employment contract, etc.)
  • Income proof (salary slips, form 16, ITR, etc.) 
  • Application form for life insurance 
  • Passport size photographs

What are the benefits of life insurance?

There are multiple benefits of having life insurance for self and family members. Some of such benefits are mentioned below.

Coverage for self and family members

Life insurance can be used to insure the life of an individual as well their entire eligible family members. The number of family members that can be insured under a single plan is different for each insurer as per their guidelines.

Tax benefits

This is the biggest incentive to get a life insurance plan, especially for the youth. Policyholders can claim the premium paid as a deduction from their taxable income under the Income Tax Act, 1961. The eligible tax deduction for premium on life insurance is up to Rs.1,50,000 under section 80C of the Income Tax Act, 1961.

Loan against life insurance

Most lenders provide the option to get a loan against the life insurance plan. An insurance policy can be used as collateral for getting the loan. The maximum loan available depends on the guidelines of the lender. Majority of lenders provide loan up to 90% of the policy value depending on the lender’s policies in this regard.

Flexibility in premium payment

Premium is the amount that is paid by the policyholder as a cost of the life cover. This amount is to be paid for every policy to maintain the coverage and the amount to be paid depends on various factors. Insurers provide many options for the policyholder to make premium payments. The frequency to make premium payments is at the discretion of the policyholder and as per the agreement between them and the insurer. Most insurers allow the premium to be paid on a monthly, quarterly, semi-annually and annual basis.

Returns on insurance 

Life insurance under ULIP plans offers the benefit of good returns of the mutual fund market along with the benefit of insurance. Such plans have a minimum lock-in period of 3 to 5 years.

How to compare two life insurance plans?

There are multiple life insurance plans provided in the market today by both public and private sector insurers. It can therefore become confusing for an average person to determine the best plan from the available options.

Reputation of the insurer

The reputation of the insurer is the starting point ion comparing two plans. This reputation can be reviewed based on the past experience of existing customers, claim settlement process, etc.

Tenure of policy

Another important factor is the tenure of the policy provided by the insurer. It should match the needs of the customer.

Premium amount

The premium amount depends on many factors one of which is the guidelines of the insurer. The insurer providing higher coverage ate minimum premium should be preferred.

Amount of coverage

The amount of coverage also is based on several factors like age of the applicant, underlying medical conditions, etc. the insurer providing the maximum coverage has to be preferred while choosing life insurance cover.

Ease of access

Most insurers provide the option to buy a life insurance policy through online modes. Such insurers have to be preferred as it makes it easy for buying the policy as well as for after-sale services.

Additional benefits (riders)

Riders are the additional benefits provided by the insurer on existing plans. The insurer providing maximum riders at minimum cost has to be preferred by customer.

Number of family members to be included 

Life insurance is used to get coverage for self and family members. The eligible family members and the maximum number of members that can be included in a plan vary based on insurer guidelines. The insurer including maximum members at least cost should be preferred by customers while choosing a life insurance policy.

Life Insurance in Navi Mumbai FAQs

1. What is the maximum coverage provided under life insurance?

A. The maximum coverage provided under life insurance is different based on the guidelines of the insurer as well as other eligibility parameters set for the applicants.

2. What are the documents needed for life insurance claim?

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

  • Policy number
  • Policy holder name
  • Death certificate of the policy holder (in case of 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

3. What is the maximum deduction on life insurance premium under section 80C?

A. The maximum deduction on life insurance premium under section 80C is Rs. 1,50,000.

4. Can NRIs buy a life insurance in India?

A. Yes. NRIs are eligible to buy a life insurance cover in India provided they adhere to all the required conditions of the insurer and submit necessary documentation.

5. What is the primary purpose of life insurance?

A. The primary purpose of life insurance is securing the financial future of the individual and their family members in the event of premature death of the policyholder.

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