Overview Life Insurance in Noida
Noida is the acronym used for New Okhla Industrial Development Authority. It is located in the state of Uttar Pradesh but is also part of the Delhi NCR (National Capital Region). The city has become a huge industrial hub in recent years with mega investments from companies like Microsoft, HCL, Samsung, Barclays, etc. These recent developments have made a huge impact on the demographic of the city with more of the younger generation migrating to the city due to employment. Noida has been awarded to be among the greenest cities in the country with over 50% of green cover and also one of the cleanest cities in the country.
The fast life in Noida has also made it unpredictable. Also, with the crime rate increasing, the need for a safety net for every family has become quite essential. Having life insurance in such cases can be a huge boon. This will help a person secure their future as well as their family members in their absence.
Given below are a few basic pieces of information related to life insurance and its benefits for people of Noida.
Who can buy life insurance in Noida?
Life insurance can be bought by any resident Indian for themselves and their family members. Most insurers require the applicants to be of a minimum of 18 years of age. The maximum entry age for buying a life insurance plan set by most insurers is approximately between 55 years to 75 years depending on the type of policy and the guidelines of the insurer. Many insurers also provide life insurance to NRIs. Such cover is condition-based and requires the applicants to provide basic documentation along with meeting all the eligibility criteria set by the insurer in this regard.
Apart from meeting the eligibility parameters, insurers also require the applicants to provide a fixed set of documentation to verify their eligibility and subsequent claim. Some of the basic documentation needed by insurers is tabled below.
| Category | Documents needed |
|---|---|
Identity proof | |
Age proof |
|
Address proof |
|
Income proof |
|
Apart from the above documents, applicants also need to submit the duly filled application form as well as other mandatory declarations as per the guidelines of the insurer.
What are the types of insurance available in Noida?
There are many types of life insurance available for the people of Noida to choose from. Some of the basic types of life insurance plans are tabled below.
| Type of plan | Basic description |
|---|---|
Term plan | Basic life insurance plans for a fixed tenure of 5 years to 50 years. No maturity benefits. |
Term plan with premium return | Modified term plans provide the benefit of the return of premium if no claim is made |
Whole life insurance plans | Similar to term plans providing coverage for life. Maturity benefits if the policyholder survives the policy term. Death benefits to nominee |
Child plans | Insurance plans for children can be bought from the time of their birth till the time of their adulthood |
Group life insurance | Policy taken by the employer for their entire staff providing standard blanket cover. May include cover for family members is provided by the insurer. |
Endowment plans | These plans provide insurance as well as investment and help in building a corpus fund |
ULIPs | Unit Linked Insurance Plans that provide the benefit of insurance and mutual fund investment that can earn good market returns. |
Moneyback plans | These plans are similar to term plans with premium return options. Money is received at regular intervals and the balance of the sum assured is received at maturity. |
Retirement plans | These plans provide retirement benefits in old age in the form of pension or regular monthly income or lumpsum payment as per the discretion of the policyholder. |
What are common life insurance policy terms?
There are many fine points and intricate details that form a life insurance policy. It includes many terms and common points that have to be understood carefully to get the correct plan that suits individual needs. Some of the common terms used in life insurance are mentioned below.
- Sum assured
This is the basic guaranteed amount of the policy that is received by the nominee or the legal heir. This amount is determined by the policyholder at the time of buying the policy.
- Policy tenure
The time period during which the coverage can be provided to the policyholder under the life insurance policy bought is the policy tenure.
- Nominee
The person who is nominated by the policyholder to get the death benefits under the plan is referred to as the nominee.
- Maturity benefit
The amount under the plan that is paid at the time of maturity or completion of policy tenure is known as maturity benefits.
- Rider
The additional benefits provided under the existing plans at additional nominal costs as compared to that of a new policy are known as riders.
- Exclusions
The cases or situations when the insurer is not liable to pay any claim under the policy are known as exclusions.
Additional Reading: Term Life Vs Whole Life Insurance
Life Insurance in Noida FAQs
1. What are the benefits of Life Insurance?
A. Life insurance policy has multiple benefits other than providing a life cover. Some of the benefits of life insurance are mentioned below.
- Coverage for self and family
- Tax deduction under section 80C up to Rs. 1,50,000
- Coverage for fixed period or life
- Option to get a loan between 70% to 90% of the policy amount
- Option to earn mutual fund returns under ULIPs
- Additional riders on an existing plan
2. When can a person buy life insurance cover?
A. There is no ideal age for buying life insurance coverage. Applicants can buy life insurance at any point in their life provided they meet the eligibility requirements. However, the earlier the person takes an insurance cover, the lower is the premium that needs to be paid for the plan.
3. What is the death benefit?
A. Death benefits is the amount paid to the nominee or the legal heir of the policyholder upon the death of the life assured. It can be different from the sum assured as it may include additional rider benefits or increased value on account of mutual fund investment.
4. Can life insurance premiums be paid online?
A. Yes. Life insurance premiums can be paid online through internet banking or mobile banking options.
5. What are the important points to look out for while selecting a plan?
A. The important factors to watch out for while selecting a plan are,
- The amount of coverage provided by the insurer
- The number of family members that can be included in a single plan
- The claim settlement ratio of the insurer
- The reputation of the insurer is based on the past experiences of existing customers.
- The claim settlement process of the insurer
- The option to avail additional riders and maximum allowed
- The tenure of the policy
- The amount of premium to be paid along with premium payment options and frequency of payment.