Overview Life Insurance in Rajkot
Rajkot is an important city in the state of Gujarat. It is the fourth largest city in the state and has ranked 6th in the list of cleanest cities in India. Rajkot has also ranked as the 7th fastest growing city in the world as of March 2021. The city is home to many great personalities and has a huge cultural and historical significance. Rajkot being one of the fastest growing cities in the country has good infrastructure facilities for its citizens including good network of hospitals and primary health care centers.
Life insurance in Rajkot is one of the preferred mode of investments for the citizens. Besides providing individuals with a financial net in case of emergencies, life insurance is also considered a safe way to increase savings and plan for the future. In this guide, we walk you through all that you need to know about life insurance in Rajkot.
Who is eligible for life insurance in Rajkot?
Life insurance in Rajkot can be taken by any person (who is a resident in India) for themselves and their family members. It is an insurance policy to safeguard the life of a person hence cannot be taken to insure any non-individual.
However, an organization can take a blanket cover for their employees. This blanket cover is in the form of a group life insurance policy. This policy is used to insure the life of the employees till they are part of the organization. Most insurers also provide life insurance focused to secure the future of the children in the form of children’s plans.
Extra Reading: Customize-your-life-insurance-policy-to-fit-your-specific-needs-with-riders
What are the types of life insurances?
There are many types of life insurances available for the residents of Rajkot. The details of the same are mentioned below.
| Type of plan | Basic description |
|---|---|
Term plan | This is a basic life insurance plans with a fixed tenure from 5 years to 50 years. This plan does not have any maturity benefits. |
Whole life insurance plans | These plans are similar to term plans with coverage for the entire life. The policyholder will get maturity benefits if policyholder survives policy term whereas death benefits are provided to their nominee |
Child plans | These plans are targeted for securing the future of the children (even newborns in some cases) till the time of their adulthood |
Group life insurance | This policy is taken by an employer for their entire staff. This plan provides a standard blanket cover which may include cover for family members if provided by the insurer. |
Endowment plans | These plans provide insurance as well as investment and help in building a corpus fund. The tenure is from 7 years to 30 years and the policyholders get the benefit of low-risk returns as compared to mutual funds. |
ULIPs | Unit Linked Insurance Plans provide the benefit of insurance and mutual fund investment which can earn decent market returns. The tenure is from 5 years to 20 years with a minimum lock-in period of 5 years. |
Moneyback plans | These plans provide a lump sum benefit at the time of maturity. Money is received at periodic intervals and the balance of sum assured is received at maturity. |
Retirement plans | These plans focus on providing retirement benefits to policyholders in their old age. Such benefits can be in the form of pension or regular monthly income or lumpsum payment as per the discretion of the policyholder. |
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What are the benefits of life insurance in Rajkot?
There are several benefits of life insurance plans. Some of these features are mentioned below.
- Coverage for life
Life insurance can be used to provide life coverage for a person and to their family members too. The coverage can be for a fixed tenure or for their lifetime.
- Returns on investment
Life insurance is one of the most favoured investment options by every age group and a must in their investment portfolio. The premium on investment is eligible for tax deduction under section 80C up to Rs. 1,50,000. If the policyholder survives the tenure of the policy, the sum assured is returned to the policyholder and the death benefits are paid to the nominee of the policyholder. Hence the returns on the investment are assured.
- Facility to get a loan
Most insurers provide a loan against the life insurance policy. The amount of loan that can be sanctioned is between 70% to 90% of the policy amount.
- Death benefits
The death benefits under life insurance plans are provided to the nominee or the legal heir of the insured person. Death benefits may not be equal to the sum assured as it may include the accrued bonuses as well as benefits of the additional riders. Death benefits ensure that the survivors of the insured person do not suffer financially in their absence.
- Tax benefits
The tax benefits on the premium payment are one of the prime benefits of getting life insurance. Insurers get tax deductions from their taxable income for a maximum amount of Rs. 1,50,000. The sum received at the time of maturity or as death benefits is not taxable under section 10(10D).
- Riders
Riders are the additional benefits allowed on an existing life insurance plan. These additional riders can be attached to the existing policy at relatively lower costs as compared to the premium on new policies. The benefit of these riders is also given to the nominee of the insured person as death benefits.
- Flexibility to pay premiums
The flexibility to make premium payments allows the policyholder to plan their finances for this expense. The frequency of payment can be monthly, quarterly, semi-annually or annual basis at the discretion of the policyholder. This frequency has to be selected at the time of buying the policy and the payment of the premiums can be done through online or offline modes.
- Promoting the habit of savings
Life insurance stays active for the tenure of the policy when the policyholder pays the premium for the policy at regular intervals without missing any due payments. This helps the policyholder not only plan their expenses better as well as inculcate a habit of savings. It is especially helpful for policyholders who have taken a policy in the early 20s. A habit of savings from an early age helps in building a sound investment portfolio that can meet long term financial goals.
Additional Reading: how-to-select-your-life-insurance-policy-during-coronavirus
Life Insurance in Rajkot FAQs
1. What are the documents needed for a life insurance claim?
A. Every insurer has a specific set of documents that are required to be submitted along with the claim application as part of the claim process. The common list of documents that may be required by the insurer is provided below.
- Duly filled claim form
- Original copy of the policy
- Name of the claimant
- Relationship with the policyholder
- Name of the policyholder
- Policy number
- Death certificate of the policyholder (in case of a claim for death benefit)
- Post mortem reports
- Deeds of assignment
- Hospital certificates
- Doctor’s certificates
- Investigation report in case of police inquires
2. Can an NRI buy a Life insurance policy in India?
A. Yes. IRDAI and FEMA allow for an NRI to buy a life insurance policy in India for themselves or their family members. These plans can be bought online or offline according to their needs irrespective of whether they are currently residing in India or not.
3. When can a person claim the maturity benefits of a life insurance policy?
A. Maturity benefits under a life insurance policy can be claimed by the policyholder after the completion of the tenure of the policy.
4. Can Life insurance cover be taken for super senior citizens (citizens over age 80)?
A. Yes. Some insurers provide life insurance policies for the super citizens as well. However, the sanction of life insurance at this age depends on their medical conditions and the underlying guidelines of the insurer in this regard. The premium on such policies will be quite higher as such applicants are considered to be high-risk customers.