Overview Life Insurance in Thane
Thane is the city of lakes in the financial capital of the country, Maharashtra. The city has a huge historical importance from the time of the Maratha Empire and a huge political and industrial significance. The tourism industry in Thane is quite popular and has many attractions like multiple lakes, the oldest temple in the entire district as well as the Yeoor Hills and the Sanjay Gandhi National Park.
The city is ranked to be the 15th most populous city in the country and one of the many well-planned cities to live in Maharashtra. The literacy rate in the city of Thane is among the highest in the country.
The citizens of Thane have the benefit of good infrastructure and medical access to get prompt medical attention in their need. However, the recent pandemic has shown that the city is still inadequate to meet the demands of all its citizens. In such times, having a good life insurance in place provides the necessary peace of mind to the insured person and their family members as it secures their future. Given below are the key details of life insurance in Thane.
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What is life insurance?
Life insurance is the most common type of insurance available other than health insurance, general insurance, fire insurance, car insurance, etc. This type of insurance provides a coverage for life of the insured person for a fixed tenure or for their lifetime. Policyholders have to pay a cost for the coverage in the form of premium. The premium can be paid at flexible intervals as per the convenience of the policyholder.
Who can buy a life insurance in Thane?
Life insurance can be bought by any individual resident in India. These plans can be bought for themselves or for their family members or the entire family. Most insurers require the applicants to be between the age group of 18 years to 70 years (65 years in case of some insurers). Buying a policy early in life ensures lower premium amount to be paid as well as higher coverage.
IRDAI also allows NRIs to buy a life insurance cover irrespective of whether they are in India or not. Such life insurance can be bought for themselves or their family members in India.
Under the group life insurance plan, the life insurance cover can be provided to all t4h employees of the organization without any further eligibility criteria.
Under child plans, the lifer insurance can be provided to any child up to 18 years of age. Many life insurance plans also provide life insurance cover for newborns. The waiting period for such plans varies for all the insurers based on their underlying guidelines.
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What are the documents needed to buy a life insurance policy?
Every insurer has a separate set of documents needed for buying a life insurance policy. Some of the documents usually required by the insurers are provided 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 types of life insurance available in Thane?
There are about 24 registered insurers in India Today according to IRDAI. These insurers provide many types of life insurance products depending on the category of customers or their specific needs. Some of the variants of life insurance that are provided by these insurers are mentioned below.
| Type of plan | Basic description |
|---|---|
Term plan | The most common type of life insurance with no maturity benefits. Fixed tenure of 5 years to 50 years. |
Term plan with premium return | Term plan providing premium return option if no claim made till maturity. |
Whole life insurance plans | Coverage for the entire life of the insured person. Maturity benefits if the policyholder survives the policy term. Death benefits to nominee |
Child plans | These plans focus on securing the future of the child right from the time of their birth till the time of their adulthood |
Group life insurance | This policy is taken as a standard blanket cover by employers for their entire staff. Coverage till they are part of the organization. |
Endowment plans | These plans combine insurance and investment. |
ULIPs | These plans provide access to the mutual fund market along with the benefit of insurance. |
Moneyback plans | Policyholders get the benefit or return of some portion of the sum assured at regular intervals. Balance of sum assured to be received at maturity. |
Retirement plans | These plans focus to provide retirement benefits to insured persons as pension or lump sum amounts. Death benefits are provided to the nominee or legal heir of the insured person. |
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What are the features of life insurance?
Life insurance has several features that make it attractive for any person to buy it for themselves or their family members.
Some of such features are mentioned below.
- Policyholders get life coverage or for a fixed tenure at their discretion for themselves and their families.
- The policyholders get the benefit of earning returns on investment-linked plans (like ULIPs, Endowment plans, etc.)
- Additional benefits in the form of riders are available to policyholders at a lower additional cost.
- Tax benefits under section 80C and section 10(10D).
- Life insurance policies can be bought online or offline at the convenience of the policyholder.
- Flexible premium payment options are another important feature that allows the policyholders to manage their expenses and get suitable coverage as well.
Life Insurance in Thane FAQs
1. What are the factors affecting premium payment?
A. The factors affecting premium payment are,
- Age of the applicant
- Coverage and tenure of the policy
- Number of persons included in the policy
- Employment status
- Income of the applicant
- Location of the applicant
- Marital status
- Existing policy (if any)
2. Can a person in rural areas get a life insurance plan?
A. Yes. Life insurance can be bought by any person in India whether they are in rural areas or urban areas.
3. What is a free look period in life insurance?
A. A free look period in life insurance is the time period when the policyholder can buy surrender the policy taken without incurring the penalties.
4. Is the death benefit the same as the sum assured?
A. No. Death benefits may not always be equal to maturity benefits as the former also includes the benefit of additional riders and the accrued bonuses.
5. What are some of the common exclusions from a life insurance plan?
Some of the common exclusions from a life insurance plan where the insurer does not have to settle the claims are,
- Any unfortunate incident due to participation in any war or a dangerous activity
- Accident or death due to participation in criminal activities.
- Death during childbirth
- Death due to alcohol, drugs, etc.
- Death due to suicide
- Death due to excessive smoking