Overview Life Insurance in Thiruvananthapuram
Thiruvananthapuram is the capital city in the southern state of Kerala. The city was formerly known as Trivandrum and is the information technology hub of Kerala. The city is hugely popular for its good infrastructure and medical facilities. Apart from this, the city is also a famous tourist destination with the world-famous Padmanabhaswami Temple in the city. The city was ranked as the best city to live in India two times in a row as well as has the strategic importance of being a huge base in southern India for the Indian Air Force.
The city has good infrastructure and medical facilities that enable the citizens of the city to access excellent and timely medical attention. But, the recent pandemic has reflected the harsh reality that there is a long way to go. Currently, Kerala is facing the worst face of the pandemic with approximately 40% of the total cases coming from the state. This has further emphasized the importance of having life insurance to ensure the financial security of an individual and their family members.
Check out the key details of life insurance policies in Thiruvananthapuram.
What is a life insurance premium and what are the factors affecting premium?
Life insurance is the insurance provided by registered insurers as coverage for the life of a person. An insured person has to pay the cost of this coverage in the form of a premium. There are various factors affecting the premium payment for life insurance. Some of the most common factors are mentioned below.
- Age of the applicant
This is the prime factor affecting the premium amount. If the age of the applicant is lower, they are considered to be below risk individuals and hence the cost of providing a life cover is lower and vice versa.
- Coverage and tenure of the policy
These are some of the main factors directly affecting the premium amount. If the coverage of the policy is more but the tenure is less, the premium amount will automatically increase and vice versa.
- Number of persons included in the policy
A life insurance policy can be used to provide life cover for a single person or their family members too. The number of persons included in a policy will directly impact the amount of premium. If there are more members (especially senior citizens), the amount of premium will be more.
- Employment status
The employment status of the applicant is also considered in determining the premium amount. If the applicant is employed in a riskier job or an unstable job, the risk is considered to be high which will translate to a higher premium. employment
- Income of the applicant
The income of the applicant shows the insurers if they are capable of making the premium payments on time. Hence, it is also considered.
- Location of the applicant
If the applicant resides in a geographically or politically unstable location, the premium amount will increase on account of the applicant being a high-risk applicant and vice versa.
- Gender and Marital status
Not many applicants may know this but the gender and the marital status of the applicant is another important consideration in determining the premium amount. Insurers charge a lower premium amount for female applicants than male applicants as they are considered to live longer. On the other hand, a married person is charged more premium as compared to a single applicant.
- Existing policy (if any)
If the applicant already has a policy, the premium charged may be slightly higher as compared to a new customer as per some insurer’s guidelines.
What are the types of life insurance policies?
There are many types of life insurance that can be available for citizens of Thiruvananthapuram. Some of these types are tabled below,
| Type of plan | Basic description | Tenure | Maturity benefits | Death benefits | Target customers |
|---|---|---|---|---|---|
Term plan | Basic life insurance plan for self and family. | The tenure is fixed for 5 years to 50 years | No maturity benefits. | Death benefits are given to the nominee or the legal heir of the insured person. | This policy is a good option for customers aiming to secure the future of their family nominal costs |
Term plan with premium return | Basic term plan with premium return option if no claim is made | Fixed tenure between 10 to 30 years | No maturity benefits. But assurance of premium return if no claim is made | Death benefits are given to the nominee or the legal heir of the insured person. | A good option for people looking for benefits of term plans but discouraged by no maturity benefits |
Whole life insurance plans | Life insurance providing coverage for a lifetime. These plans may or may not have investment options. | The whole life of the insured person. | Maturity benefits are given to insured persons if they survive the policy term | Death benefits prothe vided to the nominee. | Good option for securing the future of the family. |
Child plans | Life insurance plans focus on securing the future of children right from birth. | From 0 years to 18 years | Maturity benefits when the child attains adulthood | Death benefits to the nominee or legal heir | A good option for parents seeking to secure the future of their child |
Group life insurance | A life insurance policy taken by the employer for all the employees | From the joining date till the person is part of the company. | No maturity or surrender benefits | Death benefits to the nominee or legal heir | A good option to get a cover without any waiting period |
Endowment plans | Life insurance plans with investment benefits. These plans have a portion of returns as guaranteed returns. | Tenure ranges between 10 years to 30 years | Maturity benefits are given to insured persons if they survive the policy term | Death benefits to nominee or legal heir | A good option for applicants seeking insurance and investment option under a single plan |
ULIPs | Unit Linked Insurance Plans that provide mutual funds along with insurance. No guaranteed returns like endowment plans. | Tenure between 10 years and 20 years | Maturity benefits are given to insured persons if they survive the policy term | Death benefits to the nominee or legal heir | Good option for applicants looking for insurance benefits with a higher risk appetite for high returns |
Moneyback plans | Life insurance plans with the option to get assured returns in the form income at regular intervals | Tenure can be up to 25 years | Balance of sum assured after assured returns, if any, is received at maturity. | Death benefits to the nominee or legal heir | This plan is ideal for investors looking to get returns at regular intervals and life insurance benefits. |
Retirement plans | Life insurance plans with a focus on retirement benefits in form of pension or regular monthly income or lumpsum payment as per the discretion of the policyholder | No fixed tenure for such plans | No maturity benefits. Assured regular income till survival | Death benefits to the nominee or legal heir | A good option for people seeking financial security in old age. |
Life Insurance in Thiruvananthapuram FAQs
1. What are the features of a life insurance plan?
A. Some of the benefits of life insurance are mentioned below.
- Life coverage or fixed tenure coverage for self and family.
- Benefit of earning market returns along with insurance-linked plans (like ULIPs, Endowment plans, etc.)
- Additional rider benefits on existing policy at lower additional cost.
- Tax benefits under section 80C and section 10(10D).
- Easier access to life insurance policies online or offline at the convenience of the policyholder.
- Flexible premium payment options (monthly, quarterly, half-yearly, annually)
2. Is life insurance available for minors?
A. Yes, parents can take life insurance for their minor children right from birth under child plans offered by various insurers.
3. Does a person get maturity benefits under a Term plan with a premium return option?
A. No. There are no maturity benefits but the premium return option makes it a better option as compared to regular term plans.