Overview Life Insurance in Patiala
Patiala, the fourth largest city in the State of Punjab is also called the ‘ Land of Maharajas’. A royal city, it is famously known for its ‘pagri’, ‘dresses’, ‘peg’, ‘Jutti’, dresses, folk songs, dances like Gidha and Bhangra and food like ‘Makki de roti’ and ‘Saraason da saag’.
With such a rich tradition and culture, the city attracts tourists from wide and far. Being a rapidly developing city, the city has seen a massive influx of migrants from all walks of life. This increasing population has led to rising levels of lifestyle issues and pollution.
The health challenges have made its residents go for purchasing good life insurance plans. Various key insurance providers like HDFC Life, LIC of India, ICICI Prudential AVIVA Life insurance and similar ones have set up branches in Patiala. They offer the people of the city attractive life insurance plans at affordable rates.
Additional Reading: Applying for a Life Insurance Policy?
Why do you need life insurance in Patiala?
Patiala has grown by leaps and bounds in recent times. The city has seen people from across India making it their home. This increasing population has led to increasing pollution and lifestyle changes evidenced. Also, the ongoing Covid-19 pandemic has seen a rise in health concerns among its residents. So, the residents are feeling the need to go in for a good life insurance cover to tide over the uncertainties of life.
Various insurance providers in the city have come with attractive life insurance policies on offer to help the residents choose a life insurance plan to meet their need requirements. A good life insurance cover will help the insured to safeguard themselves and their family members in uncertain events like a medical issue or even in the event of the untimely death of the primary policyholder.
The life insurance policy will help to get various benefits like return on investments, the collateral against a loan, death benefits, tax benefits and similar benefits, thus providing financial security for the insured and their family to realize their various dreams. With guaranteed returns in the form of sum assured to the nominated beneficiary, a life insurance plan is a must for everyone looking to maintain their long term goals.
The benefit of a life insurance plan can be availed by the policyholder on payment of a premium on the life insurance plan either as a regular premium or as a single lumpsum amount. This premium is decided based on the policy availed and the repaying capability of the insured.
Additional Reading: What are the important features of Life Insurance?
Tax Benefits for Life Insurance Plan
Life Insurance Plan is a tax saving instrument in India. Key tax benefits that can be availed on the purchase of a life insurance policy are:
- Premium paid on the life insurance policy is tax-deductible under Section 80 C of the Income Tax Act, 1961.
- Tax exemption on such premium paid is available up to Rs.1.5 lakhs per annum.
- Tax exemption is available on the premium paid towards the life insurance policy of the primary policyholder, his/her spouse and dependent children.
- Individuals and members of the Joint Hindu Family can only avail the benefits of tax exemption for premiums paid on life insurance policy.
Key Consideration on Tax Exemption for Life Insurance under Section 80C
- Life Insurance issued before 31st March 2012
Tax deduction is valid only for the total premium paid amounting to a maximum of 20% of the sum assured.
- Life Insurance issued on or after 1st April 2012
The tax deduction is valid only for the total premium paid which amounts to a maximum of 10% of the sum assured.
- Life Insurance issued on or after 1st April 2013
If insurance is in the name of any person suffering from any disability as mentioned in section 80U or suffering from any disorder or disease as referred to in section 80DDB, the maximum deduction is up to 15% of the sum assured.
Additional Reading: Tax Benefits on Life Insurance Plans
Conclusion
Patiala has been growing at a huge pace. This rapid development has led its residents to face various health-related challenges. This has necessitated the importance of having a proper life insurance policy for the people of the city, to safeguard themselves and their family members from uncertainties of life.
Life Insurance in Patiala FAQs
1. What are the key features of a whole life insurance plan?
A whole life insurance policy provides death benefits as well as a cash value accumulation which increases over the tenure of such a policy.
2. Does a term insurance plan provide a death benefit?
A term insurance plan is an affordable life insurance plan that provides death benefits only. It pays benefits only if the primary policyholder dies while the term of the policy is in effect.
3. Does a ULIP give extra returns?
Unit Linked Insurance Plan (ULIP) covers both insurance and investment. Through ULIP, one can undertake wealth creation along with life insurance policy cover. The insurance provider considers some part of your ULIP for life insurance while the rest is invested in a fund (equity or debt or both), keeping in mind your long-term goals like child’s education, retirement plans and the like.
4. What are life insurance riders?
Riders are additional benefits that could be appended to the policy holder’s existing insurance plan for gaining additional provisions. Riders are provided at an extra cost along with the regular premium to be paid.
5. Can I get a tax benefit for my life insurance policies?
Tax benefits are available under Section 80 C of the Income Tax Act 1961 to individuals or HUF’s on the premium amount paid.