Life insurance is a contract that provides a payout upon the insured person's death or at a specified time, in exchange for regular premium payments. The purpose of life insurance is to protect the insured's dependents from financial stress in the case of early death by giving them a cash benefit.
Also, Investing in life insurance can be a wise long-term investment because it can help you reach your life goals, such as purchasing an additional residence or your children's school, as well as give financial support in the case of the insured person's unexpected death.
You should choose a life insurance policy from okbima.com as it is a fully licensed Insurance Brokerage firm registered with the Insurance Regulatory and Development Authority of India (IRDAI).
It has won its consumers' faith by being one of the best private trustees in the industry today. Furthermore, one of our guiding principles is focusing on customers, which has allowed us to evolve along with the changing needs of the consumer. It is best to get life insurance policies through Okbima.com since we offer the following features.
Team of Experts
To choose and buy the life Insurance plans that will benefit you most, you can receive the best guidance from us.
30+ Life Insurance Choices
You can quickly get access to over 30 insurance firms that specialize in life insurance coverage.
24/7 Customer Support
Through our online platform, we are at your service 24/7, making the investment procedure quicker, simpler, and, to top it all off, transparent.
Social Media Presence
Our Okbima's handle is available on social media networks such as Facebook, Instagram, and Twitter, and you can contact us on any of these platforms in case you have any concerns
Choosing the right type of life insurance plan is one of the most crucial aspects of living a comfortable, stress-free life. In India, there are various types of life insurance coverage. A life insurance policy can be chosen depending on an individual's specific needs. Read on to discover the many kinds of life insurance and their advantages
A term plan is an important aspect of financial planning for the major salary earner in a household. It provides a death benefit to the policy's recipients if the policyholder dies within the policy term.
Unit Linked Insurance Plan (ULIP)
A unit-linked insurance plan (ULIP) combines both investments and insurance. A portion of the funds is used for life insurance, while the remaining portion is invested in long-term plans like stocks, bonds, and mutual funds. In addition, ULIPs provide tax advantages under the 1961 Income Tax Act.
Money-back Insurance Plans
Money-back plans pay up an amount of the cash assured at regular periods rather than a big sum at the end of the term. A money-back insurance plan is a great option for those who don't like taking risks because it helps them save money and keep their liquidity throughout the process.
Endowment Insurance Plans
A life insurance policy that covers both a life cover and financial growth is known as an endowment plan. It can be used to save for a variety of objectives like home ownership, your child's schooling or marriage, beginning a new business, and more.
Whole Life Insurance Plans
Whole life insurance is a sort of permanent life insurance, meaning that as long as premium payments are made on time, the insured person will be protected for the length of their life. A whole life insurance plan covers you for 99 years.
One kind of life insurance that focuses on giving you stability and security financially after retirement is a retirement plan. Your regular income from employment ends when you retire. A reliable source of consistent income can be produced by investing in retirement plans. You might potentially earn better returns with retirement programs.
A child insurance plan offers both insurance and investment. A child insurance plan aids in creating a corpus for your child's future because children should only receive the best. Depending on the child's age, a child plan can provide maturity benefits as annual payments or as a lump sum payment.
Choosing the most suitable life insurance plan in India is a challenging task because different life insurance firms offer various life insurance policies. We at okbima.com have made it simple for you to select the best life insurance policy in India in 2023. Continue reading below to learn more:
Identify your life insurance goals
Goals might differ from individual to individual. Every person has distinct goals for themselves in life. If ensuring your child's security in the future is your top priority, you can get a child insurance plan that provides high coverage at competitive prices. You might think about investing in a unit-linked insurance plan if you're planning to purchase yourself a dream home.
Estimate the amount of insurance coverage you need
Many financial advisors recommend that your life insurance coverage be at least ten to fifteen times your annual salary. However, there are several factors you should take into account when determining the right life insurance coverage. It could be difficult for your family to pay the Equated Monthly Instalments without you if you have debts.
Because of the rate of inflation, your family may have difficulty maintaining their existing standard of living in the absence of the main income earner. As a result, you must calculate the sum of the following:
Choose the best policy term
The policy's terms should ideally equal the length of time that your family will be financially dependent on you. The usual rule of thumb for determining the optimal insurance term is to deduct your current age from the age at which you anticipate your income to end or at which you aim to achieve a certain life goal.
Do never falsify information to your life insurance provider
Inform your life insurer if you use smoke or alcohol, or if you work in a dangerous profession. You must also disclose any current illnesses or serious diseases in your family history. Your risk profile is affected by these factors. It's critical to give precise information to avoid future claim rejection.
There are various reasons to buy life Insurance plans online such as: By offering Insurance plans online, Indian insurance companies started using the internet for business. Because of this, insurance, which was previously sold by brokers, can now be bought online in a matter of seconds. The Internet insurance market has seen enormous growth in recent years. Here are some of the primary reasons in favor of purchasing insurance online.
When you as a consumer make an online direct purchase from an insurance company, the insurer is able to save operating expenses and middlemen's commissions. Additionally, the costs are reduced further because the entire process is paperless and conducted online. Online premiums that are less expensive as a result of these savings can be transferred on to you.
Convenience is the quality that likely outweighs all other benefits. A few mouse clicks will allow you to get insurance online. This enables you to purchase the item whether at home or on the go, hurrying from one meeting to the next. You may meet all of your insurance needs online with just an internet connection.
Insurance firms make all product information, including features, duration, and riders, available on their websites. As a result, buyers who want to make an online purchase can readily obtain this information and make an informed decision. They are no longer required to rely on an agent or another person with a vested interest to provide them with the necessary information.
Life insurance is important because it gives financial stability to the family in the event of the policyholder's untimely death. Life insurance can help the policyholder's family remain financially independent, allowing them to maintain their standard of living.
Now read the following points to understand how a life insurance policy works:
Firstly, choose a life insurance policy based on your needs and requirements as it helps you achieve financial goals such as owning a house and education funding for your children, etc.
Secondly, depending on the plan's terms and conditions, you can purchase your plan on an annual or monthly basis.
In the event of a sudden death, the nominee can notify the insurer and claim their insurance.
The nominee will have to provide the necessary documents such as identity evidence, death certificate, and so on.
Lastly, the insurer will pay the nominee the amount of the life insurance policy after the verification.
The majority of people are aware that getting life insurance provides your family with financial security in the event of your untimely death. This advantage applies to all types of life insurance, however depending on the particular policy type and level of coverage you purchase, there are additional important benefits to life insurance.
Purchasing life insurance shields your loved ones from the dire financial losses that could arise in the event of your passing. Many people question who can buy a life insurance policy and when they should get it. You don't need to be worried now. Here is your answer given below.
Adults of age 20 and singles
The most likely recipients of life insurance are those who are very young. It is recommended to purchase a life insurance policy early because the premiums charged by the insurance companies are generally lower while you are young.
People who have just gotten married and started families should purchase life insurance coverage to cover various hazards in life. This is due to the fact that you have to take care of dependents once you get married and create a family. The lower cost of premiums is one of the benefits of purchasing life insurance immediately before or after marriage.
Home loan borrowers
Due to the high cost of home loans, your family might not be able to make the monthly payments if you pass away. With life insurance, you can feel at ease knowing that your family home is protected because the death benefit given to your family can be used to pay off your loan's monthly installments. Insurance companies often provide the option of disbursing the death benefit in recurring monthly payments, assisting your family in timely repayment of the home loan EMIs.
Elderly people or retired people
For senior citizens, purchasing life insurance coverage is crucial since it will enable them to enjoy a quiet and pleasant life after retirement. Some insurance plans can also be used as a source of support for them and their families, easing their concerns about money in the future. Therefore, one of the greatest ways to take care of them and give them and their loved ones a sense of financial security is to purchase a life insurance policy.
No matter your age, it is always a wise decision to get covered by insurance for the sake of your loved ones. Additionally, the best method to avoid paying excessive premiums is to start young.
The best time to purchase a life insurance policy is when you are in your early twenties since you are going to benefit from a number of advantages, including reduced premiums, a larger corpus, and of course, the formation of a saving habit at a young age. At this stage, there is also more opportunity to experiment with more risky investments that may pay off more. ULIPs and term plans are two of the best life insurance solutions.
People typically get married in their late 20s or early 30s, beginning a new chapter in their lives. Therefore, it is the ideal moment for them to buy a term life insurance policy to protect their spouse and their children's future.
There are no children, fewer costs, and many have only recently begun their married lives. People can now readily withdraw money for long-term plans, and they can also benefit from a number of tax breaks under section 80C of the Income Tax Act of 1961.
A life insurance policyholder may have serious issues if there are any missing papers or information. Documents Required to Purchase Online Life Insurance Policies:
Proof of Identity: As proof of your identity, you must present a valid ID card or passport. This ensures that the insurance company can accurately check your personal information.
Proof of Address: Utility bills, bank accounts, or rental agreements confirming your living address will be requested. This helps in finding out your current address.
Medical Information: Relevant medical information, such as your medical history and reports, may be required. This information enables the insurance company to evaluate your health and establish the right coverage and premiums.
Income-related Documents: Depending on the policy and insurer, you may be required to produce income-related documents such as pay stubs, tax returns, or bank statements. These documents aid in determining your financial eligibility for the life insurance policy.
It is important to remember that the documentation requirements differ depending on the insurance provider and the type of life insurance plan being sought. To guarantee a smooth application procedure, verify with the insurer or visit the Okbima website for a thorough list of required documents.
Not everyone may be familiar with all of the factors that insurers take into account when calculating premiums. You can better manage the cost if you are aware of these factors. So, read on to see what factors affect the cost of life insurance premiums.
In the modern era, when everything is becoming digitalized, the insurance industry has also embraced the digital age. With the advancement of digital technologies, it is now possible to purchase life insurance coverage with just a few clicks of the mouse. However, if you're interested in purchasing an insurance plan online and are unsure of how to do so, the information below will help.
Research and comparison
Start by looking into various insurance providers' policies. To choose the plan that best meets your needs, compare coverage, premium costs, and user testimonials.
Determine Your Coverage Needs
Consider your financial responsibilities and the quantity of coverage necessary to adequately safeguard your loved ones. Don't forget to take into factors like your current debt, upcoming expenses, and income replacement.
Use Online Insurance Sites
Look up trustworthy insurance sites that let you compare coverage from various suppliers. To get customized quotes, enter your information and needs.
Evaluate Policy Features
Analyze the features of the policy by carefully reading and comprehending the clauses, exclusions, and any additional riders or advantages. Make sure the coverage meets your expectations and provides adequate protection.
After choosing a policy, head over to the insurer's website to submit an online application. Give the required information on the application form and complete it accurately.
Medical Exam (if needed)
A medical exam could be needed by some policies. Plan the exam whenever it is most convenient for you, and be cooperative.
Review and Purchase
Examine the final policy offer, paying particular attention to the premium cost and terms of payment. If everything appears to be in order, finish the purchase by paying the premium online.
Issue of the Policy
The insurer will issue the policy documents following the processing of the payment. Make sure you get a copy of the policy so you have it for your records.
To calculate life insurance premium follow the steps given below:
Step 1: Use the insurance calculator online by going to the page where you wish to purchase a life insurance policy.
Step 2: Provide personal information such as your name, age, salary, and way of life.
Step 3: Choose the online insurance plan you want, then choose the sum assured, the policy length, and the premium payment period.
Step 4: Add passengers who meet your requirements.
Step 5: It will provide you with an estimate of the online insurance premium necessary to buy the policy.
In today’s world there are a variety of convenient payment options in order to make purchasing life insurance premiums easy. To ensure that your family is always secure, use one of these premium payment methods such as:
The key features of life insurance policy in India are:
If the policyholder passes away unexpectedly, family protection offers financial security to the policyholder's loved ones. The one-time payment can aid in paying off debts and other financial responsibilities as well as other expenses.
A sum assured is a fixed amount paid to the plan's nominee in the grief event of the policyholder's death. The insurance provider will pay you the amount you specified when you purchased the policy.
The length of time for which term plans are eligible for coverage is designed to keep you protected even as you get older. Term insurance covers you for a maximum of 30 or 35 years, depending on the plan you select.
Term insurance policies typically only provide a death payment in the event that the insured passes away during the policy's term. No benefit is given upon maturity if the insured lives out the period. There are, however, return-of-premium term plans that reimburse the premiums upon plan maturity.
If the premiums are too expensive, a high assured amount cannot be maintained. The premiums for term plans are quite low because they largely cover the risk of premature death. In actuality, term insurance premiums are the most affordable of all types of life insurance. So you don't have to be concerned about paying expensive premiums if you choose a high level of coverage.
The tax advantages associated with life insurance policies are one of the main factors contributing to their continued popularity as a form of investment. Some of the best tax advantages available under the Income Tax Act of 1961 are covered by life insurance tax benefits. For additional information about life insurance tax benefits and the important sections that relate to them, continue reading below.
One of the most well-known and valued sections among taxpayers is Section 80C because it enables individuals to lower their taxable income by making tax-saving investments or sustaining qualifying costs. It permits a maximum annual deduction of Rs. 1.5 lakh from the taxpayer's gross income.
Section 10 (10D)
Section 10 (10D) allows tax-free on the earnings of the life insurance policy, which is its principal advantage. Thus, the nominee or designated legal heir of the insured will receive a death benefit that is not subject to taxation. It's also tax-free for the policyholder to collect the maturity benefit at the conclusion of the policy period.
The Income Tax Act of 1961 particularly addresses pension plans, whether they are included as ULIPs or as standard life insurance policies. Since your pension plan permits you to use one-third of the corpus for vesting purposes, this amount is tax-free under Section 10(10A). Since the remainder of the corpus is paid as an annuity, these are not tax-free.
It can be exhausting to run from pillar to post trying to figure out how to file a life insurance claim after the death of a loved one. Therefore, it's important to understand how your family can receive the money from a life insurance claim. Read on to see how your family can get your money:
Riders are optional extras that you can add to your current life insurance policy at a reasonable cost. Riders are useful instruments that can be used to increase your life insurance coverage.
There are various life insurance riders, including
Reduction in premium
Insurance policy allows the insured from paying insurance premiums in the event of serious illness or physical impairment.
It is an optional coverage that can be added to an existing insurance policy in exchange for an additional premium. In this policy, a lump sum payment is made to the life-guaranteed family if the life assured is diagnosed with a designated critical illness during the policy's term.
Accidental death rider
Every life insurance policy includes an accidental death rider. But if you get an accidental death rider, the insurer will reimburse your nominee for up to twice the amount guaranteed in the event of your accidental death.
A disability that is both permanent and partial
This is useful if an accident renders you temporarily or permanently disabled. In most situations, the insurance pays a specific amount for the following five or ten years. Additionally, the insurance provider will not charge any more premiums for the primary insurance coverage in the future.
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The main advantage of having life insurance is that it gives your family long-term financial security. Life insurance products offer a lump sum of money to your family in case of your early death.
You can have as many life insurance plans as you like, but insurance companies will take your overall coverage into account. Depending on your age, your coverage shouldn't generally be greater than 15 to 30 times your annual salary.
Whole, universal, and variable policies are the three primary types of permanent life insurance.
The risk of incorrect product design, pricing, underwriting, claims management, and reinsurance management exposes a life company to financial loss and having no way to satisfy its liabilities.
You must purchase life insurance that covers at least 15% of your yearly income.