What is Life Insurance?

Transcription

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2 What is Life Insurance? Life Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance compa- ty, critical illness. or death. It enables maintenance of the same lifestyle 1

3 Types of Insurance? Term Plan A term plan is the simplest type of insurance in which component. In case, the policyholder dies during the term of the policy, the sum Whole life insurance plan Whole of your life that is as long as life plan could be a whole life endowment remains the same throughout the policy life. In case of the nominee. Endowment Plan An endowment plan is a life insurance plan designed to or on death. Endowments can be cashed in early (or depending on how long the policy has been running and how much has been paid into it. 2

4 Money Back Plan In a moneyback insurance plan, the policyholder gets rather than getting the whole amount as lump sum. It is essentially a type of endowment plan with of the policyholder during the policy term, the claim amount comprises the full sum assured. ULIPs ULIPs or Unit Linked Insurance associated to the capital markets. As this one needs to be discerning enough. Before buying a ULIP, it will be wise to consider your risk appetite Retirement Plan regular stream of income post retirement. It is a type of retirement solution that can help you with regular flow of income to maintain your existing lifestyle. 3

5 Why you must buy life Insurance? Like a safety net that comes to your aid during times of crisis, life insurance is a mechanism that helps you alle- his life by buying a policy from a company and paying the premiums. In return, the said insurance company promises to remit a certain lump the demise of the insured person to his or her nominee. and the timeframe, the premium amount - 4

6 Factors to keep inmind while buying life insurance insurance. You must take them into consideration before buying a policy. Let us take a look at them: Dependents : buying a life insurance policy is directly related to your age, number of dependents (spouse and kids), a policy that lets you build a corpus for does not undergo a drastic change in your absence. Marital Status : to buy a life insurance policy. Should anything untoward happen to you, the policy amount will take care of your your spouse is an earning member or not. If your spouse is gainfully employed, the insurance amount can be lower, 5

7 Earning Capacity : that in case you are gone, your family will not suffer a a result, your earning capacity is of utmost importance when it comes to deciding the life insurance amount. Debt : certain amount of debt burden on you, say a employed, you will pare the debt on a you suddenly pass away? What does your family do when faced with such a crisis? In such circumstances, the insurance amount should be higher so that along with helping your family meet Lifestyle-smoker/non-smoker : At the time of buying life insurance, companies do ask you if you are a smoker or a non-smoker. If you identify yourself as a smoker, then insurance companies usually place smokers in a high-risk category. Should you lie about your smoking while buying a policy, it can lead to unwarranted hassles. If the company learns of your smoking habit after your death, there is a good chance the claims process can be stalled. More importantly, lying is treated as fraud. 6

8 Your nominee must know all about your policy insurance policy and agreed to its terms and conditions, the sum assured paid by the insurance company in the process faces no hindrances, should anything happen to you. As a result, the nominee plays a crucial role in your life insurance policy. It is essential that he be aware of all the details of your policy, more so the procedure of claiming the insurance money. Keep your nominee in the loop about the policy child to be the nominee. In some cases, people nominate premium amount you are paying to the sum assured that nominee is well-aware of the policy details. sum on behalf of the minor. 7

9 Why you must keep your nominee informed importance to you. When you buy a life insurance policy, Not keeping your nominee informed about the If you are gone and your nominee is not well aware of your policy details, it comes to claiming the compensation longer than usual. being a minor, make sure that a trustworthy adult knows about the policy. 8

10 What your beneficiary must know During your lifetime itself, ensure that the nominee has your nominee will need the policy contract, a form that will help process the claims and a death reaches him. In exceptional cases, too. At the time of buying the policy, you apprise you and your nominee of the claims your nominee a lot of running around and unnecessary paperwork. the person you nominate knows all about the policy and the claims process. Do this and only then will your family 9

11 prepared there are no worries Financial Health Check

12 Take the below quiz to get a quick Financial Health Check Count your Reds to know your financial health I know how much I need to invest today to accumulate 1 crore in future I am aware of the different milestones in my life when I will require money in lumpsum I am aware of the right amount of life insurance cover to meet my family s future requirements I know the retirement corpus that will atleast generate a post retirement income equivalent to my current salary I have adequately planned for my child s higher education and future I am well aware of various investment instruments per my changing needs I am fully aware of all the terms and terminologies of insurance 11

13 0- Build 1 to 4- Observe More than 1 to 4- Act take immediate actions to secure yourself and Bajaj Allianz Life Insurance Co. Ltd., G.E. Plaza, Airport Road, Yerawada, Pune IRDA Reg No.: 116. Visit: BALIC CIN : U66010PN2001PLC Mail us : customercare@bajajallianz.co.in Call on: Toll free no Fax No:

14 To know more about life insurance solutions, please get in touch with Bajaj Allianz Life Insurance. Log on today at 13