Life Assurance – Plan for Your Family’s Bright Future
Life assurance or life insurance is a quite similar or same term. Life assurance has a very long past. Though life assurance plans have officially originated only a century back but the existence of life insurance is many centuries back. Life assurance was first originated by Babylonians who founded this policy to earn more from the merchants. Babylonians charge extra amount on the fund from the merchant for delivering the goods safely. Later this policy was implied by many other tribes all around the world. Also in Germany, the traders who enter the region for trading were given life and goods cover by the king against the theft or fire accident of the goods.
Life Assurance in India –
Life Assurance in India came in 1906 with General Insurance Company of India which initially do not cover life insurance. The main objective of GIC was to insure non life objects such as motor insurance, fire insurance and many others. Later in 1956, Government of India with 100% stake formed LIC i.e. Life Insurance Corporation of India for serving people with life insurance. LIC is the biggest insurance organization in India with over Rs. 13 trillion assets. India is one of the major markets for insurance companies and therefore in past few years huge number of companies has approached to establish their business in India. Now Government of India has allowed 49% of Foreign Direct Investment in Insurance sector which means it will be a gateway for more foreign companies to function in Indian market.
Benefits of Life Assurance Policies –
- Death Benefit – Usually insurance companies provide financial support to insured person’s family after his or her death with guaranteed maturity amount along with bonus amount.
- Maturity Benefit – Insurance companies also provide guaranteed maturity amount to the Insured person after the maturity period of insurance.
- Tax Benefit – Not only this, insured person also gets rebate or relaxation in income tax withholding insurance policy. According to section 80C of Income Tax Act, insured person get relaxation in income tax with maximum Rs. 100000 policies.
- Loan Facility – There are some insurance plan which allow you to take loan on your particular insurance plan. Well it might depend on the terms and conditions of the company.
- Riders – Some insurance plans are engraved with additional benefits of insurance plans. There are some plans which allow you to invest some part of your premium in market shares.
Top Three Insurance Plans –
Term Insurance – This insurance plan is the simplest and cheapest plan ever with sure maximum benefits. Insured person get a one-time payment only after maturity period or after death of insured person.
- iProtect (ICICI- Prudential)
- Term Assurance Plan (HDFC Life)
- Anmol Jeewan (LIC)
Endowment Insurance Plan – This plan is for generally for term of 5 Years, 10 years, 15 years, 20 Years and 25 Years. In this plan insured person has a choice of re-investing the maturity amount in market.
- Met Suvidha (Met Life)
- SBI Life Sudarshan (SBI Life)
- Endowment Plan (Kotak Life)
ULIP Plan – ULIP or Unit Linked Insurance Plan is only plan of its type. Under this plan investment of different individuals are mutually invested in one plan.
- Life Maker (Max New York Life Insurance)
- Unit Gain (Bajaj Allianz)
- Invest Assure (TATA AIG Life Insurance)
Pension Plan – Pension plan is recommended as one of the best future investment plan. Under this plan, insured person get the maturity amount after the term period in total amount or in installment basis.
- Jeewan Nidhi (LIC)
- Secure Pension (AVIVA Life Insurance)
- Retirement Income Plan (Kotak Life)