About Life Insurance Kolkata
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Life insurance is a financial option which is very important for financial planning and is the most type of insurance that people purchase. It is the scheme where you get funds in case of demise of income earner of the family. Also, there are various tax benefits associated with Life Insurance Kolkata.
Why one should apply for Life Insurance Kolkata?
- Assured salary through annuities
- Protection plus savings over a long term
- Tax Benefits
- Risk Cover
- Planning for life stage needs
- Protection against increasing health expenses
- Build the habit of saving
- Safe and profitable long-term investment
Types Of Products Available
Endowment Policy: This policy combines risk cover with the savings and investment. If the policy holder dies during the policy time, he will get the assured amount. Even if he survives he will receive the assured amount.
Policy holders benefit in two ways from a pure endowment insurance policy. In case of death during the tenure, the beneficiary gets the sum assured. If the individual survives the policy tenure, he gets back the premiums paid with other investment returns and benefits like bonuses.
In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans.
Money Back Policy: Money Back Policy is to provide money on the occasions when the policy holder needs for his personal life. The occasions may be marriage, education, etc. Money will be paid back to the policy holder with the specified duration. This life insurance policy is favored by many people because it gives periodic payments during the term of policy. In other words, a portion of the sum assured is paid out at regular intervals. If the policy holder survives the term, he gets the balance sum assured.
Whole Life Policy: As the name itself says, the policy holder has to pay the premium for whole life till his death. This policy doesn’t address any other needs of the policy holder. The premium and death benefit you quoted at your policy’s start remain the same throughout the policy’s life. Increasingly, whole life policies are being combined with other insurance products to address a variety of needs such as retirement planning, etc.
Term Life Policy: It is a type of policy in which the benefits can be incurred only after the death of the insured, provided that the death occurs within a specified time period. If the insured dies during the term, the death benefit will be paid to the beneficiary.
These insurance policies are designed to provide 100 per cent risk cover and hence they do not have any additional charges other than the basic ones. This makes premiums paid under such life insurance policies the lowest in the life insurance category.
Joint Life Policy: Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders, apart from covering risks like all life insurance policies.
Group Insurance Policy: Group insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives.
Annuities: Annuities are just opposite to life insurance. A person entering into an annuity contract agrees to pay a specified sum of capital (lump sum or by installments) to the insurer. The insurer in return promises to pay the insured a series of payments until insured’s death. Generally, life annuity is opted by a person having surplus wealth and wants to use this money after his retirement.
ULIPs: ULIPs are market-linked life insurance products that provide a combination of life cover and wealth creation options. A part of the amount that people invest in a ULIP goes toward providing life cover, while the rest is invested in the equity & debt instruments for maximizing returns.
Tax Benefits of Life Insurance Kolkata
There are 3 sections of the Income Tax Act 1961 that cover the benefits related to money invested in Insurance – Section 80C, Section 80D and Section 10(10D)
Section 80C: This section lets you avail tax benefits to maximum amount of Rs 1 lacs. The annual premium that you pay is deducted from your taxable income. However there are two conditions:
The benefit for premium is restricted to 20% of actual Sum Assured
The policy has to be continued for at least 2 years or it will result in reversal of benefits taken.
Section 10(10D): The Sum Assured provided to the nominee as death benefit after the insured person passes away is completely tax free.One-third portion of pension value at vesting age is exempted from tax.
Section 80D: A person can avail tax benefits by buying health insurance or commonly known as mediclaim policy. The maximum deduction for individuals is Rs 15000 and for senior citizens, it’s Rs 20,000. However the maximum tax deduction combined could be Rs 35,000 if individual buys health insurance for himself and his parents who are senior citizens.