Life insurance plans are characterized by the fact that they pay a benefit on death of the insured. The most popular plans have a fixed period of time for which the policy is in force, and death benefit will be paid. Term Life, Endowment, ULIPs, Pension Plans, and Child Plans all have fixed terms. On the other hand, Whole Life Plans offer cover for the entire lifetime. Read on to know more about each of these.
Term Insurance plans provide a death benefit for a fixed tenure. This is the most basic and also the most important type of life insurance policy available in the market.
There are certain sub-types of term life plans like level term plans, increasing term plans, decreasing term plans & term plan with return of premium.
Endowment plans are savings-oriented life insurance plans. These plans have both death benefit as well as maturity benefit.
Death Benefit is paid to the nominee if the life insured dies within the policy tenure and Maturity Benefit is paid to the policyholder if he survives the entire policy tenure.
Unit Linked insurance plans (ULIPs) are investment oriented insurance plans. Under these plans, the premiums paid are invested in the capital market. There are different types of investment funds and the policyholder can choose the fund in which the premium should be invested. ULIPs allow fund option to choose from equity, debt, balanced, liquid etc.
Health insurance in India commonly called Mediclaim, refers to a health policy which pays for hospitalization expenses if you are hospitalized for a minimum of 24 hours. However, a regular health insurance plan covers a lot more than basic hospitalization, like day care treatments costs for which hospitalization is not mandatory, pre and post-hospitalization expenses, organ donor coverage, free health check-ups, etc..
The importance of a health insurance policy in today's age can be summarized as:
With the overall progress of medical science, costs of treatments, medicines, diagnosis, etc. has also gone up.
The cost of basic treatment has also gone up with the rise in medical inflation. Basic cost of treatments has thus become expensive.
The incidence of ailments and diseases have multiplied over the years, both in younger as well as older generations.
If you plan for your wealthy financial future and save steadily for the same, opting for a good health plan is inevitable so that your wealth is not depleted by unforeseen medical expenses.
When you combine these factors, the basic reason for availing a health insurance policy in India is very evident. The increasing incidence of ailments and the high medical costs can be very heavy on the pocket. A health plan thus helps in easing this financial burden at a nominal annual cost.
Health Insurance Plans provide a wide coverage during a health-related emergency. It encompasses hospitalization and post hospitalization charges, critical illness, ambulance charges etc.
Co-payment option is provided by most insurers which helps in decreasing the yearly premium. The insurer pays a certain percentage of the total expenses incurred, while the balance is to be paid by the insured.
NCB is provided to the insured person in the following year in case no claim has been taken in the previous year. NCB can be provided in the form of discount in subsequent year's premium or increase in subsequent year's Sum assured.
Some Insurance companies also provide free Health check-ups for all the family members at certain pre-defined frequencies.
You can access substantial tax benefits under section 80D of Income Tax Act, 1961.
Personal Accident Insurance policy provides complete financial protection to the insured members against uncertainties such as accidental death, accidental bodily injuries, and partial/total disabilities, permanent as well as temporary disabilities resulting from an accident. In the case of accidental death of the policyholder, the nominee gets 100% compensation from the insurer. There are various other compensations that are offered for accidental disability such as loss of eyes, limbs, and speech.
Motor insurance is a mandatory requirement if have a car, motorcycle or scooter. You will have to pay a fine and have your vehicle registration certificate (RC) or driving license (DL) confiscated by the police, if you are driving without a valid motor insurance or a motor insurance policy that has expired
There are two types of motor insurance - third party insurance and comprehensive insurance. Third party insurance is mandatory for all vehicle owners in India. Third-party insurance will cover your liability towards damages incurred by the third party in case an accident happens with your vehicle. It won't cover damages to your vehicle. Comprehensive motor insurance provides your vehicle complete end-to-end protection against damage caused by accidents or natural disasters like floods etc.
Motor insurance premium depends on the price of the car (in case of a brand new car) or the Insurance Declared Value (IDV) of a car that has completed more than 1 year. Motor insurance is usually valid for a year; you must renew or get a new motor insurance policy before expiry of your current motor insurance. Some motor insurance policies can cover you for multiple years.
Travel insurance provides financial protection against possible losses that you may suffer when you are travelling by air, especially in overseas travel. It covers you against financial losses due to loss of baggage, trip cancellation, and flight delays. Some travel insurances also cover medical expenses that you may have to incur while travelling.
As the name suggests, home insurance provides financial protection against damages caused to your home and its contents (furniture, home appliances etc.) due to man-made (e.g. fire) or natural disasters (e.g. flood, earthquake etc.).
We at Urban Wealth also Offers Shopkeepers Insurance, HOME Insurance, FIRE Insurance, Oversea Travel Insurance, & Marine Insurance from Various General Insurance Companies.
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