What is Life insurance?

Life insurance is a financial protective shield one has for their family. Life insurance plans ensure a lump sum payment to the beneficiary on the occurrence of the death of an insured person. This is done to cushion the family members from the sudden loss. In the wake of emotional and physical damage, the family is still financially protected in exchange for individual premiums from the insured person. These premiums can be monthly premiums for some years or a lump sum amount. The details of the insurance can vary from policy to policy. However, the policyholder should make sure that they yield maximum benefits from the investment they are making in the plan in the form of premiums.

 

Several benefits can be added to life insurance like funeral costs and other coverage. These can be looked into in-depth while understanding what life insurance is? The benefits of life insurance can also be availed in extraordinary situations like that of a critical illness. Life insurance serves both as a protective as well as an investment plan. In the case of the sudden death of the only earning member of a family, life insurance policies help the family to keep afloat while they try to get back on their own. Life insurances can be great investment sources as well since premiums are eligible for a tax deduction.

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Why Do You Need Life Insurance?

Life insurance is an essential part of your coverage and investment plan. These are some of the primary reasons why you need life insurance:

 

Finances for Children’s Education

Finances for Children’s Education

Higher education can be expensive. In case of an unfortunate event like the death of a parent, the child might not be able to cope with the expenses of the same. Life coverage helps the family to sponsor education for their children

Solid Post Retirement Plan

Solid Post Retirement Plan

Life insurance can become a constant source of income after retirement. This adds security to the investment portfolio of an individual

Serious Illnesses

Serious Illnesses

With the critical illness coverage, the individual has medical bills covered and also has a source of income in these times when the individual has to stop working in several cases.

Lifestyle Requirements

Lifestyle Requirements

The life insurance will take care of other lifestyle requirements of the family members in case of the demise of an individual.

Life Insurance Plans By Bharti AXA Life

Bharti AXA Life brings to you several options under life insurances, each with a different purpose and a unique set of benefits.

 

  • Premier Protect Plan

    This plan offers not only financial protection to the policyholder’s family but also provides the option of increasing the protection as per the requirements at different milestones.

  • Shining Stars

    This policy is specially designed for individuals who want to secure their child’s needs, especially education. Shining stars help you to achieve your child’s future in case of an unfortunate demise

  • Income Protection

    With this life insurance policy from Bharti AXA you can arrange a regular income for your family for a period of 15 or 20 years after the occurrence of the sudden demise of the policyholder

There are several other plans and policies provided by Bharti AXA Life to give youthe best life coverage and added benefits that you can avail of with life insurance policies.

Benefits Of Life Insurance

Here are some of the benefits of life insurance. These life insurance benefits will help you decide why you should get life insurance?

 

Tax Benefits

**Tax Benefits

All the premiums that you pay for life insurance are considered for a tax deduction so you can avail significant tax benefits from the policies that you have taken

Whole life Coverage

Whole life Coverage

Life insurance plans offer a complete life cover which provides a full life cover to the policyholders unlike  term insurance where the individual has to be pay premiums until the policy matures

Critical illness Coverage

Critical illness Coverage

Unfortunate events cannot be seen coming. However, it is crucial to be prepared for the same. critical illness coverage can help you cope financially with a particular situation

Lifestyle Requirements

Lifestyle Requirements

The life insurance will take care of other lifestyle requirements of the family members in case of the demise of an individual.

 

These are some of the most common benefits of life insurance plans.

Features Of Life Insurance Plan

Some of the most common features of life insurance plans are:

 

Premium Waiver

Premium Waiver

Every life insurance waives further premiums in case the policyholders has a severe illness or are disabled under any circumstances.

Accelerated Death Benefits

Accelerated Death Benefits

In case the policyholder gets a terminal illness, they can claim for cash advances in exchange for the death benefit. This can help pay for the treatment and other expenses

Spouse & Child Riders

Spouse & Child Riders

This feature helps you to add a cover for your spouse and your child until they are 26 years of age. This feature is useful if you cannot afford to get separate covers

Mortgage Protection

Mortgage Protection

Several life insurances has a mortgage protection cover. The insurance pays your mortgage in case the policyholder
dies.

Who Should Buy A Life Insurance Policy?

There are several groups of people who MUST have a life insurance policy. Here are some groups who should buy a life insurance policy:

 

  • New families

    Couples who are about to get married or have been married recently should get a life insurance policy. Newlyweds have lower premiums and several added benefits like maternity coverage and others.

  • Existing Families

    Families with a single breadwinner and children can have several benefits from life insurances. The policyholders can add benefits to the insurance and protect their family and the future of their children.

  • Home Plan Policyholders

    Individuals who have home loan premiums going on can get a life insurance plan. Life insurance plans cover up the pending premiums for the home loans in case of the sudden demise of the policyholder

  • Employees with Company Insurance

    Several companies offer life coverage to their employees. Still, it is essential to have separate coverage since the insurance gets terminated in case an employee leaves the job.

  • Business Owners

    Several life insurance plans have additional benefits of insuring your business. This cover helps you to claim the insurance in case of significant losses in your industry. It helps to recover from loses with financial security

  • Young Individual

    Usually young individuals do not invest in life insurances, but mortgage protection and critical illness protection can help the policyholders in unfortunate circumstances.

    Anyone other than these groups of people can also opt for life insurance since it protects several areas such as a mortgage, critical illnesses, home loans, and others.

How To Choose The Best Life Insurance Plan?

Choosing the right life insurance plan can be a long process. Here are some tips to keep in mind while selecting the best life insurance plan. These factors majorly impact the process of choosing a life insurance plan:

 

  • Insurance Advisor

    Every policyholder should make sure that they engage with an experienced and a qualified insurance advisor to consider several factors while choosing the perfect life insurance for you

  • Calculate Life Cover Amount

    factors like income sources, dependent members, debt, liabilities, plans, and others should be considered while choosing the perfect life cover amount. Insurance advisors can help individuals with this.

  • Compare Different Plans

    While getting an insurance plan, it is essential to compare different plans and see what various benefits do these plans provide. Once you compare and analyze several different strategies, you will be able to decide which is the perfect one for you

  • Frequency of Premiums

    Before getting life insurance, make sure you decide if you want to pay the premiums monthly, annually, or lump sum amount at once. This will have a significant effect on your monthly budget so plan this while choosing a plan

  • Go For Medical Tests

    Even if the insurance company does not insist, go for medical tests before getting insurance. The premium rates are lower if the medical tests show that you are in good health.

  • Add Accidental Death Rider

    While getting life insurance to add accidental death rider in your life insurance to protect your family in case of any accidents. This add on is significant to avoid unpredictable situations where the family might face financial situations.

These are some of the significant factors one needs to keep in mind while choosing the best life insurance plans for themselves and their families.

Life Insurance Claim Process

  • The first step involves informing us about your intention to file the claim. Get a hold of the claims form which you can find both at our physical outlet as well as Bharti AXA’s online portal. The claims form will involve filling in details such as cause of death, name of the beneficiary, the location of the death, and personal details such as date of birth of the beneficiary, policy number and name of the beneficiary amongst other aspects.
  • The next step involves arranging all the necessary documents that you will need in order to ensure that your claim goes through successfully. Some of the main documents that you need to keep handy if you are looking to file a claim include the death certificate pertaining to the deceased registered under the policy, age of the deceased, original copies of the policy document, ID proof of the beneficiary, and any medical reports/records pertaining to the beneficiary’s demise.
  • Once the claims form and the necessary documents are submitted, the claim will be processed within a duration of 30 days. In some cases, additional steps will be undertaken by the insurer. This is especially true in cases where claims are made within a period of 3 years since the purchase of the policy, in lieu of which additional investigation is undertaken. This includes checking with the hospital where the deceased registered under the policy was admitted prior to his/her demise.

Life Insurance FAQ's

Who is most likely to buy life insurance?

A life insurance gives you more than just a life cover. It helps create wealth over the long term, and most importantly, life insurance gives you peace of mind that your family will live comfortably under all circumstances.

Buying life insurance, therefore, is a wise decision for people at different life stages.

  • For newly married people as they start a new phase of shared responsibilities
  • For young parents as they plan for their child’s future and life goals
  • For individuals with financial liabilities and with families to support, children to educate and get married, and plan for their own retirement
  • For people doing retirement planning as they look forward to the golden phase of their lives and pursuing their life dreams.

At its core, life insurance is a financial benefit for the inevitable contingencies of life. These include death, disability, or retirement, and often result in a loss of income for the household. This is where a life insurance plan truly benefits you and your family.

You should buy a life insurance plan to:

  • Provide financial support to your immediate family after you
  • Finance your child’s education plans
  • Get a steady second source of income
  • Gain insurance benefits in case your earnings are impacted due to a critical illness
  • Gain tax benefits immediately as per existing tax laws.

Having life insurance gives you the freedom to take more risk for securing your life and provisioning a large financial corpus in the form of insurance coverage for life’s contingencies.  All of this while you continue to pursue your life goals. A life insurance plan also gives you the certainty that should something happen to you, your family would be financially secure.

Life insurance plans help your family stay financially protected in case of an eventuality. Also, the insurance coverage augments the total accumulated value of your investments, ensuring that your loved ones continue to have a lifestyle that you intended for them.