What is Life Insurance?

A contract formed between an insurance policyholder and an insurance company is known as a life insurance policy. As per the terms of the policy, the insurer will pay a certain sum of money to the insured at the end of a set period or in the event of the death of the insured person as long as they receive a premium regularly for the set period from the insured person.

The main purpose of insurance is to provide security to you and your loved ones. However, other benefits are offered by some firms as well. Critical illness benefits, accidental death benefits and such other benefits are offered by some firms.

Your Mirae Asset Sharekhan relationship manager will provide assistance in processing of claims to get prompt claim settlement from Insurance companies. Alternatively, you can intimate/register a claim directly with the insurance company.

In case of policy servicing request, you can:

• Contact your Mirae Asset Sharekhan branch or the Relationship Manager
• Call us on 022-6992 0660  or write to us at insurance@sharekhan.com
• Use the self-servicing tools of the insurance company
• In case of HDFC Life policy you can also contact the insurance company directly for any grievance redressal through this link https://www.hdfclife.com/customer-service/grievance-redressal
• In case of ICICI Prudential Life Insurance policy you can contact the insurance company directly for any queries on Customer helpline number - 1860 266 7766; Email: lifeline@iciciprulife.com; Whatsapp – 99206 67766; Dedicated email support for claim customers: claimsupport@iciciprulife.com

Mirae Asset Sharekhan is a corporate agent licensed by Insurance Regulatory & Development Authority of India (IRDAI). We would recommend the suitable product and cover basis your requirements. If you are interested in buying life insurance, all you need to do is click the REQUEST A CALL BACK button, which is present on the Life Insurance webpage as well as individual insurance product webpages. Once you do that, our representative will call you. We are merely distributors of these products/services and only act in the representative capacity for the insurance providers. Any claims /queries/issues regarding the insurance products may be directed to the Insurance Providers. Alternatively, you can visit your nearest Mirae Asset Sharekhan branch. If you have any queries, you can call us on 022-6992 0660 or write to us at insurance@sharekhan.com.

Yes, life insurance provides many benefits. Life Insurance gives you peace and confidence as it protects your family when you are not there. But this is not the only benefit of buying life insurance. There are several other benefits.

• Finance-related benefits: You can ensure your family has the same standard of living, irrespective of you being there or not. In short, life insurance cover provides you with financial security.
• You can plan your retirement: You can build a solid retirement base through products like annuity plans, savings plans, endowment plans and so on. An income on maturity is guaranteed with these plans, thus helping you secure your retirement.
• It brings in financial discipline: When you buy a specific type of plan, it not only protects your family against unforeseen events but also forces a person to save, thus creating unique investment opportunities. So, what are the different types of plans that create such unique investment avenues, you ask? Here they are: Unit-linked insurance plans, guaranteed savings plans, endowment plans are some of them. There are many more.
• You pay less tax: One of the many benefits of having a life insurance product is that you will have to pay lesser tax. Why, you ask? Because according to Section 80C of the Income Tax Act, 1961, the premiums paid are tax-deductable. This ensures you have higher savings. However, the benefits don’t end there. In most cases, under section 10(10D) of the Income Tax Act, 1961, maturity benefits are also exempt from tax.
• Helps in creating wealth: One of the many side benefits of having insurance plans is that they enable you to save and create wealth over time. Your future needs will be secured and different options and risks will be covered when you buy a life insurance product.

Though there are many kinds of life insurance policies, 4 main types of policies are sold:

• Term Life Insurance Plans: If the policy holder suffers an unfortunate incident during the policy term, then according to the terms of the Term Life Insurance Plan, the nominee would receive a fixed sum as long as he/she has regularly paid the premiums.
• Unit-Linked Insurance Plan: Under this plan, a part of your premium gets invested in equity/debt/balanced funds while another is utilised as the insurance, thus ensuring a balance between investment and insurance.
• Endowment Plan: An endowment plan is any plan which has a saving component as well as a lump sum maturity benefit. If you want to build risk-free savings and protect the financial interests of your family in your absence, you need to buy an endowment plan.
• Annuity Plan: A retirement plan that offers you a regular payment in exchange for a lumpsum investment is known as an annuity plan. In other words, your insurance company will pay you a regular income immediately after you pay a lump sum or after a certain period of time. So what exactly are these regular payments? It is the returns generated from investing your money in different assets.

Out of all the people in the market, the following categories of people need life insurance the most

• Newly wedded couples: Newly married couples can get crucial peace of mind and security by buying a life insurance product. How you ask? No matter what happens to you, your spouse can live a comfortable life without worrying about the finances.
• Young parents: Parents need stable finances to take care of their children’s myriad needs. A life insurance buy ensures that even if the parents face an unfortunate incident, the children’s needs are taken care of.
• Almost retired couples with meagre savings: People who are near retirement fear that the income pipeline will stop and they would have to rely on their savings to make ends meet. In such a case, low-risk options allow retired people to save, invest and secure their old age.
• Businessmen/women: Life Insurance acts as a cushion for the business owners’ family in case something happens to the business owner. Not just that, debts can be paid off by using the insurance money.

Many factors determine the kind of life insurance you need. Your income, expenditure (revenue and capital), lifestyle, spending habits and debt repayments all determine the kind of policy you should take. Whatever be your standard of living, the best practice is to purchase a policy that is 8-10 times of your annual income.

Factors like age, gender, present health, medical history, lifestyle, etc. play a key role in determining the premium amount for your life insurance plan.

Various factors play a role in determining how much your policy costs. The factors include the sum assured, age, health condition, and the benefits you want to receive when the policy matures.

In case you fail to pay the premium on time, the policy will become defunct and all benefits can be lost. However, the policy does not become defunct immediately. A grace period (which depends on several factors like age of the policy, premium payment history, etc.) is available, which starts from the premium due date. In case you want to start coverage, you need to pay the revival premium.