Can I pay monthly SIP on insurance?
Yes, you can pay monthly SIP on insurance.
Investment Plans : Looking for tax saving plans to meet your long term and short term financial goals? Understand various investment instruments and choose the best plan at PolicyBazaar
Investment plans help beat inflation and build a large corpus. We at Policybazaar.com help you compare investment plans offered by all life insurance companies in India and select the best suited investment plan for you. An investment plan should be selected keeping in mind 3 main goals:
ULIPs or Unit Linked Insurance Plans are the easiest way for a consumer to enter the stock market with an added advantage of life cover. As these products provide tax benefits and market linked returns, they are one of the best long-term investment plans. ULIPs offer many investment funds to choose from which allow you flexibility to shift between equity and debt, based on the market conditions and risk profile.
Traditional Endowment plans are regular saving plans which help build a corpus and give guaranteed maturity benefits along with bonuses. These products give you returns equivalent to a fixed yield/deposit but also combine insurance risk cover and add-on riders to primarily build the safety cushion in case something goes wrong.
Moneyback Plans are a type of endowment plan which give periodic cash payouts to investors. As they help build regular large capsules of fund; they are very useful for salaried class who wish to save for buying large assets every 3-5years.
Child Plans are saving instruments which help parents build a protected asset for their child's future. They also provide many insurance features which protect the intent or reason for corpus building; primarily for child's future education and expenses.
Best investment plans also make for good tax savings instruments. In life insurance, premium amount payable is deductible from taxable income up to maximum amount of Rs 1 Lac under Sec 80C. Maturity proceeds and death benefits are also tax exempt under Sec 10(10D).
Can I pay monthly SIP on insurance?
Yes, you can pay monthly SIP on insurance.
What are the modes through which I can buy policy?
There are various channels through which you can buy policy, like online, offline, agent and bank.
What is rider?
A rider provides extra protection to the policyholder beyond the provisions contained in the basic insurance policy. Riders offer low cost pure risk to a policyholder. However, these need to be purchased specifically along with base policy at the time of buying the policy. One is required to pay extra premiums to get riders. The right type of rider can customize your insurance plan as per your divergent needs. Some of the investment specific riders available in market are:
Am I eligible to get cash back on insurance?
Cash back on insurance is completely illegal and against the policy of IRDA. Although, some agents make fake promises to lure customers but you should never buy any insurance plan which claims to give cash back.
How safe is my investment as per market fluctuations?
It is tough to predict what's going to be the most advantageous asset at a given point of time. So, you should carefully diversify your investments across different asset classes which will allow you to benefit from each year's best performing asset. Moreover before investing, check the company’s portfolio and performance of your investment plans in last few years.
Last but not the least; reach out to your financial advisor to understand prevailing market trends.
Can insurance documents be used as an identity proof?
Yes, insurance documents can be used as an identity proof. However, only LIC documents can be used as an identity proof. In rural areas, many people do not carry identity document and LIC is the only document which they are possessing. In such case, it can be used as an identity proof.
Can I take loan against insurance? If yes, what is the procedure?
Yes, you can apply for a loan against traditional or endowment insurance policy. ULIP is not eligible for loan. The insurance policy that you bought to fortify your financial security can also be used in a cash crunch too.
Let’s know the procedure of availing loan against insurance policy
Important points to note
What information needs to be disclosed for buying investment plan?
Apart from disclosing your name, occupation, annual income and age at the time of applying for the investment plan, you should also mention that whether you are a smoker/tobacco user or not. Some insurance companies may also be interested in knowing your travel habits, lifestyle habits and medical details before policy issuance.
What tax benefits are available on investment plans?
All premiums paid on investment plan qualify for tax exemptions under Section 80C . Further, maturity proceeds or withdrawals are eligible to get exemptions under Section 10(10D).
What are the exclusions in a death cover?
Suicidal death in 1st year of policy issuance is the main exclusion of the policy.
Can NRIs buy policy?
Yes, an NRI can also buy an investment policy in India. Over the past few years, there has been a spurt in NRI investment owing to the government's liberal policy. Those who want to buy good investment plans in India should content competent financial advisors of PolicyBazaar for managing and helping it to grow & flourish. To know about available NRI investment plans, Please Click
Can I change my nominee?
Yes, you can change the nominee at any point of time. Just inform your insurance company about the changes either via mail or phone. You would need to fill a nomination change form by citing details like name of nominee, relationship with the policyholder, nominee's date of birth, etc. In case your policy nominee is a minor, you would also need to fill the appointee details in the form.
Whom should I contact to make changes in the policy?
Call the customer support staff of the insurance company to amend the policy wordings. An endorsement is issued to make changes like name spellings, add things, etc. Endorsement cannot be issued to make change in structure eligibility.
How much should I invest?
It would depend on various factors like when you start making an investment, when you decide to retire, etc. You would be able to enjoy good returns on your investment if you understand your current financial state, i.e., personal circumstances, income, fund liquidity, which you may require at the time of maturity of the policy, etc. Before zeroing in on the policy, it is crucial to understand your investment objective because then only you will be able to decide the amount to be invested.
How to revive the policy after it has lapsed?
Most traditional plans like endowment, whole-life plans can be revived, subject to conditions that your insurer might impose upon you. Here are 3 ways to revive a lapsed policy-
It is strongly advised that you should revive your policy within 6 months of its lapse as the process is quite easy. As the time passes, process becomes tough and you may also need to pay overdue premiums along with interest and additional documents, which could include medical tests also.
What is tax saving fixed deposit?
It is a special category of fixed deposits where investors get tax benefits when they invest money in fixed deposits. The maximum benefit is available up to an investment of Rs 1 lakh and there is a lock-in period of 5 years.
What are tax-saving infrastructure bonds?
These bonds are issued by Industrial Finance Corporation of India (IFCI), Infrastructure Development Finance Corporation (IDFC) and any non-banking financial company. Investments in infrastructure bonds are advised from tax saving perspective as you get an additional exemption of Rs 20,000.
Why should I buy online from PolicyBazaar? What are the benefits?
Buying insurance online is fast, cheap and easy as compared to other modes of purchase. At PolicyBazaar, you can buy an insurance policy from any part of the world at any point of time.
Have a quick glance over benefits of buying insurance online from PolicyBazaar –
Also, agents are specific to limited insurers and therefore, they push only those policies to people which generate high commission for them. It is not the case with PolicyBazaar. Therefore, when you search policies on PolicyBazaar, you get a chance to pick a most favorable plan out of the available options.
What are the various options of tax saving instruments?
Some of the popular tax saving instruments are-
What is tax saving instrument plan?
Those instrument plans which entitle a person to get tax benefits under Section 80C of the Income Tax Act are called tax saving instrument plans.
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