Can I pay monthly SIP on insurance?
Yes, you can pay monthly SIP on insurance.
Looking for tax savings plans to meet your long-term and short-termfinancial goals? Understand various investment instruments and saving schemes in India, and then choose the best plan at PolicyBazaar.
There are several types of life insurance policies available in the market. Broadly, there are three categories. Some offer pure protection (insurance), others offer protection as well as investment while some only have investment as their objective. In India, however, life insurance has been used more for investment purposes in one’s overall financial planning.
The best savings investment plans help build a large corpus and also beat inflation. We at PolicyBazaar help you compare investment plans offered by all major life insurance companies in India and assist in selecting a plan most suited for you. Though each plan is unique, certain important factors must be kept in mind while selecting a savings investment plan:
Risk Profile: It is important to determine one’s risk appetite to find the best saving plan. Age and personal factors are important determinants of the kind of risk one can take. Generally, young people in their 20s and early 30s can opt for the higher risk but lucrative return options. They can choose investment plans which are more aggressive – those which invest one’s money more in the equity segment of the stock market and lesser in debt. A Unit Linked Insurance Plan (ULIP) is more suited as a best saving plan for young customers who are willing and able to take such financial risks. On the other hand, a traditional endowment or a money-back plan is better suited for the needs of a conservative investor, who prefers to have the guarantee of the money being secure even though it generates lower returns.
Investment Tenure: Insurance plans offer a mid-to-long term investment horizon and serve as one of best investment options. The ULIPs are very good as a long term best saving plan as they help build up a significant corpus over the life of the policy. The insured party can start with a small premium amount and build it up over the policy tenure. This is possible as most insurance companies understand the fluctuating nature of earnings and savings depending on the age of the investor and provide options where the premium and the investment amount can be increased or decreased as per the person’s convenience.
Final Goals: One should be clear about the reason for selecting a savings investment plan. The final objectives help in determining the best investment options. Goals range from building a corpus for retirement or having sufficient money for child's higher education or marriage to building a house. Tax savings may also be the intent when deciding on the best saving plan.
Plan Features: Different plans have different features. The best saving plan allows one to make partial withdrawals by surrendering a certain portion of the policy while retaining other benefits. Some of the plans in these best investment options have a fixed cover ranging from 5/10 years to 30/35 years depending on what one wants. Others provide cover for entire life. With comprehensive cover and flexible options, one can enjoy protection as well as growth through savings. Some plans also offer bonuses, the amount of which is decided by the insurance companies based on the performance of their investments in the market.
Flexibility of the Plan: For long term goals, the best saving plan allows one to take care of unexpected short term needs. They offer the flexibility of surrendering the policy if the situation so demands. However, it is better to stick with the best saving plan for the longer term so that they give better returns.
Charges of the Best Investment Options: Understanding the costs and charges involved is vital when selecting a best saving plan in India. These best savings plans have minimum charges and provide flexibility in terms of cash withdrawal, bonus receipt and term of the policy. Also, the long-term effect of these charges ismuch less and makes a best saving plan a great way to increase wealth a low cost.
Lot of best investment plans in India serve as saving schemes in India or act as tax saving investment. You can do well to compare from among these best investment plans in India and get the savings investment plans that you need to use as your personalised money saving plan. You can use an investment calculator India to calculate your priorities such as making a tax saving investment along with putting your money in one of the better saving schemes in India.
Endowment plans are regular saving plans which help build a corpus and give guaranteed maturity benefits along with bonuses. The product is a best saving plan in India as they give returns that are equivalent to a fixed yield or deposit. In addition, they also combine insurance risk cover with add-on riders to primarily build a safety cushion in case something goes wrong. They are clearly among the best investment options available to people looking for an insurance cover as well as investment and saving schemes in India.
An endowment policy covers risk for a specified period at the end of which the insured receives the sum assured plus all accrued bonuses. They are considerably highly expensive (considering the annual premium payment) as compared to a term or whole life plan. If the policyholder dies during the policy term, then a payout of the sum insured along with bonus is issued immediately to the beneficiary.
There are two types of endowment plans, with each having its own advantages.
Best Investment Options: WithoutProfit Endowment Plans: Withoutprofit endowment plans have no participation in the annual profits of the insurance company. Despite the sum assured,one can possibly get the loyalty bonus as a single payout made if you stick to the insurer. These are the best investment options for investors looking for a low premium best saving plan that offers safer returns.
Best Investment Options: WithProfit Endowment Plans: These plans share profits an insurance company makes each year with the policyholder. They offer more returns than withoutprofit endowment plans. However, they are expensive as their premium is higher than withoutprofit endowment plans. These policies are best investment options for people who are looking for increased but safer returns.
Assured returns insurance plan, also called guaranteed additions in insurance parlance, is when one knows the return or profit at the beginning. If the assurance of return is non-guaranteed, it is called a bonus.
The endowment plans have two types of bonuses, making them one of the best investment options:
Reversionary Bonus: Also called a regular bonus, this is an annual bonus which depends on the performance of the insurer and is added to the fund every year, payable at the end of policy period of these best investment options. Most insurance companies ensure that they accrue regularly and serve as a best saving plan for the investors looking for safer returns.
Terminal Bonus: A terminal bonus is an additional loyalty bonus offered by the insurer at the end of the policy term. These sums increase depending on the term of the plan and the insurance amount. The terminal bonus swings the vote in favour of endowment plans as best investment options for the conservative investor.
Endowment plans are best suited for someone who is looking for additional benefits along with a life cover. They are among the best investment options and offer multiple insurance plans to meet double endowment policy, education endowment policy, marriage endowment policy an individual’s distinctive needs, viz. education endowment policy,full endowment,double endowment policy, unit linked endowment, marriage endowment policy, and low cost endowment.
Benefits of Endowment Plans That Make Them Best Investment Options:
Endowment plans provide dual benefit of investment and insurance making them one of the best investment plans in India
They offer long term investment and allow one to receive a lump sum amount after some years or at the time of maturity, making them one of the best savings plans.
They are ideal if one wants to pay premium for a short period and wants to enjoy benefits from the plan over the policy term
Endowment plans are a good tax savings option as they are tax free. Section 80C of the Income Tax Act allows tax benefit on the annual premium and section 10(10D) makes maturity claims completely tax-free. This makes them one of the best investment options for people looking for investment avenues and tax savings
Policyholders also have the option to add accidental riders to further enhance the cover by paying a marginal premium. People can use an investment calculator in India to find the benefits
Endowment policies are amongst the best investment options as they are liquid in nature
If for some reason, one ceases to pay premium after a set minimum number of years, then a free paid-up policy may be secured with reduced sum assured, subject to certain conditions
In case the policyholder survives the policy term, sum assured amount and additional bonuses accumulated during the term are also paid further highlighting the benefits of endowment plans as a best saving plan
In case the policyholder dies during the policy term, the death benefits are paid to the nominees which include full sum assured amount and additional vested bonus
Money back life insurance policies are popular as they offer dual benefit of insurance and redemption of money at regular intervals. A best saving plan is a type of endowment plan which gives periodic cash payouts to investors over the policy term. As they help build regular large capsules of funds, they are useful for the salaried class who wish to save money to buy large assets every 3-5 years. These plans are meant for individuals who require money at certain intervals in their lifetime to meet fixed short-term and long-term financial requirements such as buying a car or house.
A portion of the sum assured is paid out at regular intervals in a money back policy. If the policyholder survives the term, he gets the balance sum assured in the best saving plan. In case of death over the policy term, the beneficiary gets the full sum assured irrespective of the payouts already made. The bonus is also calculated on the full sum assured and not the balance money left. Because of these two reasons, premiums on money back plans are higher than endowment plans.
Benefits of Money Back Plans That Make Them Best Investment Options:
Protected Savings: The savings in one of these best savings plan remains safe as the premiums paid are not linked to the capital markets which offer uncertain returns. The returns in such money saving plans are guaranteed.
Liquidity: A money saving plan like a money back plan is a great way to meet intermittent liquidity requirements at important stages in life. Since the payout intervals are fixed, a money saving plan helps in the careful planning of crucial requirements at important milestones in life.
Life Insurance: Finally, a money saving plan offers life insurance cover. In the eventuality of the insured person passing away, their legal nominees get the full sum assured amount.
A ULIP is a type of life insurance product, which combines the safety of insurance protection with wealth creation opportunities. A part of the investment goes towards providing life cover and the residual portion is invested in a fund which invests in stocks or bonds. ULIPs are the easiest and best investment plans in India for a person 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 investment options for the long-term.
ULIPs offer many investment funds to choose from which allow the flexibility to shift between equity and debt, based on the market conditions and one’s risk profile. ULIPs are structured in such a way that the protection and the savings elements are easily distinguishable, and hence, can be managed according to one’s specific needs. This way, ULIPs offer unprecedented flexibility and transparency.
Types of ULIPs That Serve as Best Investment Options
One of the biggest advantages of a ULIP is that it serves a variety of financial objectives and acts as a best saving plan for all investors. There are different ULIPs for just about everyone. Depending on one’s life-stage and corresponding goals, there is sure to be a ULIP that can help provide the best investment options for the individual.
Why ULIPs for Retirement Planning are Best Investment Options
Retirement is the end of active employment and therefore, regular income. With disciplined savings in a pension plan, one is able to amass enough funds to provide a steady income post-retirement. Plus the fact that they are a tax saving investment is an added plus.
One can either make a lump sum payment or regular yearly contribution during earning years in the tax savings pension plan. The money in a best saving plan is then invested in funds of one’s choice. In retirement plans, the earlier one begins the greater one gains post-retirement because of the power of compounding.
One can choose to receive annuity any time after the vesting age (the age at which one becomes eligible for pension decided at the beginning) in a best saving plan. Most unit-linked tax saving investment pension plans come with a wide range of annuity options which let one structure post-retirement benefits payouts.
Why ULIPs for Long-term Wealth Creation are Best Investment Options
ULIPs are a good option if one is looking for long term wealth creation along with an insurance cover. Young people in their 20s and early 30s invest in such plans as it allows them to use the funds for long-term financial goals like purchasing a house, paying for their child's higher education, etc.
Best investment options such as ULIPs for wealth creation can be classified as:
Single Premium – Regular Premium Plans: Depending on one’s needs and premium paying capacity, one can either go in for a plan where one has to pay a lump sum premium once during the policy tenure, also known as single premium plans. Or go in for regular premium plans from a best saving plan where one has to pay periodic premium where the frequency is determined as per one’s convenience. This makes these plans one of the best investment options. Use an investment calculator in India to find what you need.
Guarantee Plans – Non-Guarantee Plan: Some wealth creation ULIPs offer guaranteed benefit and are thus one of best investment options. These are ideal for people who want to enjoy potentially higher returns without taking any market risk. Non-guarantee plans come with a choice of fund options ranging from aggressive funds (invest in equities with the objective of capital appreciation) to conservative funds (invest in cash, money market instruments and / or bank deposits with the aim of capital preservation). These let the policyholder decide where to invest their money as per their investment preferences and best saving plan needs, including the time frame they are looking to get returns.
Life Stage Based – Non-Life Stage Based: As the name suggests, life stage based ULIPs take into account one’s priorities at different stages in life and accordingly distribute the money across equity and debt. It ensures that the asset allocation is in sync with one’s age and changing financial needs, making them one of the best investment options. On the other hand, non-life stage based do not take into account the age when investing money. People can choose based on their preferences for the best saving plan of their choice.
Why ULIPs for Child’s Education are Best Investment Options
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.
Education today is more important than ever and the good education is expensive. The main responsibility of parents is to ensure that their child gets the best education possible. ULIPs designed especially for children’s education ensure that sufficient money is available at key milestones ensuring that the child's education is not hampered even if something unfortunate happens to the parent (policyholder). Child education plans are the best investment options safeguard the child against the financial ramifications of the death of a parent.
ULIP Child plans also offer the following features that make them one of the best saving plans:
Why ULIPs for Health Solutionsare Best Investment Options
Healthcare costs are increasing at an alarming rate. Illnesses sometimes force families to borrow and sell assets to meet expenses turning medical emergencies into financial emergencies. This is why the insurance industry has come up with a novel innovation recently called the Health ULIP. Health ULIP is the best savings plan, designed for investing a portion of the premium to building a health fund to meet the future health-related expenses by investing in a long-term flexible savings plan with multiple fund options. One of the best investment options, a health fund allows one to claim health related expenses and also fund future health insurance charges. It has the benefit of tax exemption on premium paid under section 80D of the Income Tax Act.
Advantages of Unit Linked Plans
Market Linked Returns: Unit linked plans offer the opportunity to earn market-linked returns as part of the premiums is invested in market linked funds which invest in different market instruments - debt and equity in varying proportions depending on one’s risk appetite. If the market does well, one can earn good returns. This makes ULIPs amongst the best investment plans in India. Use an investment calculator India to check which of the tax saving investment options make sense for you.
Life Protection, Investment and Savings: Unit linked plans offer the twin benefit of life insurance and savings at market-linked returns, making them one of the best investment options. ULIPs offer protection and also give the opportunity to invest money to earn high returns. It helps one instil the habit of saving and investing, important for building wealth over a period of time. They are undoubtedly one of the best savings plans in India.
Flexibility: They offer significant scope for flexibility with options like:
Switching between investment funds with different risks as per changing needs
Facility to withdraw partially from one’s fund (this is subject to certain charges and conditions)
Single premium additions enabling the policyholder to invest additional sums of money over and above the regular premium, subject to certain conditions
Set Financial Goals: Setting financial goals - both short term and long term, brings a lot of clarity. It helps lay down in black and white what one wants to achieve and, in turn, helps in deciding what kind of insurance plan to buy. Goal setting may appear tedious, but once one goes through the process, one is able to make use of the best investment plans in India. Divide financial goals in terms of time frame and overall objectives. One can set goals for 1 year, 3 years, 5 years, 10 years, and so on. Broad objectives of a best saving plan may include purchasing a house, saving enough money for child’s higher education and marriage and planning well for retirement.
Maintain Balance Between Risk And Returns in These Best Investment Options: It is important to invest carefully and strike a right balance between risk and returns in a best saving plan. One can afford to invest in an aggressive insurance plan offering the possibility of higher returns, albeit with higher risk when young. It is advised that people in their 20s and early 30s go in for riskier investment options. With age and greater responsibilities, one may taper the risk element and opt for safer investment options. Funds should be allocated accordingly.
Investments Should Be Both Liquid and Fixed in a Best Saving Plan: Life is fraught with uncertainty. No amount of planning can predict what will happen next. Unforeseen situations and emergencies strike without prior intimation. Therefore, it is wise to have fixed as well as liquid investments. This enables one to have required support during emergencies and also avoids overspending. If the situation demands, liquid investments provide much-needed cash in times of need.
Start Small in These Tax Saving Investments: Investing is an art and it takes years to become good at it. It is best to start small and gradually increase the invested amount with experience. Age also plays a role in investing. As we age, our income levels increase and so does money at disposal for investing. One can choose premium payment option, ranging from monthly to annual to single premium depending on how much money is at hand, keeping in mind other financial commitments.
Research Thoroughly These Best Savings Plans: There are hundreds of tax saving investment insurance plans available in the market, each having different features and benefits. To avoid choosing a wrong insurance plan, one should spend sufficient time researching before investing. The internet is a great way to research about available investment options. One can go to leading online insurance comparison portals and also visit individual insurance policy websites. Financial newspaper, magazines and periodicals are pretty good sources of information related to best investment options and best saving plans in India. One can even take professional help of a certified financial planner and invest in the best investment plans.
Review Portfolio periodically to find the Best Saving Plan in India: Buying the best savings plan is not enough. The investment portfolio has to be reviewed periodically, atleast once every year, so that changes can be made as per the situation at that point in time. Circumstances change – both personal and external. The markets and economy may be performing better and stock markets may be on the rise. In such a situation, one may want to increase exposure to equity. Periodic review allows one to calibrate investments to provide best possible returns.
Ask Questions to Find the Best Investment Options: Insurance plans have become complex. They come with terminology which may be Greek to someone new to investing. Even for people who have purchased insurance plans in the past and have experience with investing, it is a good idea to clear any doubt regarding a particular plan. Understand from the insurance advisor/agent or company representative, details about the policy so that there is no ambiguity left. One can make use of an investment calculator India to calculate the exact premium before buying an insurance policy.
Things to Avoid When Investing In an Insurance Plan
Over Exposure to Single Market Instrument: The old idiom to avoid putting all eggs in one basket holds true for investing in saving plans as well. One should avoid over-exposure to a single market instrument. It is wise to spread investment across a range of investment instruments to hedge against extraordinary loss in a particular instrument.
Over Investing: Over investing can burden finances for present needs. Many times people invest more than what they can comfortably put aside for meeting regular expenses, resulting in the cancellation of policies. The cumulative effect of such cancellations is the loss of hard earned money in penalties.
Best investment plans in India also make for good tax savings instruments. In life insurance, the premium amount payable is deductible from taxable income up to a maximum amount of Rs. 1 lakh under section 80C. Maturity proceeds and death benefits are also tax exempted under section 10(10D) making them one of the ideal tax saving investments.
Other Investment Options to Choose From
Birla Sun Life Insurance Company Limited
A joint venture (JV) between Aditya Birla Group, the India-based conglomerate with interests in cement, IT, financial services and other services,and Sun Life Financial, a Canada-based international diversified insurance services company, Birla Sun Life Insurance Company Limited caters to the life insurance sector in India. The company was established in 2000 and is headquartered in Mumbai. It seeks to integrate the local Indian expertise of the Aditya Birla Group and the insurance services know-how of Sun Life Financial.
It has received several awards at Indian and international platforms for financial reporting, accounts & corporate governance disclosures, and services. Reputed organisations like The Institute of Chartered Accountants of India (ICAI), The South Asian Federation of Accountants (SAFA) have recognised Birla Sun Life’s contribution in the life insurance sector.
The company’s solutions include insurance plans, savings-cum-protection plans, child insurance plans, retirement solutions plans, health and wellness (Mediclaim plans) and wealth creation plans. Birla Sun Life additionally offers various riders such those for surgical care, critical illness riders, and personal accident riders, among others. It also offers a host of other plans for the rural sector.
Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited
Launched in 2008 by two Indian banks,Canara Bank and Oriental Bank of Commerce, in partnership with HSBC Insurance (Asia Pacific) Holdings, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited caters to the life insurance services market in India. The stake in the joint venture is held by Canara Bank, HSBC Insurance (Asia Pacific) Holdings andOriental Bank of Commerce – eachrespectively holding 51%, 26% and 23% ownership.
It has been recognised at several platforms and has received various awards since it was set up. The company won the ‘Dream Companies to Work For’ award in 2016 and has been ranked 35th among the top 50 dream companies for people to work. Other highlights include awards for market research and corporate social responsibility at the Indian Brand Convention 2015: BAM Awards (Branding, Advertising & Marketing), and awards for bancassurance, technology innovation and being the most socially responsible insurer in the life insurance category at The Indian Insurance Awards 2015 by Fintelekt.
The guiding principles of the company include being opened, connected, and dependable while providing highly competitive life insurance products to its customers. It offers saving plans, tax saving investment and a range of saving schemes in India besides other products such as ULIPs and pure play insurance solutions.
DHFL Pramerica Life Insurance Company Limited
Owned by DewanHousing Finance Corporation, one of India’s largest private sector housing finance companies and Prudential International Insurance Holdings, a subsidiary of the US-based financial services giant, Prudential Financial, Inc., the company offers a range of solutions for the life insurance services market in India.
DHFL Pramerica Life Insurance Company Limitedhas been recognised for its great work over the years in the insurance sector. This can be ascertained through the many awards it has received since its inception. The company received the ‘Celent Model Insurer Asia’ award in the distribution category in 2014. It also received the ‘Skoch Order of Merit’ in 2014 for BimaJagruktaAbhiyaan. The Great Place to Work Institute and Economic Times recognised the company as the 74th best place to work in India in 2011.
The company’s vision states that it wants to ensure that every life it touches feels secure and enriched by offering some of the best saving plans in India. Their mission is to provide guidance and mentorship to people so that they are able to make well-informed insurance decisions about financial solutions and ways to meet their goals in life. It offers insurance saving plans, endowment funds, and tax saving investment, among others.
Edelweiss Tokio Life Insurance
Edelweiss Tokio Life Insurance was set up in 2011 by the Edelweiss Group, a leading India-baseddiversified financial services player,and the Japan-based Tokio Marine, of the world’s most respected global insurance company.
Though set up only a few years ago, Edelweiss Tokio Life Insurance has already made a name for itself in the life insurance market in India. It was honoured at Indian Insurance Awards in 2013 with the ‘Rising Star Insurer’ award. The company was recognized for its business strategy, agency network, financial strength, technology innovation and broad-based products.
The core values of Edelweiss Tokio Life Insurance include a customer-centric approach, and focus on quality and cost consciousness. Its solutions include best savings plans, ULIPs, endowment plans, money-back plans, tax saving investment and a range of saving schemes in India.
Exide Life Insurance Company Limited
Formerly operating under the name of ING Vysya Life Insurance Company Limited since 2001-02, the company was renamed to Exide Life Insurance Company Limited, after Exide Industries Ltd. in 2013 acquired the remaining 50% it did not own in ING Vysya Life Insurance from the other venture partners, ING Group, Hemendra Kothari Group and Enam Group.
The company was the winner of the coveted National Human Resource Development HR Showcase in 2015. It also received a bronze award at the prestigious pan-Asia DMA Asia Echo Awards 2015 under the category of insurance effectiveness. Economic Times – BrandEquity and Nielsen recognised Exide Life Insurance amongst the ‘Top 10 Most Trusted Life Insurance’ brands in India in 2014.
The core values of the company are dependability, dynamism, responsiveness and foresightedness. Exide Life offers a range of solutions that include ULIPs, endowment plans, tax saving investment and various saving schemes in India.
HDFC Standard Life Insurance Company
HDFC Standard Life Insurance Company or HDFC Life as it is more commonly known is a joint venture between HDFC Limited, one of India’s largest housing loan services company, and Standard Life, the UK-based financial services major. The company is majority owned by HDFC which has a 70.65% stake while a 26% stake is held by Standard Life, through its Mauritius-based subsidiary, Standard Life (Mauritius Holding) 2006 Ltd. The remainder of the ownership is held by other parties.
HDFC Life has been consistently recognised at both national and international forums for its contribution to the life insurance services segment. Most recently, it received the prestigious Finnoviti 2016, an award for innovation in the BFSI sector for its HDFC Life Cancer Care. The company won the ‘Best Customer Team of the Year: Financial’ at the Customer Fest India’s 2016 award ceremony.
HDFC Life as part of its vision desires to be the most successful and admired life insurance company in the country. The fundamental values that it believes in are excellence, integrity,customer centricity, people engagement, and collaboration. Its extensive solutions include life insurance, term plans, tax-saving investments, ULIPs, endowment plans, money-back plans, and various saving schemes in India.
ICICI Prudential Life Insurance Company Limited
A joint venture between India-based ICICI Bankand the UK-based Prudentialplc, ICICI Prudential Life Insurance Company Limited or ICICI Prudential Life as it is mostly referred to,is a leading private life insurance services company in India. ICICI Bank holds a 74% majority ownership in the company while the rest is held by the UK-based international financial services group. The company was set up in 2000 and is headquartered in Mumbai, India.
ICICI Prudential Life is one of the largest players in the life insurance solutions market in India and has been the recipient of various awards over the years. Some of its accolades include winning the first prize for its project on digitization at the 2014Qimpro Awards and being recognised as the foremost life insurance brand in the country under global research agency Millward Brown’s and WPP’s2014 study of 50 most valuable brandsin India.
ICICI Prudential Lifehas the vision to become the dominant life, health and pensions player by building up its trust factor among the citizens through its world-class employees and solutions. The company offers pure play insurance solutions, ULIPs, term plans, endowment plans, money-back plans, and tax saving investments.
IDBI Federal Life Insurance Company Limited
IDBI Federal Life Insurance Company Limited is a three-way venture between two Indian banks, IDBI Bank and Federal Bank, and the Belgium-based multinational insurance player formed from the restructuring of the erstwhile Fortis Holding. IDBI Federal Life Insurance started operations in India in 2008.
The company intends to be the leading provider of insurance, wealth management and retirement solutions in India. It focuses on providing solutions that meet the needs of its customers and adds value to their lives. Its driving values includetransparency, providing value to its customers, reliability and delivery as promised, and customer-oriented advisory services and support, in addition to building a profitable business for its stakeholders.
IDBI Federal Life offers life insurance, term plans, saving plans, tax saving investments, endowment plans, ULIPs, money-back plans, and a range of saving schemes in India that focus on bringing the best to the customers.
IndiaFirst Life Insurance
A joint venture (JV) between India’stwo largest banks, Bank of Baroda and Andhra Bank, and Legal & General, the UK-based risk, wealth and investment solutions multinational company, IndiaFirst Life Insurance, caters to the Indian life and related insurance services market. The Indian banks hold the larger share of ownership, Bank of Baroda with a 44% stake and Andhra Bank a 30% stake while Legal & General has a 26% stake. The company intends to use the understanding of the Indian banks of the local market with the insurance expertise of Legal & General.IndiaFirst Life Insurance was set up in 2010.----
The company intends to become a leader in the life insurance and retirement or pension business segments and provide significant growth value for its stakeholders through true customer delight. Its fundamental values are being helpful towards its customers’ needs, infusing a new way of thinking, doing more for its clients and providing honest service. The company offers tax saving investments, term plans, life insurance, endowment plans, ULIPs, money-back plans, health plans, and a range of saving schemes in India.
Kotak Mahindra Old Mutual Life Insurance Limited
A venture between Kotak Mahindra Bank and affiliates, the India-based private sector bank, and Old Mutual, a London-based international diversified financial services group, Kotak Mahindra Old Mutual Life Insurance Limited provides life insurance solutions for both the corporate and retail sectors. Kotak Mahindra Bank and its affiliates own a 74% stake in the company while the rest is held by Old Mutual.
The company intends to become a world-class Indian financial services group. It focuses on creating a better tomorrow through the symbiotic partnership of its stakeholders and sharing of common beliefs, values and objectives. It aims to be the most trusted company for financial services and most favoured employer in the financial services sector.
Kotak Mahindra Old Mutual Life Insurance’ssolutions include term plans, life insurance, endowment plans, ULIPs, money-back plans, health plans, and tax saving investments.
Life Insurance Corporation of India
A name that needs no introduction in India, Life Insurance Corporation of India or LIC as it is more popularly known was created on September 1, 1956,on the promulgation of the Life Insurance Corporation Act on the June 19, 1956, bythe Indian Parliament. LIC, today, is India’s top life insurance company and has a pan-India presence of 2048 fully computerized branch offices, 1381 satellite offices, 113 divisional offices, 8 zonal offices, and a corporate headquarters in Mumbai.
The company is the number one player in the overall and various sub-segments of the life insurance market in India and continues to set standards for reach, coverage and customer focus. It has received regular awards for its extraordinary performance and setting of new records across the diverse aspects of the life insurance business. Most recently, it received the 2014 Indian Insurance Award across several categories including Life Insurance Company of the Year, Underserved Market Penetration and Claims Leader. Other notable recognitions include the Indira Gandhi Award from the President of India, Outlook Money Best Life Insurer Award and the Asia BFSI Best Life Insurance Company Award.
LIC works with a vision to become a multinational competitive financial that has significance to Indian societies and be the country’s pride. The company has a mission to ensure the quality of the life of the people of India by providing them financial security thoughts its products and services. It intends to provide competitive returns and generate resources for overall economic development of its customers, stakeholders and the country.
Max Life Insurance Company Limited
A joint venture between Max Financial Services Limited, a part of the India-based multi-business Max Group, and Mitsui Sumitomo Insurance Co. Ltd., a part of MS&AD Insurance Group and among the leading general insurers in the world, Max Life Insurance Company Limited is one of most focussed life insurance services companies in India.
The company has won numerous awards and honours over the years for providing its customers with best quality products and services. Recent notable recognitions include ‘Asia's Most Admired Brand’ 2015-16 in the life insurance segment, World Finance Best Life Insurance Company India, 2015 and Compliance 10/10 Award - Compliance Programme 2015.
Max Life Insurance wants to be the most admired life insurance company in the country. It intends to secure the financial future of its customers by focusing on the fundamental values of providing care, building its credibility, symbiotic collaboration and overall excellence. Its solutions include life insurance, term plans, ULIPs, money-back plans, endowment plans, and tax saving investments, among others.
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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