4 Benefits of buying Best death insurance policy in India

Things before buying Best death insurance policy in India

In the case of taking death insurance, people often prefer term plans. In term insurance, the Sum Assured under the policy is paid to the policyholder after death.

There is no maturity benefit in such a life insurance policy. It requires a person taking term life insurance to know that it does not cover all types of death.

Things before buying Best death insurance policy in India

The claim money is available only if the policyholder has died due to reasons covered under the term plan.

If the death has happened due to any reason in that condition, then the claim can be rejected.

Table of Content

  1. What is a death insurance policy
  2. Benefits of death insurance policy
  3. Type of death insurance policy
  4. 5 Best company for death insurance Policy in India 
  5. Reasons due to which claim is not received
  6. Claim Settlement ratio of insurance company
  7. FAQ/Frequently Asked Questions

1- What is a death insurance policy

In a death insurance plan, there is an agreement between the policyholder and the company, in the case of sudden or unnatural death of the policyholder, then the insurance company provides financial coverage to your family or nominee.

In return, the policyholder provides the insurance company with a predefined amount regularly, which we call premium.

2- Benefits of death insurance policy

1- Acts as a loan collateral
Many companies can only be allowed a loan up to 50% of the entire premium paid by the policyholder.

2- Online payment discount
Whichever company’s death insurance plan you have taken, if you pay the premium of the company through online payment, then some companies also provide us with an online discount

3- Taking care of business
If you have your own business, and you have a business partner with you, then in your place, your partner can continue by buying your shares in your place.

4- Tax benefits
If you have taken a death insurance plan and pay a premium for it, then the rebate is also available as per income tax section 80 c 1961.

3- Type of death insurance policy

 It is a simple base plan, which pays a sum insured to your nominee or your family in case of your untimely death, the tenure of this plan can be up to the age of 85 years

If the policyholder survives till the end of the plan then they will not get any maturity bonus.

5 types of death insurance plan the policy

  1. Regular plan
  2. Return of premium
  3. Staggered payment
  4. Single-Premium
  5. Increasing/Decreasing premium
comparison death insurance policy in India

4- 5 Best company for death insurance policy in india

Insurance company

Entry Age

Policy Term

min/max

sum Assurd

min/max

18/65 Years

10,20/30 Years

25 lakh/no upper limit

18/75 Years

5/40 Years

10 lakh/no Upper limit

18/70 Years

10/30 Years

20 lakh/no upper limit

18/65 Years

10/15,30 Years

25 lakh/no upper limit

18/65 Years

10, 30 Years

25 lakh/no upper limit

5- 6 Reasons due to which claim is not received

5.1.Murder of the policyholder:
If the policyholder is murder by a nominee or an allegation of murder, then the insurance company can refuse to pay the claim of term life insurance.

In such a situation, the claim request will be on hold till the nominee gets a clean chit i.e. he is proved innocent.

The cover will not be available if the policyholder is involved in any criminal activity and killed.

5.2. Death due to intoxication:
The insurance company does not issue a policy to people who drink excessively.

In case of policyholder dying due to overdose of drugs or other intoxicants, the claim is also refuse.

If the policyholder is driving under the influence of alcohol or has taken drugs, then in the event of death, the insurance company can refuse to pay the claim amount of the term plan

5.3. Players of danger:
If the subscriber of the term plan is fond of playing with dangers and dies while doing some dangerous activity, then the insurance company will reject the claim.

Any life-threatening activity can come under this purview, such as a car or bike races, paragliding, sky diving, bungee jumping, etc.

5.4. Death is natural calamity:
If the policyholder dies in any natural calamity like cyclone, earthquake, tsunami, flood, fire, etc., the insurance company can refuse to pay compensation.

However, if the policyholder has taken a separate rider other than the term plan for this, then it will be beneficial.

5.5. Death from a chronic disease:
If the policyholder has a pre-existing disease and has not informed the insurance company, then in that situation the insurance company can reject the claim.

Death due to HIV/AIDS is also not covered under the term plan.

5.6. Suicide:
IRDAI made changes in the suicide clause under life insurance with effect from 1 January 2014.

The policies before January 1, 2014, follow the old suicide clause, In the new clause is being implemented in the new term policies.

Although some insurance companies provide coverage in case of suicide, some do not.

6- Claim Settlement ratio of insurance company

Things before buying Best death insurance policy in India

7- FAQ/Frequently Asked Questions

Q.No.1. What is the best life or death insurance cover of term insurance?

If the insurance cover is 5-10 times the annual income then this will be the best insurance cover for you.

This means that you should get enough cover for the future of your family, to manage the income for 5 to 6 years

Q.no.2. For how long will you need the cover? What should be the best policy term?

A few years back the retirement age was 60 years, but now the cover will be given in the new policy till you take retirement.

Today our responsibilities do not end at the age of 60, there can be many reasons for this. Therefore, the time limit has been extended in the new policy.

Experts believe that life insurance should be done till the age of 65 years.

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