Life Insurance in Ludhiana

Overview Life Insurance in Ludhiana

Punjab is considered to be the food bowl of the country and Ludhiana is one of the biggest cities in the state of Punjab. The city is a huge industrial hub in the state with references to being the Indian Manchester by BBC. The city has the benefit of being culturally and historically important in the state along with its economic importance. Ludhiana was founded by the Lodhi Dynasty in 1480 and has since provided many notable personalities to the country.

Ludhiana also has the benefit of being among many cities which are included in the list of smart cities to be developed across the country under the Smart City Mission.

The life insurance sector of the city is one of the many prominent industries and has many policyholders that have secured the future of their families. Despite this, there is a huge scope of development and increased awareness in this sector to increase the customer base and improve their future.

Given below are a few key details of life insurance in Ludhiana and its importance for the city.

What is life insurance?

India is a country where the majority of the households have a single earning member. If the primary breadwinner meets with an untimely death or suffers some major accident, the future of the entire family comes in jeopardy. To safeguard the future of the family and tide over any financial emergency, it is better to have insurance.

Life insurance is the buffer or cushion that is provided in case of financial emergencies arising out of the loss of the breadwinner of the family. These plans not only provide life cover but also help in wealth creation. There are many insurers in the country today belonging to the private sector and the public sector. These insurers provide multiple types of life insurance that cater to the specific needs of the consumers in the city.

Types of Life Insurance Plans in Ludhiana

Some of the common types of life insurances provided in the city of Ludhiana are,

ULIPs

ULIPs are Unit Linked Insurance Plans. These plans are among the oldest forms of insurance that provide the benefit of insurance and investment in a single plan in the Indian market. Policyholders can direct a portion of the premium paid to their preferred mutual fund and can gain returns on such fund along with the benefit of insurance. These funds have a minimum lock-in period of 3 to 5 years.

Money-Back plans

These plans also provide a portion of the sum assured to the policyholders during the tenure of the policy. The specified amount is provided at regular intervals as per the agreement between the policyholder and the insurer. The balance amount of the sum assured is received at the end of the maturity period by the policyholders and death benefits are given to the nominee.

Term plans

Terms insurance is often used as a synonym for life insurance. These are basic plans providing insurance for a fixed tenure of usually between 5 years to 50 years. Under this plan, policyholders do not get maturity benefits. Only death benefits are provided to the legal heir of the policyholder under this plan.

Term Plan with a return of premium

This plan is an upgrade to the basic term plan mentioned above. Under this plan, a portion of the premium paid is given back to the policyholders if no claim is made for a specified period. It is suitable for low-risk customers who may not need a claim in the near future. Such plans allow the policyholders to get their premium amount back at the same time enjoy the benefits of term insurance.

Group life insurance

This insurance is taken by the employer for their employees of the entity. This is a blanket insurance cover and the amount of coverage is standard for all employees (usually Rs.5,00,000). The coverage can be extended to include eligible family members of the employee too.

Retirement plans

The sole aim of these plans is to provide retirement benefits to insured persons. These benefits can be in the form of pension or regular and fixed monthly income at the discretion of the policyholder and agreement with the insurer. Death benefits are paid to the legal heir of the policyholder.

Whole life insurance plans

This policy provides cover for the whole life of the policyholders. The tenure is long term and up to 99 years. This policy can be used to cover the family members too. The premium amount can be paid at flexible terms and nominal if started in their early 20s.

Endowment plans

These are another type of life insurance plan providing benefits of savings as well as investment. The corpus fund built over the years can be used to meet the long-term requirements like a wedding in the family, child’s education, home repairs and renovation, travel, etc.

Child plans

These are children specific plans that focus on providing a bright future to the child. Many insurers provide policies for newborns too till the time they attain adulthood. The fund generated can be used for their higher education or wedding or other expenses like travel, business venture, etc.

Additional Reading: What Type Of Life Insurance Is Best For A 60 Year Old

Life Insurance in Ludhiana FAQs