Life Insurance in Nagpur

Overview Life Insurance in Nagpur

Nagpur is one of the major cities in the state of Maharashtra. The city is quite famous as the ‘Orange City’ in India due to its abundant orange production. Nagpur has huge historical, cultural and economical importance for the state. Nagpur has a huge network of industries and a mix of a rural and urban populations. In order to safeguard the citizens from the perils of the uncertainty of life, life insurance is one of the crucial tools at the disposal of the citizens. A life insurance policy will ensure that the citizens have a secure future for themselves and their family members. Given below are a few details related to life insurance in the city of Nagpur.

Who is eligible for life insurance?

Life insurance can be bought by any person for themselves or for their family members. It is the blanket assurance of the financial future of the family. This type of insurance is hugely popular and can be bought more than once by every person. There is no limit to the maximum number of life insurance that can be bought by a person. However, the premium is to be paid on all such insurances to keep them active.

Life insurance can be bought online or offline. Online mode includes visiting the website of the insurer. Offline mode includes visiting the nearest branch office. The documents needed for life insurance are mentioned below.

• Proof of age
• Proof of identity
• Proof of address
• Employment proof
• Income proof
• Application form
• Passport size photographs

What is the premium on life insurance?

Premium is the amount to be paid by the policyholder at regular intervals to maintain the cover of the policy till the end of its tenure. This premium can be paid at flexible intervals, i.e., monthly, quarterly, semi-annually or annually. The premium amount can be nominal if the policy is bought at the earliest. There are many factors affecting the premium amount. Some of such factors are mentioned below.

• Age of the applicant – The general rule here is lower the age, lower the premium.
• Location of the applicant – If the location is a metro city, the premium amount is usually high and vice-versa.
• Marital status – Married people are generally charged a higher premium than single people by most insurers.
• Income of the applicant – If the income of the applicant is high, they can afford to pay a high premium for higher cover.
• Employment status – People having a stable jib are charged a lower premium and vice versa.
• Existing policy if any – If the applicant already has a cover, the premium amount is higher.
• Number of members covered – The general rule here is the more people insured under a single plan, the higher is the premium.
• Coverage amount – A higher coverage amount will warrant a higher premium and vice versa.

What is the need for Life Insurance?

Life insurance is one of the most essential and easiest ways to provide financial security to a person. This can ensure that the future of the family is not jeopardized when the sole breadwinner of the family is no more. Other than that, life insurance can also be used as a tax-saving tool. There are multiple reasons that make life insurance essential, some of them are discussed below.

• Life insurance provides tax deduction under section 80C up to Rs. 1,50,000.
• It can cover the policyholder as well as their family members under a single plan.
• Life insurance can be used as collateral to get loan up to 90% of the policy value
• Policyholders can earn market returns under ULIP plans by investing in desired mutual funds
• Life insurance provides additional benefits in the form of riders on the existing plan.

What are the popular types of life insurance policies?

There are many types of life insurance policies available in the Indian market some of the common types of policies are,

Term plans

A term plan is the most basic type of life insurance available to people. It provides basic risk cover for a fixed tenure from 5 years to 50 years. The policy provides no benefits on maturity. Benefits are only paid to the nominee in the event of the death of the insured person.

ULIPs

These are Unit Linked Investment Plans providing the benefit of mutual fund investment along with insurance. Investors can opt for the fund of their choice to invest their corpus and earn returns for the same. These plans have a minimum lock-in period of 3 to 5 years.

Money-Back plans

This type of insurance provides a portion of the sum assured to the policyholders at regular intervals. The balance amount is received upon maturity by the insured person or their legal heir.

Endowment plans

This policy also provides the dual benefits of insurance and investment. Policyholders can gradually build a corpus fund that can be used to realize their long-term financial goals.

Whole life insurance plans

These plans are used to insure the whole life of the policyholder. The tenure of the policy is usually long term like 100 years. Most insurers allow the policyholder to pay a premium for the first 10-15 years and enjoy the benefits of the plan for life.

Child plans

These plans can be taken by parents for their children from the time of their birth. It can be used to secure their future and meet their future needs like higher education, wedding, etc.

Retirement plans

Retirement plans are quite popular for senior citizens as they provide financial security along with the benefits of insurance. Policyholders can get a fixed amount as pension or regular monthly income as per their agreement with the insurer while death benefits are provided to the nominee.

Group life insurance

This insurance is taken by the owner or the employer of an organization for their staff. This policy can be converted to a personal life cover when the employee leaves the organization if such an option is provided by the insurer.

Life Insurance in Nagpur FAQs