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Overview Life Insurance in Patna
Patna is the capital city and the largest city in the state of Bihar. The city was known as Pataliputra in ancient times and was at its prime during the reign of the Maurya Empire and the Gupta Empire. The modern city of Patna is located on the banks of the river Ganga. The city is home to many cultures and is important on the political, economic fronts as well. It has the highest contribution to the GDP of the state of Bihar and is one of the vital political seats as well. The city has also ranked second after Delhi in ease of doing business.
The recent pandemic has had a huge impact on the life of every individual. Many have lost their loved ones as well as have had to suffer financial loss due to loss of employment or business. The loss of loved ones is an irreparable loss that cannot be compensated by any person or any amount of money. However, a safety net in such cases can assure the survivors of the deceased financial security in their absence, especially if the deceased was the sole earning member of the family.
Life insurance is one of the best investment options that can act as a saviour in times of need. Given below are the many benefits of life insurance for the people of Patna.
What is life insurance?
Life insurance is one of the most common types of insurance products in India. The term life insurance is often synonymous with a term plan which is a type of life insurance. Under life insurance, the life of an individual is essentially insured by an insurer for a fixed amount sum. The insured person will pay the cost of such insurance in the form of premiums that are paid at regular intervals. The insured person gets maturity benefits if they survive the policy term. In the event of their death during the policy tenure, their nominee or their legal heir get death benefits under the life insurance plan.
Additional Reading: What Is Life Insurance And Advantages Of Life Insurance
What are the types of life insurance available in Patna?
There are many types of life insurance available for the people of Patna to choose from. The list of such types along with their basic details is tabled below.
| Type of plan | Basic description | Tenure | Target customers |
|---|---|---|---|
Term plan | This is a basic life insurance plan with no maturity benefits. Death benefits are given to the nominee or the legal heir of the insured person | The tenure is fixed for 5 years to 50 years | Ideal for customers looking to secure the future of their family in their absence at nominal costs |
Term plan with premium return | The modified version of term plans that provide the benefit of the return of premium if no claim is made | Fixed tenure between 10 to 30 years | Ideal for customers with relatively better health and looking for fixed tenure policies |
Whole life insurance plans | These plans are similar to term plans providing coverage for life. Maturity benefits are given to insured persons and death benefits to nominees. These plans may or may not have investment options. | The whole life of the insured person. Maturity benefits are given if the insured person reaches a certain age of 80 years to 100 years. | Ideal for securing the future of the family and building a corpus fund. |
Child plans | These are insurance plans focusing on securing the future of the children. These plans can be bought for newborns as well. | Flexible policy tenure depending on the needs of the child | Ideal for securing the future of the child and building a fund for their higher education, wedding, etc. |
Group life insurance | This type of policy is taken by the employer for their entire staff. | Till the person is in the employment of the company. | Ideal for getting coverage from day 1 without any waiting period and getting cover for employee and their family |
Endowment plans | These plans provide the benefit of insurance along with investment. Investors have assured a portion of returns as guaranteed returns. | Tenure ranges between 10 years to 30 years | These plans are ideal for investors that are looking for insurance as well as guaranteed returns on investment |
ULIPs | Unit Linked Insurance Plans that provide market-linked returns as well as the benefit of insurance. The returns are not guaranteed, unlike endowment plans. | Tenure between 10 years and 20 years | These plans are ideal for investors looking for higher returns along with an insurance cover. |
Moneyback plans | These plans provide the benefit of receiving income at regular intervals and a balance of sum assured if any, is received at maturity. | Tenure can be up to 25 years | This plan is best suited for investors that prefer to get returns at regular intervals along with insurance benefits. |
Retirement plans | These plans provide retirement benefits to insured persons in the form of pension or regular monthly income or lumpsum payment as per the discretion of the policyholder | No fixed tenure for such plans | Ideal for people looking to secure their retirement and earn regular income in old age. |
What is a life insurance premium? What are the factors responsible for determining premium?
Premium is the amount that is to be paid by the policyholders to maintain the cover of the insurance policy. This is the nominal cost to be borne by the customer and paid at regular intervals. The frequency of payment of premium is different for every insurer and is to be paid as per the agreement between the insurer and the insured person. The available frequency for premium payment is given below.
- Monthly payment
- Quarterly payment
- Semi-annual payment
- Annual payment
There are many factors that affect the premium amount. Some of such factors are mentioned below.
- Coverage amount – A higher coverage amount will warrant a higher premium and vice versa
- Tenure of the policy – Tenure is another important factor determining the premium amount. If the tenure is long term, then the premium amount will be lower as it can be spread over such tenure and vice versa.
- Age of the applicant – The age of the applicant is also crucial as most insurers charge lower premiums for younger insured persons considering them to be low risk.
- Employment status – If the job of a person is stable and relatively risk-free, they are charged a lower premium and vice versa
- Location of the applicant – If the applicant belongs to a metro city, the premium charged would be higher and vice versa.
- Marital status – Most insurers charge higher premiums for married people as against the premium for single people.
- Existing policy if any – An applicant having an existing policy can opt for another policy. The premium amount in such cases will be higher.
- The number of members covered – The amount of premium that is charged for a family cover is higher as compared to a single plan as it covers more people which may include senior citizens too.
Life Insurance in Patna FAQs
1. Can a life insurance plan be bought online?
A. Yes. A life insurance plan can be easily bought online from the website of the insurer.
2. What are the various benefits of a Life Insurance plan?
A. The various benefits of a Life Insurance plan are,
- Life coverage or coverage for a fixed tenure for self and family
- The benefit of tax deduction under section 80C up to Rs. 1,50,000
- Facility to get a loan between 70% to 90% of the policy amount
- The benefit of earning market returns on mutual fund returns under ULIPs
- The benefit of additional riders on an existing plan at lower costs
3. What is the entry age for life insurance?
A. Most insurers provide insurance to a person above the age of 18 years or 21 years as the case may be depending on their guidelines. Whereas, in the case of child plans, coverage is provided for newborns too.
4. How can a person buy life insurance through offline mode?
A. A person can buy life insurance offline by visiting the nearest branch office of the insurer. They can get information about the various plans offered by the insurer and select a plan according to top their needs. The initial payment for the plan can be done through cheque or demand draft or online payment as per the guidelines of the insurer.
5. What are the maturity benefits of a term plan?
A. Term plan does not have any maturity benefits.