Life Insurance in Patna

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.

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