Life Insurance in Pune

Overview Life Insurance in Pune

Pune is the second most popular city in the state of Maharashtra. It has been ranked as one of the most livable cities in the country. Pune is the fifth largest metro city in India as well as 6^th in terms of the per capita income of its citizens. The city has a huge industrial and cultural importance. It is known as the prime automobile and manufacturing hub of the country and as the second IT hub In India. Pune has also emerged as an educational centre with top institutions from many faculties having a presence in the city. Pune was a prime seat in the Maratha Empire and still has its traces in the culture of the city and its pride.

The citizens of Pune have the benefit of good public and private sector hospitals and good infrastructure in the city. However, in the second wave of the recent Covid 19 pandemic, the city was almost brought to its knees with a lack of adequate medical facilities to meet the demands of the citizens. In these trying times, many had lost their jobs and loved ones and have suffered an insurmountable loss. The financial loss of life in such cases can be compensated with good life insurance in place. Given below are a few details related to life insurance in the city of Pune.

Additional Reading: All about life insurance in India

What are the types of life insurance available in Pune?

Life Insurance is a contract between the insurer and the policyholder to insure the life of the insured person and to provide maturity benefits at the end of the policy term and death benefits to their nominee or the legal heir. The cost of this sum assured that is provided by the insurer is known as a premium and has to be paid at regular intervals to keep the policy active.

There are several types of life insurance that are provided by multiple insurers from the public sector and the private sector. Given below is the list of the same.

• Term plans
• Retirement plans
• Money-Back plans
• Endowment plans
• ULIPs
• Whole life insurance plans
• Child plans
• Group life insurance

What is the need for life insurance in Pune?

Life insurance is essential for every person in the city. It is an effective investment that can be used to secure the future of the insured person as well as their family in an unfortunate event. Life insurance will help in maintaining financial stability in the event of death of the sole breadwinner as well as can be a steady source of income for the insured person in their old age.

The need for life insurance is highlighted below.

• Life insurance is needed to provide financial security to the dependents of the insured person.
• Life insurance can also be used to settle any pending debt that may be difficult r=to repay after the demise of the sole breadwinner of the family.
• Another important use of life insurance is to build a corpus fund for the future to meet any future financial goals or even a buffer against the ever-increasing inflation in the country.
• Life insurance can be used to secure the retirement of the insured person and can also be used to provide regular fixed income in their old age. This will help the insured person be independent in their old age and not be a burden to their children.
• Life insurance is one of the many excellent options to secure the future of one’s children right from childhood. Many insurers also provide children’s plans for newborns too.
• Life insurance provides tax benefits along with multiple other benefits to the policyholders. Premium paid is eligible for a tax deduction under section 80C of the Income Tax Act, 1961. The maximum deduction available under this section is Rs. 1,50,000.

Additional Reading: 21-key-insurance-policy-updates-that-all-policyholders-should-know-in-2021

What are the factors to be considered while selecting life insurance?

Today there are more than 24 life insurance providers in India. These insurers have multiple types of life insurance products that provide many benefits along with life insurance cover. The benefits provided by each insurer differs based on their guidelines. It is therefore important for the customers to compare the various available options of the life insurance plans to ensure that they get the best plan that can meet their needs in the most optimum manner.

Given below are a few points that can be considered while comparing life insurance plans.

• The reputation of the insurer is the starting point for comparing any life insurance plan. An insurer having the best reputation with respect to claim settlement ratio and hassle-free claim settlement process should be preferred.
• The claim settlement ratio, as mentioned above, is another important factor to be considered. It is the ratio of the total number of claims raised against those actually settled. An insurer having the highest claim settlement ratio should be preferred.
• The claim settlement process of the insurer should be hassle-free to ensure that the financial assistance in the form of claims can be settled in a speedy manner without any unnecessary delays.
• The amount of coverage should be one of the prime factors to be considered. Coverage should be adequate to meet all the financial needs and obligations of the insurer as well as account for inflation.
• The tenure of the policy that is offered by the insurer should also be factored in. If the tenure is not sufficient to meet the needs of the insured person at the time of their crucial need, then it may not serve the purpose.
• The Premium amount that is paid for a life insurance policy differs for every insurer based on their guidelines and relevant costs. Hence the insurer that offers maximum coverage at a lower premium amount should be preferred by the customers.
• Customers also have the option of getting additional benefits on an existing life insurance plan. These additional benefits are known as riders. The insurer that can provide maximum and most relevant riders at a minimum additional cost should be preferred by the customer.

Additional Reading: 5-best-alternative-investment-options-to-secure-your-childs-future

Life Insurance in Pune FAQs