• Tuesday, September 27, 2022


This Global Literacy Day, learn everything about Life Insurance

Insurance and investment concept of health, life, accident and travel. Hand picked wooden block with insurance sign and symbol of house, family, car

By: Eastern Eye Staff

Annual Global Literacy Day events have taken place worldwide to remind the public of the significance of literacy as a matter of dignity and human rights and push the literacy agenda toward a more literate and sustainable society. Despite improvements, literacy problems continue, with at least 773 million young people and adults lacking basic literacy abilities.

Let us learn about the necessity of life insurance of India on this Global Literacy Day!

It is critical to protect your family’s future, especially if you are the sole or primary breadwinner in the household. Life insurance is what keeps your family protected even if you are not present. Life insurance India provides financial security for you and your loved ones. It assures that you and your loved ones are constantly financially supported.

What Is The Importance Of Life Insurance?

Replaces loss of income

In the case of the policyholder’s death, a life insurance India policy pays out death benefits. This is often a lump sum payment to assist the insured’s family in dealing with the loss of their major source of income. If you are the primary breadwinner in your family, life insurance India can assist guarantee your dependents’ future by providing financial benefits.

Helps in repaying pending debts

Debts incurred in the insured’s name continue to be a financial liability even after the policyholder’s death. However, without another source of income, the deceased’s legal successors may be unable to settle any outstanding obligations. This is when the maturity advantages of a life insurance policy might come in.

Meet educational expenses

If you buy a life insurance India policy in your twenties, the policy will probably mature when your child reaches college-going age. The earnings earned as part of the maturity benefits might assist you in meeting the high expenditures of higher education.

Diversify your investments

Life insurance India is one of the few investment alternatives with very minimal risks. If your existing investment portfolio requires some steady low-risk assets, obtaining a life insurance policy can assist you in balancing your risk exposure. All you have to do is pay your premiums regularly to ensure that your investment returns are assured.

Save for retirement

If you do not have a retirement plan, purchasing life insurance might help you get started. You can save money on premiums if you buy a protective cover when you’re younger. So, for a little monthly, quarterly, semi-annual, or annual charge, you may maintain your investing strategy and contribute to your retirement fund.

Tax benefits

Life insurance India is another tax-advantaged investment option offered to investors. The premiums you pay can be deducted from your total taxable income up to Rs. 1.5 lakhs under Section 80C. In addition to this deduction, the maturity or death benefits received from an insurance plan are tax-free, according to section 10.

To improve your financial security.

A life insurance policy, among other things, can provide the safety net you require if life throws you a curveball. The maturity benefits offered by the insurance might provide reassurance that your post-retirement demands will be met. It also guarantees financial security for your legal heirs in the sad event of your death.

Types Of Life Insurance

Term Insurance

Term insurance programmes offer low-cost life insurance to safeguard your loved ones. This is the most basic type of life insurance. Term plans provide financial stability for your loved ones’ future even if you are not present.


ULIPs, or unit-linked insurance plans, combine life insurance with financial investment. Unit-linked insurance policies provide a diverse range of fund alternatives and portfolio strategies. After five years of lock-in, ULIPs allow you to withdraw money from your policy every month.

Endowment Plan

Traditional savings insurance plans are risk-free investment vehicles that simultaneously provide insurance protection. Standard plan returns, also known as endowment and money-back plans, are not tied to the stock market and entail lesser risk. Traditional insurance plans include bonuses for remaining invested, such as reversionary and terminal bonuses, which increase the maturity sum.

Savings Plan

Savings Plans are life insurance India plans that combine the advantages of life insurance with investing. So, in addition to protecting yourself and your family, you build a corpus to fulfil your financial goals at every stage of your life. Most protection and savings plans provide a predetermined sum as Maturity Benefit when the policy expires, but certain particular plans additionally assist you in creating a consistent stream of income during the duration of your policy.

Whole Life Insurance Plan

The Whole Life Insurance Plan ensures you until the age of 99. They vary from standard insurance plans in that they have a set duration, such as 10, 20, or 30 years, and are helpful when you have financial dependents for an extended length of time, potentially your whole life.

Retirement and Pension Plan

Retirement insurance products allow you to create your pension income. You may either accumulate your retirement corpus based on your risk tolerance or invest a single sum in receiving assured instant payment for life.

Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan

Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan is an excellent plan that can assist you in overcoming life’s uncertainties. iSelect Star Term is an individual non-linked non-par pure risk premium life insurance plan that can be purchased online at low premium prices.
This is a versatile term plan that allows you to tailor it to your unique lifestyle demands by providing various coverage, premium payment, and benefit payout choices.
The iSelect Star Term plan includes full life coverage, letting the select policyholder have coverage for a specified time. One important feature to notice is that the plan offers three coverage options: Life, Life with Return of Premium, and Life Plus.
The iSelect Star Term plan is a popular term insurance plan that offers life insurance and terminal disease coverage.

Wrapping It Up

Many investment choices are easily available in the financial market, but life insurance, if purchased at a young age, gives numerous benefits such as providing protection to your family in your absence, preparing your retirement, adding financial stability, and assisting in tax savings.
You can easily calculate the insurance amount by using income tax calculator.
We hope that on this Global Literacy Day, we were able to teach you a lot about life insurance

Eastern Eye

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