Deciding the best life insurance policy in India includes various important factors such as past performance, claim settlement ratio of the company, its solvency ratio, customer support etc. Using all of the listed parameters and the annual report 2020-2021 published by the insurance regulator of India we have scrutinized the best life insurance policies for you.
Life Insurance Riders
Riders are the add-ons that provide additional financial coverage to the policyholder. Some plans come with the in-built additional cover, however, generally, the riders need to be purchased separately by paying an additional premium.
Having additional coverage enhances protection for you and your family in case of death, disease, or disability.
Popular life insurance riders are:
1 Critical Illness Rider
Critical Illness Rider benefits the policyholders in case they get diagnosed with any of the critical illnesses listed in the policy document. The rider pays out the critical illness sum assured and allows the policyholders to concentrate on their treatments without worrying about the finances.
2 Accidental Death Benefit Rider
With the help of Accidental Death Benefit Rider, if the policyholder dies in an accident during the policy term, then a percentage of this additional sum along with the sum assured will be paid to the beneficiary by the insurance company.
3 Accidental and Total Permanent Disability Rider
This rider comes in force if the policyholder meets with an accident and is declared partially or permanently disabled. The rider pays the predetermined percentage amount and can be relied upon as the income source.
4 Accelerated Death Benefit Rider
If the policyholder is diagnosed with any life-threatening terminal illness such as leukaemia, cancer, AIDs, etc., this rider will pay a part of the death benefit and can be used for the treatment of the policyholder.
5 Waiver of Premium
Under this rider, if the policyholder is unable to pay his premiums due to the loss of income because of any unfortunate accident or injury, or disability, then all the future premiums will be waived off, and the policy will continue with no restrictions.
6 Term Rider
Term rider pays a fixed or monthly income to the beneficiary in case of the policyholder's demise. This rider offers extra coverage for death in addition to the base sum assured that is predetermined by the insurance company.
7 Surgical Rider
Surgical Rider assists the insured by providing financial coverage in case the policyholder undergoes an unavoidable surgery in India.
Factors That Affect Life Insurance Premium
A life insurance premium is an amount that is paid by the policyholders for a specified period and lets them enjoy the life insurance benefits. One can select their premium payment mode as per their needs.
Below are the few important factors that are considered by life insurance companies and can affect the life insurance premiums:
- Age: Age is a significant factor while calculating the life insurance premium. As per the insurer's perspective, a young individual is less likely to suffer from age-related disease and pass away prematurely, and also has a higher chance of continuing their insurance policy for years. This makes younger individuals eligible for low premiums.
- Lifestyle: If a person smokes/drinks/leads a stressful lifestyle, (s)he needs to pay higher premiums. This happens because such habits lead to life-threatening illnesses, lowering your life expectancy.
- Gender: According to some surveys done in India, it is proven that women tend to live longer than men. Due to this disparity, women generally pay fewer premiums than men.
- Medical History: If a person has a medical history of critical illnesses or is prone to health issues, then in such cases the insurance companies charge a higher premium.
- Policy Tenure: The longer your policy tenure, the higher is the risk to insurance companies. Therefore, life insurance plans with shorter-term have lower premiums than long-term life insurance policies.
What Are The Documents Required To Buy Life Insurance?
If you have decided to buy life insurance, there are a few documents that you need to provide:
Age Proof
Driving License, 10th or 12th mark sheet, Birth Certificate, Passport, Voter ID, etc.
Address Proof
Electricity Bill, Telephone Bill, Ration Card, Driving License & Passport.
Identity Proof
PAN Card, Passport, Driving License, Voter ID, or Aadhar Card.
Income Proof
Latest form 16, salary slips of last 3-6 months, ITR (2-3 years), etc.
**Some plans require a medical check-up to make sure that the insured does not suffer from any chronic illness. The company may ask for other documents as well.
How To File A Life Insurance Claim?
If a claimant follows all the required steps, then filing a claim and getting a sum assured can become a very convenient and hassle-free task. Read ahead to find how a claimant can file a claim in India under the following scenarios:
In case of the insured's death, the nominee of the deceased will be able to claim in the following way:
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Intimate the insurer about the death as soon as possible with all the important details such as time, place, and cause of death.
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Submit needful documents and proof to the insurance company. This will consist of the insured's death certificate along with the claim form provided by the insurance company.
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If the policy was assigned, the assignee will have to provide the documents. If someone else (apart from the nominee or assignee) is filing a claim, (s)he has to submit the legal proof of his/her relation with the insured.
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If required, post-mortem, hospital, and attending doctor's reports have to be submitted.
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In cases involving police inquiries, an investigation/survey report will have to be submitted.
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Once the investigation is over, the insurance company will approve/disapprove the claim. The details of the same will be shared with the claimant.
In Case The Policy Is Matured
If the insured outlives the policy term, then he/she is eligible to avail all the maturity and surviving benefits, provided all the premiums have been duly paid. The procedure for filing a claim is as follows:
- When the maturity date of the policy is near, the insurance provider will send an intimation to the policyholder with a discharge voucher (at least 2-3 months prior to the date of maturity).
- The policyholder has to sign the voucher and send it back to the provider with the original policy bond.
- If the policy is assigned to someone else (individual/entity), the amount will only be paid to the assignee who will give the discharge.
Conclusion
Life insurance is a must-have financial tool that can help you ensure the financial security of your loved ones while providing you life cover. A life insurance policy provides financial assistance to the life assured and their family members in difficulty. Keeping the current scenario in mind, a life insurance policy is essential for individuals who have financial dependents, if anything were to happen to an individual amidst the COVID-19 outbreak a life insurance policy can be very handy under such circumstances.
