Life insurance provides a sustainable way to deal with lifeÂ’s increasing uncertainties.

It is more than just a safety net for your family. Life insurance provides you and your dear ones with stability in vulnerable times, acts as a source of income and provides the means to pay off your mortgage, bear educational expenses, and the list continues.

There was a steep rise in the number of holders from 6.32 million in the financial year 2017 to 7.39 million holders in the financial year 2022. This shows that people are realising the importance and benefits of life insurance. If you are about to take life insurance for yourself and your family, donÂ’t miss out on these seven crucial points:

FEATURES OF LIFE INSURANCE

1. Premium

You might come across the term “premium” while choosing your plan. So, what does it signify, and why you should be attentive to it? Premium is the amount you’ll need to pay after finalizing your policy. While evaluating your plan, go through the premium amount that you need to pay and whether it can be paid in regular monthly payments, one-time or annual payments. This will help you understand how much and how frequently you need to pay for a policy.

LetÂ’s see how premiums work through examples: Monthly premiums of Rs 10450 (including GST) in Generali Central Long Term Income Plan can be a good option for a young salaried couple like Raghu(28) and Veena (26) as it allows them to get benefits upto 32 lacs after 30 years on premiums totalling just Rs 11,32,500.

Whereas an annual payment of Rs 2,09,000 (including GST) might make more sense for Vibhor (35), a businessman. It will provide around Rs 47 lacs benefits amount at the end of 30 years after paying only Rs 16 lac as premium.

2. Surrender Value

Surrender value is the amount you will get when you surrender your policy to the company. This is an important feature to look for because the future is always uncertain. In case of an emergency, if you ever feel like terminating a policy before its duration is over or before it reaches maturity, this amount will help you make a more informed decision. For plans that offer surrender value, the surrender value varies as per the amount of premium paid in a given duration and the year of surrender.

3. Riders

Riders come as the cherry on top of every life insurance plan. These are the extra benefits you can avail of with your policy plan. Some of the common riders are—Accidental death rider, disability rider, critical illness rider, family income benefits, waiver of premiums, and return of premiums.

However, before you rush to avail yourself benefits of a rider make sure that it aligns with your goals, the insurance plan, usage, and the costs.

4. Free Look Provision

A life insurance policy usually provides a free look provision. It is a trial period that can last for The period varies as per your mode of purchasing the policy.

This feature aims to help you analyse your policy better and remove all your second thoughts. In this period, if you terminate a policy you are not liable to pay any charges except for the amount of time you were covered by the policy. We provide this feature in all our plans.

5. Tax Benefits

Life insurance policies also come with the benefits of tax exemption and tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. As per the Indian Income Tax Act, premium amount can be claimed under section 80C. The overall limit of exemption under Section 80C can extend up to only 1,50,000 INR.

The amount received by the policyholder after maturity is exempted from income tax under Section 10 (10D).

However, exemption will not be allowed

1. In case an insurance policy is issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 10% of the actual capital sum assured .
2. In case an insurance policy is issued on or after the 1st day of April, 2003 but on or before 31st March, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured. Plus, premiums paid toward health riders like critical illness and surgical care etc. can also be claimed as deductions under Section 80D. Life insurance provides a host of tax benefits.

6. Maturity Benefits

When your policy ends, you are entitled to receive a whole sum amount. However, this also depends on your plan. A term plan might not offer any maturity benefit, whereas a savings plan comes with maturity benefits.

7. The Right Plan

You will always find several appealing plans. To understand which one work best for your particular situation, you need to assess them. First, navigate your way through all plans, and then finalize what fits your requirements. for lifelong benefits and protection. There are other insurance plans as well like— universal life insurance, group life insurance, endowment insurance plan, unit-linked insurance plan, retirement plan, and money-back insurance.

BOTTOM LINE

The earlier you plan to take on life insurance the better it is. Not only does it act as a financial net guaranteeing safety, but each plan comes with its own benefits. Life insurance can cover all expenses for your family from education to debts, estate planning and even charity in case of any exigency. It also offers numerous as per Income Tax Act which ultimately benefit your wealth creation. To understand which policy works best for your particular needs & how, you can talk to our trusted and experienced advisors

Generali Central Long Term Income Plan: This is an Individual, Non-Linked, Non-Participating (without profits), Savings, Life Insurance Plan. UIN: 133N090V02

Disclaimers: For detailed information on this plan including risk factors, exclusions, terms and conditions etc., please refer to the policy document and consult your advisor, or, visit our website before concluding a sale. Tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. You are advised to consult your tax consultant. Generali GroupÂ’s and Central Bank of IndiaÂ’s liability is restricted to the extent of their shareholding in Generali Central Life Insurance Company Limited.

Age - 28 years | PT - 30 years | PPT - 10 years | Modal Premium - Monthly | Option - 1, Immediate Income | Survival Benefit Frequency - Monthly |

Age - 35 years | PT - 30 years | PPT - 8 years | Modal Premium - Annually | Option - 1, Immediate Income | Survival Benefit Frequency - Annually |