Insurance is an arrangement by which a company undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
Term life insurance or term assurance is life insurance that provides the nominee/kin the sum assured of the policy in case of death. It is insurance in its simplest forms.
The insured can go in for a plan which can also cover payments for an ongoing mortgage/loan to ensure the nominees are not burdened by debt.
Under the Married Women's Protection Act, 1882, the married woman can protect her assets against her husband, creditors or relatives.
Nominee/ immediate dependent family members are compensated in case of death of the insured. One can protect your family in case of death permanent illness.
One can get a deduction of upto Rs.150,000 through investments in term life insurance.
Mediclaim policy is nothing but a health insurance policy that is designed to take care of one's healthcare expenses up to the sum assured, in case the person faces any sort of medical emergency, be it an illness or an accident that has led to hospitalization.
Cashless facility at hospitals in case of illness, this prevents family members having to withdraw/liquidate investments or borrow money incase you get hospitalised for an illness. You cover your own costs.
A deduction of upto Rs.40,000 is available under Sec 80D.
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness. So essentially one gets insurance and investment, whose returns range from 6%-11% p.a. Its a all in one product.
Insured/nominee of insured. These policies if participating are also called ULIPs (Unit Linked insurance policies). These policies combine insurance and investment in the same product. The insurance amount is generally a death rider, which is available to the nominee/ kin of the policyholder, while a portion of the amount goes into buying units of an equity/debt fund.
The premium amount paid are eligible for dedcution under Sec. 80C with a limit of Rs.150,000 while the maturity proceeds after the term period are tax exempt under section 10(10D) of the Income Tax Act 1961.
These are unit linked or market linked plans which are different from normal endowment plans. They are the classic example of combining a life cover with an investment amount which is market linked. These usually have a lock in period of 5 years.
The insured can get benefits of both insurance and investment through one policy.
Tax deductions under Sec 80 C and Sec 10(10D). The maturity proceeds on the investment are also tax free.
Key man insurance is essentially like a term/endowment policy, where the insured is person who occupies the key role in the company, aka key man.
Companies face a lot of problems incase of death of the key man, hence keyman insurance policy, benefits the company as the company gets the proceeds of the policy incase of any mishap suffered by the Keyman.
The premiums paid by the company are tax deductible.
This insurance covers expenses in case of loss of baggage or medical emergencies that may arise during travel.
The policy holder stands to benefit in case of loss of baggage/ medical emergencies upto the Sum assured on the chosen plan.
No tax benefit as such.
Other insurance products that we cover include property, fire, theft , marine etc.
This insurance is beneficial for securing assets against damage.
No tax benefit as such.