Life Insurance

An Insight into Life Insurance

Life insurance is an easy and most secured way to safeguard you, your family, your loved ones, and all your assets from all the unpredicted situations of life. Death, natural disasters, and accidents are natural and are bound to happen someday or the other. The only thing that remains uncertain is the time of occurrence. Hence, it is important that we give a practical and wise thought to such unpleasant experiences and take the right decision at the right time. We at Pradip Kothari Financial Services strive to guide you rightly on the path of securing your family with day-to-day expenses in your absence.

Type of Life Insurance

There are many different types of Type of Life Insurance with their distinctive set of benefits. Here are the common types available in India:

Pension Plan

In this policy premiums are accumulated as financial assets and provided as lump sum amount or periodically as instructed by the investor after a certain age, mainly after retirement.

Endowment Policy

This policy comes with an additional benefit of receiving a lump sum amount if the insured person survives until the maturity of the policy term.

Whole Life Insurance

This is an ordinary insurance policy that stays active for the entire lifetime of the insured person provided all the premiums are paid. The common types are traditional insurance, adjustable insurance, and variable insurance.

Unit Linked Insurance Plan

This policy is the most viable form with a two-way diversification of paid premiums, one portion is sliced for the main purpose of life insurance and another portion is sliced for wealth creation that can be withdrawn whenever required.

Money Back Policy

In this policy the survival benefits in the form of monetary gains are pre-arrange in a proportionate manner over the term period.

Term Insurance

The simplest form of life insurance that provides low premiums yet high returns to the nominee if the death of the insured person takes place during the policy term. This can further be diversified into level terms, decreasing term, return of premium, rider plans, increasing term, and convertible term plans.

Benefits of Life Insurance

There is easy diversification of risks in the ever-fluctuating market
Variety of products along with different modes of investment
It works at a lower trading cost based on the affordability criterion of each individual
These are open-ended funds and hence give the benefit of liquidity
Various tax benefits are also available on different modes of mutual funds investment

Claim Settlement Process

On the happening of any uncertain event, the beneficiary or the nominee of the policy is required to submit a claim intimation letter to the insurance company. Following detail should be there in the claim intimation like date, place, and cause of death, once we submit the claim intimation form to the insurance company, they give us the claim form, which we have to submit with the following documents.

Death Certificate
Original insurance policy
Legal evidence if required
Bank detail of the nominee
PAN Card & Aadhar Card

Once the documents are submitted with the insurance company they will verify with their records and will settle the claim as soon as possible