Life insurance

Life insurance is a contract between a Policyholder and an Insurer. The Insurer promises to pay a Sum of Money in the event of an Unexpected Occurrence, whether it be due to Natural Causes, Terminal Illness, or Critical Illness. This provides Financial Protection to the Policyholder’s Family in the unfortunate event of their demise.

Term Insurance

It is a Pure Protection Plan that offers a High Amount of Coverage at a relatively Low Premium. This benefit is paid out as a lump sum amount to the nominee in case of any eventuality.

The death benefit received by the nominee is tax-free under Section 10(10D) of the Income Tax Act.

Unit Linked Insurance Plan (ULIP)

A unit linked insurance plan is a unique combination of insurance and investment benefits. It offers policyholders the opportunity to not only protect themselves but also grow their wealth through investments.

ULIPs often allow you to switch between funds to adjust your risk profile as your goals or market conditions change.

Things to Consider:

• Market risk: ULIPs are market-linked, so returns depend on the stock market’s performance.
• Charges: ULIPs typically involve charges like policy allocation charges, mortality charges, and fund management fees.
• Long-Term Commitment: ULIPs are best suited for long-term financial goals as they may come with surrender charges for exiting prematurely.

Pension Plans

Pay Regular Premiums over a Set Period (Accumulation Phase). Pension plans are specifically designed to cater to your Post-Retirement Needs, such as Medical Expenses and Living Costs.

Maturity benefits: At Retirement (Pension Phase), One can withdraw 60% of the accumulated corpus as a lump sum. The remaining 40% is mandatorily used to purchase an Annuity (Systematic Payouts received from Pension Plan after Retirement) that provides you with regular income.