Features of Life Insurance

Life insurance is a financial product that may be used to achieve several financial objectives. It can be used to cover your family or dependents, provide a second source of income during retirement, and grow your son or daughter's financial portfolio. Life insurance policies can also be used as tax-advantaged tools to pass on wealth from one generation to the next.

Term Insurance

Term insurance is an affordable form of life insurance. Financial protection is provided for the nominee(s) if the policyholder dies during the insurance tenure. The health-related disbursement made by the insurer can be utilized to cover your child's financial future when you are no longer around.

Term insurance premiums can be deducted up to the amount under Section 80C of the Income Tax Act of taxable income. That means that folks that are married, have kids, or have recently graduated might enjoy this type of investment.

• Life Cover- A term plan offers lifetime coverage for a small premium. For instance, ICICI Pru iProtect Smart offers a 25-year-old (non-smoker) up to a 1 billion-rupee investing insurance plan for 480 rupees per month.
• Fixed Premium - Premium amount and life coverage (sum assured) are fixed at the time of selection and purchase. Premiums payable throughout the selected period stay the same for a fixed life cover.
• Longer Cover - Term life insurance policies offer lifelong coverage, and any premium is fixed for the entire coverage period. If you want coverage for 99 years, you can set up whole life insurance with ICICI Pru iProtect Smart.
• Payout Options - The nominee can file a claim for life insurance money up to the policy limit in multiple ways, such as by receiving it in a lump-sum payment, in annual or monthly payments, or in both lump sum and annual/monthly payments.
• Optional Critcal Illness Benefits - ICICI Pru iProtect Smart term insurance offers you the optional benefit of reimbursement on the condition of as many as 34 critical diseases. No medical bills are required to claim this amount.
• Optional Accidental Death Cover - Accidental life insurance lets you choose ideal amount coverage of your choice before or after purchase. If you purchase life cover of 1 crore, choose accidental insurance with coverage 50 lakh, the beneficiary will receive 1.5 crore in case of death caused by an accident. ICICI Pru iProtect Smart offers accidental death protection up to  2 crore.
• Terminal Illness Benefit - Some term life insurance plans pay the full amount of your insurance policy as long as you are diagnosed with a serious illness.
• Waiver Premium - With an ICICI Pru iProtect Smart term plan, the policyholder won't be charged for any cost incurred in the event of permanent disability caused by an accident. The life cover will not be changed, regardless of what happens to the premiums paid.

Child Insurance Plans

Child insurance plans are designed to share the burden of managing your security and savings needs, securing the future of your children.

• Fund power - You can choose from a variety of investment funds for this venture that generates the revenue that you need for your child's future, such as higher education and marriage.
• Flexible premiums - The parent has the flexibility to make payments in any quantity or on a one-time basis.
• Benefit variety - At the end of the policy period or on its maturity, a lump sum amount is paid to the policy owner. Some insurance policies provide loyalty rewards or wealth boosters, which gets added to the maturity sum after the coverage term or end of the policy. In case of an unfortunate event during the policy term, the child receives the entire premium amount, which will help cover the child's dreams and aspirations.
• Premium waiver - Some new child insurance policies will waive future premium payments for the remainder of the policy term if a parent dies. This can include, as an example, if the mother or father of a child is unexpectedly killed after the child insurance policy has been acquired, the insurance company will compensate the insured with a lump sum. This money allows the surviving parent and child to meet their immediate needs. The insurance provider also pays all future premiums, ensuring that the child has a bright future which the parents had anticipated.
• Tax benefit* - Child health insurance plan premiums paid may be deductible from taxable income under section 80C, and maturity benefit payments may be tax-free under section 10(10D).

Money back insurance plans

Money-back insurance programs are traditional insurance plans that offer double benefit of life insurance and saved cash.

1. Enhanced savings plus life cover - Additional savings amount to money returned with your money-back plan. In addition, you safeguard your family and create a more successful financial future.
2. Second income stream - Money back insurance plans enable you to generate a second and steady income stream through your insurance policy coverage. That consistent secondary cash flow can be used as a means to cover daily and monthly expenditures such as child's training, family vacation expenses, and the like. The cash-back amount happens according to a predefined timetable.
3. Maturity benefit - This insurance plan's installment terms after the coverage term provide you with a lump sum amount with the assured additions and bonuses.
4. Tax benefit* - Money back insurance plan premiums paid may be deducted under Section 80C and maturity benefit paid may be tax free under Section 10(10D).

Endowment plans

A endowment strategy combines term life insurance and an accumulation of savings. It permits you to save money regularly over a specific time frame.

• Steady return - The endowment plan offers you a lump sum, together with a guaranteed maturity benefit and bonus. Thus, endowments strike a balance between risk and return.
• Life cover - Life insurance plans can provide liability protection and peace of mind. In the event of the passing of the policyholder, the insurance company will hand the entire death benefit to your beneficiary.
• Tax benefit* - Plans to give you tax exemption on premium payments under Section 80C can give you tax exempt maturity under Section 10(10D).

ULIP

This type of Insurance contains both wealth and protection, and functions as both. To qualify for ULIP, your investment money must grow faster than the overall value of your insurance plan.

Life cover - Nominee(s) will be guaranteed the death benefit in case of unfortunate demise during the term of the ULIP policy, and if the policyholder survives the term of the plan he will get maturity benefits.

• Choice of funds - You can choose from a number of mutual fund choices to manage your risk profile and expected investment horizon with your ULIP investment.
• Wealth boosters - Some ULIPs can give a regular bonus, to a percentage of a premium paid, as an incentive for long-term investing.
• Loyalty bonus - As a reward, some ULIPs provide a bonus to your corpus at the time of maturity.
• Investment strategies - Investors have three different choices at their disposal when selecting ULIP portfolios: systematic transfer, lifecycle-based approach, and customized strategy. ULIPs are versatile and aligned with investors' particular needs.
• Partial withdrawals - You can withdraw part of your money after recovering your ULIP after 5 years, giving you more liquidity.
• Fund switch - ULIPs make it easy to move your money between equity, debt and balanced funds without incurring any tax consequences.
• Return of charges` - Some inexpensive ULIPs, such as ICICI Pru Signature, offer fully outfacing death and policy management charge on maturity. However, this does not apply when opting for life a few decades.
• Tax benefit* - Insurance plans available under Section 80C may be entitled to an application for a tax deduction up to 1.5 lakh per year. The maturity proceeds of the ULIP may also be exempt from tax under Section 10(10D).

Whole life plans

A whole life insurance plan is a business that provides payments for the insured person's life as long as he or she lives, as long as the payments are made.

• Cover till 99 years - Whole life plans encompass you over a period of 99 years. This provides considerable assurance, and financial support for the nominee.
• Special needs - Whole life plans are beneficial for those who have me a while to financially depend on, such as if you have a spousal mental condition, or handicap.
• Level premium - The premium under your whole life plan remains fixed during the entire term of the policy, so it won't become greater as you get older.
• Tax benefit* - Premium payment amounts under Section 80C of the Income Tax Act may be deducted from taxable income. The death payment amount to claim may be tax-free under Section 10(10D).