How do I know all about a life insurance policy?


How do I know all about a life insurance policy?
life insurance

You may have heard your financial advisor telling you to buy a life insurance policy to secure your family against uncertainties and give them financial protection
. If you are looking forward to purchasing a life insurance policy, you must remember the following points:

● Types of life insurance plans

There are different types of life insurance policies, such as term insurance, whole life insurance, retirement plan, etc. If you are a first-time life insurance policy

buyer, it is best advised to buy a term plan like the e-Term Plan by Kotak Life. It gives you coverage up to Rs. 1 crore at a premium starting less than Rs. 15 per day.

● Cost

The premium for a life insurance policy depends on various factors like the sum assured you choose, age, profession, medical history, type of policy, policy duration, riders selected, etc.

● Tax benefits

All types of life insurance policies allow you to get tax benefits and reduce the annual tax liability. The premium you pay for the policy is eligible for deduction under Section 80C of the IT Act.

● Riders

You can buy add-ons or riders to extend the coverage scope of your standard health insurance policy. Riders allow you to get protection against specific risks that are not covered under the regular policy. Some of the common riders include accidental disability riders, critical illness riders, etc.

A life insurance policy is the best financial tool that safeguards your family's financial future. I hope this was helpful.

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