PTIC INDIA Life Insurance Plans
PTIC INDIA’s Life Insurance plans offer a reliable way to secure financial stability and peace of mind. Life insurance is essentially a contract between an individual and an insurance provider. In this agreement, the insurance firm commits to providing a predetermined sum of money to the policyholder’s family or beneficiary in exchange for regular premium payments, typically made annually. Should the policyholder pass away unexpectedly, the life insurance policy ensures a lump sum payout to the designated beneficiary.
Benefits of Life Insurance
Tax Advantages
Enrolling in a life insurance plan can provide you with significant tax advantages. Under Section 80C of the Income Tax Act, the premiums you pay toward the policy entitle you to tax exemptions of up to ₹1.5 lakhs of your taxable income. Additionally, under Section 10(10D) of the Income Tax Act, the death benefits are completely tax-free.
Specified-Return Guarantees
Life insurance plans ensure that you will receive a fixed sum after a set period of time. It’s important to examine the structure and terms of various life insurance policies to find one that best meets your needs.
Risk Mitigation and Coverage
These policies provide essential risk coverage in the form of monetary compensations to mitigate and cover risks following the death of the policyholder. Enrolling in life insurance protects your family from financial dangers that could arise if the primary breadwinner passes away unexpectedly.
Loan Provision
Some insurance policies include a loan provision that allows you to borrow money using the life insurance policy as collateral. This can be useful for significant expenses such as a child’s education or marriage.
Health Expense Coverage
Most policies cover medical or treatment costs that may arise if the policyholder becomes unwell. Riders can be added to your insurance policy to boost the coverage and protect your wealth while you’re still alive.
Required Documents for Life Insurance Plans
When applying for life insurance, the following documents are typically required:
- Completed Proposal Form
- Photo ID (Aadhaar Card, Voter ID Card, Passport, etc.)
- Proof of Age and Identity
- Address Proof
- Medical Examination Report
- Income Proof
- PAN Card
How to claim life insurance?
Step 1: Gather Important Documents
After the loss of a loved one, having all necessary documents in order can speed up the claim process:
- Death Certificate: Certified proof of death helps prevent fraud. Obtain a copy from the funeral home or medical practitioner.
- Policy Document: Contains all relevant data about the life insurance plans.
- Claim Form: Includes details about the policyholder, such as their policy number and cause of death.
Step 2: Contact the Insurance Company
Inform the insurance company of the death and submit your claim once you have all your documents.
Step 3: Wait for the Claim to be Processed
The insurance company will verify the policy’s validity and your identity as the authorized beneficiary. The claim processing time can vary but is generally expedited to avoid interest on outstanding payouts.
Step 4: Receive the Death Benefit
There are a few alternative ways to obtain the death benefit:
- Lump Sum: Receive the complete death benefit in one go.
- Annuity: The death benefit is invested and paid out in annual payments over a specified number of ye
Step 5: Layout Your Final Wishes
Your beneficiaries will assume your financial duties after receiving the death benefit. Consulting a financial professional can help develop a strategy for how the death benefit will be used, ensuring it protects the people you care about.
What is term insurance?
Term insurance is a form of life insurance offering financial protection for a specific period. The insurer pays a death benefit to the beneficiary if the insured passes away during the policy term. Key features include larger life cover, riders for additional benefits, and affordable premiums.
Features of term life insurance
- Larger Life Cover: More affordable than endowment plans, allowing for higher coverage.
- Riders: Additional coverage options like critical illness, disability, and premium waivers.
- Enhanced Cover: Option to increase coverage at significant life events.
- Innovative Features: Lower premiums for non-smokers and easy online purchases.
Benefits of term insurance
- Affordable Premiums: High-value life protection for low premiums.
- Whole Life Cover: Coverage until age 99.
- Sum Insured Payouts: Flexible options for receiving the death benefit.
- Critical Illness Coverage: Lump-sum payment upon diagnosis.
- Accidental Death Benefit: Additional protection against mishaps.
- Terminal Illness Coverage: Lump-sum payouts for terminal illnesses.
- Tax Benefits: Exemptions under Sections 80C, 80D, and 10(10D) of the Income Tax Act.
Different types of payout options
- One-Time Lump-Sum Payment: Most common choice for immediate financial needs.
- Lump-Sum with Fixed Monthly Payments: Combines an immediate lump sum with regular monthly payments.
- Lump-Sum with Increasing Monthly Payments: Provides a lump sum followed by increasing monthly payments.
- Periodic Payments: Ensures a steady income stream for ongoing expenses.
By opting for PTIC INDIA’s Life Insurance plans, you can ensure financial security and peace of mind for your loved ones. The comprehensive benefits and flexible options make it a wise choice for long-term financial planning.