Your life insurance company can help you determine exactly what qualifies you to take out a policy on your parent(s) and how you should provide proof. However, it would likely be easier for your parents to take out a life insurance policy themselves and name you as the life insurance beneficiary, if they're able. They'll need to go through a similar application without the added qualification of proving your insurable interest in them. What else do I need to do to buy a life insurance policy for my parents? You'll need consent from your parents before you purchase a life insurance policy on them. They will need to be legally competent to provide such consent. During the application, you'll...
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Insurance is something that most people think of only when faced with a loss, injury or accident. It is moments like these when you are in maximum need of financial assistance, and this is when your insurance company needs to come through and give you the financial support that you require. Today, life insurance has become a necessity, especially for the primary earning member of the family. The benefits of buying a life insurance policy are myriad and go beyond simply protecting the policyholder’s family in tough times. Insurance policies can act as a financial cushion, become a saving tool and provide mental peace. When it comes to buying an insurance policy, an individual is...
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*Source: MBA fee for 2 year flagship course of IIM - Ahmedabad **Assuming 7% rate of inflation Tax benefit of ₹ 54,600/- (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000/- and health premium u/s 80D of ₹ 25,000/-. Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on...
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A life insurance policy is meant to provide for your family in your absence. Since it serves a long-term need, it is critical to evaluate the features and benefits of the policy thoroughly before buying it. While your personal requirements such as income, age, family size, liabilities and so on are essential, there are also certain metrics that you could consider before selecting a policy. All the numbers/insights (other than premium rates), are published by the IRDAI regularly. You can also find them on individual insurance companies’ websites. Do compare before buying the policy. Here are five criteria basis which you should choose your life insurance provider. 1. Persistency Ratio...
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Sanjay Kumar bought life insurance when he landed his first job at the age of 24 – a term policy for Rs. 25 lakh. He was single then, without too many responsibilities. It was a decision that was more governed by the imperative to save some taxes than long-term financial planning. Over the next six years, Sanjay got married and had a daughter. As the responsibilities of being parents sunk in, Sanjay and his wife Sarita realised that his insurance cover of Rs. 25 lakh is inadequate to provide for the family in case of a worst-case scenario. Sanjay is looking to enhance his life insurance cover and figure out the most affordable ways to do it. Here are some options for him. When would...
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Important Things To Keep In Mind While Buying Life Insurance A life insurance policy is an important tool to financially secure the family from adverse circumstances. Thus, it is important to be adequately insured as well as keep the family informed. Crushing Dreams And Livelihoods The recent demolition drives in Delhi and Madhya Pradesh were ‘acts of malice’ by an insensitive administration Demolishing Homes Of Poor And Minority Bulldozes Human Rights When the Constitution and every law in it insists on due process, even for a murderer, can bulldozers and excavators be used to teach a lesson to someone the ruler deems an offender? Selective Demolition: When Jammu’s Gujjars Faced The...
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An insurance policy is a contract between you and your insurer in which you pay a fixed amount of premium. In return, the insurer provides a cover for the insured event or property or asset of yours. Risk is always associated with life, death, and accident. Although unfortunate events like these can’t be avoided because they are mostly out of our control, we can still minimize such risks by making alternative financial arrangements so that our lives and those of loved ones wouldn’t be affected. Buying an insurance policy is a lifetime decision, and that’s why it shouldn’t be done in a hurry. Step by Step Guide for Buying an Insurance Policy There are many things that should be kept in...
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Life insurance can help provide financial security to your loved ones when you pass on and can protect you if someone you financially depend on dies. While purchasing life insurance on yourself is common, in some cases, you can also buy a life insurance policy that insures someone else. But to do so, certain criteria must be met. One of which is that you’ll need to prove you have an insurable interest in the insured person before the life insurance company will approve the application. You also need their consent. This means that you can’t take out a life insurance policy on just anyone. Learn more about the process of buying a life insurance policy on someone else and how it differs from...
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People sometimes think of life insurance as something to buy for yourself to help protect loved ones after you die. But can you use insurance to help protect yourself if someone else dies? Understanding life insurance and who you can take out policies on could help you plan for the future. Can you take out a life insurance policy on anyone? Depending on the circumstances, you might have options that could benefit you, your loved ones or even your business. Who Can You Take Out Life Insurance On? A traditional use of life insurance is to help protect a family against financial hardship after the loss of a parent, whether the parent earns income or not. However, life insurance could be useful...
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Should you buy multiple life insurance policies? taking two policies might be beneficial in many ways. With increased responsibilities of families, bigger financial needs, two insurance policies might be required to suffice the increased needs. Often, a single policy cannot meet additional needs. In such a case, should a person purchase additional life insurance policies from time to time? If one can then how should they manage multiple policies? It is possible to claim two or more life insurance policies, it is completely up to the policyholder/insured to figure out the insurance needs and which plan he/she should buy. Insurance companies have certain underwriting guidelines, which depend...
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