Life is indeed a beautiful gift of God to human beings. It is unpredictable and we don’t know what is in store for each one of us. In order to safeguard this precious gift of God, we have to work hard to make it even more meaningful. Between these, life insurance is one of the to-do-things that need to be purchased to reaps its benefits later on in life.
This article highlights few important things you should know before you make premium payments for your life insurance policy.
A premium payment policy varies from one life insurer to another. The payment option too varies. You can make life insurance premium payment by cash, cheque, visiting the branch directly, debit card, credit card, net banking, NEFT, auto-debit from your account, etc.
The life insurance premiums can be paid on a monthly, quarterly, half-yearly or yearly basis. Many a times, life insurance companies would offer you discounts if you make the life insurance premium payment annually. This is because the funds are bound with the life insurance company for a longer duration.
Usually when you make the life insurance premium payment online, the costs of servicing are lower than the one’ that are paid physically. Besides, the life insurer also saves on the administration costs, commission for the agents as well as other paperless transactions. That is how you get discounts for paying the premiums online.
In case you wish to opt for life insurance riders such as accidental death benefit rider, critical illness rider, accelerated death benefit rider, surgical care rider, etc. you will have to make additional premium payments. These riders enhance your base policy at an extra cost and therefore should be opted only as per your requirement.
Loading charges would be applicable if you are considered as a high-risk person according to the life insurer. Your medical history or any hazardous past plays an important role in deciding your premium in such cases.
Level premiums indicate premiums that remain constant or unchanged throughout the tenure of the life insurance contract. This aspect is useful for life insurers since they save from the trouble of collecting different premiums.
You can avail tax deduction under Section 80C of the Income Tax Act, 1961, for any amount that you pay to the life insurer for self or family. . Also, do remember that only individuals or HUFs can get these tax benefits on the life insurance premium payment.
Usually we carry on a thorough research before buying electronic gadgets as well as home décor, etc. Then why should something as crucial as life insurance lag behind? Therefore, it makes sense to go through the basics of life insurance and then buy one!
Health Insurance for Smokers - The fact of being a smoker amplifies the health insurance premium for smokers as compared to non - smokers.
Critical Illness Cover - Understand some of the important reasons why you definitely need to include a critical illness rider along with your term insurance plans
Life insurance can be combined with investments and many life plans allow you to do that. Check 4 Types of Life Insurance Investment Plan You Can’t Miss.
Term Insurance - Are you planning to buy Term Insurance? Check 5 Common Mistakes to Avoid While Purchasing Term Insurance Plan
We usually hesitate while buying a term insurance plan. Read 5 Myths about term insurance plans that you should not believe.
Life Insurance is important to be considered by every individual. Here are the 5 Things you Can’t Miss to Know about Life Insurance Policy.