Life Insurance

The Indian government is considering raising the foreign direct investment (FDI) limit in the insurance sector to 100%, a significant increase from the current 74%. This change, part of the upcoming Insurance Amendment Bill, aims to enhance insurance penetration, which remains low at around 4% in India.

For the life insurance industry, this move could bring in global players with more capital, improving product variety and service quality. With 24 life insurers currently operating, this reform could reshape the sector, making life insurance more accessible and competitive. Additionally, the bill proposes allowing agents to sell policies from multiple insurers, offering customers broader choices. These measures aim to strengthen the life insurance market and support the government's financial inclusion goals.

The upcoming GST Council meeting, now scheduled for December 23-24, is expected to address tax relief on life insurance premiums. Initially planned for November, the meeting was delayed to align with Union Finance Minister Nirmala Sitharaman’s pre-budget consultations with state finance ministers.

A key proposal under consideration is the full GST exemption on term life insurance premiums, which currently attract an 18% tax, significantly raising policy costs. The proposed exemption would benefit a large segment of the population, particularly seniors and those with basic term life policies. The Group of Ministers on GST has also recommended a complete exemption for health insurance premiums for senior citizens.

While the exemptions are anticipated to reduce government revenue by around ₹200 crore, this is expected to be offset by proposed rate hikes on luxury goods like high-end watches and shoes. These measures aim to ease financial burdens on households ahead of the Union Budget.

Canara HSBC Life Insurance has launched a new plan, ‘Promise4Future’, offering a unique mix of life protection and wealth creation. This life insurance plan caters to modern consumers seeking both financial security and long-term savings growth. Available in two variants, Savings4Future and Income4Future, the policy allows individuals to grow their savings while securing their loved ones’ future.

The Savings4Future variant ensures protection with savings, offering guaranteed returns plus bonuses, while Income4Future provides a steady income stream and a lump-sum benefit. With features like flexible premium payments and high-premium boosters, this plan offers both security and the opportunity to build wealth.

Designed with customer's needs in mind, Promise4Future empowers policyholders to confidently manage their financial goals.

Bajaj Allianz Life Insurance (BALIC) has partnered with the Indian Navy to offer customized life insurance solutions to its civilian personnel. This collaboration, part of the Navy’s "Year of Naval Civilians" initiative, aims to provide comprehensive coverage at affordable rates, ensuring the financial security of naval civilians and their families.

The life insurance plans offered under this initiative are designed to address the unique needs of naval civilians, offering long-term protection while supporting their life goals. These plans provide peace of mind through benefits like financial protection, family security, and guaranteed coverage, which are critical for safeguarding the future.

Vice Admiral Sanjay Bhalla praised the tailored offerings, while Tarun Chugh, MD & CEO of BALIC, emphasized that this partnership will help bridge the insurance gap and extend life insurance benefits to more Indians. Educational sessions will also be organized to increase awareness about the value of life insurance among naval civilians.

Starting October 1, 2024, policyholders in India will receive higher refunds upon surrendering their life insurance policies, thanks to new guidelines from the Insurance Regulatory and Development Authority of India (Irdai).

The special surrender value (SSV) will now be applicable after just one year, ensuring that policyholders receive a refund even if they exit early. The calculation will consider paid-up benefits and accrued bonuses, providing greater liquidity and flexibility. Insurers are required to implement these changes by September 30, 2024, enhancing protections for customers against mis-selling in the insurance sector.

Starting October 1, life insurance policyholders in India will benefit from new rules introduced by the Insurance Regulatory and Development Authority of India (IRDAI). Under the updated regulations, those who choose to exit their existing endowment policies early will receive higher surrender payouts. Previously, policyholders exiting in the first year would lose the entire premium. Now, they will get back a portion of their premium, providing greater flexibility and financial relief, especially for those facing mis-selling or unable to pay premiums (These changes will not affect ULIP and term insurance plans).

While some insurers have expressed concerns over the impact on long-term policyholders and company margins, experts believe these changes will benefit policyholders by offering fairer treatment. The new rules also include mandatory customer information sheets for clearer policy details and penalties for insurers failing to comply with ombudsman rulings.

The Insurance Regulatory and Development Authority of India (IRDAI) has rejected the Life Insurance Corporation of India’s (LIC) request to amend surrender value regulations. LIC had sought to revise the interest rate assumption for calculating surrender values and suggested using a plan-based Government Securities (G-Sec) benchmark. However, the IRDAI emphasized that rules must be uniformly applied across all insurers, including LIC, and confirmed that new regulations will take effect on October 1, 2024, without further extensions.

The new norms will see reduced surrender charges and mandate that surrender values reflect “reasonableness and value for money” for policyholders. Additionally, health and life insurers must comply with revised health product regulations by the same deadline. Despite industry requests for more time, IRDAI has ruled out any delays.

A recent survey by Canara HSBC Life Insurance reveals that most Indians purchase life insurance to prioritize savings and family financial security. The survey found that 57% of respondents bought insurance for savings, while 44% focused on securing their family's financial future.

However, only 26% cited retirement planning or securing their children's futures as primary reasons. The survey also uncovered a significant gap in policy reviews, with only 11% of respondents regularly reviewing their coverage. Nearly 64% of individuals regretted not starting term insurance plans earlier, and just 25% felt confident that their policies could cover unexpected costs. These findings highlight the need for timely, comprehensive financial planning.

Aditya Birla Sun Life Insurance launched its new Salaried Term Plan that offers both regular life cover and return of premium life cover options.

The Fixed Income Cover option pays 1.25% of the sum assured on the policy’s month anniversary during the Income Benefit Period. You can also choose the Increasing Income Cover, where the income increases at 5% or 10% per year.

Life insurance companies like HDFC life insurance and Bandhan life insurance now offer term insurance plans upto 1 Crore without income proof i.e.

ITR of the last 3 years for self employed and business owning individuals. Not only that, they can also claim an online discount of upto 10% on the premiums payable.

Max Life launched the 'Smart Total Elite Protection Term Plan,' catering to the evolving lifestyle choices of HNI customers. Customized for a sum assured equal to or exceeding 2 crores, it features discounts for higher sums and budget-friendly premiums.

This term insurance plan includes critical illness coverage, Max Life Waiver of Premium Plus Rider, exit value, premium breaks, terminal illness payout, and instant 2 Lakhs on claim registration. Moreover, NRIs can enjoy a 5% online discount.

In the wake of this pneumonia outbreak in China, the significance of term insurance claims and benefits becomes apparent in providing financial support to those affected. Families struggling with the impact of the outbreak, especially if the primary breadwinner falls ill, can find solace in the financial safety net provided by term insurance. The benefits can cover medical expenses, daily needs, and other unforeseen costs, offering a sense of security during a challenging time. This underscores the broader role of insurance in not only safeguarding against unexpected events but also in providing practical assistance when faced with health crises.

The financial support provided by Term Insurance ensures that necessary medical treatments and care are accessible, enabling families to focus on recovery without the added stress of financial strain. In times of health crises, the role of term insurance emerges as a crucial support mechanism for those navigating the challenges brought about by the pneumonia outbreak in China.

With over 8 deaths caused by Cyclone Michaung in Chennai, many victims suffered financially and emotionally. If you, too, have lost a loved one to Cyclone Michaung, you can contact the insurance provider to claim the life insurance.

Insurers aim to assist families with funeral expenses and immediate financial needs with fast-tracking payouts. You can attach and submit the essential documents, like the death certificate and policy details, to initiate the process online and get the support you need during these challenging times. If the policy was purchased via Policybazaar, you can simply contact your relationship manager and he/she will take care of the claim process for you.

Financial readiness is the skill to navigate life's necessities and uncertainties by evaluating income, budget, spending, avenues for maximizing and saving income, and planning for emergencies and retirement. Let's understand the 4 key points to consider before choosing life insurance coverage:

Current Income: Start by evaluating your current income to determine the needed coverage for sustaining your lifestyle and understanding your premium-paying capacity.

Current Expenses: Examine all facets of expenses, including living, holidays, medical costs, and others, to gauge the financial landscape.

Dependents and Financial Goals: Assess the financial goals of dependents for effective life insurance coverage, acting as a security blanket in unforeseen circumstances.

Future Expenses and Liabilities: Consider future expenses related to desired lifestyle, major purchases, and significant life events to estimate the required life insurance coverage.

By acknowledging these 4 factors, you will be able to choose the ideal life insurance coverage.

World Diabetes Day, observed on the 14th of November, is yet another important day when you should introspect your health condition. It is also essential to keep in mind the important factors before choosing a life insurance policy. Here are the key factors to keep in mind before you opt for the right plan this World Diabetes Day:

Type and Severity of Diabetes:

Understand your diabetes type and severity; better management and controlled HbA1c levels impact plan eligibility and premiums.

Choosing the Right Provider:

Research insurers with a customer-first approach, prioritizing family financial security despite diabetes. Thoroughly examine products and insurers before purchasing.

Diabetes Management Impact:

Consistent efforts in managing diabetes enhance term plan options, potentially leading to more affordable premiums and even incentives from some insurers. Effective management boosts insurability and financial security.

These key factors allow you to buy the ideal life insurance plan for a secured future.

ICICI Prudential Life Insurance has introduced ICICI Pru Protect N Gain, a new product that offers you the dual benefits of protection as well as wealth creation and addresses the fundamental requirements of customers, i.e. protection and long-term savings.

With this plan, you can protect your family financially during the policy period and receive a substantial amount for yourself if you outlive the policy term. The product provides life insurance covers up to 100 times the annual premium and enables customers to maximise returns by offering 18 funds options spread across equity and debt to choose from, thus, making it an ideal plan to buy.

200+ deaths, 1000+ severely injured – This was the magnitude of one of the worst train accidents in the country, that took place in the beginning of June, at Balasore, Odisha.

While the agony of people will take time to lessen, financial burdens can be taken care of with the help of the death claim amount of the deceased. Most insurance companies are granting relaxation in the life insurance claim settlement process to the affected families, thus, showing support during such critical times. The death benefit will provide immediate help to the families as well as long term support, so that they can pay off the daily living expenses. With fewer documents, like Bank details, death certificate and nominee’s address proof, and lesser settlement time, the claim settlement process has been eased out for the victims’ families.

Term insurance is the most affordable and convenient form of life insurance as it provides death benefit to the nominees of the policyholder upon his/her death. But, insurance companies have now come up with a new product that allows the policyholders to receive 100% of the premiums paid if they outlive the policy term.

Such plans are called Term Return of Premiums (TROP), and they offer zero-cost insurance plans, tax benefits under Section 80C and Section 10(10D) of the ITA and higher coverage in comparison to traditional term plans.

The Government of Telangana announced the launch of the Rythu Bheema Life Insurance Scheme for toddy-tappers of the state. Under this life insurance scheme, the government will provide a life insurance cover of Rs. 5 Lakhs, to the families of those who died as a result of falling from trees by accident while performing daily chores.

The government further mentioned that the amount will be provided to the families of the deceased within a week of the toddy-tapper's death. The Excise and Finance Ministers of the state of Telangana have started preparing guidelines to implement this latest decision of the government.

Aditya Birla Sun Life Insurance Company Limited introduced a new-age savings plan, called ABSLI Nishchit Aayush Plan, that aims at empowering people to achieve their goals of life while they financially protect their families and loved ones even after death.

It encourages customers to invest in the ABSLI Nishchit Aayush savings life insurance plan, which offers guaranteed income, choice of income variant, lump sum benefits at policy maturity, and life cover during the policy term.

Term Insurance is the simplest and most affordable form of Life Insurance. It provides high life cover at very affordable premium rates. However, there are certain things that you must consider before you opt for a term plan.

It is advised that you buy the basic plan which provides death benefits to the nominees. You also get riders to choose from so that you are covered for a specific risk. Moreover, you must always provide the correct details, such as health information, annual income, smoking preferences, etc. to the insurer before you purchase a plan. In addition to these things, you must always choose a renowned insurer with a high claim settlement ratio (CSR) to buy a term plan from. Choose your plan wisely.

LIC Aadhar Shila Policy is an endowment plan which provides both life insurance and savings potential. Moreover, this plan provides maturity benefits if the policyholder outlives the policy term.

It also addresses the liquidity requirements by offering a lending facility and vehicle insurance option. The maximum insurance term for this plan is 20 years, after which the policyholder can reinvest the lump sum in some other policy. The minimum investment term for this policy is 10 years and maximum is 20 years. However, the suicide clause in this policy is an exclusion.

As the bread earner of your family, it is your responsibility to provide the best of life to your dependents. Life Insurance can help look after your family when you least expect undesirable things to occur, such as accidents, critical illnesses, or worse, death.

A life insurance plan safeguards your family and enables them to maintain their standard of living after your death. Moreover, it allows your loved ones to repay the loans and debts you had taken when you were alive and doesn’t burden your family members with financial constraints. Lastly, it allows you to receive a tax deduction on your life insurance premiums under Section 80C of ITA, for up to a limit of Rs. 1.5 Lakhs. Therefore, it is wise to have life insurance plans so that you can enjoy peace of mind and not worry about your family’s future.

A new line of changes have been observed in the insurance sector from the beginning of the new financial year, 2023-24. These changes include different insurance taxation, that says if a person pays premium of over Rs. 5 Lakhs, then upon maturity of the plan, the income derived from the policy is taxable.

Moreover, IRDAI has removed the previous commission cap, therefore, revising Expenses of Management (EOM) and commission limits for the insurance industry to increase insurance penetration and provide flexibility to insurers to manage their expenses.

ICICI Prudential Life Insurance has newly launched the ICICI Pru Gold, which is a long-term savings product that allows customers to earn an extra source of income to fulfill their diverse financial needs.

Apart from receiving guaranteed lifetime income, the life cover component of this product gives financial stability to the family. ICICI Pru Gold is available in three types to meet the diverse income demands of customers: Immediate Income, Immediate Income with Booster, and Deferred Income. An additional feature of this product is that it offers customers an option to save their earnings in a Savings Wallet rather than receiving them as regular payments. Customers can further withdraw the saved amount in their Savings Wallet in full or in part, depending on their needs.

PNB MetLife Life Insurance has introduced the new Genius Plan that is specifically designed to help parents financially in funding their children’s higher education. It provides guaranteed benefits, including ATPD protection, a built-in waiver of premium on death, guaranteed benefits, flexibility for saving, and a higher benefit for girl children.

With this non-linked, non-participating, and individual life insurance plan, which offers both life insurance cover and a savings plan, parents can relax knowing their kids will be able to pursue higher education without worrying about using up all of their savings.

Aviva Life Insurance recently launched its new savings life insurance plan called Signature Guaranteed Income Plan. The plan allows its customers to create a corpus in the long run and get guaranteed income while saving on taxes.

You can choose from 26 policy and premium payment tenures as per your convenience and financial needs. The plan offers maturity and guaranteed additions with zero alteration or frequency change charges. You can opt for any of the following variants of the plan: Signature Builder, Signature Investor, Signature Saver, and Signature Moneymaker. The plan was designed to fit the needs of people from different stages of their life and you should buy the plan and start your dual tax savings today.

The term ‘sum assured’ is the benefit amount payable to the nominee in case of the policyholder’s unfortunate death or the maturity benefit you receive on outliving the policy term. Every life insurance is bought for the specific ‘sum assured’ or the life cover.

This amount is selected at the time of policy purchase and depends on factors like smoking habits, lifestyle, educational background, annual income, number of dependents, and more. The maximum amount of sum assured you are eligible for also depends on your Human Life Value calculation. You can buy life insurance plans online by comparing plans from different insurers and their maximum sum assured.

This Valentine’s Day, protect your partner’s financial future with a life insurance policy that also creates wealth. Where many give roses or chocolates, you can show your partner the ultimate act of love by securing their future.

With life insurance plans you can build a corpus for your loved one, make sure they are taken care of in your absence, and save on yearly taxes. You can buy either a savings life insurance plan or a pure risk protection term plan. You should always compare and buy life insurance plans online to get the plan at the most suitable premiums and life cover.

Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-funded scheme, that offers individuals a life cover of Rs. 2 Lacs at the nominal premium rate of Rs. 436 payable annually. Under this plan, if you suffer an unfortunate death within the policy term, your family will receive Rs. 2 Lacs as a death benefit.

The policyholders will be covered until the age of 55 years and can pay their premiums automatically through their savings accounts. You can purchase the plan online or at your bank by submitting your basic details if you are between 18 to 50 years of age.

Life insurance policies are one of the most important factors in your financial planning. But to make sure you make the most of your life plans, we have created a list of do’s and don’t that you must keep in mind before purchasing a life insurance policy.

1. Do use a life insurance calculator to estimate the sufficient life cover for your family. 2. Do not delay purchasing a life insurance plan as the premium rates increase with age. 3. Do compare life insurance quotes as comparing life insurance plans online can help you purchase a plan that fits your budget and needs. 4. Do not lie about pre-existing health conditions as lying during policy purchase can get your claim rejected. 5. Do consider quitting smoking as many life insurance companies offer special premium rates for non-smokers. The life insurance premium rates for non-smokers are generally lower than the premium rates for smokers. Following these dos and don’t will help you buy the most suitable life insurance policy for yourself.

HDFC Life Insurance is one of the leading insurers in the Indian insurance sector. They provide various financial products for the benefit of policyholders and you can enhance your HDFC term insurance plans by including any of the following riders in your base term plan.

1. Critical Illness: This rider provides financial help in case the policyholder is diagnosed with the critical illnesses specified in the plan. 2. Accidental Disability: In case the policyholder suffers a partial, permanent, or total disability due to an accident, the rider ensures a lump sum benefit payable by the insurance company. 3. Protect Plus: This rider provides protection against accidental death, personal accident, and cancer. It covers the policyholder and their dependants from any remaining loan repayment. You can include any of the above-mentioned riders in your base plan and customize the plan to fit your needs.

Life insurance plans not only allow you to live a stress-free life by securing your loved ones but also help you build a corpus and save on your taxes. That is why it is better to purchase more than one life insurance plan.

Buying more than one life insurance plan is a great way to split the risk of claim rejection in case of your unfortunate death. But before you purchase a life insurance plan it is important to calculate the maximum limit of life cover you are eligible for. You can use the Human Life Value Calculator to calculate the right life cover limit for your life. While buying the various life insurance plans it is better to give accurate information regarding your age, nature of job, health conditions, annual income, and family medical history to avoid claims rejection.

One of the main benefits of insurance policies is that it not only provides the necessary financial protection and give a chance to grow wealth but also helps saves on yearly taxes. There are essentially 3 insurance sections in the IT Act of 1961, that you should consider while planning your taxes.

1. Section 80C: This section offers you a tax deduction of up to Rs. 1.5 Lacs on the total premiums you paid for insurance plans in a financial year. 2. Section 80D: This section is mainly applicable to health or medical insurance, but you too can claim deductions under this section by including medical riders like Hospi care, Surgical care, or critical illness riders in your base life insurance policy. 3. Section 10(10D): Under this section, the payout received in the form of a death benefit, in case of your unfortunate death or the maturity/survival benefit received in case you outlive the policy term will be completely tax exempted. These life insurance tax benefits in India can help you save a significant amount in the long run.

A life insurance plan will lapse if the policyholder hasn't paid the premiums even during the plan grace period. A lapsed policy will no longer provide any kind of benefits, and in case you suffer an unfortunate death during the lapsed period, your family will not receive any death benefit.

To help you avoid your policy from lapsing, we have created a list of ways you can stay covered under the policy benefits. 1: Plan your Budget properly by using online tools like the life insurance premium calculator. 2: Pay your premiums on time using the company’s automatic billing system if you tend to forget to pay the premiums. This way the premiums will be deducted from your bank account directly on the due date. 3: Keep your profile details updated as you might receive premium payment reminders on the provided details. 4: Reinstate the life insurance plan if your policy has lapsed to stay covered under the policy benefits. Making sure that your policy premium payments are up to date ensures that your family is taken care of in your absence and you have a chance to create a corpus over time.

A life insurance policy is a great way to build wealth while providing financial protection to your family. However, your needs might change with changes in life stages. If you already have a life insurance policy with a life cover enough to fit your needs, your needs might change once you get married with kids.

This is why we have created a list of all the times you should revisit your life insurance policy to ensure you have the right life cover as per your new needs. 1. After getting married, a life insurance policy financially aids your spouse in the event of your unfortunate death. 2. When having children, your family might require a larger life cover to maintain their lifestyle and pay for the child’s higher education. 3. On becoming a business owner, the life insurance plan can help fund the company until a new person is hired, in case something happens to you. 4. When you want to grow wealth, a life insurance plan’s investment portion can help create a corpus over time. With a life insurance policy, you can not only secure your family’s financial future in your absence but also grow your wealth to beat inflation and fulfill your life dreams.