Life Insurance

Life Insurance - Meaning

Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. Here, at ICICI Prudential Life Insurance, you pay premiums for a specific term and in return, we provide you with a Life Cover. This Life Cover secures your loved ones’ future by paying a lump sum amount in case of an unfortunate event. In some policies, you are paid an amount called Maturity Benefit at the end of the policy term.

Why Do You Need Life Insurance

1. Secure your family's financial future

Life insurance is all about securing you and your family financially. All parents want their children to be taken care of even when they are not around. Life insurance makes sure your loved ones won't suffer financially in your absence.

2. Accomplish your financial goals

We all have some goals in life, for which money needs to be saved. Life insurance plans help you achieve those goals by helping you build a financial corpus with the protection of a life cover. Life insurance plans inculcate a habit of disciplined saving. Paying a little amount as an insurance premium each month will help you accumulate funds. What's even better is that this small monthly amount only keeps growing. So years from now, you'll have enough wealth accumulated to accomplish your more substantial and long-term financial goals.

3. Brings peace of mind

Having life insurance will give you peace of mind. Life is uncertain, and life insurance can offer financial assistance to your family when you are no longer around. You can also plan your retirement by taking a retirement plan where you will receive a monthly income.

4. Save tax

Generally, you can claim an income tax deduction on your life insurance premiums under Section 80Cof the Income Tax Act, 1961**. Pay-outs for death claims are tax-free under Section 10(10D) of the Income Tax Act, 1961**.

Reasons to Have a Life Insurance Plan

1. Long term financial goal

Life insurance plans help you create a substantial financial corpus for your long term financial goals by helping save money with the protection of life cover.

2. Protect the child's future

Every parent wants to provide their child with the best possible future. Life insurance plans ensure your child to have the best possible future even when you are not around.

3. Loans and liabilities

If you have bought a loan then you should always consider buying a term plan. It makes sure that the burden of your loan doesn’t fall up on your dependents in your absence. Term insurance plans are the most affordable way to protect home loan amount and safeguard the shelter of policyholder's family in case of his/ her untimely death.

4. Child’s education planning

Child education plans help you save and build a financial corpus for your child’s future education expenses. These plans provide life cover so that the child gets the sum assured even in the case of policyholder’s untimely demise.

5. Dependent spouse

If your spouse is financially dependent on you, then you must buy a life insurance plan.This will ensure that so that your spouse lives a financially independent life in case of your absence.

6. Leave a tax free legacy

As life insurance pay-outs are tax-free under Section 10(10D) ** of the Income Tax Act, 1961, you can leave a tax free legacy for your loved ones.

7. Retirement planning

Life insurance plans help you invest and build a financial corpus for your retirement so that you can live your post-retirement life comfortably