All Videos - Everything You Need To Know About Life Insurance

A life insurance plan is a financial contract between a life insurance provider and the policyholder wherein the insurance provider agrees to provide a sum assured to the policyholder’s nominee in the event of their unexpected death during the policy term.

The life insurance premium depends on factors such as age, gender, lifestyle, work environment, sum assured, policy tenure, etc. Therefore, it is specific to an individual. You can determine the life insurance coverage required and the affordable premium rate using our Tata AIA Life Insurance Calculators.

• Term Insurance - Term insurance plans are pure life insurance plans that provide a huge sum assured at an affordable rate for the policy tenure.

• Savings Insurance Plans - Savings insurance plans provide a life cover and a guaranteed maturity benefit.

• Unit Linked Insurance Plans (ULIP Plans) - ULIP Plans provide a life cover and the opportunity to invest in financial securities for market-linked maturity returns.

• Retirement Plans - Retirement plans provide a life cover and annuity options for a regular income to secure your golden retirement years.

Purchasing a life insurance policy is important for the following reasons:

• Financial security - Life insurance plans help you secure your family’s future and their financial goals in your absence. 

• Clear-off debts - Life insurance benefits can clear off your liabilities and reduce your family’s financial burden in your absence.

• Save or invest for the future - Life insurance savings and investment plans help you save or invest funds to accomplish your future financial commitments and goals. 

• Save on tax - The investment made and the payouts received from a life insurance policy are applicable for the tax deduction and tax exemption benefits based on Section 80C and Section 10(10D) of the Income Tax Act 1961.

A term insurance plan provides life insurance coverage for a certain policy tenure, such as for 10 years, 20 years, etc. On the other hand, a whole life insurance plan provides life insurance coverage for life until death.