Life insurance is basically a contract between the insured (insurance policy holder) and the insurer. According to a life insurance policy, the said insurer assures the insured person that on the matter of the latter’s death a sum of money would be given to a designated beneficiary. The beneficiary can be any person of the policy holder’s choice. All the policy holder has to do is to pay a premium periodically depending on the terms of the insurance.
Life insurance policies are legal contracts and the limitations of the insured events are always described in the terms of the contract. Specific exclusions like suicide, fraud, war, riot, civil commotion, are usually included in the contract.(For more details may contact Pijush Kanti Sen, +91 9830060640, email@example.com).
The contract is valid for payment of the insured amount during the term of the policy like as:
• The date of maturity, or
• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier
Life insurance aims at reducing the risk of facing the uncertainty of financial income in a persons' lifetime. Life insurance mainly aims at assuring its policy holder in case of two situations, namely, if the insured person dies a premature death or sudden death leaving his / her dependents to defend for themselves with the claim amount or if the policy holder lives till a very old age without having any stable means of support as pension income.
Life insurance policies help in taxation purposes as well. Premiums paid by the policy owner are deductible from the taxable income of the policy owner under section 80 (C) up to a maximum limit of Rs.1,00,000 as per prevailing tax laws.
Any proceeds from an Insurance Plan in form of maturity proceeds or claims are exempt from Income Tax under section 10 (10) D of Income Tax law of India.
Mission of Life Insurance Corporation of India: “Provide assurance to the people connected with us through the worries of different situations that life dishes out to them as well as to enhance the quality of life led by them” Vision of Life Insurance Corporation of India: “Understand the actual needs of our customers and thrive to actually provide all of them to them”