1. Death Benefit :
Firstly the life insurance provides benefit against the risks of your life & provides your family or nominee the insured amount or coverage in case of your unfortunate demise.
2. Survival/Maturity benefit :
Apart from the simple death benefit you also get the maturity benefits or survival benefits wherein you get the sum assured plus the returns at the time of maturity, there is also an option of periodic withdrawals of your invested amount.
3. Investment & savings :
Apart from the life cover, the life insurance
also has prospects of providing a vehicle for investments & saving for your future needs. With different insurance plans like simple endowment plans, wholelife plans, ULIPs, you have the option of saving for your retirements through pension plans or saving for your children future needs by investing in Insurance child plans wherein you can invest your money depending on your risk profile.
4. Tax benefit :
You can save tax upto Rs. 1 lakh on Premiums paid for Life Insurance Plans under Section 80C.
5. Riders :
The riders are special benefits given to the policy holders in addition to the life insurance cover wherein you are charged with some extra premium e.g. Accelerated death benefit rider, waiver of premium rider, disability income rider, accidental death rider etc.
6. Premium payment option :
You have the option of paying premium yearly, quarterly, monthly & you also have the option of single time premium payments where you have to pay one time.
7. Plans as per needs :
You can avail Insurance plans as per your needs & requirements, if you want to save for your child you can go for children insurance plans providing you with returns at certain important milestones of your children’s life like their education, wedding etc. If you want to save for your retirement you can invest in Pension plans either in ULIPS or in simple Endowment plans depending upon your risk appetite.
8. Loan option :
In some life insurance polices you can also take loan against the life insurance policies
, your eligibility for the loan amount depends on the type of policy, the premium amount, the term of the policy and the number of years you have paid premium for.