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Key Features of Insurance

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Easy to Purchase:

Ease of purchase is one of the most sought-after features of insurance. With the extensive usage of the internet among insurance companies, you can easily compare and purchase an insurance policy from the comfort of your home. To benefit the most, look for an insurance provider that allows online policy purchase and renewal. 

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A Partner in financial crisis:

An efficient insurance plan provides financial support when the need arises. Whether you face an issue with your car, bike, or health, may offer you abundant options. They also provide add-ons you can purchase separately to increase your insurance benefits.

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Abundant options:

When you approach an insurance company for a particular insurance policy, you can easily compare and purchase an insurance policy from the comfort of your home. To benefit the most, look for an insurance provider that allows online policy purchase and renewal.

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Benefits of Insurance:

Insurance provides multiple benefits to keep you protected, including risk control, peace of mind, wealth distribution, corpus creation, financial safety, etc. Choose the right insurance plan suitable to your needs and enjoy the benefits at their best.

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Offers:

Insurance companies announce various lucrative offers from time to time. These include no claim bonuses, discounted renewals, welcome bonuses, timely payment benefits, etc. Pay your premiums on time and avoid unnecessary claims to enjoy these benefits.

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Insurance for every precious thing

Insurance for every precious thing You can choose an insurance plan according to your needs. Whether you need insurance for your life, car, bike, health, or child’s education, you can easily find a plan that covers the related costs and provides the required coverage.

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A cover For Family

A cover for family An insurance policy not only covers the insured person but their entire family. For instance, in case of the insured person’s premature demise, their family gets the much-required financial support to sail through the tough situation. Health insurance plans are also available for entire families, where each family member gets coverage for whoever needs medical treatment.

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The ease of insurance premium

The ease of insurance premium calculator Almost all insurance companies provide insurance premium calculators online. You can use one to calculate your premium amount and choose an insurance plan according to your budget. 

List of Benefits and Importance of Insurance

Here is a list of benefits and importance of insurance you must know:

Provides peace of mind

Peace of mind is one of the primary benefits of insurance. Providing monetary support during financially critical situations reduces the impact of loss you must bear in a perilous position. Apart from protecting you from financial worries, it also keeps your mental stress in check.

Promotes risk control

Insurance evaluates the risk volume and anticipates different causes of it. The insurance company estimates the insurance coverage and premium amount based on risk value Consequently, it warns you against factors contributing to your risk value, giving you time to control those factors and minimise risk.

Promotes economic growth

Insurance organises savings in such a way that it provides financial stability and promotes economic growth. Mitigating loss due to destruction or damage spreads the risk and safeguards people's funds for optimum fund utilisation in an economy.

Distribution of risk

Insurance is a cooperative scheme where the insurers do not pay from their individual capital. They pool money in premiums covering a large number of people exposed to various types of risks The payout they make comes from this pool of funds.

Help to get loan easily

When your asset is insured, getting a loan against it becomes easier. Such asset is less prone to risk of theft or damage, making lending institutions feel safer in approving a loan for or against it

Inculcates savings habit

Insurance inculcates a habit of saving money. As you keep a portion of your income to pay insurance premiums, it acts as a guard for unexpected emergencies in the future. Many insurance policies also include investment and savings schemes, encouraging you to invest and save.

Financial safety for the family

Without insurance, a family will find recovering after a major loss extremely costly. Natural hazards, burglary, theft, or accident can affect a household's financial condition. Since insurance can compensate a large part of the family's loss, they can bounce back easily.

Safety of financial status

You must have saved money and built a corpus with several years of savings. However, a mishap can instantly drain all those finances, significantly affecting your financial status. Insurance can cover the costs, letting you keep your savings intact and maintain your financial status.

Wealth creation goals

Many insurance plans help you invest some amount regularly. While the funds provide financial security and peace of mind to your family, they also help achieve your wealth creation goals. Paying insurance premiums on time helps build a corpus over time.

Wealth preservation

Many insurance plans, like education and life insurance policies, are long-term contracts that deliver high returns on maturity During this time, you can create a substantial amount of wealth, which comes back to you if you survive. If not, it goes to your family.

Wealth Distribution

Insurance has an obvious role in wealth distribution. When misfortunes like the premature death of the family's main breadwinner strike, they hit the poor the hardest. Insurance provides financial relief to the family, which middle-class people value the most. As such, insurance is an effective tool for effective wealth distribution

What are the Tax Benefits of Insurance?

Apart from all the protection benefits mentioned in this guide, an insurance policy provides several tax benefits under various sections of the Income Tax Act. These are as follows:

1. Section 80C of the Income Tax Act, 1961: With a term insurance plan, you can maximise your tax savings by claiming a tax deduction of up to Rs. 1.5 Lakh per year for the premium paid.

2. Section 80D of the Income Tax Act: Section 80D deals with health insurance plans. The premium you pay to buy health insurance policies for yourself and your family is tax-deductible up to Rs. 25,000 under Section 80D. If you also pay premiums for your parents above 60, you can claim an additional deduction of Rs. 50,000, totalling Rs. 75,000 per year.

3. Section 10 (10D) of the Income Tax Act: The life insurance benefits the insurance company provides you or your nominee are tax-exempted under section 10 (10D) of the Income Tax Act without any caps.

Frequently Asked Questions (FAQs)

Many insurance companies provide cashless facilities in their health and motor insurance plans. It is a great way to shorten the procedure of claiming refunds from the insurance company after incurring the costs. It allows you to avail yourself of the required repair or treatment quickly without handling much paperwork. It is an excellent facility that proves useful when you don't have enough ready cash in an emergency.
Several factors determine your life insurance policy premiums, including gender, age, lifestyle, income, profession, health condition, habits, etc. Claim-free years can reduce insurance premiums for various insurance types of insurance.
A car insurance plan is valid for a fixed period only, usually one year. After that period, you must renew the plan on time to enjoy the continued benefits of the policy. If the insurance policy expires and you do not renew it, the insurance company will not provide any compensation in case something happens during this break-in period. Therefore, car insurance policy renewal is necessary for continued policy benefits
Third-party insurance for automobiles is mandatory under the Motor Vehicles Act 1988. Other insurance and types of insurance are optional to seek financial security and peace of mind during an emergency
You have a few days of break-in period during which you can renew your expired insurance policy. However, the bonuses and other benefits may be reduced.

Disclaimer


This article is informative in nature and does not serve as solicitation material. Before purchasing an insurance plan, read the product brochures for terms and conditions, exclusions, warranties, etc. A financial advisor can help you make an informed decision regarding insurance purchases. Tax benefits are subject to amendments from time to time according to the Income Tax Act 1961.