Life insurance is a contract between a life insurance company and a policy buyer in which the insurance company commits to provide compensation to the selected beneficiaries as a death benefit if the insured dies within the policy's term. The life insurance business promises a death benefit in exchange for the premiums paid by policyholders.
The safest and most secure approach to protect your family or dependents from numerous financial contingencies that may arise as a result of your untimely death is to purchase a life insurance policy. In India, a Life Insurance Plan assures that the insurance company would pay a set amount to the policyholder's family in the event of his or her death.
If added to the contract, a life insurance policy can also compensate for additional scenarios such as a terminal disease or a critical sickness. Other benefits, including as burial fees, can be received as part of life insurance payouts if they are specified in the contract.
A Life Insurance policy in India also provides maturity rewards in addition to death benefits. These benefits are usually provided in the form of a payment if the insured lives to the end of the life insurance policy's term. Furthermore, under Section 80C of the Income Tax Act of 1961, life insurance plans provide a range of tax benefits.