5 Important Things to Know About Paying Life Insurance Premium
Buying a life insurance policy What do |
is an important investment to you mean |
provide your loved ones with by Life |
financial security, even when you Insurance best |
are not around. Read on Life Insurance |
to know a few important What is |
things about paying the life the main |
insurance premium. Having a robust life purpose of |
insurance cover has become a Life Insurance |
necessity for all. Today, many What is |
insurance companies and insurance aggregators Life Insurance |
offer a wide variety of and benefits |
policies to suit the needs progressive Life |
of the customers and each Insurance Why |
of these policies have a is it |
different premium. The life insurance called Life |
premium is essentially the price Insurance Life |
you pay to buy the Insurance example |
policy. While choosing the right Life Insurance |
insurance policy, not many people benefits What |
understand the significance of the are the |
premium. Also, not many people main features |
know about the different aspects of Life |
of premiums like what are Insurance What |
the different types of life is the |
insurance premiums? How often do difference between |
you pay the premium? What Life Insurance |
are the tax benefits available? and Life |
Having this basic knowledge is Insurance What |
essential to be able to is Life |
choose the right insurance policy. Let’s Insurance after |
look at the critical things death Life |
you must know about life Insurance policy |
insurance policy premium payment. Depending on the type of Life Insurance |
life insurance policy you buy, meaning and |
insurance premium payment can be importance features |
done on a yearly, half-yearly, of Life |
quarterly or monthly basis. However, Insurance What |
you must know that the do you |
insurance companies increase the premium mean by |
amount based on the periodicity Life Insurance |
of the payment. So, if best Life |
you choose to pay monthly Insurance What |
premiums, it would be higher is the |
than the one-time annual payment. main purpose |
On the other hand, if of Life |
you pay the premium in Insurance What |
one go, the insurance companies, is Life |
offer an attractive discount, which Insurance and |
in insurance terms is known benefits progressive |
as the rebate. The rebate Life Insurance |
in the annual premium is Why is |
adjusted in the premium amount it called |
payable. For policyholders who do not Life Insurance |
carry any risk, the insurance example Life |
companies charge the usual premium Insurance benefits |
rates. However, for people who What are |
carry additional risk such as the main |
health ailments, the insurance companies features of |
charge an additional premium. Also, Life Insurance |
sometimes, the additional premium is What is |
charged when the policyholder is the difference |
involved in a risky/hazardous occupation. between Life |
Lastly, if you opt for Insurance and |
additional riders along with the Life Insurance |
basic policy, you would have What is |
to pay an additional premium. The insurance companies after death |
incur a certain servicing cost Life Insurance |
every time you pay the policy details |
premium; the servicing cost for Life Insurance |
life insurance policy premium payment company Life |
online is lower as compared Insurance meaning |
to offline payment. So, when and importance |
you pay the premium online, features of |
the insurer saves the commission Life Insurance |
paid to the agents. The What do |
insurers pass this savings to you mean |
the policyholders when they pay by Life |
the premium online. If Insurance best |
you fail to pay insurance Life Insurance |
premium online before the due What is |
date, the policy will lapse the main |
and you will not get purpose of |
any benefits. However, most insurance Life Insurance |
policies provide a ‘grace period,’ What is |
which is essentially an extension Life Insurance |
of the due date to and benefits |
pay the premium. You can progressive Life |
pay the premium during this Insurance Why |
grace period without incurring any is it |
additional charges and keep the called Life |
policy in force. If you Insurance Life |
pay monthly premiums, for all Insurance example |
types of life insurance policies, Life Insurance |
except term insurance, the grace benefits What |
period is 15 days. For are the |
yearly, half-yearly and quarterly mode main features |
of payments, the grace period of Life |
is 30 days. Under Section 80C of is the |
the Indian Income Tax Act, difference between |
the premium you pay for Life Insurance |
the life insurance policy is and Life |
eligible for deduction. However, the Insurance What |
deduction is applicable only for is Life |
the premium you pay for Insurance after |
the policy taken towards protecting death Life |
yourself, your spouse and your Insurance policy |
children. Knowing the advantages of paying details Life |
the premium online or what Insurance company |
are the tax rebates available, Life Insurance |
will greatly help you choose meaning and |
the right mode of payment importance features |
and reduce your tax burden.Discounts Based details Life |
on the Frequency of Premium Insurance company |
Payment
Additional Premium for High-Risk Policy Life Insurance |
Holders
Rebates Life Insurance |
for Online Payment
Non-payment of Premium
Tax Benefit on Insurance What |
Premium Payment
