Life Insurance

What is Life Insurance?

Life Insurance is a financial contract between you and an insurance company, where the insurer promises to pay a specified sum of money to your beneficiary in the event of your demise during the policy term. It serves as a financial safety net, ensuring that your loved ones are financially secure even in your absence. Life insurance can also include savings or investment components, depending on the type of policy.

Key Features of Life Insurance
Life insurance offers a wide range of benefits, making it a cornerstone of financial planning. Here are its key features:
Financial Security

• Primary Protection: Provides financial support to your family in case of your untimely demise, ensuring their needs are met even in your absence.
• Income Replacement: Helps maintain the standard of living for your dependents by replacing your income.
  

Customisable Plans

• Tailored Coverage: Options to adjust the coverage amount and policy duration to suit your specific needs.
• Additional Riders: Enhance your policy with add-ons like critical illness cover, accidental death benefit, or waiver of premium.
  

Savings and Investments

• Dual Benefits: Certain life insurance policies act as investment tools, helping you save for future goals while providing life cover.
• Retirement Planning: Build a corpus for your post-retirement years through endowment or ULIP plans.
  

Tax Benefits*

• Premium Deductions: Enjoy deductions on premiums paid under Section 80C of the Income Tax Act, 1961.
• Tax-Free Payouts: Benefits received by nominees are generally exempt from taxes under Section 10(10D)**.
  

Wealth Creation

• Guaranteed^# Returns: Some policies offer guaranteed^# returns, ensuring a fixed payout irrespective of market conditions.
• Systematic Savings: Encourages disciplined financial habits by combining protection and savings.
  

Assured Returns

• Predictable Payouts: Provides a guaranteed^# sum assured, ensuring financial stability for your family.
• Long-Term Gains: Policies with assured returns help in achieving long-term financial goals such as child’s education or marriage.
  

Low Premiums

• Affordable Protection: Young policyholders can lock in lower premiums for extensive coverage, making it a cost-effective financial tool.
• Online Discounts: Many insurers offer lower premiums for policies purchased online, reducing overhead costs.
  

Long-Term Coverage

• Extended Protection: Policies with terms up to 40 years provide financial security over an extended period.
• Life-Stage Benefits: Allows you to align the coverage with major life stages like marriage, parenthood, and retirement.
  

By choosing the best life insurance in India, you can enjoy these features while ensuring comprehensive financial protection for your family.

Quick Comparison Between Different Life Insurance Plans

Here’s a side-by-side comparison of various life insurance plans to help you make an informed decision:

Type of Plan	Key Features	Ideal For	Maturity Benefit
Term Insurance	High coverage at low premiums, no maturity benefit	Pure protection seekers	Not applicable
Whole Life Insurance	Lifetime coverage with a savings component	Long-term financial planning	Yes (cash value)
Endowment Plan	Life cover + savings; guaranteed# payouts	Risk-averse individuals	Yes
ULIP	Life cover + market-linked investments	Investors seeking market exposure	Depends on fund performance
Child Plan	Financial support for child’s milestones	Parents planning for their child’s future	Yes
Pension Plan	Corpus building for retirement + regular annuity	Individuals planning for retirement	Yes (annuity payments)
Money-Back Plan	Periodic payouts during the term + maturity benefit	Those needing liquidity during the term	Yes

Most Popular Life Insurance Plans by ABSLI

Aditya Birla Sun Life Insurance (ABSLI) offers a diverse range of life insurance plans tailored to meet various financial goals and protection needs. Here are some of the most popular plans:

Plan Name	Plan Type	Key Features and Benefits
ABSLI Nishchit Aayush Plan	Savings Plan	- Offers guaranteed# income for a fixed term post-maturity. - Provides life cover along with savings benefits. - Flexibility in choosing premium payment and policy terms. Click here to download the brochure.
ABSLI Assured Savings Plan	Savings Plan	- Guaranteed# additions to enhance your corpus. - Life insurance cover plus savings for your future needs. - Flexibility in premium payments and policy terms.
ABSLI DigiShield Plan	Term Plan	- Comprehensive term insurance with multiple plan options. - Flexible premium payment and policy term choices. - Option to enhance coverage with riders.
ABSLI Salaried Term Plan	Term Plan	- Tailored term insurance for salaried individuals. - Affordable premiums with substantial life cover. - Simple and convenient online application process.
ABSLI Assured Income Plus	Savings Plan	- Guaranteed# income for a defined period after maturity. - Life cover along with regular income. - Bonus accumulation potential, enhancing the policy's value.
ABSLI Wealth Aspire Plan	ULIP Plan	- Market-linked returns with life insurance cover. - Choice of multiple investment funds. - Flexibility to switch between funds and premium redirection.
ABSLI Guaranteed# Annuity Plus	Annuity Plan	- Regular income post-retirement. - Multiple annuity options to suit individual needs. - Option for life cover and return of purchase price.

Each of these plans is designed to cater to specific financial objectives, whether it's securing your family's future, saving for life goals, or growing your wealth. It's important to assess your personal needs and financial goals when choosing the most suitable life insurance plan.

Benefits of Life Insurance in India

Life insurance is more than just a financial product; it’s a long-term commitment to your family’s financial security. Here are the key benefits of life insurance in India:

1. Financial Security for Loved Ones: Provides a lump-sum death benefit to your family in case of your untimely demise, ensuring they can maintain their lifestyle and meet financial goals.

2. Wealth Creation and Savings: Plans like endowment policies and ULIPs combine life cover with savings or investment opportunities, helping you build wealth over time.

3. Tax Benefits*: Premiums paid towards life insurance policies are eligible for tax deductions under Section 80C, and the benefits received are usually tax-free under Section 10(10D)** of the Income Tax Act, 1961.

4. Retirement Planning: Policies like pension plans provide a regular income post-retirement, ensuring financial independence in your golden years.

5. Loan Availability: Life insurance policies with savings components can be used as collateral for loans, providing liquidity when needed.

6. Peace of Mind: Knowing that your family’s future is secure brings immense peace of mind, allowing you to focus on your present.

Top Factors That Affect Life Insurance Premium

The premium you pay for a life insurance policy depends on several factors. Understanding these can help you make an informed choice:

1. Age: Younger individuals typically pay lower premiums as they are considered less risky by insurers.

2. Gender: Women usually have lower premiums as they statistically have a longer life expectancy.

3. Health Condition: Pre-existing medical conditions or a history of illnesses may lead to higher premiums or the need for medical tests.

4. Lifestyle Choices: Smokers and individuals with risky habits or occupations face higher premiums due to increased health risks.

5. Policy Term: Longer policy terms may result in slightly higher premiums but offer more extended coverage.

6. Sum Assured: Higher coverage amounts lead to higher premiums as the insurer’s risk increases.

7. Type of Plan: Plans with additional benefits, such as riders or maturity benefits, generally have higher premiums compared to basic term insurance.

8. Riders and Add-Ons: Adding riders like critical illness cover, accidental death benefits, or waiver of premium increases the overall cost of the policy.

9. Premium Payment Mode: Annual payments are often slightly cheaper than monthly or quarterly instalments due to lower administrative costs.

Understanding these factors ensures you can choose a policy that balances adequate coverage with affordable premiums.

How to File a Life Insurance Claim with ABSLI?

Filing a life insurance claim with Aditya Birla Sun Life Insurance (ABSLI) is a straightforward process designed to provide prompt assistance during difficult times. Follow these steps:

Notify ABSLI:
Inform ABSLI about the claim as soon as possible. You can do this by:

• Visiting the nearest ABSLI branch.
• Calling the customer service helpline at 1-800-270-7000.
• Sending an email to claims.lifeinsurance@adityabirlacapital.com.

Collect Required Documents:
Gather all necessary documents, which may include:

• Claimant’s Statement Form: Available on the ABSLI website or at the branch.
• Policy Document: Original or a certified copy.
• Death Certificate: Issued by the municipal authority or gram panchayat.
• Identity Proof of Nominee: Aadhaar card, PAN card, or passport.
• Medical Records (if applicable): Hospital discharge summary or medical certificates.
• Cancelled Cheque/Bank Passbook: For NEFT details to transfer the claim amount.

Submit Documents:
Submit the completed claim form and documents to the nearest ABSLI branch or via registered post to the claims department.
Claim Assessment:
ABSLI will review the submitted documents, verify the details, and may request additional information if required.
Claim Settlement:
Once approved, the claim amount will be disbursed to the nominee’s bank account through NEFT or cheque. ABSLI aims to settle claims quickly to minimise financial stress.

About Life Insurance Riders

Life Insurance Riders are optional add-ons that enhance your basic life insurance policy by providing additional benefits for specific circumstances. These riders allow you to customise your plan to better suit your needs, offering comprehensive coverage at an extra premium.

Popular Life Insurance Riders:

ABSLI Accidental Death and Disability Rider: Provides financial security for you and your family in case of accidental death or disability.

• ABSLI Critical Illness Rider: Offers a lump sum payment to help cover medical costs and other expenses if you're diagnosed with a critical illness.
• ABSLI Surgical Care Rider: Provides financial support to cover surgery-related costs, helping you focus on recovery.
• ABSLI Hospital Care Rider: Offers daily cash benefits and ICU benefits to help cover hospital expenses during hospitalisation.
• ABSLI Waiver of Premium Rider: Ensures your life insurance coverage continues even if you’re unable to pay premiums due to disability or critical illness.

Why Add Riders to Your Policy?

• Enhanced Coverage: Riders broaden the scope of protection offered by your policy.
• Cost-Effective: Adding riders is more economical than purchasing separate policies for each benefit.
• Customisation: Tailor your policy to address specific risks and priorities.
• Tax Benefits:* Premiums paid towards riders may qualify for tax deductions under Section 80C or Section 80D, depending on the type of rider. Riders make life insurance policies more versatile and ensure comprehensive protection for you and your loved ones.

Click here to know more about claims.