Traditional / Endowment Insurance Product: Traditional Endowment Insurance products are designed to provide lump sum money on the maturity of the policy or on
unfortunate event of death of policy holder before the maturity.
In
the event of the death of the policy holder during the term of the policy, the beneficiary can claim the proceeds of the death benefit.
The beneficiary is paid the lump sum amount on
the event of death of the policy holder.
This term may be 1 or more years and the benefits are paid only in
the event of death of the policy holder within the term of the policy.
The Beneficiary can claim the insurer when
the event of death of policy holder happens only in the insured period.
Under type I ULIPs, in
the event of death of policy holder, the insurance company pays only the higher of sum assured and fund value.
In regular term plans, the entire Sum Assured is paid to the nominee in
the event of death of the policy holder.
Under type II ULIPs, in
the event of death of the policy holder, the insurance company pays the beneficiary both sum assured and fund value.
Death Benefit: In
the event of death of the policy holder, during the term of the policy, provided all premiums are paid, the death benefit or the sum assured on death together with final additional bonus and simple reversionary bonus is paid out to the nominee.
Case 1: Upon death of the insured Insurance policy proceeds received by the family members in
the event of death of the policy holder is completely tax exempt under section 10 of income tax act.
The death benefit defines the amount that the beneficiary (under the policy) gets in
the event of death of the policy holder.
The sum - at - risk is the amount insurance company will have to pay from its own pocket in
the event of death of policy holder.
Do note proceeds from a life insurance policy in
the event of death of the policy holder are exempt from income tax irrespective of what is mentioned above.
Under a life insurance policy, Sum Assured is the minimum amount assured to the nominee in
the event of death of the policy holder.
The benefit of a mortgage life insurance is that in
the event of the death of the policy holder, your family will receive benefits to pay on the mortgage.
The nominee will get Rs 1 crore in
the event of death of the policy holder.
In
the event of death of the policy holder, the insurance company pays the higher of fund value or sum assured to the nominee / beneficiary.
Secondly, under unit linked child plans, in
event of death of the policy holder, the insurer has to pay for all the future premiums.
In
the event of death of the policy holder, the insurance company pays the sum of fund value or sum assured to the nominee / beneficiary.
In
the event of death of the policy holder, the beneficiary will be paid Rs 50 lacs (higher of 30 lacs, 50 lacs).
Benefits are payable tothe nominee in
the event of death of the policy holder in question.
Providing coverage at a fixed rate of payment for a limited period of time, term life insurance ensures that family members receive an assured sum in the unfortunate
event of death of the policy holder.
For a life insurance policy, Sum Assured is the minimum amount assured to the nominee (of the policyholder) in
the event of death of the policy holder.
This plan also provides you a guarantee of return of full purchase price in
the event of death of the policy holder.