The majority of individuals consider life insurance plans to be investments. However, these plans also provide a sizeable compensation if the insured person passes away.
People with dependent family members should choose these backup plans to safeguard the financial security of their spouse, children, elderly parents, and siblings even in the terrible case of their passing.
Family members of a life insurance policyholder who passes away within the term of the plan’s coverage are eligible to receive the death benefit.
By doing this, a lump-sum financial benefit will be received, which the surviving family members can use to maintain a comfortable standard of living. These plans are made available by the numerous life insurance firms doing business in India, and any claims made must be resolved.
What Exactly is a Life Insurance Company?
A life insurance company is a business that offers its clients a wide range of life insurance plans. The premium that policyholders pay the insurance firm is based on the sum assured for the selected coverage and other advantages and variables. Additionally, a life insurance firm must manage any claims its clients submit.
Life insurance firms must confirm all details and the circumstances surrounding a policyholder’s death before extending the cash reimbursement following a claim. Life insurance policies frequently do not cover accidental or suicide death.
Therefore, the policyholder’s family cannot collect a death benefit from the insured life insurance policy if the policyholder dies of either of these causes.
How Many Types of Life Insurance Policies are Available in India?
Some of the popular life insurance policy types offered in India includes the following:
- Unit Linked Insurance Plans
- Term life insurance
- Endowment plans
- Whole life insurance
- Money-Back policy
- Retirement plan
- Child plan
These are the seven types of life insurance policies, each designed to satisfy different needs and circumstances.
To choose which of the aforementioned plans is most appropriate for your needs, you must consider your current condition in life.
Difference Between Life Insurance & General Insurance
Life insurance differs from general insurance in the following ways:
Life is a very long-term endeavour, and life insurance can protect against risks spanning many years.
General insurance typically covers risks for a shorter time, like a year.
Growth of the Insurance Sector
Globally, 56.8% of all premiums come from the life insurance industry. However, contrary to the general trend, just 28.9% of life insurance business was conducted in the Asian region.
In India, the percentage of the non-life insurance industry was only 19.8%, compared to the very high share of life insurance at 80.2% of the entire insurance business.
List of Insurance Companies in India
Public Sector:
- National Insurance Co Ltd
- New India Assurance Co Ltd
- Oriental Insurance Co Ltd
- United India Insurance Co Ltd
Private Sector:
- Bajaj Allianz general insurance
- ICICI lombard
- L&T general insurance
- Tata AIG general
- Iffco Tokio
Three Major Players in the Insurance Sector
1. Life Insurance Corporation of India (LIC)
The LIC of India is in the first place. The largest insurance company in India, LIC of India, was established in 1956 and is a state-owned insurance company with its headquarters in Mumbai. The services that LIC provides to its clients include insurance plans, pension plans, unique programs, and group schemes.
2. Sbi Life Insurance Company Limited
BNP PARIBAS Cardif and State Bank of India have formed a joint venture called SBI Life Insurance. Approximately 74% of the capital belongs to SBI, and 26% belongs to BNP Paribas Cardif. The authorized capital of SBI Life Insurance is 2,000 crores, and the paid-up capital is 1,000 crores.
3. The New India Assurance Company Limited:
The New India Assurance Co Ltd., an international general insurance firm headquartered in Mumbai, India, and 100% government ownership, is currently active in 28 countries. Their international sales exceeded Rs. 16 billion.
Sir Dorabji Tata established it in 1919, and for more than 40 years, it has dominated the non-life business industry in India. The New India Assurance Company Limited certifies that it has the highest financial stability necessary to uphold its policyholders’ commitments.
Conclusion
The majority of insurance firms today are looking to hire agents who are experts at selling their unauthorized insurance products. Businesses also offer superior plans based on the requirements and wants of their clients. Companies offer better service in terms of quality, pricing, advertising, and promotional activities in this competitive market. CRM is utilized to keep customers and stay in touch with them. In another 20 years, 50% of the population will have insurance.
Also Read: Interconnection between Government and Businesses
