What Is The Eligibility To Have Life Insurance?

Do you want a better and secure future for your loved ones? Do you want them to live a financially safe life even when you aren't around anymore? If yes, then you should have life insurance. We know it can be a daunting task and might seem a little overwhelming, but at Canara HSBC Oriental Bank of Commerce, we provide protection plans that are easy to understand and build a strong financial foundation for families.

What is life insurance?

Life is a beautiful yet uncertain gift. Life insurance is a contract between a policyholder and an insurer. A life insurance policy ensures that when the insured policyholder dies or a certain time has elapsed, the insurer will pay a fixed amount of money to the designated beneficiaries in return for premiums paid by the policyholder over their lifetime. Some companies extend enhanced plans for critical illness with extra insurance premiums.

The very first question that pops into our head when thinking of life insurance is, am I eligible? What are the requirements? Well, don't worry, we've got you and your life covered!

What is the eligibility to have life insurance?

The need for life insurance to be purchased relies on a variety of factors. It depends primarily on your priorities and what phase of life you are in. The primary goal of any life insurance is to protect the future financial needs of the family.

Minimum Age - 18 years

Maximum Age - 65 years

Maturity Age - 75 years ( in most cases )

Premiums and principal amounts vary from policy to policy.

Documents Required - Income Proof, ID Proof, Address Proof, and Age Proof.

Benefits of Life Insurance

• Tax Benefits: Life policy premium payments are eligible for rebate under Section 80C of ITA 1961.
• Loan Collateral: Depending on the surrender value and type of life insurance, policyholders can take loans from NBFCs against these policies.
• Death Cover: A relief that your family will be financially secure even after you are gone.
• Stress-free Life: Life insurance provides high-risk coverage.

FAQs

1. Can a smoker buy a life insurance policy?

Yes, smokers can buy an insurance policy. Although the premiums charged might be higher than regular life insurance policy premiums.

2. Can a disabled person buy life insurance?

Yes, disabled people can buy life insurance. However, they are required to submit additional documents such as full disclosure of disability, doctor reports, tests, etc.

3. Can a person with a pre-existing illness buy a life insurance policy?

Yes, pre-existing illness life insurance is available. They attract an enhanced premium for extra coverage. People are required to make full disclosures at the time of buying to avoid problems during claims.