Claim Settlement Ratio of 99.02%~

Notifications11

  • World's First Music Video Created Retired Senior Citizens

    WATCH VIDEO
  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

    WATCH VIDEO
  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

    KNOW MORE
  • Here's a Comprehensive Tool To Plan Your Child's Future

    START NOW
  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

    WATCH VIDEO
  • Get Life Cover worth Rs.1 Crore at Rs.20 per day2 – Bajaj Allianz Life Smart Protect Goal

    CALCULATE NOW
  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

    KNOW MORE
  • Paying your Renewal Premium is Quick and Easy!

    PAY NOW
  • Know the right amount of Insurance you need in just a few steps!

    START NOW
  • Avail Term Insurance Tax Benefits under Section 80D

    READ MORE
  • Know how to invest money during the covid-19 pandemic!

    READ MORE

Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead

X

Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

Get 1 Crore Life Cover@ Rs.20 Per Day2

Covers COVID-19 Claims##

5 Creative Uses of Life Insurance You've Never Thought Of | Bajaj Allianz Life

Pay lower premium3 on online term plans

Please enter a Name
Please enter a Mobile No.
Please check the box to proceed
WS_LIGuideHome_Banner_EN 307 38983691 WS_LIGuideHome_Banner_HI 307 38983695
WS_LIGuideHome_Banner_Mob_EN 307 38983693 WS_LIGuideHome_Banner_Mob_HI 307 38983677
Please Select Language

2,3,##T& C Apply | BJAZ-BN-EC-03414/22

2,3,##T& C Apply | BJAZ-BN-EC-03414/22

5 Creative Uses of Life Insurance You've Never Thought Of


calender-blue

June 21, 2022

By : Bajaj Allianz Life

A life insurance policy is a very useful financial tool that may help you plan your family’s financial future. The benefits of life insurance are aplenty. From being able to help your family take care of their expenses to helping you save tax, there are plenty of such distinct uses for it. Here’s a quick overview of five of the most common creative uses that a life insurance policy has.

 

1. Taking care of your loved ones’ expenses

 

One of the main reasons why we work hard is to make sure that our family is well taken care of. However, if something untoward were to happen to you, your family may find it hard to meet their expenses and their life goals.

Here’s where a life insurance policy comes into the picture. The death benefit payout from a life insurance plan goes to the nominee listed under the plan and can be used by them to take care of their expenses and to further their life goals.

 

2. Inheritance

 

Any individual, after their demise, would want to leave behind a sizable inheritance for their children and future generations. However, considering the ever-growing cost of living, not everyone may be able to build a sizable inheritance to leave behind by investing alone. In such cases, the life cover of a life insurance plan can help. Here’s how.

An individual can take out a whole life insurance plan with a sizable life cover, which will cover them till the age of 99. And in the event of their demise, the death benefit payout that the nominees will receive can act as a kind of inheritance. The payout can then be used by the nominees as they see fit. So, with a life insurance plan, you can fulfil your dream of leaving behind an inheritance for your family without taking on too much risk.

 

3. Create an alternative source of income

 

One of the many benefits of life insurance is that it can be customised according to your needs and requirements. The death benefit (or the maturity benefits) from a typical life insurance plan is usually paid out as a lump sum amount. However, in some policies, the policyholder may choose an instalment-payout option as well, where the sum assured, or the maturity benefits are paid out in instalments as per the chosen frequency.

Opting for this method of payout allows you to create an alternative source of income for yourself or your loved ones. And it can also be very useful for those families that may not be financially competent enough to manage lump sum payouts effectively. When the death benefit is paid out in instalments, families may find it easier to manage their regular monthly expenses.

 

4. Reduce the tax burden

 

You also get to enjoy several tax benefits by simply purchasing a life insurance plan and paying the premiums due. According to section 80C of the Income Tax Act, 1961, you can claim the premiums that you pay for a life cover as deductions from your total taxable income subject to provisions stated therein. The maximum amount that you can claim each financial year is Rs. 1.5 lakhs.

The tax benefits don’t stop there though. The death benefit payout that nominees receive is also completely tax-free in their hands according to section 10(10D) of the Income Tax Act, 1961. Similarly, the maturity benefits that you receive at the end of the tenure of the insurance plan are also exempt from tax subject to satisfaction of the conditions mentioned in section 10(10D).

 

5. Debt Repayment

 

This is one of the most creative uses of a life insurance policy. If you’ve taken out any large loans for purposes like purchasing or constructing your dream home, or paying for your children’s education, the repayment period for the same can extend for years. Meanwhile, if something were to happen to you, your loved ones may find it hard to repay the loan and other debt obligations that you’ve left behind.

But, with life insurance in your portfolio, you may prevent all of that from happening. The lump sum death benefit payout that they receive can be used to pay off all outstanding loans and other obligations that you may have left behind, leaving them debt-free.

 

Conclusion

 

These are just a few of the many creative uses for a life insurance policy. If you haven’t already invested in one, it may be the time to consider getting a life cover for yourself. This way, you can secure the financial future of your family and also enjoy any and all of the creative benefits outlined above.

BJAZ-WEB-EC-00490/22

Bajaj Allianz Life Videos

Play

Bajaj Allianz Life | Children's Day

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

Customer Care Helpline:

1800-209-7272

Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:

1800-209-4040

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91-20-35125850 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

##Our policy covers COVID 19 claims subject to policy terms and conditions being met

3Discount is available for regular premium and limited premium payment frequency under all variants of this product.

2Above illustration is considering Male aged 25 years | Non-Smoker | Life Cover Variant | Policy term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | medical rates | Annual Premium Payment Mode | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.