The Life Insurance Premium depends on the kind of policy that you choose to go in with. When you choose your policy you consider all essential factors that cover you and your family: i.e. people who are financially dependent on you, so that in your absence they are financially secured. Such policies are referred to as Family Life Insurance. Life Insurance coverage is also to be taken care off. If you find the need to be covered through your entire life it is suggested that you opt for whole life insurance policies. In this case you will need to keep paying premiums through out your life. Once you decide to stop paying the premium and the policy the entire amount will be handed over to you. In case of death the amount is handed over to the nominees. The other type of policy that one invests on is a term policy, where you pay the premium is paid for a certain term which is known as the Life Insurance Term. On the completion of the tenure the amount with the dividend (depending on market conditions) is handed over to the beneficiaries or the insured.

Another Major advantage of Life Insurance is that it acts as an excellent tax-saving instrument. Under 80c of the Indian Income Tax act any individual having an annual income of over Rs 1.5 lacs INR is liable to pay a certain percentage of his income as taxes. Having that amount invested in Life Insurance spares him from paying the tax. Not only that the dividend or interest that ends up at the end of the tenure of your policy is also tax saving. The Insurance sector has always been in demand since the financial regulation and economical boom that India experienced in the last decade. All major companies are coming out with plans to suit the need of individuals of all kinds right from the masses to the classes. The most prominent Life Insurance Companies in India as of now are 1)LIC, 2)ICICI Life Insurance, 3)Bharti-Axa Life Insurance, 4)SBI Life Insurance & 5) Aegon Religare Life Insurance.

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Permanent Life Insurance is an expansive policy where the premiums are paid as long as you want to enforce the policy. In a permanent Life Insurance policy you pay premiums for an indefinite period irrespective of the fact they exceed the amount to be distributed to your dependents in case of death. The premium amount that is accumulated is deposited in a separate account. If the company performs well the deposit yields higher returns and a share is periodically dispatched to you. If the insurer decides to retain the profits made from your investment with him then you are not required to pay income tax for that amount. There is a possibility like, when you withdraw certain amount of money within the given limit you need not pay income tax for that amount. But when you deposit money in the bank you have to pay income tax irrespective of the fact you utilize it or not. So in a way it’s a tax saving instrument.

Other types of prominent insurance policies include Family Life Insurance, Whole Life Insurance & Joint Life Insurance. Family Life Insurance is a scheme that is similar to group life insurance. Here all the members of your family (mainly wife and unemployed/unmarried children) are covered. Whole Life Insurance is a type of permanent Life Insurance policy where the individual receives Life insurance coverage through out his Life. All he has got to do is to be prompt in making his premium payments. He has to pay till a certain age and be covered through out his life. Joint life insurance policies are policies that enables two individuals to be protected, but the full value of the policy is paid only once at the time of either insurer’s death. This is also referred to as the joint first to die clause. With most Insurance Companies coming up with schemes every now and then, the Insurance Sector is establishing itself as one of the most prosperous markets in modern times.

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