\u003Cspan>Plot No:31 & 32, Beside Union Bank Training Centre,\u003C/span>\u003Cbr />\u003Cspan>Financial District, Gachibowli,\u003C/span> \u003Cbr />\u003Cspan>Hyderabad-500032, India.\u003C/span>\u003C/p>"},{"title":"Helpline","heading":"Helpline","description":"\u003Cul>\u003Cli>\u003Ca href=\"tel:1800-103-5319\">Customer - 1800-103-6116\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"tel:1800-103-2671\">Agent - 1800-103-2671\u003C/a>\u003C/li>\u003C/ul>"}],"social_media_group":[{"title":"Follow us on","heading":"Follow us on","social_media":[{"title":"Facebook - Follow us on","icon":[{"media_img":null,"media_svg":"https://cdn.shriramlife.com/slic-kalam/files/2023-04/facebook.svg","media_svg_alt":"facebook","media_document":null}],"menu_link":{"url":"https://www.facebook.com/Shriramlife","text":"https://www.facebook.com/Shriramlife"}},{"title":"Twitter - Follow us on","icon":[{"media_img":null,"media_svg":"https://cdn.shriramlife.com/slic-kalam/files/2023-09/Twitter_X__1_%20%282%29.svg","media_svg_alt":"twitter","media_document":null}],"menu_link":{"url":"https://twitter.com/shriramlifeins","text":"https://twitter.com/shriramlifeins"}}]}],"app_group":[{"title":"Download App","heading":"Download App","Apps":[{"title":"Download App - Android","heading":"Android","icon":[{"media_img":null,"media_svg":"https://cdn.shriramlife.com/slic-kalam/files/2023-04/android.svg","media_svg_alt":"android","media_document":null}],"menu_link":{"url":"https://play.google.com/store/apps/details?id=com.svs.slic","text":"https://play.google.com/store/apps/details?id=com.svs.slic"}}]}],"copy_rights":"\u003Cp>© Shriram Life Insurance Co. Ltd. All the rights reserved. Registered with Insurance Regulatory & Development authority of India (IRDAI) as Life Insurance Company. Regn. No. 128. CIN: U66010TG2005PLC045616\u003C/p>"}],"headers":{"x-powered-by":["Express"],"x-frame-options":["SAMEORIGIN"],"content-type":["text/html; charset=utf-8"],"content-length":["15511"],"etag":["W/\"3c97-gBr5MgJ4AGipTofEPp/E/12zbGg\""],"vary":["Accept-Encoding"],"date":["Thu, 21 Nov 2024 04:58:37 GMT"],"connection":["keep-alive"],"keep-alive":["timeout=5"]},"status":200,"statusText":"OK","url":"http://127.0.0.1:4000/api/v1/footer","responseType":"json"},"2002562214":{"body":[{"category":[{"id":1781,"name":"Super Income Plan"},{"id":1782,"name":"Advice"},{"id":1930,"name":"Child Plan"},{"id":1979,"name":"Early Cash Plan"},{"id":1982,"name":"Assured Income Plan"},{"id":1984,"name":"Golden Premier Saver Plan"},{"id":1985,"name":"Premier Assured Benefit"}],"blogs":[{"title":"What is Joint Life Policy- Know its Types, Benefits & Eligibility","heading":"Joint Life Insurance Simplified: Types, Benefits, and Eligibility Criteria","short_description":"\u003Cp>Navigating the world of insurance can feel overwhelming.\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/11.%20What%20is%20Joint%20Life%20Policy-%20Know%20its%20Types%2C%20Benefits%20%26%20Eligibility_0.jpg?VersionId=aUeSYxa0SVNKR_LusCYrYzNtTJWm.bVR","alt":"Benefits of Joint Life Insurance Policy"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-20T10:49:55","updated_on":"2024-11-20T10:50:01","read_more_title":"Know More","slug":"/what-is-joint-life-policy-know-its-types-benefits-eligibility","field_bl_tag":"\u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>, \u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>","description":"\u003Cp>Navigating the world of insurance can feel overwhelming. Moreover, when one is faced with decisions related to details and options, it can seem hard to know which choice is the best for you. This may be why not all people understand the benefits of Joint Life Insurance. This type of insurance can offer peace of mind and financial security for couples and partners. A regular Life Insurance plan only covers the life of one single insured or the policyholder. In a Joint Life Insurance, both spouses can be covered against the risk of untimely demise under the same policy.\u003C/p>\u003Cp>In this guide, we explain the various types, benefits, and eligibility criteria to help you make informed decisions.\u003C/p>\u003Ch2>\u003Cstrong>What is Joint Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>At its core, Joint Life Insurance is a policy that covers two individuals under a single plan. It’s designed to provide financial support to the surviving partner or beneficiaries in the event of one policyholder’s unfortunate demise. This kind of insurance is particularly beneficial for couples who want to ensure that their loved ones are financially secure. The concept is simple: when one partner passes away, the other receives a payout to help cover living expenses, debts, or other financial obligations.\u003C/p>\u003Cp>Imagine the peace of mind that comes with knowing that your loved one won’t have to face financial hardship if something happens to you. Joint Life Insurance provides that reassurance.\u003C/p>\u003Ch2>\u003Cstrong>Types of Joint Life Policies\u003C/strong>\u003C/h2>\u003Cp>When considering Joint Life Insurance, it’s important to understand the different types available. Here’s a closer look at some of the most common options:\u003C/p>\u003Ch3>\u003Cstrong>First Death Policy\u003C/strong>\u003C/h3>\u003Cp>A First Death Policy provides coverage that pays out when the first policyholder dies. This option is especially popular among couples, as it ensures that the surviving partner receives immediate financial support. After the payout, the policy usually ends, meaning no further premiums are required. It’s a practical choice for couples who want to safeguard each other’s financial future.\u003C/p>\u003Ch3>\u003Cstrong>Second Death Policy\u003C/strong>\u003C/h3>\u003Cp>On the flip side, a Second Death Policy pays out only after both policyholders have passed away. This type is often used in estate planning, helping to cover potential taxes or expenses after the second death. It’s a strategic option for couples looking to leave a financial legacy for their heirs, ensuring that they can manage any estate-related costs.\u003C/p>\u003Ch3>\u003Cstrong>Joint Term Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Joint Term Life Insurance provides coverage for a specified period, usually ranging from 10 to 30 years. If one partner dies during the term, the other receives the death benefit. This type of policy is often more affordable and is great for couples who want significant coverage without lifelong premium commitment. Think of it as a safety net during your most financially vulnerable years.\u003C/p>\u003Ch3>\u003Cstrong>Joint Whole Life Insurance\u003C/strong>\u003C/h3>\u003Cp>A Joint Whole Life Insurance policy covers both partners for their entire lives. This option not only guarantees a death benefit upon the death of the last surviving member but can also build value over time. This cash value can be accessed during your lifetime, providing a flexible financial resource. It’s an investment in both protection and savings.\u003C/p>\u003Ch2>\u003Cstrong>Add-ons\u003C/strong>\u003C/h2>\u003Cp>Many insurers also provide additional options such as riders or add-ons, such as a Critical Illness add-on. Such an addition can provide financial assistance if one partner is diagnosed with a serious illness, ensuring that you’re covered for various scenarios.\u003C/p>\u003Ch2>\u003Cstrong>Benefits of Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Choosing Joint Life Insurance comes with many advantages. Here are some key benefits to consider:\u003C/p>\u003Ch3>\u003Cstrong>1) Simplified Premium Payments\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Cost-effective: \u003C/strong>Typically, a Joint Life Insurance Policy is cheaper than two individual policies. This can lead to significant savings over time, making it an attractive option for couples or partners.\u003C/p>\u003Ch3>\u003Cstrong>2) Shared Benefits\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Financial security: \u003C/strong>The death benefit provides immediate financial assistance, helping the surviving partner manage expenses like mortgage payments or daily living costs. This is crucial during a difficult time.\u003C/p>\u003Ch3>\u003Cstrong>3) Estate Planning\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Legacy planning:\u003C/strong> Joint Life Insurance can be structured to cover estate taxes, ensuring that your heirs receive their inheritance without additional financial burdens. This thoughtful approach to estate planning can save your loved ones from unnecessary stress.\u003C/p>\u003Ch3>\u003Cstrong>4) Tax Advantages\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Tax benefits: \u003C/strong>Death benefits from life insurance are generally tax-free for beneficiaries. This feature provides financial relief at a time when your loved ones may need it the most.\u003C/p>\u003Ch3>\u003Cstrong>5) Flexibility\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Adaptable coverage: \u003C/strong>Many policies allow for additional riders, even during the policy term, enhancing the policy’s functionality. This flexibility can be a significant advantage as one’s financial needs change over time.\u003C/p>\u003Ch2>\u003Cstrong>Eligibility Criteria for Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Before diving into a Joint Life Insurance policy, it’s essential to understand the eligibility requirements.\u003C/p>\u003Ch3>\u003Cstrong>Here are some common criteria:\u003C/strong>\u003C/h3>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Age: \u003C/strong>\u003C/h3>\u003Cp>Most insurers require that both partners be within a specific age range, typically between 18 and 65 years. This ensures that both parties are insurable.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Health Status:\u003C/strong> \u003C/h3>\u003Cp>Applicants usually need to undergo medical examinations. The health history of both individuals will play a significant role in determining premiums.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Relationship Type:\u003C/strong>\u003C/h3>\u003Cp>These policies are primarily available for spouses or life partners. This flexibility allows for various relationship dynamics.\u003C/p>\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Choose the Right Joint Life Policy?\u003C/strong>\u003C/h2>\u003Cp>Selecting the right Joint Life Insurance policy can be a challenging task, but breaking it down into manageable steps can help:\u003C/p>\u003Ch3>\u003Cstrong>Step 1: Assess Your Needs\u003C/strong>\u003C/h3>\u003Cp>Start by evaluating your financial obligations. Consider debts, mortgage payments, and future expenses such as children’s education that the surviving partner will have to pay for. Understanding these factors will help you determine how much coverage you need.\u003C/p>\u003Ch3>\u003Cstrong>Step 2: Compare Policy Types\u003C/strong>\u003C/h3>\u003Cp>Explore the different types of policies available, such as Joint Term Life Insurance and Joint Whole Life Insurance. Each type has its advantages, so consider what fits your lifestyle and financial goals.\u003C/p>\u003Ch3>\u003Cstrong>Step 3: Evaluate Premium Costs\u003C/strong>\u003C/h3>\u003Cp>Premiums can vary widely among providers. Compare quotes from several insurers to find a policy that fits your budget. Don’t hesitate to ask about any additional costs associated with riders or specific features.\u003C/p>\u003Ch3>\u003Cstrong>Step 4: Review Terms and Conditions\u003C/strong>\u003C/h3>\u003Cp>Before making a decision, carefully read the policy’s terms, including payout structures and exclusions. Understanding the precise terms and conditions can help you avoid surprises later on.\u003C/p>\u003Ch3>\u003Cstrong>Step 5: Consult a Financial Advisor\u003C/strong>\u003C/h3>\u003Cp>Consider speaking with a financial advisor or insurance agent who can provide tailored insights based on your circumstances. Their expertise can guide you toward the most suitable options for your needs.\u003C/p>\u003Ch2>\u003Cstrong>Common Myths and Misconceptions\u003C/strong>\u003C/h2>\u003Cp>As with many insurance products, misconceptions can render confusion of Joint Life Insurance. Here are some common myths and the truths behind them:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Myth: Joint policies are only for married couples.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Joint Life Insurance can be obtained by any two individuals in a committed relationship, including business partners.\u003C/li>\u003Cli>\u003Cstrong>Myth: All Joint Life Policies are the same.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Policies can vary significantly in terms of structure, benefits, and eligibility. It’s essential to understand the specific terms of each policy.\u003C/li>\u003Cli>\u003Cstrong>Myth: Once purchased, a joint policy cannot be modified.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Modifying terms and conditions of a Joint Life Insurance may vary from one insurance company to other. Some might allow for modifications, such as adding riders or converting to individual policies under certain conditions.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Apply for a Joint Life Insurance Policy?\u003C/strong>\u003C/h2>\u003Cp>Applying for a Joint Life Insurance policy is a straightforward process. Here’s how to navigate it:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Research Plans: \u003C/strong>Start by comparing the plans provide joint life coverage and compare to regular plans as well to understand the difference. Obtain illustrations of how each plan could perform over a period and then compare to see what will suit your needs. \u003C/li>\u003Cli>\u003Cstrong>Fill Out the Application: \u003C/strong>Complete an application form with both partners’ information, including health details. Discrepancies can lead to complications later as the details asked on the form constitute material fact to the policy once it is issued. \u003C/li>\u003Cli>\u003Cstrong>Undergo Medical Examinations:\u003C/strong> Depending on the plan and sum insured, both partners may need to undergo medical assessments. These exams help determine your insurability and establish the premium costs. \u003C/li>\u003Cli>\u003Cstrong>Review the Policy: \u003C/strong>Once you receive approval, carefully review the policy document to ensure all details are correct. Pay attention to coverage amounts, premium costs, and any riders included.\u003C/li>\u003Cli>\u003Cstrong>Make Payment:\u003C/strong> After you’ve gone through the details and assured yourself that everything is in order, you need to pay the first premium to activate the policy. Keep a copy of the policy document in a safe place for future reference. It is also best to retain the first premium paid receipt as it is part of the policy documentation.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Joint Life Insurance is a powerful tool for couples and partners seeking financial security. With various types of policies available, understanding the benefits and eligibility criteria can help you make informed choices. By assessing your needs and comparing options, you can select the right coverage that provides peace of mind for you and your loved ones.\u003C/p>\u003Cp>If you’re considering Joint Life Insurance, explore the various plans from \u003Ca href=\"https://www.shriramlife.com/\" target=\"_blank\">Shriram Life Insurance\u003C/a>. With flexibility to choose your plan, coverage and the benefits to match your goals, Shriram Life Insurance has created plans for a variety of financial goals and life stages for individuals, couples and families.\u003C/p>\u003Cp>For more insights into \u003Ca href=\"https://www.shriramlife.com/life-insurance/retirement-plan\" target=\"_blank\">Retirement Plans\u003C/a>, \u003Ca href=\"https://www.shriramlife.com/life-insurance/savings-plan\" target=\"_blank\">Savings Plans\u003C/a>, or \u003Ca href=\"https://www.shriramlife.com/life-insurance/child-plan\" target=\"_blank\">Child Plans\u003C/a>, explore our detailed guides. With the right joint life insurance policy, you can take a significant step toward securing your future and that of your loved ones.\u003Cbr /> \u003C/p>","category":"/blog/advice"},{"title":"Efficient Pension Withdrawal in India: Steps and Tips for Retirees","heading":"Efficient Pension Withdrawal in India: Steps and Tips for Retirees","short_description":"\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\" lang=\"EN-IN\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tool\u003C/span>\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/50.%20Simple%20Steps%20to%20Withdrawing%20Your%20Pension%20Money%20Quickly_0.png?VersionId=Md_5WxWzTakmSsydK_9wFkJW1txxhCCc","alt":"Steps to Withdrawing Your Pension"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-18T09:30:36","updated_on":"2024-11-18T09:52:48","read_more_title":"Know More","slug":"/steps-and-tips-for-pension-withdrawal-in-india-1","field_bl_tag":"\u003Ca href=\"/blog/guides/retirement\" hreflang=\"en\">Retirement\u003C/a>, \u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>","description":"\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tools. However, accessing pension funds can be overwhelming for those who don’t have a clear understanding of how it works. If you aren’t well-versed in financial matters, you might be nervous that your pension withdrawal could be delayed for numerous reasons. Another reason why prior knowledge is helpful is the impact of taxation. Withdrawing large pension amounts without proper planning will push you into higher tax brackets, significantly reducing the net amount after deducting the tax liability. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">This can make you financially vulnerable, especially during medical emergencies or other unexpected times when your expenses are running high. If you are a retiree, senior citizen or someone who is approaching your retirement timeline, this blog is for you. We explain the pension withdrawal steps for your convenience, along with tips to manage the received pension amount and be more aware of your tax liability. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 1: Understand the Types of Retirement Plans in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">There are various \u003C/span>\u003Ca href=\"https://www.shriramlife.com/life-insurance/retirement-plan\">\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">retirement plans in India\u003C/span>\u003C/a>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">, each with unique rules and tax implications. Having a clear understanding of these plans can ease the pension withdrawal process. Currently, India has the following common plans:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>National Pension Scheme (NPS)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">This market-linked voluntary investment scheme enables all Indian citizens to build a retirement fund by investing in a pension account during work-life years. People investing in these retirement funds schemes must use at least 40% of their funds to buy an annuity plan during retirement, and the remaining corpus amount can be withdrawn as a lump sum. \u003C/span>\u003C/p>\u003Cp>NPS typically allows partial withdrawal of up to 25% on contributions, provided you’re an NPS subscriber for at least three years. Retirees can enjoy tax benefits on NPS u/s 80CCD (1) of up to ₹.1.5 lakh, 80CCD (1b) of ₹.50,000, and 80CCD(2) of 10% of basic salary + DA contributed by the employer. No tax benefits are available for NPS tier 2 and annuity payments.\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Employee Provident Fund (EPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">This mandatory savings scheme helps employees create a retirement fund during their active working years. The best part about EPF is that employees can get full pension withdrawal upon retirement. You can also make partial withdrawals before retirement to fund medical emergencies or pay for other expenses such as house purchase/construction, and higher studies. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Withdrawing EPF before retirement will attract tax implications for employees with less than five years of service. Additionally, no one can withdraw the employer’s contribution and interest before five years of service. An employee’s contribution to EPF can be used to claim a deduction u/s 80C. We recommend withdrawing EPF after five years of continuous service as it will attract zero tax on pension, including the interest earned. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Public Provident Fund (PPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">It is a long-term savings scheme that can be opened in any Indian bank or post office. Since PPF typically matures after fifteen years, you must reserve this pension money strictly for your retirement years and avoid partial withdrawals before retirement for optimal benefit. While the full PPF amount can be withdrawn on maturity, people have the option of partial withdrawal from the seventh year onwards.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">If you choose partial withdrawal, you can only withdraw 50% of your account balance at the end of the fourth year. The best part about PPF is that it qualifies for the Exempt-Exempt-Exempt (EEE) status. It is a tax category that levies zero tax on your investment, interest earned on investment, and maturity amount. Your PPF contribution can be deducted u/s 80C, up to ₹1.5 lakh (maximum). The PPF maturity proceeds and its interest are fully tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Annuity Plans from Insurance Providers\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Many people prefer investing in annuity plans because they provide regular income post-retirement. Since there are different annuity plans, like deferred, immediate, fixed, variable, etc., the withdrawal rules and tax implications vary significantly for each annuity retirement plan in India. We recommend reading the ‘terms and conditions’ of your chosen annuity plan for accurate information.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 2: Review Withdrawal Rules for Indian Pension Plans\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">There are different pension plans in India, each with distinct withdrawal rules. While withdrawal rules have been briefly covered in the previous point, you are advised to review all your pension plans’ terms and conditions to learn about the plan-specific rules. Additionally, prepare a list of documentation needed for hassle-free withdrawal. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">For example, people with an NPS account will need an NPS withdrawal form, a copy of their PRAN card, proof of their bank account, ID and address proof, a cancelled cheque, and other specified documents for seamless withdrawal. Conversely, those with EPF will need Form 19 for full withdrawal, Form 31 for partial withdrawal, a PAN card, an Aadhaar card, a cancelled cheque, and bank account details.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 3: Understand the Tax Implications in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Different pension fund withdrawals have different tax implications in India. It can be broadly categorized into the following sections:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Tax-free Portion\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Pension withdrawal of the NPS lump sum amount and partial withdrawals (up to 25% of the contributor’s share) are tax-free. The entire withdrawal amount from EPF and PPF is also tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Tax on Annuity Payouts\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">While annuity payouts are generally taxed according to the individual’s income tax slab, certain plans provide tax-free payouts under specific conditions. The tax on pension in annuity payouts will depend on the plan you’ve chosen, so review its terms and conditions for accurate and plan-specific tax implications. \u003C/span>\u003C/p>\u003Cp>If you want to lower your tax liability, then withdraw pension funds in smaller portions. You can calculate and plan your withdrawals by using our income tax calculator page for maximum savings. Additionally, you can also benefit by investing in tax-free options.\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 4: Choose the Right Withdrawal Option\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">There are various withdrawal options to get your pension money after retirement. The three most common options are shared below:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Lump-Sum Withdrawal\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">The lump-sum withdrawal typically refers to the withdrawal of a full or major portion of the corpus. If you choose lump-sum withdrawal, there won’t be any tax on pension for PPF and EPF (if you’ve finished five years of continuous service). Tax won’t be applied on up to 60% of the corpus withdrawn in NPS. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Annuity plans typically don’t allow lump-sum withdrawals, but if you receive one, it will be taxed according to your income tax slab. This withdrawal method is perfect if you need instant access to funds to meet larger expenses. It is a straightforward process, but it may lead to premature depletion of funds. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Systematic Withdrawal Plans (SWP)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">This withdrawal method is recommended for retirees who want to continue receiving a steady income without burning the entire retirement funds in a short period. Retirement plans in India, like NPS, EPF, and PPF, generally don’t provide an SWP option, but annuity plans do. Depending on your selected payment frequency, they will continue crediting a specific amount for a fixed period. All annuity payments are taxed as regular income, so ensure you set a lower withdrawal amount to reduce tax liabilities. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Purchase an Annuity\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Many retirees convert a portion of their pension money into annuity plans to continue receiving a predictable and steady income for a fixed period. You can use a\u003C/span>\u003Cem>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\"> \u003C/span>\u003C/em>\u003Ca href=\"https://www.shriramlife.com/retirement-calculator\" target=\"_blank\">\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">retirement calculator\u003C/span>\u003C/a>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\"> to decide the ideal annuity plan and amount. While these are convenient for many retirees, all annuity proceeds are taxed as regular income, meaning you don’t get any benefit of saving tax on pension money. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 5: Submit Your Pension Withdrawal Request\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">The pension withdrawal request rules differ for varying pension plans in India. For example, if you want to withdraw your PPF funds, you can follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">First check if your PPF account is linked to your bank account. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">If linked, simply log into your online banking portal and look for the PPF/partial PPF withdrawal option. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">You will then be directed to fill out an online form.\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Submit required documents like a PPF passbook to finish the process. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">But if you’re requesting an NPS withdrawal, you must follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Visit the eNPS portal and log in using your PRAN and password. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Go to the ‘Exit/Withdrawal Request’ section\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Fill out the withdrawal form\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Upload the necessary documents, and submit a request. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">So, we encourage people to review the withdrawal request process based on their pension plan.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Step 6: Plan for Financial Security After Withdrawal\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Once you’ve received the full pension funds, avoid impulse spending to maintain financial stability. If it’s your only source of income in the retirement phase, we recommend budgeting for regular expenses, medical needs, and unexpected costs. Consider investing in annuity plans so you only receive fixed retirement funds every month to prevent overspending. You can also explore better \u003C/span>\u003Cem>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">retirement plans\u003C/span>\u003C/em>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\"> listed on our website. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Navigate Your Pension Journey with Shriram Life Insurance - Conclusion\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Pension becomes the primary income source for many \u003C/span>\u003Ca href=\"https://www.shriramlife.com/blog/advice/what-are-the-best-insurance-policies-for-senior-citizens\">\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">senior citizens in their retirement phase\u003C/span>\u003C/a>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">, but getting it isn’t as easy. There are different retirement plans in India, each with varying withdrawal rules, tax implications, and financial security. Not being aware of these details can result in delayed withdrawals and unwanted financial strain. However, you can avoid such challenges by following the withdrawal rules and tips discussed in this article. \u003C/span>\u003C/p>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/\" target=\"_blank\">\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Shriram Life Insurance \u003C/span>\u003C/a>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">provides retirement plans such as \u003C/span>\u003Ca href=\"https://www.shriramlife.com/life-insurance/immediate-annuity-plus\" target=\"_blank\">\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Shriram Life Immediate Annuity Plus\u003C/span>\u003C/a>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\"> that can help you secure your financial future along with Pension benefits. These policies provide a safety net for your golden years, ensuring stability and peace of mind. By planning ahead, you can not only protect yourself from unexpected challenges but also achieve your retirement goals and enjoy a fulfilling and worry-free life.\u003C/span>\u003C/p>","category":"/blog/advice"},{"title":"Everything You Need to Know About Life Insurance Death Benefits","heading":"Everything You Need to Know About Life Insurance Death Benefits","short_description":"\u003Cp>Death benefit insurance is an integral part of financial planning.\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/7.%20Everything%20You%20Need%20to%20Know%20About%20Life%20Insurance%20Death%20Benefits_0.webp?VersionId=j86ayIxSJJAPB0GNTbtG_6TYW.30t.4L","alt":"Things to know about life insurance death benefits"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-15T11:13:18","updated_on":"2024-11-15T11:13:23","read_more_title":"Know More","slug":"/everything-you-need-to-know-about-life-insurance-death-benefits","field_bl_tag":"\u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>, \u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>","description":"\u003Cp>Death benefit insurance is an integral part of financial planning. It's a life insurance product that serves as security on behalf of the policyholder with benefits to protect their loved ones. This blog takes you through everything you need to know about Life Insurance Death Benefits - read on to understand it completely and also how it works and how to make a claim, should the need arise.\u003C/p>\u003Ch2>\u003Cstrong>What Are Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Death benefit is a type of monetary compensation that is paid out to the beneficiary named in the policy, following the death of the insured. This financial support is meant to pass on economic value to loved ones in the absence of a key member of the family. It serves as a safety net because this brings a certain stability in a very uncertain period of life while coping with the loss of a loved one.\u003C/p>\u003Ch2>\u003Cstrong>How Do Life Insurance Death Benefits Work?\u003C/strong>\u003C/h2>\u003Cp>In case the policyholder passes away during the tenure of the insurance period, the insurance company processes the claim and pays the named beneficiary the death benefit. The amount paid out by the insurance company is based on the terms of the policy that may include other riders or endorsements.\u003C/p>\u003Cp>Life insurance policies are broadly classified into the following types, which include:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Term Life Insurance:\u003C/strong> Designed for offering death benefits over a specified tenure.\u003C/li>\u003Cli>\u003Cstrong>Whole Life Insurance:\u003C/strong> The policy pays out during the insured lifetime plus a cash value component.\u003C/li>\u003Cli>\u003Cstrong>Universal Life Insurance:\u003C/strong> The premium and death benefit can be varied by the policy owner.\u003C/li>\u003C/ul>\u003Cp>Having an understanding of how these policies work may provide you with insight into the right insurance policy for you.\u003C/p>\u003Ch3>\u003Cstrong>Types of Death Benefits\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Basic Death Benefit:\u003C/strong> The insured sum of money that is paid to the beneficiary; in other words the standard sum agreed upon and mentioned as the sum assured while the policy was purchased.\u003C/li>\u003Cli>\u003Cstrong>Accidental Death Benefit: \u003C/strong>The occurrence of death due to an accident, and an added benefit that would be given in case the death involved an accident. This is an extra financial security to cover a very unexpected and unusual circumstances of accidental death.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What is covered under death benefits?\u003C/strong>\u003C/h2>\u003Cp>Under normal circumstances, death benefits for life insurance usually cover:\u003C/p>\u003Cul>\u003Cli>Death caused by natural or natural causes, such as sickness.\u003C/li>\u003Cli>Accidental deaths, as described above.\u003C/li>\u003C/ul>\u003Cp>This benefit is the main protection secured through the policy. The policy is usually created with a sum in mind for this death benefit and that is usually a multiple or factor of the premium amount paid. The death benefit is the payout that will allow families to remain financially secure even in the event of the loss of one of their loved ones which is why the value of the policy should be calculated with care. \u003C/p>\u003Ch2>\u003Cstrong>What is Not Covered Under Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Despite the wide range of coverage that exists under death benefits, there are certain exclusions provided under it:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Suicide:\u003C/strong> Most policies do not pay the claim in case the insured commits suicide, within the stated term which is typically within the first two years.\u003C/li>\u003Cli>\u003Cstrong>Fraud: \u003C/strong>If the insurer realizes that the policy was acquired through deceit, then such a claim may be turned down.\u003C/li>\u003Cli>\u003Cstrong>Risky Activities:\u003C/strong> If the death results from extreme sporting activities or felonies, then the company might deny compensation.\u003C/li>\u003C/ul>\u003Cp>Understanding these exclusions leads to better understanding of how the death benefit claim works in a life insurance policy.\u003C/p>\u003Ch2>\u003Cstrong>Tax Saving Benefits on Death Benefits\u003C/strong>\u003C/h2>\u003Cp>While one purchases life insurance for the protection, the investment in this plan also comes with some tax breaks. Life insurance death benefits are typically not taxed especially if it is within the norms of premium to sum assured multiple. Usually, the proceeds paid out are not taxed in the hands of the beneficiary, thereby providing a tax-efficient means to pass along that wealth to the beneficiaries.\u003C/p>\u003Cp>However, there are some exceptions. It is generally prudent to run these details by a financial advisor or tax professional to understand their implications in your particular situation.\u003C/p>\u003Ch2>\u003Cstrong>How Does the Death Benefits Pay-Out Work?\u003C/strong>\u003C/h2>\u003Cp>The pay-out process for life insurance death benefits is straightforward:\u003C/p>\u003Ch3>\u003Cstrong>1. Notice:\u003C/strong>\u003C/h3>\u003Cp>The beneficiaries must notify the insurance company of the death of the policyholder.\u003C/p>\u003Ch3>\u003Cstrong>2. Documentation:\u003C/strong>\u003C/h3>\u003Cp>The claim intimation must also include official death certificates issued by local authority, along with required identity proofs of the beneficiary along with the policy document. Additional affidavits or documentation may be sought based on the specific policy / details and a detailed checklist from the company is readily available to guide the family with a complete submission. \u003C/p>\u003Ch3>\u003Cstrong>3. Examining the Claim:\u003C/strong>\u003C/h3>\u003Cp>The insurance company will then examine the claim based on the provided documentation, matched with the pre-existing terms of the policy. \u003C/p>\u003Ch3>\u003Cstrong>4. Payment:\u003C/strong>\u003C/h3>\u003Cp>Once examined, the process goes through the next stage, which is claim settlement. The beneficiary will receive the death benefit payout direct to the registered bank account of the named beneficiaries.\u003C/p>\u003Ch2>\u003Cstrong>How to Claim Life Insurance Death Benefits\u003C/strong>\u003C/h2>\u003Cp>Claiming death benefits against life insurance may seem daunting, but it need not be. One can ensure the following steps are taken so that should the need arise, the loved ones and beneficiaries have ready access to the documents they need\u003C/p>\u003Cp>\u003Cstrong>1. Policy Copy: \u003C/strong>Kindly provide a copy of the life insurance policy document.\u003C/p>\u003Cp>\u003Cstrong>2. Notify the Insurer:\u003C/strong> The insurance company should be notified promptly about the death.\u003C/p>\u003Cp>\u003Cstrong>3. Provide These Documents: \u003C/strong>Collect all the documents required, including a death certificate, policy number, and identification.\u003C/p>\u003Cp>\u003Cstrong>4. Fill Out Claim Forms:\u003C/strong> Most providers will have you fill out a claim form.\u003C/p>\u003Cp>\u003Cstrong>5. Send Claim: \u003C/strong>Send the completed form, and any other information the provider may require, to the insurer.\u003C/p>\u003Cp>\u003Cstrong>6. Ask: \u003C/strong>Keep in touch with the insurer to confirm that your claim is being worked on.\u003C/p>\u003Cp>In case of doubt, the customer care team can provide you with the required guidance.\u003C/p>\u003Ch2>\u003Cstrong>Choosing the right Life Insurance Policy\u003C/strong>\u003C/h2>\u003Cp>Choose the right kind of life insurance coverage to ensure that your loved ones are covered well. For this, consider the following:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Assess Your Needs-\u003C/strong> Look at your family's current financial position and potential future requirements. On the website one can find useful tools to evaluate the human life value or income replacement value - these are guidelines to understand how much life insurance coverage one should ideally take in the policy. The death benefit is a direct outcome of this number in the policy. \u003C/li>\u003Cli>\u003Cstrong>Compare Different Plans\u003C/strong>- Compare a few product plans such as \u003Ca href=\"https://www.shriramlife.com/life-insurance/assured-income-plan\" target=\"_blank\">\u003Cspan>Assured Income Plan\u003C/span>\u003C/a>, \u003Ca href=\"https://www.shriramlife.com/life-insurance/early-cash-plan\" target=\"_blank\">Early Cash Plan\u003C/a>, or \u003Ca href=\"https://www.shriramlife.com/life-insurance/premier-assured-benefit-plan\" target=\"_blank\">Premier Assured Benefit\u003C/a> and choose one for your own purpose\u003Cstrong>.\u003C/strong>\u003C/li>\u003Cli>\u003Cstrong>Consider Additional Riders\u003C/strong>- Some optional riders, such as an accidental death benefit, can give you added strengthening to your coverage.\u003C/li>\u003Cli>\u003Cstrong>Find a Financial Advisor\u003C/strong>- A professional advisor can guide you on the right approach, explain the various plan options and help you match the right plan to your financial goals and affordability.\u003Cbr /> \u003C/li>\u003C/ol>","category":"/blog/advice"},{"title":"Understanding Surrender Value in Life Insurance","heading":"Understanding Surrender Value in Life Insurance","short_description":"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receiv\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/45.%20Understanding%20Surrender%20Value%20in%20Life%20Insurance_0.png?VersionId=GlrBVmYgMpZCTcHGdqB5KOSMdKUWCNBm","alt":"Understanding Surrender Value in Life Insurance"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-06T12:13:35","updated_on":"2024-11-06T12:13:39","read_more_title":"Know More","slug":"/understanding-surrender-value-in-life-insurance","field_bl_tag":"\u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>, \u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>","description":"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receive when he or she cancels his or her insurance policy before it reaches the end of its maturity period.\u003Cbr />In simpler terms, surrender value refers to the amount of money that the policyholder shall receive at the time of cancellation of the insurance policy.\u003C/p>\u003Cp>This article will dive into what surrender value entails, how surrender values are calculated, and what financial effects come with surrendering a policy.\u003C/p>\u003Ch2>\u003Cstrong>What is Surrender Value and Why Does it Matter?\u003C/strong>\u003C/h2>\u003Cp>Surrender value is of utmost importance to policyholders to make a sound financial decision about their respective insurance policies irrespective of whether they are starting one or choosing to close one before maturity.\u003C/p>\u003Ch3>\u003Cstrong>Here’s why it is important:\u003C/strong>\u003C/h3>\u003Ch4>1. Liquidity:\u003C/h4>\u003Cp>The knowledge of surrender value indicates the extent of liquidity from the policy proceeds that would become available to the policyholder if the policy is prematurely cancelled. In some instances, policyholders might consider the sum received as immediate financial aid in case of emergencies.\u003C/p>\u003Ch4>2. Knowing about the value of the policy:\u003C/h4>\u003Cp>In case you need to liquidate a policy early, it's essential to understand the value of the policy at that point since closing the policy would mean it does not continue for the original duration with the original benefits. Knowing the surrender value is hence essential to making a financially informed decision.\u003C/p>\u003Ch4>3. Impact on Financial Planning:\u003C/h4>\u003Cp>It impacts long-term financial planning and retirement strategies if the policy is designed to be part of a large investment plan.\u003C/p>\u003Ch2>\u003Cstrong>What are the Types of Surrender Values?\u003C/strong>\u003C/h2>\u003Cp>Insurance policies can provide an array of surrender values based on the terms and conditions of the policies. These can be summarized with the help of the following key types:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Guaranteed Surrender Value (GSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is the minimum amount a policyholder will receive on surrendering the policy, which can be claimed subject to certain terms and conditions. The GSV is usually calculated as a percentage of the total amounts paid as premiums, minus all applicable charges.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>If you have a life insurance policy for which the GSV is 30%, and you have paid ₹1,00,000 on premiums, your guaranteed surrender value would be ₹30,000, subject to any other deductions applicable on the premium paid.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Special Surrender Value (SSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is a benefit provided by certain policies wherein a higher surrender value is offered beyond the GSV. SSV is usually a higher value than the GSV, and its payment is typically made subject to specific terms and conditions. Special Surrender Value is more than GSV and is at the discretion of the insurance company based on specific plan details. This is also calculated based on the performance of the funds that the policy is invested in along with with bonus or interest earned until that time.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>For the same example mentioned in GSV, if the insurance company is providing an SSV of 40%, the special surrender value will be ₹ 40,000.\u003C/p>\u003Ch2>\u003Cstrong>How is the Surrender Value Calculated?\u003C/strong>\u003C/h2>\u003Cp>Surrender value calculation depends on some factors:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Premiums Paid:\u003C/strong> Amount of premiums paid to the policy.\u003C/li>\u003Cli>\u003Cstrong>Policy Term:\u003C/strong> The period for which your term insurance policy will remain active, this is selected and fixed at the time of purchasing the plan.\u003C/li>\u003Cli>\u003Cstrong>Bonuses or Interest:\u003C/strong> If there are bonuses or interest that are included in the policy that one is eligible for at the time of surrender of the policy. \u003C/li>\u003Cli>\u003Cstrong>Deductions:\u003C/strong> Surrender charges or penalty if any charged by the insurance company on the policy value due to pre-closure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Do All Life Insurance Policies Offer Surrender Value If You Cancel?\u003C/strong>\u003C/h2>\u003Cp>No, not all policies have a surrender value upon cancellation. The policy surrender value depends upon the kind of insurance policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Permanent Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Most permanent forms of life insurance like whole life or end policies carry a surrender value. Such policies normally accumulate some cash value over time, which may be accessed if the policyholder decides to surrender the policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Term Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Term policies usually do not have a surrender value. Term insurance policies pay through a term and cannot earn cash value. Hence, surrendering a term policy usually brings no monetary benefit.\u003C/p>\u003Ch2>\u003Cstrong>When Does Surrender Value Become Available?\u003C/strong>\u003C/h2>\u003Cp>Surrender value becomes available usually after a certain period, referred to as the \"lock-in period,\" in which the policy cannot be surrendered. This varies from one policy to another but is typically in a time frame between 1 to 3 years.\u003C/p>\u003Cp>\u003Cstrong>Example:\u003C/strong> If the lock-in period in your policy is 2 years, it means that you will have access to the surrender value only after 2 years from the policy commencement.\u003C/p>\u003Ch2>\u003Cstrong>Financial Impact of Surrendering Your Policy\u003C/strong>\u003C/h2>\u003Cp>When you prematurely cancel or close your policy, you may incur some loss in value in relation to the originally planned maturity value. The surrender value indicates to you the exact gap between original plan value and the sum you would receive on premature closure. \u003C/p>\u003Ch3>\u003Cstrong>Pros (Short-term Benefits)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Flexibility: \u003C/strong>Surrender Value brings in an element of flexibility to life insurance. One can be assured that in case circumstances change and one has to end the plan, there is some surrender value to get in hand even if plan does not continue as originally planned.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Cons (Long-term Drawbacks)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Loss Coverage: \u003C/strong>You give up the insurance coverage during surrender which means you lose the originally intended coverage.\u003C/li>\u003Cli>\u003Cstrong>Potential Loss in Return Value:\u003C/strong> It is possible, based on the plan and investment growth that the surrender value might be lesser than the sum or cumulative amounts one would have paid for the premium until then. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Why Do People Stop Paying For Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Here are some reasons to make one surrender their policy: \u003C/p>\u003Col>\u003Cli>\u003Cstrong>Financial Need: \u003C/strong>Inability to pay the premium because of emergency expenses or loss of a source of income.\u003C/li>\u003Cli>\u003Cstrong>Policy Dissatisfaction:\u003C/strong> The policy does not meet the changing needs or expectations.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What happens if the policyholder stops paying the plan’s premium amount?\u003C/strong>\u003C/h2>\u003Cp>When you stop paying for your life insurance:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Grace Period:\u003C/strong> Most policies have a grace period (typically 30 days) during which you can still pay overdue premiums without losing coverage.\u003C/li>\u003Cli>\u003Cstrong>Policy Lapse: \u003C/strong>If you do not pay premiums in time, then the policy would lapse. This means that the coverage and benefits from the plan would end. Based on the plan, you would only get a partial amount as surrender value is available.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What to Know About Taxes and Surrendered Policies?\u003C/strong>\u003C/h2>\u003Cp>Tax Consequences of Surrendering an Insurance Policy\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Taxable Income: \u003C/strong>The amount you receive in a surrender value may be taxable based on the kind of policy and its value.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefit: \u003C/strong>Policy premiums are generally tax-deductible; when a plan is cancelled you would not pay future premiums and must consider the change in your taxable income due to this and seek suitable alternatives for tax planning. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Tips to Using Surrender Value Effectively\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Needs to be Evaluated:\u003C/strong> Consider the present financial needs and future objectives before surrendering.\u003C/li>\u003Cli>\u003Cstrong>Seek a Financial Advisor:\u003C/strong> To know how it affects you financially and possibly measure alternatives.\u003C/li>\u003Cli>\u003Cstrong>Alternatives:\u003C/strong> Consider the option of taking a loan against the cash value or getting the policy converted into reduced paid-up insurance.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Making the Right Choice: Factors to Consider Before Surrendering\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Current Financial Situation:\u003C/strong> Weigh your short-term and long-term financial needs.\u003C/li>\u003Cli>\u003Cstrong>Policy Value:\u003C/strong> Calculate the surrender value in relation to the value that the policy would likely provide if left untouched until maturity or end of the plan period. \u003C/li>\u003Cli>\u003Cstrong>Alternatives: \u003C/strong>Explore alternative options for cash requirements if not through the surrender value. For example, some plans may allow you to draw an OD or loan against the fund value or policy amount. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>When is the Right Time to Surrender Your Policy?\u003C/strong>\u003C/h2>\u003Cp>You must surrender your policy in the following scenarios:\u003C/p>\u003Col>\u003Cli>When requiring immediate financial assistance.\u003C/li>\u003Cli>The policy does not match your requirements due to revised financial goals.\u003C/li>\u003Cli>Identification of better alternatives in the form of investment plans or insurance policies that provide better returns or coverage, respectively.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Beyond Surrender: Options to Consider\u003C/strong>\u003C/h3>\u003Cp>If you decide you want to cancel your policy, there are a few options:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>You can borrow against the cash value: \u003C/strong>That way, you'll be able to access the funds without having to give up the policy.\u003C/li>\u003Cli>\u003Cstrong>Reduced Paid-Up Insurance: \u003C/strong>This will result in having your insurance policy change to the extent of premiums paid-up until this point, which means a drop in the benefit value. The advantage however is that you don’t have to pay a premium anymore, reducing the ongoing and future commitment if that is causing a concern and there is no urgent need or alternative investment option for the funds.\u003C/li>\u003Cli>\u003Cstrong>Converting to term insurance:\u003C/strong> You can use your policy as the basis for a new term life insurance plan, but based on the decreased premiums and reduced amount of death coverage.\u003C/li>\u003Cli>\u003Cstrong>Partial Withdrawal:\u003C/strong> Some policies even permit for partial withdrawal from the cash value, allowing the plan to stay in force even with some reduction in coverage or benefits. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>The attempt to surrender value as the solution can only solve your need if there is a clear understanding of the feature. It is only to be considered in case of a financial crunch or while re-evaluating the present insurance needs after exhausting other alternatives. It will help you make the best decision based on your situation and needs in an informed manner.\u003C/p>\u003Cp>Consider seeking a financial advisor's opinion before making your final decision, as they should be able to clarify any implications and potential alternatives that better align with your long-term objectives.\u003C/p>\u003Cp>Shriram Life Insurance provides a wide range of Life Insurance Policies to suit different financial goals of individuals. By ensuring financial stability and peace of mind, \u003Ca href=\"https://www.shriramlife.com/life-insurance\" target=\"_blank\">Shriram Life Insurance plans\u003C/a> help people navigate their financial milestones and manage their risks with confidence.\u003C/p>\u003Cp>For more information on insurance plans, visit our pages on \u003Ca href=\"https://www.shriramlife.com/life-insurance/retirement-plan\" target=\"_blank\">Retirement Plans\u003C/a>, \u003Ca href=\"https://www.shriramlife.com/life-insurance/savings-plan\" target=\"_blank\">Savings Plans\u003C/a>, and \u003Ca href=\"https://www.shriramlife.com/life-insurance/protection-plan\" target=\"_blank\">Protection Plans\u003C/a>.\u003C/p>","category":"/blog/advice"},{"title":"Step-by-Step Guide: EPF Pension Contribution Withdrawal","heading":"Step-by-Step Guide: EPF Pension Contribution Withdrawal","short_description":"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a soun\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/49.%20Step-by-Step%20Guide_%20EPF%20Pension%20Contribution%20Withdrawal_0.png?VersionId=FCP9JpnbQFxJ.VVR1sxzlmroHVVZkIeg","alt":"Process of EPF Withdrawal"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-05T11:13:01","updated_on":"2024-11-05T11:13:08","read_more_title":"Know More","slug":"/step-by-step-guide-epf-pension-contribution-withdrawal","field_bl_tag":"\u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>, \u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>","description":"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a sound financial investment as it is run under government supervision. The EPF, also popularly called PF, is a way to accumulate long-term savings for employees during their years of service or employment, and it is a way to provide financial security as a part of their retirement settlement. The savings add-up through the years of work experience and the funds thus accumulated, along with the earned interest are then available to be withdrawn on or before retirement.\u003C/p>\u003Cp>For many people, the EPF funds are a big part of their retirement funds and lifetime savings. By learning about the withdrawal of one’s EPF pension amount, one can be better equipped to utilize it as an effective savings vehicle for various financial goals.\u003C/p>\u003Cp>Understanding the process of withdrawal from EPF is a key aspect of financial literacy in India, especially if it forms a large part of your savings. In this guide, we take you through the process of withdrawing your EPF amount, including the different modes of withdrawal, both online and offline. We also cover crucial aspects, such as eligibility, documents, and tax implications of EPF contributions.\u003C/p>\u003Ch2>\u003Cstrong>What is the Employee Pension Scheme (EPS) and how does it work?\u003C/strong>\u003C/h2>\u003Cp>EPS is an integral part of the Employees Provident Fund that provides pensions to employees from the time of retirement or disability. This scheme ensures that a proportion of your EPF contributions both from you and your employer are credited to the EPS account. The basic objective of EPS is to stabilize the income after the retirement of an employee.\u003C/p>\u003Ch3>\u003Cstrong>Working of EPS:\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>- Contribution:\u003C/strong> A part of the contribution from the employer and employee gets credited into the EPF account with a percentage towards EPS.\u003C/p>\u003Cp>\u003Cstrong>- Accrual: \u003C/strong>Pension is subject to the number of years of service in addition to your basic salary. The higher the years of service, the better the pension drawn after retirement from service.\u003C/p>\u003Cp>\u003Cstrong>- Pension Payment: \u003C/strong>After spending 10 years of service or after attaining the age of 58 years, you become eligible for availing the pension monthly from EPS.\u003C/p>\u003Ch2>\u003Cstrong>When Can You Withdraw Your Pension Contribution?\u003C/strong>\u003C/h2>\u003Cp>The withdrawal of pension contributions depends entirely on the circumstances of each individual. Here are different case examples for when one might need to withdraw:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Early Withdrawal\u003C/strong>\u003C/h3>\u003Cp>Early withdrawals are well suited in case of emergencies that demand immediate financial support. In these scenarios, one is allowed to withdraw the EPS amount before the completion of the standard service period.\u003C/p>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>Here is an easy-to-understand example: \u003C/strong>\u003C/p>\u003Cp>Lekha aged 45 years old has been working for 5 years. Right now, she is exploring different sources of financial support to pay for a medical condition. In this instance, an early EPF withdrawal is an option she can consider. However, she must also verify if doing so will affect her pension benefits and whether it will attract taxes.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Full Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Full withdrawal from EPF is normally applicable at retirement or when leaving a job after having served a considerable period. For example, Manoj aged 58 years has had 10 years of service in an organization and can look at a full withdrawal of his EPF balance.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Partial Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>The partial withdrawal option is most appropriate for someone who is retiring or nearing the end of a serving period or is moving onto a new career phase. It can provide timely financial support during medical emergencies, education expenses, or while purchasing a larger asset such as a home.\u003C/p>\u003Cp>For example, Ashok aged 35 years old requires immediate financial assistance to fund his child’s education. In this case, Ashok can opt for a partial withdrawal of his EPF amount; the amount withdrawn depends on the objective and your EPF balance.\u003C/p>\u003Ch2>\u003Cstrong>How Much Can You Withdraw from Your EPF Account?\u003C/strong>\u003C/h2>\u003Cp>Depending on the kind of withdrawal and the period of service, you can make a complete or partial withdrawal from your account. Here is how it works:\u003C/p>\u003Cp>\u003Cstrong>- Full Withdrawal:\u003C/strong> The option of withdrawing the entire amount of EPF balance with contributions and interest, becomes applicable when one retires or leaves a job.\u003Cbr />\u003Cstrong>- Partial Withdrawal: \u003C/strong>Partial withdrawals, done for specific purposes, are subject to EPF regulations and balance in the PF account of the holder.\u003C/p>\u003Ch2>\u003Cstrong>Documents Required for EPF Pension Contribution Withdrawal\u003C/strong>\u003C/h2>\u003Cp>Here is a list of documents that are required for the process of withdrawal of EPF pension contribution:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>EPF Account Number:\u003C/strong> A 22-digit alphanumeric number that is assigned to the employee at the time of joining the organization.\u003C/li>\u003Cli>\u003Cstrong>Aadhaar Card: \u003C/strong>Required to verify identity as well as its linkage with the respective EPF account. \u003C/li>\u003Cli>\u003Cstrong>PAN Card: \u003C/strong>For income tax purposes\u003C/li>\u003Cli>\u003Cstrong>Details of the bank account: \u003C/strong>To where the withdrawn amount gets credited.\u003C/li>\u003Cli>\u003Cstrong>Form 19 and 10C: \u003C/strong>Required for withdrawal filled with all the necessary details.\u003C/li>\u003Cli>\u003Cstrong>Proof of Employment: \u003C/strong>To confirm the service period.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Eligibility Criteria for EPF Withdrawal\u003C/strong>\u003C/h2>\u003Cp>You can withdraw EPF amounts after completing 58 years of retirement.\u003Cbr />But, there are a few rules specifying the eligibility criteria to withdraw EPF:\u003C/p>\u003Cp>\u003Cstrong>- Service Period: \u003C/strong>In general, you should have a minimum of 5 years of service.\u003C/p>\u003Cp>\u003Cstrong>- Change of Job: \u003C/strong>You can withdraw the EPF amount if you are changing your job or you wish to discontinue the EPF account.\u003Cbr /> \u003C/p>\u003Ch2>\u003Cstrong>EPF Pension Withdrawal Online Process\u003C/strong>\u003C/h2>\u003Cp>How to withdraw the EPF amount online:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Login on the EPFO Portal\u003C/strong>\u003Cbr />Activate your login at the EPFO portal with a UAN number.\u003C/li>\u003Cli>\u003Cstrong>Step 2: KYC Details Shall be Verified\u003C/strong>\u003Cbr />Ensure that your KYC details are in sync. This should include Aadhaar, PAN details and details of the bank account which is in your name.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Choose the 'Online Services'\u003C/strong>\u003Cbr />To the 'Online Services' tab click on 'Claim (Form-31, 19 & 10C)'.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Fill the details\u003C/strong>\u003Cbr />Fill up your information including your EPF account number, the purpose of withdrawal, and the amount to be withdrawn.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Submit Claim\u003C/strong>\u003Cbr />Check the details once again, then submit it. You will get a claim ID that may track the claim.\u003C/li>\u003Cli>\u003Cstrong>Step 6: Approval and transfer\u003C/strong>\u003Cbr />Once the EPF is processed and approved, it will be directly transferred to your bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Offline EPF Withdrawal Procedure\u003C/strong>\u003C/h2>\u003Cp>To initiate an offline EPF withdrawal, follow this procedure.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Collect Forms\u003C/strong>\u003Cbr />You can collect Form 19 and Form 10C from EPFO or simply download them from the official website of EPFO.\u003C/li>\u003Cli>\u003Cstrong>Step 2: How to Fill the Forms\u003C/strong>\u003Cbr />You would need to fill in all the fields in the forms and ensure to mention the correct EPF account, reason for withdrawal and all other personal details.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Attach Documents\u003C/strong>\u003Cbr />Keep at hand and include documents like your Aadhaar card, PAN card, and details of your bank account that are linked to your PF account. This is where the credit of proceeds will be done.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Form Submission\u003C/strong>\u003Cbr />Submit the complete form with attachments to your regional EPFO office.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Processing\u003C/strong>\u003Cbr />The EPFO will process your request and deposit/credit the amount of the PF withdrawal in your linked/authorized bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What Should You Do if Your Application for EPF Withdrawal Gets Rejected?\u003C/strong>\u003C/h2>\u003Cp>If your EPF withdrawal application gets rejected, you should do the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Review Rejection Reason: \u003C/strong>Check the reason for rejection that EPFO has communicated to you.\u003C/li>\u003Cli>\u003Cstrong>Correct Errors: \u003C/strong>Check for incomplete discrepancies in the forms and correct them on the application.\u003C/li>\u003Cli>\u003Cstrong>Resubmit: \u003C/strong>Resubmit your application with accurate details.\u003C/li>\u003Cli>\u003Cstrong>Call EPFO: \u003C/strong>You may get additional support from the call centre or at the office as well.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to check the status of my EPF withdrawal request?\u003C/strong>\u003C/h2>\u003Cp>To find the status of your EPF amount withdrawal request, you can do the following: \u003C/p>\u003Cp>\u003Cstrong>- EPFO Portal: \u003C/strong>Access the EPFO portal with your UAN and see if your claim status is available in the 'Online Services' section.\u003Cbr />\u003Cstrong>- SMS Services: \u003C/strong>EPFO SMS services can be accessed by sending an SMS containing your UAN and claim ID to the given number.\u003Cbr />\u003Cstrong>- Contact EPFO: \u003C/strong>If there are updates, then the service can be taken from the related EPFO office.\u003C/p>\u003Ch2>\u003Cstrong>Tax Implications of EPF Withdrawals\u003C/strong>\u003C/h2>\u003Cp>The tax implications of EPF withdrawals need to be known beforehand so that there is no surprise element later on. \u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Taxation Rules\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>- Before Completion of 5 Years of Service:\u003C/strong> In case a withdrawal is made before completion of 5 years of service, then the amount is taxable.\u003C/p>\u003Cp>\u003Cstrong>- Withdrawals beyond 5 years: \u003C/strong>Most of the time, the withdrawals after 5 years are tax-exempt.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Tax Benefits and Exemptions\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>As per Section 10(12) of the Income Tax Act, withdrawals of EPF are entirely tax-free if the contributions made towards EPF are filed under Section 80C, Income Tax Act\u003C/p>\u003Ch2>\u003Cstrong>Recent Changes and Updates to EPF Withdrawal Rules You Should Know:\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Improved Online Facilities: \u003C/strong>\u003C/h3>\u003Cp>Improved online facilities allow easier withdrawal of EPF.\u003C/p>\u003Ch3>\u003Cstrong>Retiring Age: \u003C/strong>\u003C/h3>\u003Cp>Updating of the retiring age of an employee to withdraw his/her EPF.\u003C/p>\u003Ch3>\u003Cstrong>Tax Exemption Limits Revised:\u003C/strong>\u003C/h3>\u003Cp>Updating of tax exemption policies and limits.\u003C/p>\u003Cp>Knowing the process of withdrawal of EPF may make all the difference in proper financial management. Whether you want to withdraw your EPF pension contribution online or offline, there are certain rules, eligibility criteria, and necessary documents that will help you face fewer hassles during withdrawal. This will also enable you to keep updating yourself regarding the latest EPFO PF withdrawal rules and changes for informed decision-making about your EPF contributions.\u003C/p>\u003Cp>\u003Cbr />For more information on taxation rules for pensions, withdrawing your pension money quickly, NPS and PPF for retirement, PRAN number, Pension Payment Order, and Voluntary Retirement Scheme check out our blog pages for comprehensive insights.\u003C/p>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/\" target=\"_blank\">Shriram Life Insurance\u003C/a> provides a range of \u003Ca href=\"https://www.shriramlife.com/life-insurance/\" target=\"_blank\">life insurance products\u003C/a> to enable individuals to manage their risks better and also save up funds towards their financial goals. It encourages people to be responsible about financial planning and creating a portfolio of investments that will serve their long-term needs while protecting them from uncertainty of life.\u003C/p>","category":"/blog/advice"},{"title":"Understanding the Taxation Rules for Pensions: A Comprehensive Guide","heading":"Understanding the Taxation Rules for Pensions: A Comprehensive Guide","short_description":"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibil\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-11/48.%20Understanding%20the%20Taxation%20Rules%20for%20Pensions_%20A%20Comprehensive%20Guide_0.png?VersionId=0Lw.1kBm0yhm3x.eFFHSD4TPdHKZ.g6U","alt":"Taxation rules for pensioners"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-11-04T10:32:04","updated_on":"2024-11-04T10:32:10","read_more_title":"Know More","slug":"/understanding-the-taxation-rules-for-pensions","field_bl_tag":"\u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>, \u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>","description":"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibilities. Popularly referred to as the golden years, retirement planning takes a fair bit of planning in terms of financial responsibility. Understanding the \u003Ca href=\"https://www.shriramlife.com/income-tax-calculator\" target=\"_blank\">Tax on Pension Income\u003C/a> is one area that requires clarity and accurate information.\u003C/p>\u003Cp>Proper planning for retirement involves responsible management of savings and investments. This typically demands knowledge of various investment options and also their taxation rules. One such area of knowledge is about Pension Tax Rules, which dictate the taxation of one’s pension income. Awareness about tax implications is critical to optimizing one’s financial position and ensuring that you get all the Pension Tax Benefits.\u003C/p>\u003Cp>In India, specific rules and exemptions govern the taxability of pension income and this is also linked to each person’s income slab and tax liability. Staying well-informed of these slabs can prevent unexpected tax liabilities and help individuals make appropriate financial decisions. In this guide, we explain Tax on Pension Income, clarify the finer aspects of commuted versus uncommuted pensions, and provide some practical advice on reporting and minimization of Tax on Retirement Income.\u003C/p>\u003Ch2>\u003Cstrong>Is Pension Taxable?\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Overview of Taxability\u003C/strong>\u003C/h3>\u003Cp>In India, the Tax on Pension Income is the same as that on regular income sources. Pension income is taxed depending on the total retirement income. These retirement incomes fall under different slabs, and as your retirement income grows, so does the rate of taxation. The details of how Pension Tax Rules become applicable can change with the kind of pension you receive and the exemptions you may qualify for.\u003Cbr />Income Tax Slabs\u003C/p>\u003Cp>Pension income is taxed according to the income tax slabs as introduced by the Income Tax Department. For the financial year 2024-25, these are as follows:\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/span>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rate (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,001 to 7,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 7,00,001 to 10,00,000\u003C/td>\u003Ctd>10\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 to 12,00,000\u003C/td>\u003Ctd>15\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 12,00,001 to 15,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 15,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">For senior citizens, who are 60 years but less than 80 years:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\"2\">\u003Cem>\u003Cstrong>Income tax slabs for senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,000 to 5,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 5,00,001 to 10,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">For super senior citizens, who are 80 years or more:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\"2\">\u003Cem>\u003Cstrong>Income tax slabs for super senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">From 0 to 5,00,000\u003C/span>\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">From 5,00,001 to 10,00,000\u003C/span>\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">From 10,00,001 and above\u003C/span>\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">These slabs guide how the Tax on Pension Income would be calculated on the monthly pension income of the individual.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Exemptions\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Deductions under Section 80C, 80 DDB, 80 TTB, and 80 D can help reduce the tax burden on pension income. Pensioners can claim a tax exemption of up to Rs. 1.5 lakh under Section 80C of the IT Act. When aged 60 years or more, exemptions of Rs. 2 lakhs can be claimed under various heads.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Commuted And Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Commuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">A commuted pension is a one-time amount paid as a trade-off for part of one’s annuity pension. A commuted pension is useful to an individual who requires a lump sum amount to begin with, while the remaining balance of the pension gets credited to them every month periodically. To plan for your retirement, it pays to understand how this will impact your Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Commuted pension taxability varies from one employee to another. If you are a government employee, the entirety of your commuted pension is exempt from tax. However, for those employees retiring from the private sector and not government roles, the commuted pension is exempt up to one-third of the total pension amount.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Practical Example\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Consider an employee whose monthly pension is ₹50,000, who wants to commute half of it and receive ₹6,00,000 as a lump sum, of which the amount up to ₹2,00,000 might be exempted. The balance of ₹4,00,000 might be taxable under particular rules and conditions prevailing at the time of taking that benefit.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Uncommuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">An uncommuted pension is that portion of your pension that you receive regularly without any commuted lump sum. As an element of your pension flow, which is considered as income, the question of how it impacts Tax on Retirement Income becomes a point to consider while planning for your retirement.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Taxes are levied on the entirety of an uncommuted pension. Compared to commuted pensions, uncommuted pensions do not benefit from exemptions.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Commuted and Uncommuted Pension Income Taxability\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Commuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Exemption Criteria\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">For government employees, the commuted pension is fully exempt from tax. For non-government employees, the exemption goes to one-third of the commuted amount, if received in a lump sum. The excess amount is then subjected to Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Taxable Portion\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">If the commuted amount exceeds the exempt limit, then the excess amount will be taxable. For instance, if the exemption limit is ₹2,00,000 and the commuted amount is ₹6,00,000, then ₹4,00,000 will be taxable.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Full Taxation\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">The whole of the uncommuted pension is liable to tax. One may add it to their total income and compute tax based on the income tax slabs of the latest regime.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Possible Deductions\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">Whereas an uncommuted pension is fully taxable, other sources or investments might permit claimable deductions that can reduce the overall tax liability. This is, therefore, one of the key aspects of Retirement Planning.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Which Head of Income Should Pension Income be Disclosed Under?\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Income from Salary\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Primary Reporting Head:\u003C/strong> Pension income is usually accounted for under the \"Income from Salary\" head in your tax return as pensions are a sort of deferred salary.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Integration with Other Income:\u003C/strong> If you have other forms of income besides your pension, such as salary and/or investments, you have to add these amounts in with your pension income at least in terms of reporting income. It's just the sum of these incomes which forms the basis for how much you'll really pay in taxes.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Specific Situations:\u003C/strong> International organizations and other non-resident status pensions may have different reporting requirements. Again, such knowledge of the specific rules will help in proper reporting and compliance.\u003C/span>\u003C/p>\u003Ch2>\u003Cstrong>How to Report Pension Income and Employer Details in the Income Tax Return\u003C/strong>\u003C/h2>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Form Selection\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Correct Forms: \u003C/strong>Report pension income using the appropriate income tax return forms. Most people can use forms like ITR-1 or ITR-2. The choice of form will depend on your other sources of income and such deductions.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Reporting Details\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Income Reporting: \u003C/strong>In the \"Income from Salary\" section of your tax return, report your gross pension income. Make sure all pension payments are reflected and TDS deducted is also reported.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Employer Details:\u003C/strong> Provide your last employer’s or pension authority’s details in your tax return. This will be verified for your source of pension income and, hence, is considered for the correct computation of tax.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>TDS Reporting\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Tax Deducted at Source: \u003C/strong>In case TDS has been deducted from your pension income, ensure to provide this information under appropriate sections of the tax return. The amount of TDS should remain the same as mentioned in the TDS certificate issued to you by your pension authority.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>New Tax Return Regulations for Senior Pensioners\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Recent Updates\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>New Provisions: \u003C/strong>New tax return rules may include new elevation of exemption limits and extra benefits for elderly pensioners. Such revised directions are being given to reduce the tax on pension income for pensioners and make retirement planning more favorable.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Benefits:\u003C/strong> New rules may introduce enhanced exemption limits, increased deductions and specific relief measures for pensioners retired thereafter. Keeping up-to-date with these changes enables you to fine-tune your tax planning strategy to achieve maximum Pension Tax Benefits.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Compliance Tips\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\"EN-IN\" lang=\"EN-IN\">\u003Cstrong>Filing Changes: \u003C/strong>Know about any changes in compliance requirements or tax return filing process of senior pensioners. News on new forms, documents required and procedures help in avoiding penalties and being compliant.\u003C/span>\u003C/p>","category":"/blog/advice"},{"title":"What are the best insurance policies for senior citizens?","heading":"Insurance Policies for Senior Citizens: A Comprehensive Guide","short_description":"\u003Cp>As the saying goes, health is wealth.\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-10/47.%20What%20are%20the%20best%20insurance%20policies%20for%20senior%20citizens__0.png?VersionId=TtIbOMwKuDB1aTVKdYvM.BlwpaBL4s1i","alt":"Insurance policy for seniors"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-10-30T07:17:56","updated_on":"2024-10-30T07:18:02","read_more_title":"Know More","slug":"/what-are-the-best-insurance-policies-for-senior-citizens","field_bl_tag":"\u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>, \u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>, \u003Ca href=\"/blog/guides/retirement\" hreflang=\"en\">Retirement\u003C/a>","description":"\u003Cp>As the saying goes, health is wealth. With improved health support, advanced medicine, and suitable lifestyle changes, many more people can be expected to live longer. Sustaining long sunset years will need wealth to support one’s expenses and lifestyle needs. While many plan their retirement years and savings decades ahead, for some others, it is possible to do so only after all family commitments are settled.\u003C/p>\u003Cp>For those who are already senior citizens and looking at sustainable options to secure their retirement years, the importance of insurance increases manifold. From supporting health expenses to financial security to being able to live comfortably, insurance plans provide some benefits that are specific to seniors.\u003C/p>\u003Cp>In this all-inclusive guide, we discuss the \u003Ca href=\"https://www.shriramlife.com/life-insurance/retirement-plan\" target=\"_blank\">most-suited insurance policies for senior citizens\u003C/a>. We also cover general tips on how to pick the right policy given one’s circumstances, along with an overview of India's insurance arena.\u003C/p>\u003Ch2>\u003Cstrong>Understanding Insurance Needs for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>The choice of insurance for senior citizens varies based on the specific circumstances. There are different types of insurance to consider based on these needs. The most common needs for senior citizens are:\u003C/p>\u003Ch3>\u003Cstrong>1. Health Insurance:\u003C/strong>\u003C/h3>\u003Cp>With ageing, the susceptibility to disease and health risks increases. Health insurance provides financial support for health expenses that may increase during senior years. This is especially important for senior citizens so that their retirement funds or lifetime savings are not affected by unexpected health expenses. It is important to be able to comfortably afford the best healthcare in case one faces some critical illness or health setback in one’s later years.\u003C/p>\u003Ch3>\u003Cstrong>2. Income Replacement:\u003C/strong>\u003C/h3>\u003Cp>Once retired, regular income stops. If one has prudently built up savings, there is likely to be some investment income or perhaps pension or retirement settlement to support this stage. One such investment option for those looking at saving up for retirement funds is a Life Insurance Policy. Various kinds of life insurance plans help create income as financial support in later years.\u003C/p>\u003Ch3>\u003Cstrong>3. Long-Term Care:\u003C/strong>\u003C/h3>\u003Cp>Long-term care insurance covers the expenditure that is incurred when a person requires extended care due to a prolonged illness.\u003C/p>\u003Ch3>\u003Cstrong>4. Critical Illness Cover:\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Cover provides a lump sum amount in case of diagnosis of specific diseases and illnesses and could help pay for treatments that involve high expenditure.\u003C/p>\u003Ch2>\u003Cstrong>Importance of Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>The awareness of insurance for elderly citizens in India has been growing due to the following factors.\u003C/li>\u003Cli>\u003Cstrong>Medical Expenses: \u003C/strong>Healthcare costs in one’s senior golden years will likely be higher than during middle age. Unexpected health costs could erode one’s retirement savings and insurance will effectively manage the costs and prevent this erosion.\u003C/li>\u003Cli>\u003Cstrong>Financial Security: \u003C/strong>Life insurance provides much-needed financial security, and can help in estate planning.\u003C/li>\u003Cli>\u003Cstrong>Peace of Mind:\u003C/strong> Knowing one’s financial needs are covered if there is a need for critical illness or long-term care provides peace of mind.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Types of Insurance Policies Suitable for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Life Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Life insurance plays a significant role in building up savings while protecting one’s life. It could also become a part of one’s legacy or estate planning to pass on to one’s dependents. Life insurance policies suitable for senior citizens are described below.\u003C/p>\u003Ch4>1. \u003Ca href=\"https://www.shriramlife.com/life-insurance/family-protection-plan\" target=\"_blank\">Term Life Insurance\u003C/a>:\u003C/h4>\u003Cp>Coverage under this type of policy is available for a specific period. It is ideal for those individuals who want to provide financial security for dependents upon their demise.\u003C/p>\u003Ch4>2. Whole Life Insurance:\u003C/h4>\u003Cp>This is an insurance policy providing coverage for the whole lifetime of the insured, plus a savings component that can accumulate cash value over time.\u003C/p>\u003Ch4>3. Endowment Plans:\u003C/h4>\u003Cp>These policies combine life insurance with savings. They provide a lump sum on maturity, and they also ensure financial security in case of the unfortunate death of the insured.\u003C/p>\u003Cp>Life Insurance rates for senior citizens often come with tailored plans depending on the age and health status of the insured.\u003C/p>\u003Ch3>\u003Cstrong>B. Critical Illness Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Insurance Plans cover the cost of life-threatening health conditions, such as cancer, heart attack, or stroke. The features are as follows:\u003C/p>\u003Ch4>1. Lump Sum Payment:\u003C/h4>\u003Cp>A lump sum is paid to the insured when diagnosed with a critical illness included in the policy.\u003C/p>\u003Ch4>2. Comprehensive Coverage:\u003C/h4>\u003Cp>Each policy has a list of illnesses covered and provides financial support in treatment.\u003C/p>\u003Cp>Critical Illness Coverage Insurance is important because it makes it possible to manage the high cost of treatment and supports recovery without putting any financial strain on the individual.\u003C/p>\u003Ch2>\u003Cstrong>C. Long-term Care Insurance Policies\u003C/strong>\u003C/h2>\u003Cp>Long-term care insurance is designed to cover extended care needs such as nursing home care or home healthcare. Here is why it matters:\u003C/p>\u003Ch4>1. Extended Coverage\u003Cstrong>:\u003C/strong>\u003C/h4>\u003Cp>Extends financial support towards long-term care services that are otherwise not covered by regular health insurance.\u003C/p>\u003Ch4>2. Quality of Care:\u003C/h4>\u003Cp>Helps in providing the covered policyholder with the financial support to afford high-quality care, thereby enhancing the quality of life in later years.\u003C/p>\u003Cp>This is a must-have insurance in a portfolio for a senior citizen. Long-Term Care Insurance for Seniors primarily allows the applicant's mind to stay calm and stable in terms of finances for future planning.\u003C/p>\u003Ch2>\u003Cstrong>Factors to Consider When Choosing Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>When choosing an insurance policy, you have to consider a few factors to ensure that it has catered to all your needs.\u003C/p>\u003Ch3>\u003Cstrong>1. Coverage Options\u003C/strong>\u003C/h3>\u003Cp>Review the coverage scope of the policy. Be thorough in your analysis of the policy and opt for add-ons only if they significantly enhance the benefits of the plan to match your needs. \u003C/p>\u003Ch3>\u003Cstrong>2. Premium Costs and Affordability\u003C/strong>\u003C/h3>\u003Cp>Does the premium payment fit within your budget? Low premiums are desirable, but the cost at which such low premiums are achieved should not compromise the extent of coverage. Compare premiums across plans if you need to check which provides you with the best coverage options for your senior years. \u003C/p>\u003Ch3>\u003Cstrong>3. Pre-existing Conditions and Limitations on Coverage\u003C/strong>\u003C/h3>\u003Cp>Learn how pre-existing conditions affect your coverage. Some policies come with waiting periods or have exclusions for pre-existing conditions, which might not be suitable for seniors, especially if they have some pre-existing health issues.\u003C/p>\u003Ch3>\u003Cstrong>4. Policy Coverage Years\u003C/strong>\u003C/h3>\u003Cp>Each policy has a specific year or age up to which coverage is valid. It is important to choose plans that have maximum age inclusion. Shriram Life Insurance has plans such as the Shriram Life Pension Plus that provides coverage for up to 80 years and can be taken for a maximum of 35 years as a policy term. \u003C/p>\u003Ch2>\u003Cstrong>Best Insurance Companies for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>About Shriram Life Insurance Company\u003C/strong>\u003C/h3>\u003Cp>Shriram Life Insurance provides a set of great insurance plans for senior citizens. Some of the policies that would suit a senior citizen are as follows.\u003C/p>\u003Cp>\u003Cstrong>1. \u003C/strong>\u003Ca href=\"https://www.shriramlife.com/life-insurance/assured-income-plan\" target=\"_blank\">\u003Cstrong>Assured Income Plan\u003C/strong>\u003C/a>\u003Cstrong>- \u003C/strong>This would provide the senior citizen with regular income during the term of the plan, helping them lead a financially secure life and manage expenses during their old age.\u003C/p>\u003Cp>2. \u003Ca href=\"https://www.shriramlife.com/life-insurance/early-cash-plan\" target=\"_blank\">\u003Cstrong>Early Cash Plan\u003C/strong>\u003C/a>- This is a unique insurance plan with added savings benefit - that provides high returns and flexible premiums.\u003C/p>\u003Cp>3. \u003Ca href=\"https://www.shriramlife.com/life-insurance/saral-pension\" target=\"_blank\">\u003Cstrong>Saral Pension Plan\u003C/strong>\u003C/a>- This policy provides a single premium payment option, allowing policyholders to receive regular income for life. The plan supports different annuity frequencies, making it flexible for individual needs.\u003C/p>\u003Cp>Each plan is created with a wise understanding of the requirements of senior citizens. It aims to give them stability and peace of mind through the chosen insurance policies.\u003C/p>\u003Ch2>\u003Cstrong>How to Choose the Right Insurance Policy for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Assessing Individual Health Needs\u003C/strong>\u003C/h3>\u003Cp>Evaluate the health conditions and risks of the elders in the family and pick a policy that covers life-given existing health conditions as well as future events.\u003C/p>\u003Ch3>\u003Cstrong>B. Comparing Different Insurance Policies by Shriram Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Compare different policy plans of Shriram Life Insurance based on the coverage, benefits, and premium amount for your given age to assess which one matches your long-term goals.\u003C/p>\u003Ch3>\u003Cstrong>C. Documents Required for Insurance Application\u003C/strong>\u003C/h3>\u003Cp>While one is preparing to get an insurance policy, one may be required to provide the following documents\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Age proof:\u003C/strong> Birth Certificate or passport\u003C/li>\u003Cli>\u003Cstrong>Identity proof:\u003C/strong> Aadhaar card, PAN card, or voter's ID.\u003C/li>\u003Cli>\u003Cstrong>Medical Records: \u003C/strong>The latest health check-up reports and the details of the pre-existing ailments.\u003C/li>\u003Cli>\u003Cstrong>Address Proof: \u003C/strong>Utility bills or rent agreements.\u003C/li>\u003C/ul>\u003Ch3>\u003Cstrong>D. Can You Renew Insurance Policies Online for Senior Citizens?\u003C/strong>\u003C/h3>\u003Cp>Yes, you can renew it online for most insurance plans. It is easy and allows quick updates to your policy; thus, ensure all details are correct and updated at renewal.\u003C/p>\u003Ch3>\u003Cstrong>E. Insurance Policy Validity and Renewal Schedule\u003C/strong>\u003C/h3>\u003Cp>The validity schedule of an insurance policy pertaining to senior citizens varies according to the type of policy and the period for which it has been purchased. Normally, a policy remains valid for a term of one year until the next premium becomes due. It will be renewed on payment of the next premium and the plan remains in force for the policy duration as long as premiums are paid on time.\u003C/p>\u003Cp>Insurance covers are usually applicable for between 1 year and several years. However, you shall renew the policy before the renewal date to avoid a lapse in cover and enjoy continued coverage without disruption or loss of benefits. Record renewal dates and review policy terms from time to time to stay on top of your insurance portfolio.\u003C/p>\u003Ch3>\u003Cstrong>F. Insurance Premiums and Payment Options\u003C/strong>\u003C/h3>\u003Cp>The senior citizens' insurance policy premium can be paid annually, semi-annually or monthly under the policy. Insurers should opt for the premium paying frequency that would easily fit their budget and financial planning and cash flows.\u003C/p>\u003Ch3>\u003Cstrong>G. Regulatory Aspect Of Insurance Policies for Senior Citizens\u003C/strong>\u003C/h3>\u003Cp>In India, all policies are regulated by the Insurance Regulatory and Development Authority of India or IRDAI.\u003C/p>\u003Cp>The IRDAI regulates the terms of the policies to ensure they are fair and transparent and this is meant to protect your interests as a policyholder. \u003C/p>\u003Ch3>\u003Cstrong>H. Finding Reliable Insurance Providers\u003C/strong>\u003C/h3>\u003Cp>The following criteria establish factors that can help you identify a reputed insurer that you can consider to purchase insurance policies from.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Reputation: \u003C/strong>Your insurance company should have a good reputation and preferably high claim settlement ratio.\u003C/li>\u003Cli>\u003Cstrong>Reviews: \u003C/strong>Take a look at customer reviews and ratings provided by policyholders to know the quality of service.\u003C/li>\u003Cli>\u003Cstrong>Advisors: \u003C/strong>Seek help from insurance advisors who deal with various types of senior citizen insurance for guidance.\u003C/li>\u003Cli>\u003Cstrong>Tax planner: \u003C/strong>Your auditor or tax planner can aid in making long-term investment decisions related to insurance. They can also advise on the estate planning options and how best to gain the tax exemptions or tax breaks you might be eligible for.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What to Consider During Insurance Medical Check-ups?\u003C/strong>\u003C/h2>\u003Cp>While undergoing medical check-ups for health insurance, one must keep in mind the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Health History: \u003C/strong>Answer them correctly about your health history.\u003C/li>\u003Cli>\u003Cstrong>Pre-existing Health Conditions: \u003C/strong>Discuss all the prevalent health issues that will affect your coverage and premium charges.\u003C/li>\u003Cli>\u003Cstrong>Medical Record Updations: \u003C/strong>Ensure that your medical records are updated, so that your assessments can be precise.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Claim Insurance Benefits for Senior Citizens?\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>\u003Cstrong>Notify the Insurer: \u003C/strong>Report your insurance claim immediately.\u003C/li>\u003Cli>\u003Cstrong>Documents:\u003C/strong> Always keep all documents in handy, including medical reports and copies of the policy.\u003C/li>\u003Cli>\u003Cstrong>Follow-up: \u003C/strong>Keep track of the status of the claim. If there is a problem in getting the claim benefit, solve it immediately.\u003C/li>\u003Cli>\u003Cstrong>Consultation: \u003C/strong>Talk to your insurance advisor if you want some help in getting insurance benefit claims.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Conclusion:\u003C/strong>\u003C/h2>\u003Cp>Choosing the best insurance policies for senior citizens requires careful consideration of goals, needs and matching those to the available plan options. Studying aspects such as required coverage, premiums and terms of the policy, and overall financial needs is key to choosing the most-suited plan. Knowledge about various kinds of insurance, as illustrated above is essential in helping seniors and their families make the right decision for securing their futures and living their sunset years with peace of mind.\u003C/p>\u003Cp>Shriram Life Insurance provides invaluable support for senior citizens during their retirement years. By providing insurance solutions, it ensures financial stability and peace of mind, enabling retirees to enjoy their golden years with confidence and security.\u003C/p>","category":"/blog/advice"},{"title":"What is Family Life Insurance?","heading":"What is Family Life Insurance?","short_description":"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security.\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-10/6.What%20is%20family%20life%20insurance%20policy_%20-%20Know%20its%20Importance%20%26%20Benefits_0.webp?VersionId=DJWQ0.vIovW4IeYdh5rLbh6p8qETGsl2","alt":"Life Insurance Plans for Family"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-10-28T11:08:06","updated_on":"2024-10-28T11:08:13","read_more_title":"Know More","slug":"/what-is-family-life-insurance","field_bl_tag":"\u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>, \u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>","description":"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security. Family Life Insurance is designed in such a way that it ensures the financial security of the family and in case of unfortunate event of the policyholder, their family will be able to continue with their lifestyle without compromising on anything.\u003C/p>\u003Cp>Also, family life insurance also helps pay off any outstanding debts, educational expenses of the children or mortgage payments. Family Life Insurance also provides peace of mind and helps maintain the quality of life in the absence of the breadwinner.\u003C/p>\u003Ch2>\u003Cstrong>Why do we need a Family Insurance Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/blog/early-cash-plan/why-does-every-family-need-a-life-insurance-savings-plan\" target=\"_blank\">Family Life Insurance ensures that your family is financially protected\u003C/a> even during tough times of life. In case, if only one person is the breadwinner of the family, this type of insurance will benefit them. It can be a source of income during your absence and the financial needs are taken care of.\u003C/p>\u003Cp>Losing loved ones can be unfortunate and some uncertainties of life cannot be prevented. In such unfortunate times, insurance helps people to plan their finances accordingly. Family Life Insurance helps to cope with materialistic needs, till you can get back to your normal life.\u003C/p>\u003Ch2>\u003Cstrong>What are the features and benefits of Family Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Family Life Insurance protects loved ones and provides financial security during the unfortunate demise of the family member.\u003C/p>\u003Cp>The key features and \u003Ca href=\"https://www.shriramlife.com/life-insurance/family-protection-plan-features-and-benefits\" target=\"_blank\">benefits of Family Life Insurance\u003C/a> are designed in such a way that the diverse requirements of the policyholder are met. \u003C/p>\u003Ch3>\u003Cstrong>Death cover\u003C/strong>\u003C/h3>\u003Cp>In case of the sudden demise of the family member or the breadwinner, the beneficiaries will receive the Sum Assured. It will be a lump sum amount that will support the family financially and also help cover immediate expenses. Additionally, the family can use it for their children’s educational expenses and mortgage payments. \u003C/p>\u003Ch3>\u003Cstrong>Premium\u003C/strong>\u003C/h3>\u003Cp>The premium for Family Life Insurance is affordable, which allows people to safeguard their family members during unfortunate times. However, the premium may differ depending on factors like age, coverage amount, policy and health. Also, the premium can be paid in flexible terms like monthly, quarterly, half-yearly and annually. \u003C/p>\u003Ch3>\u003Cstrong>Coverage amount\u003C/strong>\u003C/h3>\u003Cp>The coverage amount will vary depending on your financial requirements and annual earnings. It will allow you to choose the coverage amount and it determines the death cover of the life cover.\u003C/p>\u003Ch3>\u003Cstrong>Payout options\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance will also allow you to determine the payout option, depending on the person’s financial situation. \u003C/p>\u003Ch3>\u003Cstrong>Renewability Option\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance provides the benefit to renew their policy at the end of the policy term without any additional medical underwriting. \u003C/p>\u003Ch2>\u003Cstrong>Types of Life Insurance Plans in India?\u003C/strong>\u003C/h2>\u003Cp>There are various types of Family Life Insurance available in India, which can be availed by the policyholder depending on their requirement.\u003C/p>\u003Ch3>\u003Cstrong>Term Insurance\u003C/strong>\u003C/h3>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/life-insurance/online-term-plan\" target=\"_blank\">Term Insurance\u003C/a> is a Life Insurance plan that provides financial coverage for a set period of time. In case, unfortunate event of the policyholder occurs within the policy term, the insurance company will pay the death benefit to the policyholder’s beneficiary.\u003C/p>\u003Ch3>\u003Cstrong>Endowment Plans\u003C/strong>\u003C/h3>\u003Cp>Endowment Plan is a type of savings plan that provides the benefit of both the life cover and maturity benefit. These types of plans can benefit people who want to save money for their future and also provide a life cover, in case of any unfortunate event of the policyholder occurs. \u003C/p>\u003Ch3>\u003Cstrong>ULIP (Unit Linked Insurance Plans)\u003C/strong>\u003C/h3>\u003Cp>ULIPs are Unit-Linked Insurance Plans that provide the advantage of both investment and insurance coverage. The premium will be linked to the stock market. \u003C/p>\u003Cp>The return and the lump sum will depend on the market fluctuations. Part of the premium will be invested in the stock market depending on the policyholder’s risk tolerance and financial goals.\u003C/p>\u003Ch2>\u003Cstrong>How to decide on the right Life Insurance Plans for a family?\u003C/strong>\u003C/h2>\u003Cp>There is a wide range of Life Insurance plans available for families in India. You can choose among the ones that \u003Ca href=\"https://www.shriramlife.com/blog/advice/comprehensive-guide-to-choose-the-right-life-insurance\" target=\"_blank\">suits your financial needs and coverage requirement\u003C/a>. Listed below are some points to consider before choosing the right Family Life Insurance policy.\u003C/p>\u003Ch3>\u003Cstrong>Assess your needs\u003C/strong>\u003C/h3>\u003Cp>Analyzing and assessing your needs is the primary step in finding the right Family Life Insurance. Considering factors like financial goals, life cover, loan repayment and other financial burden will help you to choose the right plan.\u003C/p>\u003Ch3>\u003Cstrong>Understand the Different Types of Insurance\u003C/strong>\u003C/h3>\u003Cp>Understanding the type of insurance is also important to choose the right one. Term Insurance covers the policyholder for the specified period of time and the life cover will be paid to the beneficiaries in case of unfortunate demise of the policyholder.\u003C/p>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/life-insurance\" target=\"_blank\">Life Insurance provides life cover and maturity benefits\u003C/a>, depending on the plan chosen. It also has plans like ULIP and endowment plans. So you can choose from these types of insurance coverages.\u003C/p>\u003Ch3>\u003Cstrong>Check the Coverage Amount\u003C/strong>\u003C/h3>\u003Cp>Sum Assured is the assured amount that will be paid by the insurance company to the policyholder. In case, the unfortunate demise of the policyholder occurs, the sum assured will be paid to the beneficiaries. There are many online Life Insurance calculators available to calculate the life cover and the premium amount.\u003C/p>\u003Ch3>\u003Cstrong>Boost your Life Insurance with riders\u003C/strong>\u003C/h3>\u003Cp>Riders or add-ons are additional features that enhance your Life Insurance. For example, riders like critical illness or personal accident coverage can be a valuable addition to your Life Insurance. These riders help you to cater your policy according to your needs. \u003C/p>\u003Ch3>\u003Cstrong>Read the policy document\u003C/strong>\u003C/h3>\u003Cp>Make sure you read the policy document fully and understand the coverages. The policy document will have the inclusions and exclusions of the plan. If you think the plan will not suit your needs or you have any queries regarding the plan, you can contact the insurance provider and get all your doubts cleared.\u003C/p>\u003Ch2>\u003Cstrong>Why choose Shriram Life Family Protection Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\"https://www.shriramlife.com/life-insurance/family-protection-plan\" target=\"_blank\">Shriram Life Family Protection\u003C/a> provides Life Insurance policies at affordable premiums and you can also choose riders or add-ons that complete your Life Insurance plan. Additionally, Shriram Life Insurance provides child plans that help you safeguard your child’s dream without any financial burden.\u003C/p>\u003Cp>With Shriram Life Family Protection Plan, you can also plan for your retirement, investments and also for a future with no financial burden. \u003C/p>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Life can be unpredictable, so it is important to protect our loved ones with proper insurance that suits your needs. A Family Life Insurance plan protects your family and ensures financial protection. Additionally, Shriram Life Insurance provides Child Protection Plan, Investment Plan, Protection Plan, Retirement Plan and Savings Plan. These plans provide a wide range of insurance options that help you choose the protection for you and your family.\u003C/p>","category":"/blog/advice"},{"title":"What is a Money Back Insurance Policy ?","heading":"What is a Money Back Insurance Policy?","short_description":"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the lon\u003C/p>","tile_image":[{"media_img":{"url":"https://cdn.shriramlife.com/slic-kalam/files/2024-10/5.Money%20Back%20Insurance%20Policy%20Explained_0.webp?VersionId=r7iugaVagDwYA8yOG382jcYZxOt1xQc9","alt":"what is Money Back insurance Policy"},"media_svg":null,"media_svg_alt":"","media_document":null}],"posted_on":"2024-10-24T07:21:14","updated_on":"2024-10-24T07:23:20","read_more_title":"Read More","slug":"/what-is-a-money-back-insurance-policy","field_bl_tag":"\u003Ca href=\"/blog/guides/recent\" hreflang=\"en\">Recent\u003C/a>, \u003Ca href=\"/blog/guides/advice\" hreflang=\"en\">Advice\u003C/a>, \u003Ca href=\"/blog/guides/retirement\" hreflang=\"en\">Retirement\u003C/a>","description":"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the long run through Life Insurance. What if we told you could do both? Yes, with money-back Life Insurance, you can benefit from both life coverage as well as receiving investment returns during the policy period. Curious to learn more? Keep reading as we delve into everything you need to know about Money Back Term Life Insurance.\u003C/p>\u003Ch2>\u003Cstrong>How Does a Money Back Policy Work?\u003C/strong>\u003C/h2>\u003Cp>Money Back Life Insurance is a type of Life Insurance Policy that provides both insurance and investment benefits. Similar to a Term Insurance Policy, it offers life coverage in exchange for a premium. Additionally, it also provides a percentage of the sum assured as returns periodically, and at maturity it provides a bulk settlement. Thus, those insured under this policy will be eligible for survival, death, and maturity benefits.\u003C/p>\u003Ch2>\u003Cstrong>Why Do You Need to Buy a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>You may have financial obligations and the responsibility to make sure your \u003Ca href=\"https://www.shriramlife.com/life-insurance/family-protection-plan-best-selling\" target=\"_blank\">family is financially secure\u003C/a>. That is exactly what a Money Back Policy helps you with- it offers a steady side income, Life Insurance, and a lump sum payout at the end of the policy term. It is therefore sensible to purchase a Money Back Policy if you have dependents that you must take care of or if you are trying to reach financial goals.\u003C/p>\u003Ch2>\u003Cstrong>Key Features of Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are some of the salient features of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Life Cover: \u003C/strong>In the event that the insured is no more, their nominees will receive a large sum of money to manage their monetary needs.\u003C/li>\u003Cli>\u003Cstrong>Assured Gains: \u003C/strong>You can select \u003Ca href=\"https://www.shriramlife.com/life-insurance/assured-income-plan\" target=\"_blank\">non-market-linked Money Back Plans\u003C/a> if you are searching for a secure investment with guaranteed returns.\u003C/li>\u003Cli>\u003Cstrong>Regular Income:\u003C/strong> You can expect regular returns at intervals. Thus acting as a secondary source of income.\u003C/li>\u003Cli>\u003Cstrong>Terminal Bonus:\u003C/strong> In addition to the returns obtained from your funds, you will get a bonus amount at the end of the policy tenure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Benefits of a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Below listed are the top benefits of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Dual Benefit:\u003C/strong> A Money Back Policy offers the best of both worlds: periodic wealth creation during the policy term and death benefit that will benefit the insured's dependents.\u003C/li>\u003Cli>\u003Cstrong>Return on Investment: \u003C/strong>Apart from the periodic payouts, you will also receive a bulk amount at the time of policy maturity.\u003C/li>\u003Cli>\u003Cstrong>Life Insurance:\u003C/strong> Life Insurance is an important consideration for those with dependents. A Money Back Life Insurance Policy assures you that your family will be financially secure if the worst were to happen.\u003C/li>\u003Cli>\u003Cstrong>Wealth Generation:\u003C/strong> Looking to gather wealth for early \u003Ca href=\"https://www.shriramlife.com/life-insurance/retirement-plan\" target=\"_blank\">retirement\u003C/a> or a child’s education? Money Back Life Insurance offers instalment payouts for immediate needs, plus a lump sum at the end of the policy term.\u003C/li>\u003Cli>\u003Cstrong>Personalized Options: \u003C/strong>There are different Money Back Life Policies to choose from depending on your financial goals and needs.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefits:\u003C/strong> With a Money Back Policy, you can claim tax exemptions for the maturity amount under Section 10(10D) and the policy premiums under Section 80C of the Income Tax Act of 1961.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Eligibility Criteria for Buying Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the eligibility criteria for Buying Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Age:\u003C/strong> Typically, there are minimum and maximum age limits for purchasing a Money Back Life Insurance Policy. These limits usually range from 18 to 65 years, although they can vary between different insurers.\u003C/li>\u003Cli>\u003Cstrong>Health Status: \u003C/strong>You might be required to disclose any pre-existing medical conditions and to meet a specific level of fitness.\u003C/li>\u003Cli>\u003Cstrong>Income Proof: \u003C/strong>Generally, insurers are expected to provide proof of income to show that they are capable of making premium payments.\u003C/li>\u003Cli>\u003Cstrong>Nationality:\u003C/strong> Life insurance offered by Indian insurers is only available to Indian citizens. Therefore, Indian citizenship is a requirement for obtaining a life policy in India.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Documents Required to Buy Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the documents needed while purchasing a Money Back Policy.\u003C/p>\u003Col>\u003Cli>PAN, Aadhaar, passport, or voter ID for age proof\u003C/li>\u003Cli>Pay slips or bank statements for income proof\u003C/li>\u003Cli>Voter ID, passport, or Aadhaar card for address proof\u003C/li>\u003Cli>Medical certificates and doctor’s prescriptions for existing illnesses\u003C/li>\u003Cli>A fully filled policy application form.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>How to Choose the Best Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Here are some insider tips on how to choose the best Money Back Policy.\u003C/p>\u003Ch3>\u003Cstrong>Monetary Goals\u003C/strong>\u003C/h3>\u003Cp>Before looking for a policy, we suggest that you take a moment to consider your financial goals. Building a house? Child’s Education? Long Vacation? Make a list of these financial needs before buying a suitable policy.\u003C/p>\u003Ch3>\u003Cstrong>Sum Assured\u003C/strong>\u003C/h3>\u003Cp>The sum assured is a fixed sum that the dependents of the insured will receive in the unfortunate event of the insured’s death. However, choosing a higher sum assured will increase the premium payable. Therefore, we suggest choosing a reasonable amount.\u003C/p>\u003Ch3>\u003Cstrong>Duration of Policy\u003C/strong>\u003C/h3>\u003Cp>The longer your policy is in effect, the less you will have to pay in premiums. However, please note that there may be a cap on the policy tenure based on the insured’s age.\u003C/p>\u003Ch3>\u003Cstrong>Policy Premium\u003C/strong>\u003C/h3>\u003Cp>Choose a policy that offers adequate coverage and returns for your financial requirements, all while keeping the policy premium in mind. Buying a Life Insurance policy shouldn't become another financial burden.\u003C/p>\u003Ch3>\u003Cstrong>Riders\u003C/strong>\u003C/h3>\u003Cp>Life insurance companies usually provide Riders as a way to enhance their policies with additional coverage. Common Riders include Accidental Death Cover, Critical Illness Cover, and others. Select the necessary riders only, as the more riders you select, the greater the premium that must be paid.\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">\u003Cstrong>Parameter\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">\u003Cstrong>Fixed Deposit\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">\u003Cstrong>Money Back Policy\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Low risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Low to medium risk depending on the type of policy you choose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Returns\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Fixed interest rate\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">The rate of interest is dependent on the policy type \u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Liquidity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Premature withdrawals may result in penalties\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">The policy duration usually ranges from 10 to 25 years\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Tax Benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Interest earned on the FD is taxed\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">The policy premium can be claimed for tax exemption\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Purpose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Generally used for saving purposes\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Life Insurance plus a steady source of income\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Maturity benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Principal plus interest at maturity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\"EN-GB\" lang=\"EN-GB\">Sum assured plus bonuses (if applicable)\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Ch2> \u003C/h2>\u003Ch2>\u003Cstrong>FAQs\u003C/strong>\u003C/h2>\u003Cp>\u003Cstrong>1. What is a Money Back Insurance Policy?\u003C/strong>\u003C/p>\u003Cp>A Money Back Insurance Policy is a kind of Life Insurance that offers both the standard Life Insurance benefit and the chance to get periodic payouts for the premiums paid.\u003C/p>\u003Cp>\u003Cstrong>2. What are the features of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The features of a Money Back Policy include Life Cover for the insured, along with period returns on the premiums paid. If the insured survives until policy maturity, they will also receive a bonus.\u003C/p>\u003Cp>\u003Cstrong>3. What are the advantages of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The advantages of a Money Back Policy include Life Insurance, return on investment, maturity benefit, and tax exemption on the policy premium.\u003C/p>\u003Cp>\u003Cstrong>4. Is It risky to invest in Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>Investing in Money Back Policies that are linked to the market carry some risk. You can, however, opt for guaranteed returns by selecting risk-free, non-market-linked policies; the returns on these kinds of policies are usually lower.\u003C/p>\u003Cp>\u003Cstrong>5. What are the tax benefits with Money Back Plans?\u003C/strong>\u003C/p>\u003Cp>The tax benefits of Money Back Plans include a tax exemption on the maturity amount and the policy premium paid as per Section 10(10D) and Section 80C of the Income Tax Act, 1961 respectively.\u003C/p>\u003Cp>\u003Cstrong>6. Is the amount received through Money Back Policy taxable?\u003C/strong>\u003C/p>\u003Cp>The income received through a Money Back Policy is tax exempt as per Section 10(10D) of the Income Tax Act, 1961.\u003C/p>","category":"/blog/advice"}],"blog_count":[{"count":102,"counts":102}],"nothing":"all","nothing_1":317}],"headers":{"x-powered-by":["Express"],"x-frame-options":["SAMEORIGIN"],"content-type":["text/html; charset=utf-8"],"content-length":["143718"],"etag":["W/\"23166-yXf3LXzGaxjeeeG7bSDchEjAdfU\""],"vary":["Accept-Encoding"],"date":["Thu, 21 Nov 2024 04:58:38 GMT"],"connection":["keep-alive"],"keep-alive":["timeout=5"]},"status":200,"statusText":"OK","url":"http://127.0.0.1:4000/api/v1/tagged-blogs/317/all","responseType":"json"},"2489646597":{"body":[{"title":"Api - Header","top_nav":[{"title":"Header - Top nav Test","menu_group":[{"title":"Initiate Claim","heading":"Initiate 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Moreover, when one is faced with decisions related to details and options, it can seem hard to know which choice is the best for you. This may be why not all people understand the benefits of Joint Life Insurance. This type of insurance can offer peace of mind and financial security for couples and partners. A regular Life Insurance plan only covers the life of one single insured or the policyholder. In a Joint Life Insurance, both spouses can be covered against the risk of untimely demise under the same policy.\u003C/p>\u003Cp>In this guide, we explain the various types, benefits, and eligibility criteria to help you make informed decisions.\u003C/p>\u003Ch2>\u003Cstrong>What is Joint Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>At its core, Joint Life Insurance is a policy that covers two individuals under a single plan. It’s designed to provide financial support to the surviving partner or beneficiaries in the event of one policyholder’s unfortunate demise. This kind of insurance is particularly beneficial for couples who want to ensure that their loved ones are financially secure. The concept is simple: when one partner passes away, the other receives a payout to help cover living expenses, debts, or other financial obligations.\u003C/p>\u003Cp>Imagine the peace of mind that comes with knowing that your loved one won’t have to face financial hardship if something happens to you. Joint Life Insurance provides that reassurance.\u003C/p>\u003Ch2>\u003Cstrong>Types of Joint Life Policies\u003C/strong>\u003C/h2>\u003Cp>When considering Joint Life Insurance, it’s important to understand the different types available. Here’s a closer look at some of the most common options:\u003C/p>\u003Ch3>\u003Cstrong>First Death Policy\u003C/strong>\u003C/h3>\u003Cp>A First Death Policy provides coverage that pays out when the first policyholder dies. This option is especially popular among couples, as it ensures that the surviving partner receives immediate financial support. After the payout, the policy usually ends, meaning no further premiums are required. It’s a practical choice for couples who want to safeguard each other’s financial future.\u003C/p>\u003Ch3>\u003Cstrong>Second Death Policy\u003C/strong>\u003C/h3>\u003Cp>On the flip side, a Second Death Policy pays out only after both policyholders have passed away. This type is often used in estate planning, helping to cover potential taxes or expenses after the second death. It’s a strategic option for couples looking to leave a financial legacy for their heirs, ensuring that they can manage any estate-related costs.\u003C/p>\u003Ch3>\u003Cstrong>Joint Term Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Joint Term Life Insurance provides coverage for a specified period, usually ranging from 10 to 30 years. If one partner dies during the term, the other receives the death benefit. This type of policy is often more affordable and is great for couples who want significant coverage without lifelong premium commitment. Think of it as a safety net during your most financially vulnerable years.\u003C/p>\u003Ch3>\u003Cstrong>Joint Whole Life Insurance\u003C/strong>\u003C/h3>\u003Cp>A Joint Whole Life Insurance policy covers both partners for their entire lives. This option not only guarantees a death benefit upon the death of the last surviving member but can also build value over time. This cash value can be accessed during your lifetime, providing a flexible financial resource. It’s an investment in both protection and savings.\u003C/p>\u003Ch2>\u003Cstrong>Add-ons\u003C/strong>\u003C/h2>\u003Cp>Many insurers also provide additional options such as riders or add-ons, such as a Critical Illness add-on. Such an addition can provide financial assistance if one partner is diagnosed with a serious illness, ensuring that you’re covered for various scenarios.\u003C/p>\u003Ch2>\u003Cstrong>Benefits of Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Choosing Joint Life Insurance comes with many advantages. Here are some key benefits to consider:\u003C/p>\u003Ch3>\u003Cstrong>1) Simplified Premium Payments\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Cost-effective: \u003C/strong>Typically, a Joint Life Insurance Policy is cheaper than two individual policies. This can lead to significant savings over time, making it an attractive option for couples or partners.\u003C/p>\u003Ch3>\u003Cstrong>2) Shared Benefits\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Financial security: \u003C/strong>The death benefit provides immediate financial assistance, helping the surviving partner manage expenses like mortgage payments or daily living costs. This is crucial during a difficult time.\u003C/p>\u003Ch3>\u003Cstrong>3) Estate Planning\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Legacy planning:\u003C/strong> Joint Life Insurance can be structured to cover estate taxes, ensuring that your heirs receive their inheritance without additional financial burdens. This thoughtful approach to estate planning can save your loved ones from unnecessary stress.\u003C/p>\u003Ch3>\u003Cstrong>4) Tax Advantages\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Tax benefits: \u003C/strong>Death benefits from life insurance are generally tax-free for beneficiaries. This feature provides financial relief at a time when your loved ones may need it the most.\u003C/p>\u003Ch3>\u003Cstrong>5) Flexibility\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Adaptable coverage: \u003C/strong>Many policies allow for additional riders, even during the policy term, enhancing the policy’s functionality. This flexibility can be a significant advantage as one’s financial needs change over time.\u003C/p>\u003Ch2>\u003Cstrong>Eligibility Criteria for Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Before diving into a Joint Life Insurance policy, it’s essential to understand the eligibility requirements.\u003C/p>\u003Ch3>\u003Cstrong>Here are some common criteria:\u003C/strong>\u003C/h3>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Age: \u003C/strong>\u003C/h3>\u003Cp>Most insurers require that both partners be within a specific age range, typically between 18 and 65 years. This ensures that both parties are insurable.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Health Status:\u003C/strong> \u003C/h3>\u003Cp>Applicants usually need to undergo medical examinations. The health history of both individuals will play a significant role in determining premiums.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Relationship Type:\u003C/strong>\u003C/h3>\u003Cp>These policies are primarily available for spouses or life partners. This flexibility allows for various relationship dynamics.\u003C/p>\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Choose the Right Joint Life Policy?\u003C/strong>\u003C/h2>\u003Cp>Selecting the right Joint Life Insurance policy can be a challenging task, but breaking it down into manageable steps can help:\u003C/p>\u003Ch3>\u003Cstrong>Step 1: Assess Your Needs\u003C/strong>\u003C/h3>\u003Cp>Start by evaluating your financial obligations. Consider debts, mortgage payments, and future expenses such as children’s education that the surviving partner will have to pay for. Understanding these factors will help you determine how much coverage you need.\u003C/p>\u003Ch3>\u003Cstrong>Step 2: Compare Policy Types\u003C/strong>\u003C/h3>\u003Cp>Explore the different types of policies available, such as Joint Term Life Insurance and Joint Whole Life Insurance. Each type has its advantages, so consider what fits your lifestyle and financial goals.\u003C/p>\u003Ch3>\u003Cstrong>Step 3: Evaluate Premium Costs\u003C/strong>\u003C/h3>\u003Cp>Premiums can vary widely among providers. Compare quotes from several insurers to find a policy that fits your budget. Don’t hesitate to ask about any additional costs associated with riders or specific features.\u003C/p>\u003Ch3>\u003Cstrong>Step 4: Review Terms and Conditions\u003C/strong>\u003C/h3>\u003Cp>Before making a decision, carefully read the policy’s terms, including payout structures and exclusions. Understanding the precise terms and conditions can help you avoid surprises later on.\u003C/p>\u003Ch3>\u003Cstrong>Step 5: Consult a Financial Advisor\u003C/strong>\u003C/h3>\u003Cp>Consider speaking with a financial advisor or insurance agent who can provide tailored insights based on your circumstances. Their expertise can guide you toward the most suitable options for your needs.\u003C/p>\u003Ch2>\u003Cstrong>Common Myths and Misconceptions\u003C/strong>\u003C/h2>\u003Cp>As with many insurance products, misconceptions can render confusion of Joint Life Insurance. Here are some common myths and the truths behind them:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Myth: Joint policies are only for married couples.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Joint Life Insurance can be obtained by any two individuals in a committed relationship, including business partners.\u003C/li>\u003Cli>\u003Cstrong>Myth: All Joint Life Policies are the same.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Policies can vary significantly in terms of structure, benefits, and eligibility. It’s essential to understand the specific terms of each policy.\u003C/li>\u003Cli>\u003Cstrong>Myth: Once purchased, a joint policy cannot be modified.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Modifying terms and conditions of a Joint Life Insurance may vary from one insurance company to other. Some might allow for modifications, such as adding riders or converting to individual policies under certain conditions.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Apply for a Joint Life Insurance Policy?\u003C/strong>\u003C/h2>\u003Cp>Applying for a Joint Life Insurance policy is a straightforward process. Here’s how to navigate it:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Research Plans: \u003C/strong>Start by comparing the plans provide joint life coverage and compare to regular plans as well to understand the difference. Obtain illustrations of how each plan could perform over a period and then compare to see what will suit your needs. \u003C/li>\u003Cli>\u003Cstrong>Fill Out the Application: \u003C/strong>Complete an application form with both partners’ information, including health details. Discrepancies can lead to complications later as the details asked on the form constitute material fact to the policy once it is issued. \u003C/li>\u003Cli>\u003Cstrong>Undergo Medical Examinations:\u003C/strong> Depending on the plan and sum insured, both partners may need to undergo medical assessments. These exams help determine your insurability and establish the premium costs. \u003C/li>\u003Cli>\u003Cstrong>Review the Policy: \u003C/strong>Once you receive approval, carefully review the policy document to ensure all details are correct. Pay attention to coverage amounts, premium costs, and any riders included.\u003C/li>\u003Cli>\u003Cstrong>Make Payment:\u003C/strong> After you’ve gone through the details and assured yourself that everything is in order, you need to pay the first premium to activate the policy. Keep a copy of the policy document in a safe place for future reference. It is also best to retain the first premium paid receipt as it is part of the policy documentation.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Joint Life Insurance is a powerful tool for couples and partners seeking financial security. With various types of policies available, understanding the benefits and eligibility criteria can help you make informed choices. By assessing your needs and comparing options, you can select the right coverage that provides peace of mind for you and your loved ones.\u003C/p>\u003Cp>If you’re considering Joint Life Insurance, explore the various plans from \u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">Shriram Life Insurance\u003C/a>. With flexibility to choose your plan, coverage and the benefits to match your goals, Shriram Life Insurance has created plans for a variety of financial goals and life stages for individuals, couples and families.\u003C/p>\u003Cp>For more insights into \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">Retirement Plans\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/savings-plan\\\" target=\\\"_blank\\\">Savings Plans\u003C/a>, or \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/child-plan\\\" target=\\\"_blank\\\">Child Plans\u003C/a>, explore our detailed guides. With the right joint life insurance policy, you can take a significant step toward securing your future and that of your loved ones.\u003Cbr /> \u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Efficient Pension Withdrawal in India: Steps and Tips for Retirees\",\"heading\":\"Efficient Pension Withdrawal in India: Steps and Tips for Retirees\",\"short_description\":\"\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tool\u003C/span>\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/50.%20Simple%20Steps%20to%20Withdrawing%20Your%20Pension%20Money%20Quickly_0.png?VersionId=Md_5WxWzTakmSsydK_9wFkJW1txxhCCc\",\"alt\":\"Steps to Withdrawing Your Pension\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-18T09:30:36\",\"updated_on\":\"2024-11-18T09:52:48\",\"read_more_title\":\"Know More\",\"slug\":\"/steps-and-tips-for-pension-withdrawal-in-india-1\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tools. However, accessing pension funds can be overwhelming for those who don’t have a clear understanding of how it works. If you aren’t well-versed in financial matters, you might be nervous that your pension withdrawal could be delayed for numerous reasons. Another reason why prior knowledge is helpful is the impact of taxation. Withdrawing large pension amounts without proper planning will push you into higher tax brackets, significantly reducing the net amount after deducting the tax liability. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This can make you financially vulnerable, especially during medical emergencies or other unexpected times when your expenses are running high. If you are a retiree, senior citizen or someone who is approaching your retirement timeline, this blog is for you. We explain the pension withdrawal steps for your convenience, along with tips to manage the received pension amount and be more aware of your tax liability. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 1: Understand the Types of Retirement Plans in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are various \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement plans in India\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">, each with unique rules and tax implications. Having a clear understanding of these plans can ease the pension withdrawal process. Currently, India has the following common plans:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>National Pension Scheme (NPS)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This market-linked voluntary investment scheme enables all Indian citizens to build a retirement fund by investing in a pension account during work-life years. People investing in these retirement funds schemes must use at least 40% of their funds to buy an annuity plan during retirement, and the remaining corpus amount can be withdrawn as a lump sum. \u003C/span>\u003C/p>\u003Cp>NPS typically allows partial withdrawal of up to 25% on contributions, provided you’re an NPS subscriber for at least three years. Retirees can enjoy tax benefits on NPS u/s 80CCD (1) of up to ₹.1.5 lakh, 80CCD (1b) of ₹.50,000, and 80CCD(2) of 10% of basic salary + DA contributed by the employer. No tax benefits are available for NPS tier 2 and annuity payments.\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Employee Provident Fund (EPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This mandatory savings scheme helps employees create a retirement fund during their active working years. The best part about EPF is that employees can get full pension withdrawal upon retirement. You can also make partial withdrawals before retirement to fund medical emergencies or pay for other expenses such as house purchase/construction, and higher studies. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Withdrawing EPF before retirement will attract tax implications for employees with less than five years of service. Additionally, no one can withdraw the employer’s contribution and interest before five years of service. An employee’s contribution to EPF can be used to claim a deduction u/s 80C. We recommend withdrawing EPF after five years of continuous service as it will attract zero tax on pension, including the interest earned. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Public Provident Fund (PPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">It is a long-term savings scheme that can be opened in any Indian bank or post office. Since PPF typically matures after fifteen years, you must reserve this pension money strictly for your retirement years and avoid partial withdrawals before retirement for optimal benefit. While the full PPF amount can be withdrawn on maturity, people have the option of partial withdrawal from the seventh year onwards.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If you choose partial withdrawal, you can only withdraw 50% of your account balance at the end of the fourth year. The best part about PPF is that it qualifies for the Exempt-Exempt-Exempt (EEE) status. It is a tax category that levies zero tax on your investment, interest earned on investment, and maturity amount. Your PPF contribution can be deducted u/s 80C, up to ₹1.5 lakh (maximum). The PPF maturity proceeds and its interest are fully tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Annuity Plans from Insurance Providers\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Many people prefer investing in annuity plans because they provide regular income post-retirement. Since there are different annuity plans, like deferred, immediate, fixed, variable, etc., the withdrawal rules and tax implications vary significantly for each annuity retirement plan in India. We recommend reading the ‘terms and conditions’ of your chosen annuity plan for accurate information.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 2: Review Withdrawal Rules for Indian Pension Plans\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are different pension plans in India, each with distinct withdrawal rules. While withdrawal rules have been briefly covered in the previous point, you are advised to review all your pension plans’ terms and conditions to learn about the plan-specific rules. Additionally, prepare a list of documentation needed for hassle-free withdrawal. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For example, people with an NPS account will need an NPS withdrawal form, a copy of their PRAN card, proof of their bank account, ID and address proof, a cancelled cheque, and other specified documents for seamless withdrawal. Conversely, those with EPF will need Form 19 for full withdrawal, Form 31 for partial withdrawal, a PAN card, an Aadhaar card, a cancelled cheque, and bank account details.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 3: Understand the Tax Implications in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Different pension fund withdrawals have different tax implications in India. It can be broadly categorized into the following sections:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax-free Portion\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension withdrawal of the NPS lump sum amount and partial withdrawals (up to 25% of the contributor’s share) are tax-free. The entire withdrawal amount from EPF and PPF is also tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax on Annuity Payouts\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">While annuity payouts are generally taxed according to the individual’s income tax slab, certain plans provide tax-free payouts under specific conditions. The tax on pension in annuity payouts will depend on the plan you’ve chosen, so review its terms and conditions for accurate and plan-specific tax implications. \u003C/span>\u003C/p>\u003Cp>If you want to lower your tax liability, then withdraw pension funds in smaller portions. You can calculate and plan your withdrawals by using our income tax calculator page for maximum savings. Additionally, you can also benefit by investing in tax-free options.\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 4: Choose the Right Withdrawal Option\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are various withdrawal options to get your pension money after retirement. The three most common options are shared below:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Lump-Sum Withdrawal\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The lump-sum withdrawal typically refers to the withdrawal of a full or major portion of the corpus. If you choose lump-sum withdrawal, there won’t be any tax on pension for PPF and EPF (if you’ve finished five years of continuous service). Tax won’t be applied on up to 60% of the corpus withdrawn in NPS. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Annuity plans typically don’t allow lump-sum withdrawals, but if you receive one, it will be taxed according to your income tax slab. This withdrawal method is perfect if you need instant access to funds to meet larger expenses. It is a straightforward process, but it may lead to premature depletion of funds. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Systematic Withdrawal Plans (SWP)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This withdrawal method is recommended for retirees who want to continue receiving a steady income without burning the entire retirement funds in a short period. Retirement plans in India, like NPS, EPF, and PPF, generally don’t provide an SWP option, but annuity plans do. Depending on your selected payment frequency, they will continue crediting a specific amount for a fixed period. All annuity payments are taxed as regular income, so ensure you set a lower withdrawal amount to reduce tax liabilities. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Purchase an Annuity\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Many retirees convert a portion of their pension money into annuity plans to continue receiving a predictable and steady income for a fixed period. You can use a\u003C/span>\u003Cem>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> \u003C/span>\u003C/em>\u003Ca href=\\\"https://www.shriramlife.com/retirement-calculator\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement calculator\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> to decide the ideal annuity plan and amount. While these are convenient for many retirees, all annuity proceeds are taxed as regular income, meaning you don’t get any benefit of saving tax on pension money. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 5: Submit Your Pension Withdrawal Request\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The pension withdrawal request rules differ for varying pension plans in India. For example, if you want to withdraw your PPF funds, you can follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">First check if your PPF account is linked to your bank account. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If linked, simply log into your online banking portal and look for the PPF/partial PPF withdrawal option. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">You will then be directed to fill out an online form.\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Submit required documents like a PPF passbook to finish the process. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">But if you’re requesting an NPS withdrawal, you must follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Visit the eNPS portal and log in using your PRAN and password. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Go to the ‘Exit/Withdrawal Request’ section\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Fill out the withdrawal form\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Upload the necessary documents, and submit a request. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">So, we encourage people to review the withdrawal request process based on their pension plan.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 6: Plan for Financial Security After Withdrawal\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Once you’ve received the full pension funds, avoid impulse spending to maintain financial stability. If it’s your only source of income in the retirement phase, we recommend budgeting for regular expenses, medical needs, and unexpected costs. Consider investing in annuity plans so you only receive fixed retirement funds every month to prevent overspending. You can also explore better \u003C/span>\u003Cem>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement plans\u003C/span>\u003C/em>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> listed on our website. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Navigate Your Pension Journey with Shriram Life Insurance - Conclusion\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension becomes the primary income source for many \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/blog/advice/what-are-the-best-insurance-policies-for-senior-citizens\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">senior citizens in their retirement phase\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">, but getting it isn’t as easy. There are different retirement plans in India, each with varying withdrawal rules, tax implications, and financial security. Not being aware of these details can result in delayed withdrawals and unwanted financial strain. However, you can avoid such challenges by following the withdrawal rules and tips discussed in this article. \u003C/span>\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Shriram Life Insurance \u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">provides retirement plans such as \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/immediate-annuity-plus\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Shriram Life Immediate Annuity Plus\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> that can help you secure your financial future along with Pension benefits. These policies provide a safety net for your golden years, ensuring stability and peace of mind. By planning ahead, you can not only protect yourself from unexpected challenges but also achieve your retirement goals and enjoy a fulfilling and worry-free life.\u003C/span>\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Everything You Need to Know About Life Insurance Death Benefits\",\"heading\":\"Everything You Need to Know About Life Insurance Death Benefits\",\"short_description\":\"\u003Cp>Death benefit insurance is an integral part of financial planning.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/7.%20Everything%20You%20Need%20to%20Know%20About%20Life%20Insurance%20Death%20Benefits_0.webp?VersionId=j86ayIxSJJAPB0GNTbtG_6TYW.30t.4L\",\"alt\":\"Things to know about life insurance death benefits\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-15T11:13:18\",\"updated_on\":\"2024-11-15T11:13:23\",\"read_more_title\":\"Know More\",\"slug\":\"/everything-you-need-to-know-about-life-insurance-death-benefits\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Cp>Death benefit insurance is an integral part of financial planning. It's a life insurance product that serves as security on behalf of the policyholder with benefits to protect their loved ones. This blog takes you through everything you need to know about Life Insurance Death Benefits - read on to understand it completely and also how it works and how to make a claim, should the need arise.\u003C/p>\u003Ch2>\u003Cstrong>What Are Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Death benefit is a type of monetary compensation that is paid out to the beneficiary named in the policy, following the death of the insured. This financial support is meant to pass on economic value to loved ones in the absence of a key member of the family. It serves as a safety net because this brings a certain stability in a very uncertain period of life while coping with the loss of a loved one.\u003C/p>\u003Ch2>\u003Cstrong>How Do Life Insurance Death Benefits Work?\u003C/strong>\u003C/h2>\u003Cp>In case the policyholder passes away during the tenure of the insurance period, the insurance company processes the claim and pays the named beneficiary the death benefit. The amount paid out by the insurance company is based on the terms of the policy that may include other riders or endorsements.\u003C/p>\u003Cp>Life insurance policies are broadly classified into the following types, which include:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Term Life Insurance:\u003C/strong> Designed for offering death benefits over a specified tenure.\u003C/li>\u003Cli>\u003Cstrong>Whole Life Insurance:\u003C/strong> The policy pays out during the insured lifetime plus a cash value component.\u003C/li>\u003Cli>\u003Cstrong>Universal Life Insurance:\u003C/strong> The premium and death benefit can be varied by the policy owner.\u003C/li>\u003C/ul>\u003Cp>Having an understanding of how these policies work may provide you with insight into the right insurance policy for you.\u003C/p>\u003Ch3>\u003Cstrong>Types of Death Benefits\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Basic Death Benefit:\u003C/strong> The insured sum of money that is paid to the beneficiary; in other words the standard sum agreed upon and mentioned as the sum assured while the policy was purchased.\u003C/li>\u003Cli>\u003Cstrong>Accidental Death Benefit: \u003C/strong>The occurrence of death due to an accident, and an added benefit that would be given in case the death involved an accident. This is an extra financial security to cover a very unexpected and unusual circumstances of accidental death.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What is covered under death benefits?\u003C/strong>\u003C/h2>\u003Cp>Under normal circumstances, death benefits for life insurance usually cover:\u003C/p>\u003Cul>\u003Cli>Death caused by natural or natural causes, such as sickness.\u003C/li>\u003Cli>Accidental deaths, as described above.\u003C/li>\u003C/ul>\u003Cp>This benefit is the main protection secured through the policy. The policy is usually created with a sum in mind for this death benefit and that is usually a multiple or factor of the premium amount paid. The death benefit is the payout that will allow families to remain financially secure even in the event of the loss of one of their loved ones which is why the value of the policy should be calculated with care. \u003C/p>\u003Ch2>\u003Cstrong>What is Not Covered Under Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Despite the wide range of coverage that exists under death benefits, there are certain exclusions provided under it:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Suicide:\u003C/strong> Most policies do not pay the claim in case the insured commits suicide, within the stated term which is typically within the first two years.\u003C/li>\u003Cli>\u003Cstrong>Fraud: \u003C/strong>If the insurer realizes that the policy was acquired through deceit, then such a claim may be turned down.\u003C/li>\u003Cli>\u003Cstrong>Risky Activities:\u003C/strong> If the death results from extreme sporting activities or felonies, then the company might deny compensation.\u003C/li>\u003C/ul>\u003Cp>Understanding these exclusions leads to better understanding of how the death benefit claim works in a life insurance policy.\u003C/p>\u003Ch2>\u003Cstrong>Tax Saving Benefits on Death Benefits\u003C/strong>\u003C/h2>\u003Cp>While one purchases life insurance for the protection, the investment in this plan also comes with some tax breaks. Life insurance death benefits are typically not taxed especially if it is within the norms of premium to sum assured multiple. Usually, the proceeds paid out are not taxed in the hands of the beneficiary, thereby providing a tax-efficient means to pass along that wealth to the beneficiaries.\u003C/p>\u003Cp>However, there are some exceptions. It is generally prudent to run these details by a financial advisor or tax professional to understand their implications in your particular situation.\u003C/p>\u003Ch2>\u003Cstrong>How Does the Death Benefits Pay-Out Work?\u003C/strong>\u003C/h2>\u003Cp>The pay-out process for life insurance death benefits is straightforward:\u003C/p>\u003Ch3>\u003Cstrong>1. Notice:\u003C/strong>\u003C/h3>\u003Cp>The beneficiaries must notify the insurance company of the death of the policyholder.\u003C/p>\u003Ch3>\u003Cstrong>2. Documentation:\u003C/strong>\u003C/h3>\u003Cp>The claim intimation must also include official death certificates issued by local authority, along with required identity proofs of the beneficiary along with the policy document. Additional affidavits or documentation may be sought based on the specific policy / details and a detailed checklist from the company is readily available to guide the family with a complete submission. \u003C/p>\u003Ch3>\u003Cstrong>3. Examining the Claim:\u003C/strong>\u003C/h3>\u003Cp>The insurance company will then examine the claim based on the provided documentation, matched with the pre-existing terms of the policy. \u003C/p>\u003Ch3>\u003Cstrong>4. Payment:\u003C/strong>\u003C/h3>\u003Cp>Once examined, the process goes through the next stage, which is claim settlement. The beneficiary will receive the death benefit payout direct to the registered bank account of the named beneficiaries.\u003C/p>\u003Ch2>\u003Cstrong>How to Claim Life Insurance Death Benefits\u003C/strong>\u003C/h2>\u003Cp>Claiming death benefits against life insurance may seem daunting, but it need not be. One can ensure the following steps are taken so that should the need arise, the loved ones and beneficiaries have ready access to the documents they need\u003C/p>\u003Cp>\u003Cstrong>1. Policy Copy: \u003C/strong>Kindly provide a copy of the life insurance policy document.\u003C/p>\u003Cp>\u003Cstrong>2. Notify the Insurer:\u003C/strong> The insurance company should be notified promptly about the death.\u003C/p>\u003Cp>\u003Cstrong>3. Provide These Documents: \u003C/strong>Collect all the documents required, including a death certificate, policy number, and identification.\u003C/p>\u003Cp>\u003Cstrong>4. Fill Out Claim Forms:\u003C/strong> Most providers will have you fill out a claim form.\u003C/p>\u003Cp>\u003Cstrong>5. Send Claim: \u003C/strong>Send the completed form, and any other information the provider may require, to the insurer.\u003C/p>\u003Cp>\u003Cstrong>6. Ask: \u003C/strong>Keep in touch with the insurer to confirm that your claim is being worked on.\u003C/p>\u003Cp>In case of doubt, the customer care team can provide you with the required guidance.\u003C/p>\u003Ch2>\u003Cstrong>Choosing the right Life Insurance Policy\u003C/strong>\u003C/h2>\u003Cp>Choose the right kind of life insurance coverage to ensure that your loved ones are covered well. For this, consider the following:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Assess Your Needs-\u003C/strong> Look at your family's current financial position and potential future requirements. On the website one can find useful tools to evaluate the human life value or income replacement value - these are guidelines to understand how much life insurance coverage one should ideally take in the policy. The death benefit is a direct outcome of this number in the policy. \u003C/li>\u003Cli>\u003Cstrong>Compare Different Plans\u003C/strong>- Compare a few product plans such as \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">\u003Cspan>Assured Income Plan\u003C/span>\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/early-cash-plan\\\" target=\\\"_blank\\\">Early Cash Plan\u003C/a>, or \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/premier-assured-benefit-plan\\\" target=\\\"_blank\\\">Premier Assured Benefit\u003C/a> and choose one for your own purpose\u003Cstrong>.\u003C/strong>\u003C/li>\u003Cli>\u003Cstrong>Consider Additional Riders\u003C/strong>- Some optional riders, such as an accidental death benefit, can give you added strengthening to your coverage.\u003C/li>\u003Cli>\u003Cstrong>Find a Financial Advisor\u003C/strong>- A professional advisor can guide you on the right approach, explain the various plan options and help you match the right plan to your financial goals and affordability.\u003Cbr /> \u003C/li>\u003C/ol>\",\"category\":\"/blog/advice\"},{\"title\":\"Understanding Surrender Value in Life Insurance\",\"heading\":\"Understanding Surrender Value in Life Insurance\",\"short_description\":\"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receiv\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/45.%20Understanding%20Surrender%20Value%20in%20Life%20Insurance_0.png?VersionId=GlrBVmYgMpZCTcHGdqB5KOSMdKUWCNBm\",\"alt\":\"Understanding Surrender Value in Life Insurance\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-06T12:13:35\",\"updated_on\":\"2024-11-06T12:13:39\",\"read_more_title\":\"Know More\",\"slug\":\"/understanding-surrender-value-in-life-insurance\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receive when he or she cancels his or her insurance policy before it reaches the end of its maturity period.\u003Cbr />In simpler terms, surrender value refers to the amount of money that the policyholder shall receive at the time of cancellation of the insurance policy.\u003C/p>\u003Cp>This article will dive into what surrender value entails, how surrender values are calculated, and what financial effects come with surrendering a policy.\u003C/p>\u003Ch2>\u003Cstrong>What is Surrender Value and Why Does it Matter?\u003C/strong>\u003C/h2>\u003Cp>Surrender value is of utmost importance to policyholders to make a sound financial decision about their respective insurance policies irrespective of whether they are starting one or choosing to close one before maturity.\u003C/p>\u003Ch3>\u003Cstrong>Here’s why it is important:\u003C/strong>\u003C/h3>\u003Ch4>1. Liquidity:\u003C/h4>\u003Cp>The knowledge of surrender value indicates the extent of liquidity from the policy proceeds that would become available to the policyholder if the policy is prematurely cancelled. In some instances, policyholders might consider the sum received as immediate financial aid in case of emergencies.\u003C/p>\u003Ch4>2. Knowing about the value of the policy:\u003C/h4>\u003Cp>In case you need to liquidate a policy early, it's essential to understand the value of the policy at that point since closing the policy would mean it does not continue for the original duration with the original benefits. Knowing the surrender value is hence essential to making a financially informed decision.\u003C/p>\u003Ch4>3. Impact on Financial Planning:\u003C/h4>\u003Cp>It impacts long-term financial planning and retirement strategies if the policy is designed to be part of a large investment plan.\u003C/p>\u003Ch2>\u003Cstrong>What are the Types of Surrender Values?\u003C/strong>\u003C/h2>\u003Cp>Insurance policies can provide an array of surrender values based on the terms and conditions of the policies. These can be summarized with the help of the following key types:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Guaranteed Surrender Value (GSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is the minimum amount a policyholder will receive on surrendering the policy, which can be claimed subject to certain terms and conditions. The GSV is usually calculated as a percentage of the total amounts paid as premiums, minus all applicable charges.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>If you have a life insurance policy for which the GSV is 30%, and you have paid ₹1,00,000 on premiums, your guaranteed surrender value would be ₹30,000, subject to any other deductions applicable on the premium paid.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Special Surrender Value (SSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is a benefit provided by certain policies wherein a higher surrender value is offered beyond the GSV. SSV is usually a higher value than the GSV, and its payment is typically made subject to specific terms and conditions. Special Surrender Value is more than GSV and is at the discretion of the insurance company based on specific plan details. This is also calculated based on the performance of the funds that the policy is invested in along with with bonus or interest earned until that time.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>For the same example mentioned in GSV, if the insurance company is providing an SSV of 40%, the special surrender value will be ₹ 40,000.\u003C/p>\u003Ch2>\u003Cstrong>How is the Surrender Value Calculated?\u003C/strong>\u003C/h2>\u003Cp>Surrender value calculation depends on some factors:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Premiums Paid:\u003C/strong> Amount of premiums paid to the policy.\u003C/li>\u003Cli>\u003Cstrong>Policy Term:\u003C/strong> The period for which your term insurance policy will remain active, this is selected and fixed at the time of purchasing the plan.\u003C/li>\u003Cli>\u003Cstrong>Bonuses or Interest:\u003C/strong> If there are bonuses or interest that are included in the policy that one is eligible for at the time of surrender of the policy. \u003C/li>\u003Cli>\u003Cstrong>Deductions:\u003C/strong> Surrender charges or penalty if any charged by the insurance company on the policy value due to pre-closure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Do All Life Insurance Policies Offer Surrender Value If You Cancel?\u003C/strong>\u003C/h2>\u003Cp>No, not all policies have a surrender value upon cancellation. The policy surrender value depends upon the kind of insurance policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Permanent Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Most permanent forms of life insurance like whole life or end policies carry a surrender value. Such policies normally accumulate some cash value over time, which may be accessed if the policyholder decides to surrender the policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Term Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Term policies usually do not have a surrender value. Term insurance policies pay through a term and cannot earn cash value. Hence, surrendering a term policy usually brings no monetary benefit.\u003C/p>\u003Ch2>\u003Cstrong>When Does Surrender Value Become Available?\u003C/strong>\u003C/h2>\u003Cp>Surrender value becomes available usually after a certain period, referred to as the \\\"lock-in period,\\\" in which the policy cannot be surrendered. This varies from one policy to another but is typically in a time frame between 1 to 3 years.\u003C/p>\u003Cp>\u003Cstrong>Example:\u003C/strong> If the lock-in period in your policy is 2 years, it means that you will have access to the surrender value only after 2 years from the policy commencement.\u003C/p>\u003Ch2>\u003Cstrong>Financial Impact of Surrendering Your Policy\u003C/strong>\u003C/h2>\u003Cp>When you prematurely cancel or close your policy, you may incur some loss in value in relation to the originally planned maturity value. The surrender value indicates to you the exact gap between original plan value and the sum you would receive on premature closure. \u003C/p>\u003Ch3>\u003Cstrong>Pros (Short-term Benefits)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Flexibility: \u003C/strong>Surrender Value brings in an element of flexibility to life insurance. One can be assured that in case circumstances change and one has to end the plan, there is some surrender value to get in hand even if plan does not continue as originally planned.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Cons (Long-term Drawbacks)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Loss Coverage: \u003C/strong>You give up the insurance coverage during surrender which means you lose the originally intended coverage.\u003C/li>\u003Cli>\u003Cstrong>Potential Loss in Return Value:\u003C/strong> It is possible, based on the plan and investment growth that the surrender value might be lesser than the sum or cumulative amounts one would have paid for the premium until then. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Why Do People Stop Paying For Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Here are some reasons to make one surrender their policy: \u003C/p>\u003Col>\u003Cli>\u003Cstrong>Financial Need: \u003C/strong>Inability to pay the premium because of emergency expenses or loss of a source of income.\u003C/li>\u003Cli>\u003Cstrong>Policy Dissatisfaction:\u003C/strong> The policy does not meet the changing needs or expectations.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What happens if the policyholder stops paying the plan’s premium amount?\u003C/strong>\u003C/h2>\u003Cp>When you stop paying for your life insurance:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Grace Period:\u003C/strong> Most policies have a grace period (typically 30 days) during which you can still pay overdue premiums without losing coverage.\u003C/li>\u003Cli>\u003Cstrong>Policy Lapse: \u003C/strong>If you do not pay premiums in time, then the policy would lapse. This means that the coverage and benefits from the plan would end. Based on the plan, you would only get a partial amount as surrender value is available.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What to Know About Taxes and Surrendered Policies?\u003C/strong>\u003C/h2>\u003Cp>Tax Consequences of Surrendering an Insurance Policy\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Taxable Income: \u003C/strong>The amount you receive in a surrender value may be taxable based on the kind of policy and its value.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefit: \u003C/strong>Policy premiums are generally tax-deductible; when a plan is cancelled you would not pay future premiums and must consider the change in your taxable income due to this and seek suitable alternatives for tax planning. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Tips to Using Surrender Value Effectively\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Needs to be Evaluated:\u003C/strong> Consider the present financial needs and future objectives before surrendering.\u003C/li>\u003Cli>\u003Cstrong>Seek a Financial Advisor:\u003C/strong> To know how it affects you financially and possibly measure alternatives.\u003C/li>\u003Cli>\u003Cstrong>Alternatives:\u003C/strong> Consider the option of taking a loan against the cash value or getting the policy converted into reduced paid-up insurance.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Making the Right Choice: Factors to Consider Before Surrendering\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Current Financial Situation:\u003C/strong> Weigh your short-term and long-term financial needs.\u003C/li>\u003Cli>\u003Cstrong>Policy Value:\u003C/strong> Calculate the surrender value in relation to the value that the policy would likely provide if left untouched until maturity or end of the plan period. \u003C/li>\u003Cli>\u003Cstrong>Alternatives: \u003C/strong>Explore alternative options for cash requirements if not through the surrender value. For example, some plans may allow you to draw an OD or loan against the fund value or policy amount. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>When is the Right Time to Surrender Your Policy?\u003C/strong>\u003C/h2>\u003Cp>You must surrender your policy in the following scenarios:\u003C/p>\u003Col>\u003Cli>When requiring immediate financial assistance.\u003C/li>\u003Cli>The policy does not match your requirements due to revised financial goals.\u003C/li>\u003Cli>Identification of better alternatives in the form of investment plans or insurance policies that provide better returns or coverage, respectively.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Beyond Surrender: Options to Consider\u003C/strong>\u003C/h3>\u003Cp>If you decide you want to cancel your policy, there are a few options:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>You can borrow against the cash value: \u003C/strong>That way, you'll be able to access the funds without having to give up the policy.\u003C/li>\u003Cli>\u003Cstrong>Reduced Paid-Up Insurance: \u003C/strong>This will result in having your insurance policy change to the extent of premiums paid-up until this point, which means a drop in the benefit value. The advantage however is that you don’t have to pay a premium anymore, reducing the ongoing and future commitment if that is causing a concern and there is no urgent need or alternative investment option for the funds.\u003C/li>\u003Cli>\u003Cstrong>Converting to term insurance:\u003C/strong> You can use your policy as the basis for a new term life insurance plan, but based on the decreased premiums and reduced amount of death coverage.\u003C/li>\u003Cli>\u003Cstrong>Partial Withdrawal:\u003C/strong> Some policies even permit for partial withdrawal from the cash value, allowing the plan to stay in force even with some reduction in coverage or benefits. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>The attempt to surrender value as the solution can only solve your need if there is a clear understanding of the feature. It is only to be considered in case of a financial crunch or while re-evaluating the present insurance needs after exhausting other alternatives. It will help you make the best decision based on your situation and needs in an informed manner.\u003C/p>\u003Cp>Consider seeking a financial advisor's opinion before making your final decision, as they should be able to clarify any implications and potential alternatives that better align with your long-term objectives.\u003C/p>\u003Cp>Shriram Life Insurance provides a wide range of Life Insurance Policies to suit different financial goals of individuals. By ensuring financial stability and peace of mind, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance\\\" target=\\\"_blank\\\">Shriram Life Insurance plans\u003C/a> help people navigate their financial milestones and manage their risks with confidence.\u003C/p>\u003Cp>For more information on insurance plans, visit our pages on \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">Retirement Plans\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/savings-plan\\\" target=\\\"_blank\\\">Savings Plans\u003C/a>, and \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/protection-plan\\\" target=\\\"_blank\\\">Protection Plans\u003C/a>.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Step-by-Step Guide: EPF Pension Contribution Withdrawal\",\"heading\":\"Step-by-Step Guide: EPF Pension Contribution Withdrawal\",\"short_description\":\"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a soun\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/49.%20Step-by-Step%20Guide_%20EPF%20Pension%20Contribution%20Withdrawal_0.png?VersionId=FCP9JpnbQFxJ.VVR1sxzlmroHVVZkIeg\",\"alt\":\"Process of EPF Withdrawal\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-05T11:13:01\",\"updated_on\":\"2024-11-05T11:13:08\",\"read_more_title\":\"Know More\",\"slug\":\"/step-by-step-guide-epf-pension-contribution-withdrawal\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a sound financial investment as it is run under government supervision. The EPF, also popularly called PF, is a way to accumulate long-term savings for employees during their years of service or employment, and it is a way to provide financial security as a part of their retirement settlement. The savings add-up through the years of work experience and the funds thus accumulated, along with the earned interest are then available to be withdrawn on or before retirement.\u003C/p>\u003Cp>For many people, the EPF funds are a big part of their retirement funds and lifetime savings. By learning about the withdrawal of one’s EPF pension amount, one can be better equipped to utilize it as an effective savings vehicle for various financial goals.\u003C/p>\u003Cp>Understanding the process of withdrawal from EPF is a key aspect of financial literacy in India, especially if it forms a large part of your savings. In this guide, we take you through the process of withdrawing your EPF amount, including the different modes of withdrawal, both online and offline. We also cover crucial aspects, such as eligibility, documents, and tax implications of EPF contributions.\u003C/p>\u003Ch2>\u003Cstrong>What is the Employee Pension Scheme (EPS) and how does it work?\u003C/strong>\u003C/h2>\u003Cp>EPS is an integral part of the Employees Provident Fund that provides pensions to employees from the time of retirement or disability. This scheme ensures that a proportion of your EPF contributions both from you and your employer are credited to the EPS account. The basic objective of EPS is to stabilize the income after the retirement of an employee.\u003C/p>\u003Ch3>\u003Cstrong>Working of EPS:\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>- Contribution:\u003C/strong> A part of the contribution from the employer and employee gets credited into the EPF account with a percentage towards EPS.\u003C/p>\u003Cp>\u003Cstrong>- Accrual: \u003C/strong>Pension is subject to the number of years of service in addition to your basic salary. The higher the years of service, the better the pension drawn after retirement from service.\u003C/p>\u003Cp>\u003Cstrong>- Pension Payment: \u003C/strong>After spending 10 years of service or after attaining the age of 58 years, you become eligible for availing the pension monthly from EPS.\u003C/p>\u003Ch2>\u003Cstrong>When Can You Withdraw Your Pension Contribution?\u003C/strong>\u003C/h2>\u003Cp>The withdrawal of pension contributions depends entirely on the circumstances of each individual. Here are different case examples for when one might need to withdraw:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Early Withdrawal\u003C/strong>\u003C/h3>\u003Cp>Early withdrawals are well suited in case of emergencies that demand immediate financial support. In these scenarios, one is allowed to withdraw the EPS amount before the completion of the standard service period.\u003C/p>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>Here is an easy-to-understand example: \u003C/strong>\u003C/p>\u003Cp>Lekha aged 45 years old has been working for 5 years. Right now, she is exploring different sources of financial support to pay for a medical condition. In this instance, an early EPF withdrawal is an option she can consider. However, she must also verify if doing so will affect her pension benefits and whether it will attract taxes.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Full Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Full withdrawal from EPF is normally applicable at retirement or when leaving a job after having served a considerable period. For example, Manoj aged 58 years has had 10 years of service in an organization and can look at a full withdrawal of his EPF balance.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Partial Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>The partial withdrawal option is most appropriate for someone who is retiring or nearing the end of a serving period or is moving onto a new career phase. It can provide timely financial support during medical emergencies, education expenses, or while purchasing a larger asset such as a home.\u003C/p>\u003Cp>For example, Ashok aged 35 years old requires immediate financial assistance to fund his child’s education. In this case, Ashok can opt for a partial withdrawal of his EPF amount; the amount withdrawn depends on the objective and your EPF balance.\u003C/p>\u003Ch2>\u003Cstrong>How Much Can You Withdraw from Your EPF Account?\u003C/strong>\u003C/h2>\u003Cp>Depending on the kind of withdrawal and the period of service, you can make a complete or partial withdrawal from your account. Here is how it works:\u003C/p>\u003Cp>\u003Cstrong>- Full Withdrawal:\u003C/strong> The option of withdrawing the entire amount of EPF balance with contributions and interest, becomes applicable when one retires or leaves a job.\u003Cbr />\u003Cstrong>- Partial Withdrawal: \u003C/strong>Partial withdrawals, done for specific purposes, are subject to EPF regulations and balance in the PF account of the holder.\u003C/p>\u003Ch2>\u003Cstrong>Documents Required for EPF Pension Contribution Withdrawal\u003C/strong>\u003C/h2>\u003Cp>Here is a list of documents that are required for the process of withdrawal of EPF pension contribution:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>EPF Account Number:\u003C/strong> A 22-digit alphanumeric number that is assigned to the employee at the time of joining the organization.\u003C/li>\u003Cli>\u003Cstrong>Aadhaar Card: \u003C/strong>Required to verify identity as well as its linkage with the respective EPF account. \u003C/li>\u003Cli>\u003Cstrong>PAN Card: \u003C/strong>For income tax purposes\u003C/li>\u003Cli>\u003Cstrong>Details of the bank account: \u003C/strong>To where the withdrawn amount gets credited.\u003C/li>\u003Cli>\u003Cstrong>Form 19 and 10C: \u003C/strong>Required for withdrawal filled with all the necessary details.\u003C/li>\u003Cli>\u003Cstrong>Proof of Employment: \u003C/strong>To confirm the service period.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Eligibility Criteria for EPF Withdrawal\u003C/strong>\u003C/h2>\u003Cp>You can withdraw EPF amounts after completing 58 years of retirement.\u003Cbr />But, there are a few rules specifying the eligibility criteria to withdraw EPF:\u003C/p>\u003Cp>\u003Cstrong>- Service Period: \u003C/strong>In general, you should have a minimum of 5 years of service.\u003C/p>\u003Cp>\u003Cstrong>- Change of Job: \u003C/strong>You can withdraw the EPF amount if you are changing your job or you wish to discontinue the EPF account.\u003Cbr /> \u003C/p>\u003Ch2>\u003Cstrong>EPF Pension Withdrawal Online Process\u003C/strong>\u003C/h2>\u003Cp>How to withdraw the EPF amount online:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Login on the EPFO Portal\u003C/strong>\u003Cbr />Activate your login at the EPFO portal with a UAN number.\u003C/li>\u003Cli>\u003Cstrong>Step 2: KYC Details Shall be Verified\u003C/strong>\u003Cbr />Ensure that your KYC details are in sync. This should include Aadhaar, PAN details and details of the bank account which is in your name.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Choose the 'Online Services'\u003C/strong>\u003Cbr />To the 'Online Services' tab click on 'Claim (Form-31, 19 & 10C)'.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Fill the details\u003C/strong>\u003Cbr />Fill up your information including your EPF account number, the purpose of withdrawal, and the amount to be withdrawn.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Submit Claim\u003C/strong>\u003Cbr />Check the details once again, then submit it. You will get a claim ID that may track the claim.\u003C/li>\u003Cli>\u003Cstrong>Step 6: Approval and transfer\u003C/strong>\u003Cbr />Once the EPF is processed and approved, it will be directly transferred to your bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Offline EPF Withdrawal Procedure\u003C/strong>\u003C/h2>\u003Cp>To initiate an offline EPF withdrawal, follow this procedure.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Collect Forms\u003C/strong>\u003Cbr />You can collect Form 19 and Form 10C from EPFO or simply download them from the official website of EPFO.\u003C/li>\u003Cli>\u003Cstrong>Step 2: How to Fill the Forms\u003C/strong>\u003Cbr />You would need to fill in all the fields in the forms and ensure to mention the correct EPF account, reason for withdrawal and all other personal details.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Attach Documents\u003C/strong>\u003Cbr />Keep at hand and include documents like your Aadhaar card, PAN card, and details of your bank account that are linked to your PF account. This is where the credit of proceeds will be done.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Form Submission\u003C/strong>\u003Cbr />Submit the complete form with attachments to your regional EPFO office.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Processing\u003C/strong>\u003Cbr />The EPFO will process your request and deposit/credit the amount of the PF withdrawal in your linked/authorized bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What Should You Do if Your Application for EPF Withdrawal Gets Rejected?\u003C/strong>\u003C/h2>\u003Cp>If your EPF withdrawal application gets rejected, you should do the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Review Rejection Reason: \u003C/strong>Check the reason for rejection that EPFO has communicated to you.\u003C/li>\u003Cli>\u003Cstrong>Correct Errors: \u003C/strong>Check for incomplete discrepancies in the forms and correct them on the application.\u003C/li>\u003Cli>\u003Cstrong>Resubmit: \u003C/strong>Resubmit your application with accurate details.\u003C/li>\u003Cli>\u003Cstrong>Call EPFO: \u003C/strong>You may get additional support from the call centre or at the office as well.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to check the status of my EPF withdrawal request?\u003C/strong>\u003C/h2>\u003Cp>To find the status of your EPF amount withdrawal request, you can do the following: \u003C/p>\u003Cp>\u003Cstrong>- EPFO Portal: \u003C/strong>Access the EPFO portal with your UAN and see if your claim status is available in the 'Online Services' section.\u003Cbr />\u003Cstrong>- SMS Services: \u003C/strong>EPFO SMS services can be accessed by sending an SMS containing your UAN and claim ID to the given number.\u003Cbr />\u003Cstrong>- Contact EPFO: \u003C/strong>If there are updates, then the service can be taken from the related EPFO office.\u003C/p>\u003Ch2>\u003Cstrong>Tax Implications of EPF Withdrawals\u003C/strong>\u003C/h2>\u003Cp>The tax implications of EPF withdrawals need to be known beforehand so that there is no surprise element later on. \u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Taxation Rules\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>- Before Completion of 5 Years of Service:\u003C/strong> In case a withdrawal is made before completion of 5 years of service, then the amount is taxable.\u003C/p>\u003Cp>\u003Cstrong>- Withdrawals beyond 5 years: \u003C/strong>Most of the time, the withdrawals after 5 years are tax-exempt.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Tax Benefits and Exemptions\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>As per Section 10(12) of the Income Tax Act, withdrawals of EPF are entirely tax-free if the contributions made towards EPF are filed under Section 80C, Income Tax Act\u003C/p>\u003Ch2>\u003Cstrong>Recent Changes and Updates to EPF Withdrawal Rules You Should Know:\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Improved Online Facilities: \u003C/strong>\u003C/h3>\u003Cp>Improved online facilities allow easier withdrawal of EPF.\u003C/p>\u003Ch3>\u003Cstrong>Retiring Age: \u003C/strong>\u003C/h3>\u003Cp>Updating of the retiring age of an employee to withdraw his/her EPF.\u003C/p>\u003Ch3>\u003Cstrong>Tax Exemption Limits Revised:\u003C/strong>\u003C/h3>\u003Cp>Updating of tax exemption policies and limits.\u003C/p>\u003Cp>Knowing the process of withdrawal of EPF may make all the difference in proper financial management. Whether you want to withdraw your EPF pension contribution online or offline, there are certain rules, eligibility criteria, and necessary documents that will help you face fewer hassles during withdrawal. This will also enable you to keep updating yourself regarding the latest EPFO PF withdrawal rules and changes for informed decision-making about your EPF contributions.\u003C/p>\u003Cp>\u003Cbr />For more information on taxation rules for pensions, withdrawing your pension money quickly, NPS and PPF for retirement, PRAN number, Pension Payment Order, and Voluntary Retirement Scheme check out our blog pages for comprehensive insights.\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">Shriram Life Insurance\u003C/a> provides a range of \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/\\\" target=\\\"_blank\\\">life insurance products\u003C/a> to enable individuals to manage their risks better and also save up funds towards their financial goals. It encourages people to be responsible about financial planning and creating a portfolio of investments that will serve their long-term needs while protecting them from uncertainty of life.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Understanding the Taxation Rules for Pensions: A Comprehensive Guide\",\"heading\":\"Understanding the Taxation Rules for Pensions: A Comprehensive Guide\",\"short_description\":\"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibil\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/48.%20Understanding%20the%20Taxation%20Rules%20for%20Pensions_%20A%20Comprehensive%20Guide_0.png?VersionId=0Lw.1kBm0yhm3x.eFFHSD4TPdHKZ.g6U\",\"alt\":\"Taxation rules for pensioners\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-04T10:32:04\",\"updated_on\":\"2024-11-04T10:32:10\",\"read_more_title\":\"Know More\",\"slug\":\"/understanding-the-taxation-rules-for-pensions\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibilities. Popularly referred to as the golden years, retirement planning takes a fair bit of planning in terms of financial responsibility. Understanding the \u003Ca href=\\\"https://www.shriramlife.com/income-tax-calculator\\\" target=\\\"_blank\\\">Tax on Pension Income\u003C/a> is one area that requires clarity and accurate information.\u003C/p>\u003Cp>Proper planning for retirement involves responsible management of savings and investments. This typically demands knowledge of various investment options and also their taxation rules. One such area of knowledge is about Pension Tax Rules, which dictate the taxation of one’s pension income. Awareness about tax implications is critical to optimizing one’s financial position and ensuring that you get all the Pension Tax Benefits.\u003C/p>\u003Cp>In India, specific rules and exemptions govern the taxability of pension income and this is also linked to each person’s income slab and tax liability. Staying well-informed of these slabs can prevent unexpected tax liabilities and help individuals make appropriate financial decisions. In this guide, we explain Tax on Pension Income, clarify the finer aspects of commuted versus uncommuted pensions, and provide some practical advice on reporting and minimization of Tax on Retirement Income.\u003C/p>\u003Ch2>\u003Cstrong>Is Pension Taxable?\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Overview of Taxability\u003C/strong>\u003C/h3>\u003Cp>In India, the Tax on Pension Income is the same as that on regular income sources. Pension income is taxed depending on the total retirement income. These retirement incomes fall under different slabs, and as your retirement income grows, so does the rate of taxation. The details of how Pension Tax Rules become applicable can change with the kind of pension you receive and the exemptions you may qualify for.\u003Cbr />Income Tax Slabs\u003C/p>\u003Cp>Pension income is taxed according to the income tax slabs as introduced by the Income Tax Department. For the financial year 2024-25, these are as follows:\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/span>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rate (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,001 to 7,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 7,00,001 to 10,00,000\u003C/td>\u003Ctd>10\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 to 12,00,000\u003C/td>\u003Ctd>15\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 12,00,001 to 15,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 15,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For senior citizens, who are 60 years but less than 80 years:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\\\"2\\\">\u003Cem>\u003Cstrong>Income tax slabs for senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,000 to 5,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 5,00,001 to 10,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For super senior citizens, who are 80 years or more:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\\\"2\\\">\u003Cem>\u003Cstrong>Income tax slabs for super senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 0 to 5,00,000\u003C/span>\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 5,00,001 to 10,00,000\u003C/span>\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 10,00,001 and above\u003C/span>\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">These slabs guide how the Tax on Pension Income would be calculated on the monthly pension income of the individual.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Exemptions\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Deductions under Section 80C, 80 DDB, 80 TTB, and 80 D can help reduce the tax burden on pension income. Pensioners can claim a tax exemption of up to Rs. 1.5 lakh under Section 80C of the IT Act. When aged 60 years or more, exemptions of Rs. 2 lakhs can be claimed under various heads.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted And Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">A commuted pension is a one-time amount paid as a trade-off for part of one’s annuity pension. A commuted pension is useful to an individual who requires a lump sum amount to begin with, while the remaining balance of the pension gets credited to them every month periodically. To plan for your retirement, it pays to understand how this will impact your Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Commuted pension taxability varies from one employee to another. If you are a government employee, the entirety of your commuted pension is exempt from tax. However, for those employees retiring from the private sector and not government roles, the commuted pension is exempt up to one-third of the total pension amount.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Practical Example\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Consider an employee whose monthly pension is ₹50,000, who wants to commute half of it and receive ₹6,00,000 as a lump sum, of which the amount up to ₹2,00,000 might be exempted. The balance of ₹4,00,000 might be taxable under particular rules and conditions prevailing at the time of taking that benefit.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Uncommuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">An uncommuted pension is that portion of your pension that you receive regularly without any commuted lump sum. As an element of your pension flow, which is considered as income, the question of how it impacts Tax on Retirement Income becomes a point to consider while planning for your retirement.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Taxes are levied on the entirety of an uncommuted pension. Compared to commuted pensions, uncommuted pensions do not benefit from exemptions.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted and Uncommuted Pension Income Taxability\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Exemption Criteria\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For government employees, the commuted pension is fully exempt from tax. For non-government employees, the exemption goes to one-third of the commuted amount, if received in a lump sum. The excess amount is then subjected to Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Taxable Portion\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If the commuted amount exceeds the exempt limit, then the excess amount will be taxable. For instance, if the exemption limit is ₹2,00,000 and the commuted amount is ₹6,00,000, then ₹4,00,000 will be taxable.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Full Taxation\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The whole of the uncommuted pension is liable to tax. One may add it to their total income and compute tax based on the income tax slabs of the latest regime.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Possible Deductions\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Whereas an uncommuted pension is fully taxable, other sources or investments might permit claimable deductions that can reduce the overall tax liability. This is, therefore, one of the key aspects of Retirement Planning.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Which Head of Income Should Pension Income be Disclosed Under?\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income from Salary\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Primary Reporting Head:\u003C/strong> Pension income is usually accounted for under the \\\"Income from Salary\\\" head in your tax return as pensions are a sort of deferred salary.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Integration with Other Income:\u003C/strong> If you have other forms of income besides your pension, such as salary and/or investments, you have to add these amounts in with your pension income at least in terms of reporting income. It's just the sum of these incomes which forms the basis for how much you'll really pay in taxes.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Specific Situations:\u003C/strong> International organizations and other non-resident status pensions may have different reporting requirements. Again, such knowledge of the specific rules will help in proper reporting and compliance.\u003C/span>\u003C/p>\u003Ch2>\u003Cstrong>How to Report Pension Income and Employer Details in the Income Tax Return\u003C/strong>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Form Selection\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Correct Forms: \u003C/strong>Report pension income using the appropriate income tax return forms. Most people can use forms like ITR-1 or ITR-2. The choice of form will depend on your other sources of income and such deductions.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Reporting Details\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income Reporting: \u003C/strong>In the \\\"Income from Salary\\\" section of your tax return, report your gross pension income. Make sure all pension payments are reflected and TDS deducted is also reported.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Employer Details:\u003C/strong> Provide your last employer’s or pension authority’s details in your tax return. This will be verified for your source of pension income and, hence, is considered for the correct computation of tax.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>TDS Reporting\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax Deducted at Source: \u003C/strong>In case TDS has been deducted from your pension income, ensure to provide this information under appropriate sections of the tax return. The amount of TDS should remain the same as mentioned in the TDS certificate issued to you by your pension authority.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>New Tax Return Regulations for Senior Pensioners\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Recent Updates\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>New Provisions: \u003C/strong>New tax return rules may include new elevation of exemption limits and extra benefits for elderly pensioners. Such revised directions are being given to reduce the tax on pension income for pensioners and make retirement planning more favorable.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Benefits:\u003C/strong> New rules may introduce enhanced exemption limits, increased deductions and specific relief measures for pensioners retired thereafter. Keeping up-to-date with these changes enables you to fine-tune your tax planning strategy to achieve maximum Pension Tax Benefits.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Compliance Tips\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Filing Changes: \u003C/strong>Know about any changes in compliance requirements or tax return filing process of senior pensioners. News on new forms, documents required and procedures help in avoiding penalties and being compliant.\u003C/span>\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What are the best insurance policies for senior citizens?\",\"heading\":\"Insurance Policies for Senior Citizens: A Comprehensive Guide\",\"short_description\":\"\u003Cp>As the saying goes, health is wealth.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/47.%20What%20are%20the%20best%20insurance%20policies%20for%20senior%20citizens__0.png?VersionId=TtIbOMwKuDB1aTVKdYvM.BlwpaBL4s1i\",\"alt\":\"Insurance policy for seniors\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-30T07:17:56\",\"updated_on\":\"2024-10-30T07:18:02\",\"read_more_title\":\"Know More\",\"slug\":\"/what-are-the-best-insurance-policies-for-senior-citizens\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>\",\"description\":\"\u003Cp>As the saying goes, health is wealth. With improved health support, advanced medicine, and suitable lifestyle changes, many more people can be expected to live longer. Sustaining long sunset years will need wealth to support one’s expenses and lifestyle needs. While many plan their retirement years and savings decades ahead, for some others, it is possible to do so only after all family commitments are settled.\u003C/p>\u003Cp>For those who are already senior citizens and looking at sustainable options to secure their retirement years, the importance of insurance increases manifold. From supporting health expenses to financial security to being able to live comfortably, insurance plans provide some benefits that are specific to seniors.\u003C/p>\u003Cp>In this all-inclusive guide, we discuss the \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">most-suited insurance policies for senior citizens\u003C/a>. We also cover general tips on how to pick the right policy given one’s circumstances, along with an overview of India's insurance arena.\u003C/p>\u003Ch2>\u003Cstrong>Understanding Insurance Needs for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>The choice of insurance for senior citizens varies based on the specific circumstances. There are different types of insurance to consider based on these needs. The most common needs for senior citizens are:\u003C/p>\u003Ch3>\u003Cstrong>1. Health Insurance:\u003C/strong>\u003C/h3>\u003Cp>With ageing, the susceptibility to disease and health risks increases. Health insurance provides financial support for health expenses that may increase during senior years. This is especially important for senior citizens so that their retirement funds or lifetime savings are not affected by unexpected health expenses. It is important to be able to comfortably afford the best healthcare in case one faces some critical illness or health setback in one’s later years.\u003C/p>\u003Ch3>\u003Cstrong>2. Income Replacement:\u003C/strong>\u003C/h3>\u003Cp>Once retired, regular income stops. If one has prudently built up savings, there is likely to be some investment income or perhaps pension or retirement settlement to support this stage. One such investment option for those looking at saving up for retirement funds is a Life Insurance Policy. Various kinds of life insurance plans help create income as financial support in later years.\u003C/p>\u003Ch3>\u003Cstrong>3. Long-Term Care:\u003C/strong>\u003C/h3>\u003Cp>Long-term care insurance covers the expenditure that is incurred when a person requires extended care due to a prolonged illness.\u003C/p>\u003Ch3>\u003Cstrong>4. Critical Illness Cover:\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Cover provides a lump sum amount in case of diagnosis of specific diseases and illnesses and could help pay for treatments that involve high expenditure.\u003C/p>\u003Ch2>\u003Cstrong>Importance of Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>The awareness of insurance for elderly citizens in India has been growing due to the following factors.\u003C/li>\u003Cli>\u003Cstrong>Medical Expenses: \u003C/strong>Healthcare costs in one’s senior golden years will likely be higher than during middle age. Unexpected health costs could erode one’s retirement savings and insurance will effectively manage the costs and prevent this erosion.\u003C/li>\u003Cli>\u003Cstrong>Financial Security: \u003C/strong>Life insurance provides much-needed financial security, and can help in estate planning.\u003C/li>\u003Cli>\u003Cstrong>Peace of Mind:\u003C/strong> Knowing one’s financial needs are covered if there is a need for critical illness or long-term care provides peace of mind.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Types of Insurance Policies Suitable for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Life Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Life insurance plays a significant role in building up savings while protecting one’s life. It could also become a part of one’s legacy or estate planning to pass on to one’s dependents. Life insurance policies suitable for senior citizens are described below.\u003C/p>\u003Ch4>1. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan\\\" target=\\\"_blank\\\">Term Life Insurance\u003C/a>:\u003C/h4>\u003Cp>Coverage under this type of policy is available for a specific period. It is ideal for those individuals who want to provide financial security for dependents upon their demise.\u003C/p>\u003Ch4>2. Whole Life Insurance:\u003C/h4>\u003Cp>This is an insurance policy providing coverage for the whole lifetime of the insured, plus a savings component that can accumulate cash value over time.\u003C/p>\u003Ch4>3. Endowment Plans:\u003C/h4>\u003Cp>These policies combine life insurance with savings. They provide a lump sum on maturity, and they also ensure financial security in case of the unfortunate death of the insured.\u003C/p>\u003Cp>Life Insurance rates for senior citizens often come with tailored plans depending on the age and health status of the insured.\u003C/p>\u003Ch3>\u003Cstrong>B. Critical Illness Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Insurance Plans cover the cost of life-threatening health conditions, such as cancer, heart attack, or stroke. The features are as follows:\u003C/p>\u003Ch4>1. Lump Sum Payment:\u003C/h4>\u003Cp>A lump sum is paid to the insured when diagnosed with a critical illness included in the policy.\u003C/p>\u003Ch4>2. Comprehensive Coverage:\u003C/h4>\u003Cp>Each policy has a list of illnesses covered and provides financial support in treatment.\u003C/p>\u003Cp>Critical Illness Coverage Insurance is important because it makes it possible to manage the high cost of treatment and supports recovery without putting any financial strain on the individual.\u003C/p>\u003Ch2>\u003Cstrong>C. Long-term Care Insurance Policies\u003C/strong>\u003C/h2>\u003Cp>Long-term care insurance is designed to cover extended care needs such as nursing home care or home healthcare. Here is why it matters:\u003C/p>\u003Ch4>1. Extended Coverage\u003Cstrong>:\u003C/strong>\u003C/h4>\u003Cp>Extends financial support towards long-term care services that are otherwise not covered by regular health insurance.\u003C/p>\u003Ch4>2. Quality of Care:\u003C/h4>\u003Cp>Helps in providing the covered policyholder with the financial support to afford high-quality care, thereby enhancing the quality of life in later years.\u003C/p>\u003Cp>This is a must-have insurance in a portfolio for a senior citizen. Long-Term Care Insurance for Seniors primarily allows the applicant's mind to stay calm and stable in terms of finances for future planning.\u003C/p>\u003Ch2>\u003Cstrong>Factors to Consider When Choosing Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>When choosing an insurance policy, you have to consider a few factors to ensure that it has catered to all your needs.\u003C/p>\u003Ch3>\u003Cstrong>1. Coverage Options\u003C/strong>\u003C/h3>\u003Cp>Review the coverage scope of the policy. Be thorough in your analysis of the policy and opt for add-ons only if they significantly enhance the benefits of the plan to match your needs. \u003C/p>\u003Ch3>\u003Cstrong>2. Premium Costs and Affordability\u003C/strong>\u003C/h3>\u003Cp>Does the premium payment fit within your budget? Low premiums are desirable, but the cost at which such low premiums are achieved should not compromise the extent of coverage. Compare premiums across plans if you need to check which provides you with the best coverage options for your senior years. \u003C/p>\u003Ch3>\u003Cstrong>3. Pre-existing Conditions and Limitations on Coverage\u003C/strong>\u003C/h3>\u003Cp>Learn how pre-existing conditions affect your coverage. Some policies come with waiting periods or have exclusions for pre-existing conditions, which might not be suitable for seniors, especially if they have some pre-existing health issues.\u003C/p>\u003Ch3>\u003Cstrong>4. Policy Coverage Years\u003C/strong>\u003C/h3>\u003Cp>Each policy has a specific year or age up to which coverage is valid. It is important to choose plans that have maximum age inclusion. Shriram Life Insurance has plans such as the Shriram Life Pension Plus that provides coverage for up to 80 years and can be taken for a maximum of 35 years as a policy term. \u003C/p>\u003Ch2>\u003Cstrong>Best Insurance Companies for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>About Shriram Life Insurance Company\u003C/strong>\u003C/h3>\u003Cp>Shriram Life Insurance provides a set of great insurance plans for senior citizens. Some of the policies that would suit a senior citizen are as follows.\u003C/p>\u003Cp>\u003Cstrong>1. \u003C/strong>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">\u003Cstrong>Assured Income Plan\u003C/strong>\u003C/a>\u003Cstrong>- \u003C/strong>This would provide the senior citizen with regular income during the term of the plan, helping them lead a financially secure life and manage expenses during their old age.\u003C/p>\u003Cp>2. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/early-cash-plan\\\" target=\\\"_blank\\\">\u003Cstrong>Early Cash Plan\u003C/strong>\u003C/a>- This is a unique insurance plan with added savings benefit - that provides high returns and flexible premiums.\u003C/p>\u003Cp>3. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/saral-pension\\\" target=\\\"_blank\\\">\u003Cstrong>Saral Pension Plan\u003C/strong>\u003C/a>- This policy provides a single premium payment option, allowing policyholders to receive regular income for life. The plan supports different annuity frequencies, making it flexible for individual needs.\u003C/p>\u003Cp>Each plan is created with a wise understanding of the requirements of senior citizens. It aims to give them stability and peace of mind through the chosen insurance policies.\u003C/p>\u003Ch2>\u003Cstrong>How to Choose the Right Insurance Policy for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Assessing Individual Health Needs\u003C/strong>\u003C/h3>\u003Cp>Evaluate the health conditions and risks of the elders in the family and pick a policy that covers life-given existing health conditions as well as future events.\u003C/p>\u003Ch3>\u003Cstrong>B. Comparing Different Insurance Policies by Shriram Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Compare different policy plans of Shriram Life Insurance based on the coverage, benefits, and premium amount for your given age to assess which one matches your long-term goals.\u003C/p>\u003Ch3>\u003Cstrong>C. Documents Required for Insurance Application\u003C/strong>\u003C/h3>\u003Cp>While one is preparing to get an insurance policy, one may be required to provide the following documents\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Age proof:\u003C/strong> Birth Certificate or passport\u003C/li>\u003Cli>\u003Cstrong>Identity proof:\u003C/strong> Aadhaar card, PAN card, or voter's ID.\u003C/li>\u003Cli>\u003Cstrong>Medical Records: \u003C/strong>The latest health check-up reports and the details of the pre-existing ailments.\u003C/li>\u003Cli>\u003Cstrong>Address Proof: \u003C/strong>Utility bills or rent agreements.\u003C/li>\u003C/ul>\u003Ch3>\u003Cstrong>D. Can You Renew Insurance Policies Online for Senior Citizens?\u003C/strong>\u003C/h3>\u003Cp>Yes, you can renew it online for most insurance plans. It is easy and allows quick updates to your policy; thus, ensure all details are correct and updated at renewal.\u003C/p>\u003Ch3>\u003Cstrong>E. Insurance Policy Validity and Renewal Schedule\u003C/strong>\u003C/h3>\u003Cp>The validity schedule of an insurance policy pertaining to senior citizens varies according to the type of policy and the period for which it has been purchased. Normally, a policy remains valid for a term of one year until the next premium becomes due. It will be renewed on payment of the next premium and the plan remains in force for the policy duration as long as premiums are paid on time.\u003C/p>\u003Cp>Insurance covers are usually applicable for between 1 year and several years. However, you shall renew the policy before the renewal date to avoid a lapse in cover and enjoy continued coverage without disruption or loss of benefits. Record renewal dates and review policy terms from time to time to stay on top of your insurance portfolio.\u003C/p>\u003Ch3>\u003Cstrong>F. Insurance Premiums and Payment Options\u003C/strong>\u003C/h3>\u003Cp>The senior citizens' insurance policy premium can be paid annually, semi-annually or monthly under the policy. Insurers should opt for the premium paying frequency that would easily fit their budget and financial planning and cash flows.\u003C/p>\u003Ch3>\u003Cstrong>G. Regulatory Aspect Of Insurance Policies for Senior Citizens\u003C/strong>\u003C/h3>\u003Cp>In India, all policies are regulated by the Insurance Regulatory and Development Authority of India or IRDAI.\u003C/p>\u003Cp>The IRDAI regulates the terms of the policies to ensure they are fair and transparent and this is meant to protect your interests as a policyholder. \u003C/p>\u003Ch3>\u003Cstrong>H. Finding Reliable Insurance Providers\u003C/strong>\u003C/h3>\u003Cp>The following criteria establish factors that can help you identify a reputed insurer that you can consider to purchase insurance policies from.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Reputation: \u003C/strong>Your insurance company should have a good reputation and preferably high claim settlement ratio.\u003C/li>\u003Cli>\u003Cstrong>Reviews: \u003C/strong>Take a look at customer reviews and ratings provided by policyholders to know the quality of service.\u003C/li>\u003Cli>\u003Cstrong>Advisors: \u003C/strong>Seek help from insurance advisors who deal with various types of senior citizen insurance for guidance.\u003C/li>\u003Cli>\u003Cstrong>Tax planner: \u003C/strong>Your auditor or tax planner can aid in making long-term investment decisions related to insurance. They can also advise on the estate planning options and how best to gain the tax exemptions or tax breaks you might be eligible for.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What to Consider During Insurance Medical Check-ups?\u003C/strong>\u003C/h2>\u003Cp>While undergoing medical check-ups for health insurance, one must keep in mind the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Health History: \u003C/strong>Answer them correctly about your health history.\u003C/li>\u003Cli>\u003Cstrong>Pre-existing Health Conditions: \u003C/strong>Discuss all the prevalent health issues that will affect your coverage and premium charges.\u003C/li>\u003Cli>\u003Cstrong>Medical Record Updations: \u003C/strong>Ensure that your medical records are updated, so that your assessments can be precise.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Claim Insurance Benefits for Senior Citizens?\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>\u003Cstrong>Notify the Insurer: \u003C/strong>Report your insurance claim immediately.\u003C/li>\u003Cli>\u003Cstrong>Documents:\u003C/strong> Always keep all documents in handy, including medical reports and copies of the policy.\u003C/li>\u003Cli>\u003Cstrong>Follow-up: \u003C/strong>Keep track of the status of the claim. If there is a problem in getting the claim benefit, solve it immediately.\u003C/li>\u003Cli>\u003Cstrong>Consultation: \u003C/strong>Talk to your insurance advisor if you want some help in getting insurance benefit claims.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Conclusion:\u003C/strong>\u003C/h2>\u003Cp>Choosing the best insurance policies for senior citizens requires careful consideration of goals, needs and matching those to the available plan options. Studying aspects such as required coverage, premiums and terms of the policy, and overall financial needs is key to choosing the most-suited plan. Knowledge about various kinds of insurance, as illustrated above is essential in helping seniors and their families make the right decision for securing their futures and living their sunset years with peace of mind.\u003C/p>\u003Cp>Shriram Life Insurance provides invaluable support for senior citizens during their retirement years. By providing insurance solutions, it ensures financial stability and peace of mind, enabling retirees to enjoy their golden years with confidence and security.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What is Family Life Insurance?\",\"heading\":\"What is Family Life Insurance?\",\"short_description\":\"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/6.What%20is%20family%20life%20insurance%20policy_%20-%20Know%20its%20Importance%20%26%20Benefits_0.webp?VersionId=DJWQ0.vIovW4IeYdh5rLbh6p8qETGsl2\",\"alt\":\"Life Insurance Plans for Family\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-28T11:08:06\",\"updated_on\":\"2024-10-28T11:08:13\",\"read_more_title\":\"Know More\",\"slug\":\"/what-is-family-life-insurance\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security. Family Life Insurance is designed in such a way that it ensures the financial security of the family and in case of unfortunate event of the policyholder, their family will be able to continue with their lifestyle without compromising on anything.\u003C/p>\u003Cp>Also, family life insurance also helps pay off any outstanding debts, educational expenses of the children or mortgage payments. Family Life Insurance also provides peace of mind and helps maintain the quality of life in the absence of the breadwinner.\u003C/p>\u003Ch2>\u003Cstrong>Why do we need a Family Insurance Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/blog/early-cash-plan/why-does-every-family-need-a-life-insurance-savings-plan\\\" target=\\\"_blank\\\">Family Life Insurance ensures that your family is financially protected\u003C/a> even during tough times of life. In case, if only one person is the breadwinner of the family, this type of insurance will benefit them. It can be a source of income during your absence and the financial needs are taken care of.\u003C/p>\u003Cp>Losing loved ones can be unfortunate and some uncertainties of life cannot be prevented. In such unfortunate times, insurance helps people to plan their finances accordingly. Family Life Insurance helps to cope with materialistic needs, till you can get back to your normal life.\u003C/p>\u003Ch2>\u003Cstrong>What are the features and benefits of Family Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Family Life Insurance protects loved ones and provides financial security during the unfortunate demise of the family member.\u003C/p>\u003Cp>The key features and \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan-features-and-benefits\\\" target=\\\"_blank\\\">benefits of Family Life Insurance\u003C/a> are designed in such a way that the diverse requirements of the policyholder are met. \u003C/p>\u003Ch3>\u003Cstrong>Death cover\u003C/strong>\u003C/h3>\u003Cp>In case of the sudden demise of the family member or the breadwinner, the beneficiaries will receive the Sum Assured. It will be a lump sum amount that will support the family financially and also help cover immediate expenses. Additionally, the family can use it for their children’s educational expenses and mortgage payments. \u003C/p>\u003Ch3>\u003Cstrong>Premium\u003C/strong>\u003C/h3>\u003Cp>The premium for Family Life Insurance is affordable, which allows people to safeguard their family members during unfortunate times. However, the premium may differ depending on factors like age, coverage amount, policy and health. Also, the premium can be paid in flexible terms like monthly, quarterly, half-yearly and annually. \u003C/p>\u003Ch3>\u003Cstrong>Coverage amount\u003C/strong>\u003C/h3>\u003Cp>The coverage amount will vary depending on your financial requirements and annual earnings. It will allow you to choose the coverage amount and it determines the death cover of the life cover.\u003C/p>\u003Ch3>\u003Cstrong>Payout options\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance will also allow you to determine the payout option, depending on the person’s financial situation. \u003C/p>\u003Ch3>\u003Cstrong>Renewability Option\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance provides the benefit to renew their policy at the end of the policy term without any additional medical underwriting. \u003C/p>\u003Ch2>\u003Cstrong>Types of Life Insurance Plans in India?\u003C/strong>\u003C/h2>\u003Cp>There are various types of Family Life Insurance available in India, which can be availed by the policyholder depending on their requirement.\u003C/p>\u003Ch3>\u003Cstrong>Term Insurance\u003C/strong>\u003C/h3>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/online-term-plan\\\" target=\\\"_blank\\\">Term Insurance\u003C/a> is a Life Insurance plan that provides financial coverage for a set period of time. In case, unfortunate event of the policyholder occurs within the policy term, the insurance company will pay the death benefit to the policyholder’s beneficiary.\u003C/p>\u003Ch3>\u003Cstrong>Endowment Plans\u003C/strong>\u003C/h3>\u003Cp>Endowment Plan is a type of savings plan that provides the benefit of both the life cover and maturity benefit. These types of plans can benefit people who want to save money for their future and also provide a life cover, in case of any unfortunate event of the policyholder occurs. \u003C/p>\u003Ch3>\u003Cstrong>ULIP (Unit Linked Insurance Plans)\u003C/strong>\u003C/h3>\u003Cp>ULIPs are Unit-Linked Insurance Plans that provide the advantage of both investment and insurance coverage. The premium will be linked to the stock market. \u003C/p>\u003Cp>The return and the lump sum will depend on the market fluctuations. Part of the premium will be invested in the stock market depending on the policyholder’s risk tolerance and financial goals.\u003C/p>\u003Ch2>\u003Cstrong>How to decide on the right Life Insurance Plans for a family?\u003C/strong>\u003C/h2>\u003Cp>There is a wide range of Life Insurance plans available for families in India. You can choose among the ones that \u003Ca href=\\\"https://www.shriramlife.com/blog/advice/comprehensive-guide-to-choose-the-right-life-insurance\\\" target=\\\"_blank\\\">suits your financial needs and coverage requirement\u003C/a>. Listed below are some points to consider before choosing the right Family Life Insurance policy.\u003C/p>\u003Ch3>\u003Cstrong>Assess your needs\u003C/strong>\u003C/h3>\u003Cp>Analyzing and assessing your needs is the primary step in finding the right Family Life Insurance. Considering factors like financial goals, life cover, loan repayment and other financial burden will help you to choose the right plan.\u003C/p>\u003Ch3>\u003Cstrong>Understand the Different Types of Insurance\u003C/strong>\u003C/h3>\u003Cp>Understanding the type of insurance is also important to choose the right one. Term Insurance covers the policyholder for the specified period of time and the life cover will be paid to the beneficiaries in case of unfortunate demise of the policyholder.\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance\\\" target=\\\"_blank\\\">Life Insurance provides life cover and maturity benefits\u003C/a>, depending on the plan chosen. It also has plans like ULIP and endowment plans. So you can choose from these types of insurance coverages.\u003C/p>\u003Ch3>\u003Cstrong>Check the Coverage Amount\u003C/strong>\u003C/h3>\u003Cp>Sum Assured is the assured amount that will be paid by the insurance company to the policyholder. In case, the unfortunate demise of the policyholder occurs, the sum assured will be paid to the beneficiaries. There are many online Life Insurance calculators available to calculate the life cover and the premium amount.\u003C/p>\u003Ch3>\u003Cstrong>Boost your Life Insurance with riders\u003C/strong>\u003C/h3>\u003Cp>Riders or add-ons are additional features that enhance your Life Insurance. For example, riders like critical illness or personal accident coverage can be a valuable addition to your Life Insurance. These riders help you to cater your policy according to your needs. \u003C/p>\u003Ch3>\u003Cstrong>Read the policy document\u003C/strong>\u003C/h3>\u003Cp>Make sure you read the policy document fully and understand the coverages. The policy document will have the inclusions and exclusions of the plan. If you think the plan will not suit your needs or you have any queries regarding the plan, you can contact the insurance provider and get all your doubts cleared.\u003C/p>\u003Ch2>\u003Cstrong>Why choose Shriram Life Family Protection Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan\\\" target=\\\"_blank\\\">Shriram Life Family Protection\u003C/a> provides Life Insurance policies at affordable premiums and you can also choose riders or add-ons that complete your Life Insurance plan. Additionally, Shriram Life Insurance provides child plans that help you safeguard your child’s dream without any financial burden.\u003C/p>\u003Cp>With Shriram Life Family Protection Plan, you can also plan for your retirement, investments and also for a future with no financial burden. \u003C/p>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Life can be unpredictable, so it is important to protect our loved ones with proper insurance that suits your needs. A Family Life Insurance plan protects your family and ensures financial protection. Additionally, Shriram Life Insurance provides Child Protection Plan, Investment Plan, Protection Plan, Retirement Plan and Savings Plan. These plans provide a wide range of insurance options that help you choose the protection for you and your family.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What is a Money Back Insurance Policy ?\",\"heading\":\"What is a Money Back Insurance Policy?\",\"short_description\":\"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the lon\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/5.Money%20Back%20Insurance%20Policy%20Explained_0.webp?VersionId=r7iugaVagDwYA8yOG382jcYZxOt1xQc9\",\"alt\":\"what is Money Back insurance Policy\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-24T07:21:14\",\"updated_on\":\"2024-10-24T07:23:20\",\"read_more_title\":\"Read More\",\"slug\":\"/what-is-a-money-back-insurance-policy\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>\",\"description\":\"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the long run through Life Insurance. What if we told you could do both? Yes, with money-back Life Insurance, you can benefit from both life coverage as well as receiving investment returns during the policy period. Curious to learn more? Keep reading as we delve into everything you need to know about Money Back Term Life Insurance.\u003C/p>\u003Ch2>\u003Cstrong>How Does a Money Back Policy Work?\u003C/strong>\u003C/h2>\u003Cp>Money Back Life Insurance is a type of Life Insurance Policy that provides both insurance and investment benefits. Similar to a Term Insurance Policy, it offers life coverage in exchange for a premium. Additionally, it also provides a percentage of the sum assured as returns periodically, and at maturity it provides a bulk settlement. Thus, those insured under this policy will be eligible for survival, death, and maturity benefits.\u003C/p>\u003Ch2>\u003Cstrong>Why Do You Need to Buy a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>You may have financial obligations and the responsibility to make sure your \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan-best-selling\\\" target=\\\"_blank\\\">family is financially secure\u003C/a>. That is exactly what a Money Back Policy helps you with- it offers a steady side income, Life Insurance, and a lump sum payout at the end of the policy term. It is therefore sensible to purchase a Money Back Policy if you have dependents that you must take care of or if you are trying to reach financial goals.\u003C/p>\u003Ch2>\u003Cstrong>Key Features of Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are some of the salient features of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Life Cover: \u003C/strong>In the event that the insured is no more, their nominees will receive a large sum of money to manage their monetary needs.\u003C/li>\u003Cli>\u003Cstrong>Assured Gains: \u003C/strong>You can select \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">non-market-linked Money Back Plans\u003C/a> if you are searching for a secure investment with guaranteed returns.\u003C/li>\u003Cli>\u003Cstrong>Regular Income:\u003C/strong> You can expect regular returns at intervals. Thus acting as a secondary source of income.\u003C/li>\u003Cli>\u003Cstrong>Terminal Bonus:\u003C/strong> In addition to the returns obtained from your funds, you will get a bonus amount at the end of the policy tenure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Benefits of a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Below listed are the top benefits of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Dual Benefit:\u003C/strong> A Money Back Policy offers the best of both worlds: periodic wealth creation during the policy term and death benefit that will benefit the insured's dependents.\u003C/li>\u003Cli>\u003Cstrong>Return on Investment: \u003C/strong>Apart from the periodic payouts, you will also receive a bulk amount at the time of policy maturity.\u003C/li>\u003Cli>\u003Cstrong>Life Insurance:\u003C/strong> Life Insurance is an important consideration for those with dependents. A Money Back Life Insurance Policy assures you that your family will be financially secure if the worst were to happen.\u003C/li>\u003Cli>\u003Cstrong>Wealth Generation:\u003C/strong> Looking to gather wealth for early \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">retirement\u003C/a> or a child’s education? Money Back Life Insurance offers instalment payouts for immediate needs, plus a lump sum at the end of the policy term.\u003C/li>\u003Cli>\u003Cstrong>Personalized Options: \u003C/strong>There are different Money Back Life Policies to choose from depending on your financial goals and needs.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefits:\u003C/strong> With a Money Back Policy, you can claim tax exemptions for the maturity amount under Section 10(10D) and the policy premiums under Section 80C of the Income Tax Act of 1961.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Eligibility Criteria for Buying Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the eligibility criteria for Buying Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Age:\u003C/strong> Typically, there are minimum and maximum age limits for purchasing a Money Back Life Insurance Policy. These limits usually range from 18 to 65 years, although they can vary between different insurers.\u003C/li>\u003Cli>\u003Cstrong>Health Status: \u003C/strong>You might be required to disclose any pre-existing medical conditions and to meet a specific level of fitness.\u003C/li>\u003Cli>\u003Cstrong>Income Proof: \u003C/strong>Generally, insurers are expected to provide proof of income to show that they are capable of making premium payments.\u003C/li>\u003Cli>\u003Cstrong>Nationality:\u003C/strong> Life insurance offered by Indian insurers is only available to Indian citizens. Therefore, Indian citizenship is a requirement for obtaining a life policy in India.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Documents Required to Buy Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the documents needed while purchasing a Money Back Policy.\u003C/p>\u003Col>\u003Cli>PAN, Aadhaar, passport, or voter ID for age proof\u003C/li>\u003Cli>Pay slips or bank statements for income proof\u003C/li>\u003Cli>Voter ID, passport, or Aadhaar card for address proof\u003C/li>\u003Cli>Medical certificates and doctor’s prescriptions for existing illnesses\u003C/li>\u003Cli>A fully filled policy application form.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>How to Choose the Best Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Here are some insider tips on how to choose the best Money Back Policy.\u003C/p>\u003Ch3>\u003Cstrong>Monetary Goals\u003C/strong>\u003C/h3>\u003Cp>Before looking for a policy, we suggest that you take a moment to consider your financial goals. Building a house? Child’s Education? Long Vacation? Make a list of these financial needs before buying a suitable policy.\u003C/p>\u003Ch3>\u003Cstrong>Sum Assured\u003C/strong>\u003C/h3>\u003Cp>The sum assured is a fixed sum that the dependents of the insured will receive in the unfortunate event of the insured’s death. However, choosing a higher sum assured will increase the premium payable. Therefore, we suggest choosing a reasonable amount.\u003C/p>\u003Ch3>\u003Cstrong>Duration of Policy\u003C/strong>\u003C/h3>\u003Cp>The longer your policy is in effect, the less you will have to pay in premiums. However, please note that there may be a cap on the policy tenure based on the insured’s age.\u003C/p>\u003Ch3>\u003Cstrong>Policy Premium\u003C/strong>\u003C/h3>\u003Cp>Choose a policy that offers adequate coverage and returns for your financial requirements, all while keeping the policy premium in mind. Buying a Life Insurance policy shouldn't become another financial burden.\u003C/p>\u003Ch3>\u003Cstrong>Riders\u003C/strong>\u003C/h3>\u003Cp>Life insurance companies usually provide Riders as a way to enhance their policies with additional coverage. Common Riders include Accidental Death Cover, Critical Illness Cover, and others. Select the necessary riders only, as the more riders you select, the greater the premium that must be paid.\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Parameter\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Fixed Deposit\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Money Back Policy\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Low risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Low to medium risk depending on the type of policy you choose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Returns\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Fixed interest rate\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The rate of interest is dependent on the policy type \u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Liquidity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Premature withdrawals may result in penalties\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The policy duration usually ranges from 10 to 25 years\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Tax Benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Interest earned on the FD is taxed\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The policy premium can be claimed for tax exemption\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Purpose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Generally used for saving purposes\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Life Insurance plus a steady source of income\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Maturity benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Principal plus interest at maturity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Sum assured plus bonuses (if applicable)\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Ch2> \u003C/h2>\u003Ch2>\u003Cstrong>FAQs\u003C/strong>\u003C/h2>\u003Cp>\u003Cstrong>1. What is a Money Back Insurance Policy?\u003C/strong>\u003C/p>\u003Cp>A Money Back Insurance Policy is a kind of Life Insurance that offers both the standard Life Insurance benefit and the chance to get periodic payouts for the premiums paid.\u003C/p>\u003Cp>\u003Cstrong>2. What are the features of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The features of a Money Back Policy include Life Cover for the insured, along with period returns on the premiums paid. If the insured survives until policy maturity, they will also receive a bonus.\u003C/p>\u003Cp>\u003Cstrong>3. What are the advantages of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The advantages of a Money Back Policy include Life Insurance, return on investment, maturity benefit, and tax exemption on the policy premium.\u003C/p>\u003Cp>\u003Cstrong>4. Is It risky to invest in Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>Investing in Money Back Policies that are linked to the market carry some risk. You can, however, opt for guaranteed returns by selecting risk-free, non-market-linked policies; the returns on these kinds of policies are usually lower.\u003C/p>\u003Cp>\u003Cstrong>5. What are the tax benefits with Money Back Plans?\u003C/strong>\u003C/p>\u003Cp>The tax benefits of Money Back Plans include a tax exemption on the maturity amount and the policy premium paid as per Section 10(10D) and Section 80C of the Income Tax Act, 1961 respectively.\u003C/p>\u003Cp>\u003Cstrong>6. Is the amount received through Money Back Policy taxable?\u003C/strong>\u003C/p>\u003Cp>The income received through a Money Back Policy is tax exempt as per Section 10(10D) of the Income Tax Act, 1961.\u003C/p>\",\"category\":\"/blog/advice\"}],\"blog_count\":[{\"count\":102,\"counts\":102}],\"nothing\":\"all\",\"nothing_1\":317}]","http://127.0.0.1:4000/api/v1/tagged-blogs/317/all":"[{\"category\":[{\"id\":1781,\"name\":\"Super Income Plan\"},{\"id\":1782,\"name\":\"Advice\"},{\"id\":1930,\"name\":\"Child Plan\"},{\"id\":1979,\"name\":\"Early Cash Plan\"},{\"id\":1982,\"name\":\"Assured Income Plan\"},{\"id\":1984,\"name\":\"Golden Premier Saver Plan\"},{\"id\":1985,\"name\":\"Premier Assured Benefit\"}],\"blogs\":[{\"title\":\"What is Joint Life Policy- Know its Types, Benefits & Eligibility\",\"heading\":\"Joint Life Insurance Simplified: Types, Benefits, and Eligibility Criteria\",\"short_description\":\"\u003Cp>Navigating the world of insurance can feel overwhelming.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/11.%20What%20is%20Joint%20Life%20Policy-%20Know%20its%20Types%2C%20Benefits%20%26%20Eligibility_0.jpg?VersionId=aUeSYxa0SVNKR_LusCYrYzNtTJWm.bVR\",\"alt\":\"Benefits of Joint Life Insurance Policy\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-20T10:49:55\",\"updated_on\":\"2024-11-20T10:50:01\",\"read_more_title\":\"Know More\",\"slug\":\"/what-is-joint-life-policy-know-its-types-benefits-eligibility\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>Navigating the world of insurance can feel overwhelming. Moreover, when one is faced with decisions related to details and options, it can seem hard to know which choice is the best for you. This may be why not all people understand the benefits of Joint Life Insurance. This type of insurance can offer peace of mind and financial security for couples and partners. A regular Life Insurance plan only covers the life of one single insured or the policyholder. In a Joint Life Insurance, both spouses can be covered against the risk of untimely demise under the same policy.\u003C/p>\u003Cp>In this guide, we explain the various types, benefits, and eligibility criteria to help you make informed decisions.\u003C/p>\u003Ch2>\u003Cstrong>What is Joint Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>At its core, Joint Life Insurance is a policy that covers two individuals under a single plan. It’s designed to provide financial support to the surviving partner or beneficiaries in the event of one policyholder’s unfortunate demise. This kind of insurance is particularly beneficial for couples who want to ensure that their loved ones are financially secure. The concept is simple: when one partner passes away, the other receives a payout to help cover living expenses, debts, or other financial obligations.\u003C/p>\u003Cp>Imagine the peace of mind that comes with knowing that your loved one won’t have to face financial hardship if something happens to you. Joint Life Insurance provides that reassurance.\u003C/p>\u003Ch2>\u003Cstrong>Types of Joint Life Policies\u003C/strong>\u003C/h2>\u003Cp>When considering Joint Life Insurance, it’s important to understand the different types available. Here’s a closer look at some of the most common options:\u003C/p>\u003Ch3>\u003Cstrong>First Death Policy\u003C/strong>\u003C/h3>\u003Cp>A First Death Policy provides coverage that pays out when the first policyholder dies. This option is especially popular among couples, as it ensures that the surviving partner receives immediate financial support. After the payout, the policy usually ends, meaning no further premiums are required. It’s a practical choice for couples who want to safeguard each other’s financial future.\u003C/p>\u003Ch3>\u003Cstrong>Second Death Policy\u003C/strong>\u003C/h3>\u003Cp>On the flip side, a Second Death Policy pays out only after both policyholders have passed away. This type is often used in estate planning, helping to cover potential taxes or expenses after the second death. It’s a strategic option for couples looking to leave a financial legacy for their heirs, ensuring that they can manage any estate-related costs.\u003C/p>\u003Ch3>\u003Cstrong>Joint Term Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Joint Term Life Insurance provides coverage for a specified period, usually ranging from 10 to 30 years. If one partner dies during the term, the other receives the death benefit. This type of policy is often more affordable and is great for couples who want significant coverage without lifelong premium commitment. Think of it as a safety net during your most financially vulnerable years.\u003C/p>\u003Ch3>\u003Cstrong>Joint Whole Life Insurance\u003C/strong>\u003C/h3>\u003Cp>A Joint Whole Life Insurance policy covers both partners for their entire lives. This option not only guarantees a death benefit upon the death of the last surviving member but can also build value over time. This cash value can be accessed during your lifetime, providing a flexible financial resource. It’s an investment in both protection and savings.\u003C/p>\u003Ch2>\u003Cstrong>Add-ons\u003C/strong>\u003C/h2>\u003Cp>Many insurers also provide additional options such as riders or add-ons, such as a Critical Illness add-on. Such an addition can provide financial assistance if one partner is diagnosed with a serious illness, ensuring that you’re covered for various scenarios.\u003C/p>\u003Ch2>\u003Cstrong>Benefits of Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Choosing Joint Life Insurance comes with many advantages. Here are some key benefits to consider:\u003C/p>\u003Ch3>\u003Cstrong>1) Simplified Premium Payments\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Cost-effective: \u003C/strong>Typically, a Joint Life Insurance Policy is cheaper than two individual policies. This can lead to significant savings over time, making it an attractive option for couples or partners.\u003C/p>\u003Ch3>\u003Cstrong>2) Shared Benefits\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Financial security: \u003C/strong>The death benefit provides immediate financial assistance, helping the surviving partner manage expenses like mortgage payments or daily living costs. This is crucial during a difficult time.\u003C/p>\u003Ch3>\u003Cstrong>3) Estate Planning\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Legacy planning:\u003C/strong> Joint Life Insurance can be structured to cover estate taxes, ensuring that your heirs receive their inheritance without additional financial burdens. This thoughtful approach to estate planning can save your loved ones from unnecessary stress.\u003C/p>\u003Ch3>\u003Cstrong>4) Tax Advantages\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Tax benefits: \u003C/strong>Death benefits from life insurance are generally tax-free for beneficiaries. This feature provides financial relief at a time when your loved ones may need it the most.\u003C/p>\u003Ch3>\u003Cstrong>5) Flexibility\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>Adaptable coverage: \u003C/strong>Many policies allow for additional riders, even during the policy term, enhancing the policy’s functionality. This flexibility can be a significant advantage as one’s financial needs change over time.\u003C/p>\u003Ch2>\u003Cstrong>Eligibility Criteria for Joint Life Insurance\u003C/strong>\u003C/h2>\u003Cp>Before diving into a Joint Life Insurance policy, it’s essential to understand the eligibility requirements.\u003C/p>\u003Ch3>\u003Cstrong>Here are some common criteria:\u003C/strong>\u003C/h3>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Age: \u003C/strong>\u003C/h3>\u003Cp>Most insurers require that both partners be within a specific age range, typically between 18 and 65 years. This ensures that both parties are insurable.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Health Status:\u003C/strong> \u003C/h3>\u003Cp>Applicants usually need to undergo medical examinations. The health history of both individuals will play a significant role in determining premiums.\u003C/p>\u003C/li>\u003Cli>\u003Ch3>\u003Cstrong>Relationship Type:\u003C/strong>\u003C/h3>\u003Cp>These policies are primarily available for spouses or life partners. This flexibility allows for various relationship dynamics.\u003C/p>\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Choose the Right Joint Life Policy?\u003C/strong>\u003C/h2>\u003Cp>Selecting the right Joint Life Insurance policy can be a challenging task, but breaking it down into manageable steps can help:\u003C/p>\u003Ch3>\u003Cstrong>Step 1: Assess Your Needs\u003C/strong>\u003C/h3>\u003Cp>Start by evaluating your financial obligations. Consider debts, mortgage payments, and future expenses such as children’s education that the surviving partner will have to pay for. Understanding these factors will help you determine how much coverage you need.\u003C/p>\u003Ch3>\u003Cstrong>Step 2: Compare Policy Types\u003C/strong>\u003C/h3>\u003Cp>Explore the different types of policies available, such as Joint Term Life Insurance and Joint Whole Life Insurance. Each type has its advantages, so consider what fits your lifestyle and financial goals.\u003C/p>\u003Ch3>\u003Cstrong>Step 3: Evaluate Premium Costs\u003C/strong>\u003C/h3>\u003Cp>Premiums can vary widely among providers. Compare quotes from several insurers to find a policy that fits your budget. Don’t hesitate to ask about any additional costs associated with riders or specific features.\u003C/p>\u003Ch3>\u003Cstrong>Step 4: Review Terms and Conditions\u003C/strong>\u003C/h3>\u003Cp>Before making a decision, carefully read the policy’s terms, including payout structures and exclusions. Understanding the precise terms and conditions can help you avoid surprises later on.\u003C/p>\u003Ch3>\u003Cstrong>Step 5: Consult a Financial Advisor\u003C/strong>\u003C/h3>\u003Cp>Consider speaking with a financial advisor or insurance agent who can provide tailored insights based on your circumstances. Their expertise can guide you toward the most suitable options for your needs.\u003C/p>\u003Ch2>\u003Cstrong>Common Myths and Misconceptions\u003C/strong>\u003C/h2>\u003Cp>As with many insurance products, misconceptions can render confusion of Joint Life Insurance. Here are some common myths and the truths behind them:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Myth: Joint policies are only for married couples.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Joint Life Insurance can be obtained by any two individuals in a committed relationship, including business partners.\u003C/li>\u003Cli>\u003Cstrong>Myth: All Joint Life Policies are the same.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Policies can vary significantly in terms of structure, benefits, and eligibility. It’s essential to understand the specific terms of each policy.\u003C/li>\u003Cli>\u003Cstrong>Myth: Once purchased, a joint policy cannot be modified.\u003C/strong>\u003Cbr /> \u003Cstrong>- Fact: \u003C/strong>Modifying terms and conditions of a Joint Life Insurance may vary from one insurance company to other. Some might allow for modifications, such as adding riders or converting to individual policies under certain conditions.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Apply for a Joint Life Insurance Policy?\u003C/strong>\u003C/h2>\u003Cp>Applying for a Joint Life Insurance policy is a straightforward process. Here’s how to navigate it:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Research Plans: \u003C/strong>Start by comparing the plans provide joint life coverage and compare to regular plans as well to understand the difference. Obtain illustrations of how each plan could perform over a period and then compare to see what will suit your needs. \u003C/li>\u003Cli>\u003Cstrong>Fill Out the Application: \u003C/strong>Complete an application form with both partners’ information, including health details. Discrepancies can lead to complications later as the details asked on the form constitute material fact to the policy once it is issued. \u003C/li>\u003Cli>\u003Cstrong>Undergo Medical Examinations:\u003C/strong> Depending on the plan and sum insured, both partners may need to undergo medical assessments. These exams help determine your insurability and establish the premium costs. \u003C/li>\u003Cli>\u003Cstrong>Review the Policy: \u003C/strong>Once you receive approval, carefully review the policy document to ensure all details are correct. Pay attention to coverage amounts, premium costs, and any riders included.\u003C/li>\u003Cli>\u003Cstrong>Make Payment:\u003C/strong> After you’ve gone through the details and assured yourself that everything is in order, you need to pay the first premium to activate the policy. Keep a copy of the policy document in a safe place for future reference. It is also best to retain the first premium paid receipt as it is part of the policy documentation.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Joint Life Insurance is a powerful tool for couples and partners seeking financial security. With various types of policies available, understanding the benefits and eligibility criteria can help you make informed choices. By assessing your needs and comparing options, you can select the right coverage that provides peace of mind for you and your loved ones.\u003C/p>\u003Cp>If you’re considering Joint Life Insurance, explore the various plans from \u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">Shriram Life Insurance\u003C/a>. With flexibility to choose your plan, coverage and the benefits to match your goals, Shriram Life Insurance has created plans for a variety of financial goals and life stages for individuals, couples and families.\u003C/p>\u003Cp>For more insights into \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">Retirement Plans\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/savings-plan\\\" target=\\\"_blank\\\">Savings Plans\u003C/a>, or \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/child-plan\\\" target=\\\"_blank\\\">Child Plans\u003C/a>, explore our detailed guides. With the right joint life insurance policy, you can take a significant step toward securing your future and that of your loved ones.\u003Cbr /> \u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Efficient Pension Withdrawal in India: Steps and Tips for Retirees\",\"heading\":\"Efficient Pension Withdrawal in India: Steps and Tips for Retirees\",\"short_description\":\"\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tool\u003C/span>\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/50.%20Simple%20Steps%20to%20Withdrawing%20Your%20Pension%20Money%20Quickly_0.png?VersionId=Md_5WxWzTakmSsydK_9wFkJW1txxhCCc\",\"alt\":\"Steps to Withdrawing Your Pension\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-18T09:30:36\",\"updated_on\":\"2024-11-18T09:52:48\",\"read_more_title\":\"Know More\",\"slug\":\"/steps-and-tips-for-pension-withdrawal-in-india-1\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension funds are crucial in most retiree’s golden years because they’re their biggest financial stability tools. However, accessing pension funds can be overwhelming for those who don’t have a clear understanding of how it works. If you aren’t well-versed in financial matters, you might be nervous that your pension withdrawal could be delayed for numerous reasons. Another reason why prior knowledge is helpful is the impact of taxation. Withdrawing large pension amounts without proper planning will push you into higher tax brackets, significantly reducing the net amount after deducting the tax liability. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This can make you financially vulnerable, especially during medical emergencies or other unexpected times when your expenses are running high. If you are a retiree, senior citizen or someone who is approaching your retirement timeline, this blog is for you. We explain the pension withdrawal steps for your convenience, along with tips to manage the received pension amount and be more aware of your tax liability. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 1: Understand the Types of Retirement Plans in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are various \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement plans in India\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">, each with unique rules and tax implications. Having a clear understanding of these plans can ease the pension withdrawal process. Currently, India has the following common plans:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>National Pension Scheme (NPS)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This market-linked voluntary investment scheme enables all Indian citizens to build a retirement fund by investing in a pension account during work-life years. People investing in these retirement funds schemes must use at least 40% of their funds to buy an annuity plan during retirement, and the remaining corpus amount can be withdrawn as a lump sum. \u003C/span>\u003C/p>\u003Cp>NPS typically allows partial withdrawal of up to 25% on contributions, provided you’re an NPS subscriber for at least three years. Retirees can enjoy tax benefits on NPS u/s 80CCD (1) of up to ₹.1.5 lakh, 80CCD (1b) of ₹.50,000, and 80CCD(2) of 10% of basic salary + DA contributed by the employer. No tax benefits are available for NPS tier 2 and annuity payments.\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Employee Provident Fund (EPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This mandatory savings scheme helps employees create a retirement fund during their active working years. The best part about EPF is that employees can get full pension withdrawal upon retirement. You can also make partial withdrawals before retirement to fund medical emergencies or pay for other expenses such as house purchase/construction, and higher studies. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Withdrawing EPF before retirement will attract tax implications for employees with less than five years of service. Additionally, no one can withdraw the employer’s contribution and interest before five years of service. An employee’s contribution to EPF can be used to claim a deduction u/s 80C. We recommend withdrawing EPF after five years of continuous service as it will attract zero tax on pension, including the interest earned. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Public Provident Fund (PPF)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">It is a long-term savings scheme that can be opened in any Indian bank or post office. Since PPF typically matures after fifteen years, you must reserve this pension money strictly for your retirement years and avoid partial withdrawals before retirement for optimal benefit. While the full PPF amount can be withdrawn on maturity, people have the option of partial withdrawal from the seventh year onwards.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If you choose partial withdrawal, you can only withdraw 50% of your account balance at the end of the fourth year. The best part about PPF is that it qualifies for the Exempt-Exempt-Exempt (EEE) status. It is a tax category that levies zero tax on your investment, interest earned on investment, and maturity amount. Your PPF contribution can be deducted u/s 80C, up to ₹1.5 lakh (maximum). The PPF maturity proceeds and its interest are fully tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Annuity Plans from Insurance Providers\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Many people prefer investing in annuity plans because they provide regular income post-retirement. Since there are different annuity plans, like deferred, immediate, fixed, variable, etc., the withdrawal rules and tax implications vary significantly for each annuity retirement plan in India. We recommend reading the ‘terms and conditions’ of your chosen annuity plan for accurate information.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 2: Review Withdrawal Rules for Indian Pension Plans\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are different pension plans in India, each with distinct withdrawal rules. While withdrawal rules have been briefly covered in the previous point, you are advised to review all your pension plans’ terms and conditions to learn about the plan-specific rules. Additionally, prepare a list of documentation needed for hassle-free withdrawal. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For example, people with an NPS account will need an NPS withdrawal form, a copy of their PRAN card, proof of their bank account, ID and address proof, a cancelled cheque, and other specified documents for seamless withdrawal. Conversely, those with EPF will need Form 19 for full withdrawal, Form 31 for partial withdrawal, a PAN card, an Aadhaar card, a cancelled cheque, and bank account details.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 3: Understand the Tax Implications in India\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Different pension fund withdrawals have different tax implications in India. It can be broadly categorized into the following sections:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax-free Portion\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension withdrawal of the NPS lump sum amount and partial withdrawals (up to 25% of the contributor’s share) are tax-free. The entire withdrawal amount from EPF and PPF is also tax-free. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax on Annuity Payouts\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">While annuity payouts are generally taxed according to the individual’s income tax slab, certain plans provide tax-free payouts under specific conditions. The tax on pension in annuity payouts will depend on the plan you’ve chosen, so review its terms and conditions for accurate and plan-specific tax implications. \u003C/span>\u003C/p>\u003Cp>If you want to lower your tax liability, then withdraw pension funds in smaller portions. You can calculate and plan your withdrawals by using our income tax calculator page for maximum savings. Additionally, you can also benefit by investing in tax-free options.\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 4: Choose the Right Withdrawal Option\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">There are various withdrawal options to get your pension money after retirement. The three most common options are shared below:\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Lump-Sum Withdrawal\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The lump-sum withdrawal typically refers to the withdrawal of a full or major portion of the corpus. If you choose lump-sum withdrawal, there won’t be any tax on pension for PPF and EPF (if you’ve finished five years of continuous service). Tax won’t be applied on up to 60% of the corpus withdrawn in NPS. \u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Annuity plans typically don’t allow lump-sum withdrawals, but if you receive one, it will be taxed according to your income tax slab. This withdrawal method is perfect if you need instant access to funds to meet larger expenses. It is a straightforward process, but it may lead to premature depletion of funds. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Systematic Withdrawal Plans (SWP)\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">This withdrawal method is recommended for retirees who want to continue receiving a steady income without burning the entire retirement funds in a short period. Retirement plans in India, like NPS, EPF, and PPF, generally don’t provide an SWP option, but annuity plans do. Depending on your selected payment frequency, they will continue crediting a specific amount for a fixed period. All annuity payments are taxed as regular income, so ensure you set a lower withdrawal amount to reduce tax liabilities. \u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Purchase an Annuity\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Many retirees convert a portion of their pension money into annuity plans to continue receiving a predictable and steady income for a fixed period. You can use a\u003C/span>\u003Cem>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> \u003C/span>\u003C/em>\u003Ca href=\\\"https://www.shriramlife.com/retirement-calculator\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement calculator\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> to decide the ideal annuity plan and amount. While these are convenient for many retirees, all annuity proceeds are taxed as regular income, meaning you don’t get any benefit of saving tax on pension money. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 5: Submit Your Pension Withdrawal Request\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The pension withdrawal request rules differ for varying pension plans in India. For example, if you want to withdraw your PPF funds, you can follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">First check if your PPF account is linked to your bank account. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If linked, simply log into your online banking portal and look for the PPF/partial PPF withdrawal option. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">You will then be directed to fill out an online form.\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Submit required documents like a PPF passbook to finish the process. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">But if you’re requesting an NPS withdrawal, you must follow the below-mentioned steps:\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Visit the eNPS portal and log in using your PRAN and password. \u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Go to the ‘Exit/Withdrawal Request’ section\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Fill out the withdrawal form\u003C/span>\u003C/li>\u003Cli>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Upload the necessary documents, and submit a request. \u003C/span>\u003C/li>\u003C/ul>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">So, we encourage people to review the withdrawal request process based on their pension plan.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Step 6: Plan for Financial Security After Withdrawal\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Once you’ve received the full pension funds, avoid impulse spending to maintain financial stability. If it’s your only source of income in the retirement phase, we recommend budgeting for regular expenses, medical needs, and unexpected costs. Consider investing in annuity plans so you only receive fixed retirement funds every month to prevent overspending. You can also explore better \u003C/span>\u003Cem>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">retirement plans\u003C/span>\u003C/em>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> listed on our website. \u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Navigate Your Pension Journey with Shriram Life Insurance - Conclusion\u003C/strong>\u003C/span>\u003C/h2>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Pension becomes the primary income source for many \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/blog/advice/what-are-the-best-insurance-policies-for-senior-citizens\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">senior citizens in their retirement phase\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">, but getting it isn’t as easy. There are different retirement plans in India, each with varying withdrawal rules, tax implications, and financial security. Not being aware of these details can result in delayed withdrawals and unwanted financial strain. However, you can avoid such challenges by following the withdrawal rules and tips discussed in this article. \u003C/span>\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Shriram Life Insurance \u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">provides retirement plans such as \u003C/span>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/immediate-annuity-plus\\\" target=\\\"_blank\\\">\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Shriram Life Immediate Annuity Plus\u003C/span>\u003C/a>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\"> that can help you secure your financial future along with Pension benefits. These policies provide a safety net for your golden years, ensuring stability and peace of mind. By planning ahead, you can not only protect yourself from unexpected challenges but also achieve your retirement goals and enjoy a fulfilling and worry-free life.\u003C/span>\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Everything You Need to Know About Life Insurance Death Benefits\",\"heading\":\"Everything You Need to Know About Life Insurance Death Benefits\",\"short_description\":\"\u003Cp>Death benefit insurance is an integral part of financial planning.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/7.%20Everything%20You%20Need%20to%20Know%20About%20Life%20Insurance%20Death%20Benefits_0.webp?VersionId=j86ayIxSJJAPB0GNTbtG_6TYW.30t.4L\",\"alt\":\"Things to know about life insurance death benefits\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-15T11:13:18\",\"updated_on\":\"2024-11-15T11:13:23\",\"read_more_title\":\"Know More\",\"slug\":\"/everything-you-need-to-know-about-life-insurance-death-benefits\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Cp>Death benefit insurance is an integral part of financial planning. It's a life insurance product that serves as security on behalf of the policyholder with benefits to protect their loved ones. This blog takes you through everything you need to know about Life Insurance Death Benefits - read on to understand it completely and also how it works and how to make a claim, should the need arise.\u003C/p>\u003Ch2>\u003Cstrong>What Are Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Death benefit is a type of monetary compensation that is paid out to the beneficiary named in the policy, following the death of the insured. This financial support is meant to pass on economic value to loved ones in the absence of a key member of the family. It serves as a safety net because this brings a certain stability in a very uncertain period of life while coping with the loss of a loved one.\u003C/p>\u003Ch2>\u003Cstrong>How Do Life Insurance Death Benefits Work?\u003C/strong>\u003C/h2>\u003Cp>In case the policyholder passes away during the tenure of the insurance period, the insurance company processes the claim and pays the named beneficiary the death benefit. The amount paid out by the insurance company is based on the terms of the policy that may include other riders or endorsements.\u003C/p>\u003Cp>Life insurance policies are broadly classified into the following types, which include:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Term Life Insurance:\u003C/strong> Designed for offering death benefits over a specified tenure.\u003C/li>\u003Cli>\u003Cstrong>Whole Life Insurance:\u003C/strong> The policy pays out during the insured lifetime plus a cash value component.\u003C/li>\u003Cli>\u003Cstrong>Universal Life Insurance:\u003C/strong> The premium and death benefit can be varied by the policy owner.\u003C/li>\u003C/ul>\u003Cp>Having an understanding of how these policies work may provide you with insight into the right insurance policy for you.\u003C/p>\u003Ch3>\u003Cstrong>Types of Death Benefits\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Basic Death Benefit:\u003C/strong> The insured sum of money that is paid to the beneficiary; in other words the standard sum agreed upon and mentioned as the sum assured while the policy was purchased.\u003C/li>\u003Cli>\u003Cstrong>Accidental Death Benefit: \u003C/strong>The occurrence of death due to an accident, and an added benefit that would be given in case the death involved an accident. This is an extra financial security to cover a very unexpected and unusual circumstances of accidental death.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What is covered under death benefits?\u003C/strong>\u003C/h2>\u003Cp>Under normal circumstances, death benefits for life insurance usually cover:\u003C/p>\u003Cul>\u003Cli>Death caused by natural or natural causes, such as sickness.\u003C/li>\u003Cli>Accidental deaths, as described above.\u003C/li>\u003C/ul>\u003Cp>This benefit is the main protection secured through the policy. The policy is usually created with a sum in mind for this death benefit and that is usually a multiple or factor of the premium amount paid. The death benefit is the payout that will allow families to remain financially secure even in the event of the loss of one of their loved ones which is why the value of the policy should be calculated with care. \u003C/p>\u003Ch2>\u003Cstrong>What is Not Covered Under Death Benefits?\u003C/strong>\u003C/h2>\u003Cp>Despite the wide range of coverage that exists under death benefits, there are certain exclusions provided under it:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Suicide:\u003C/strong> Most policies do not pay the claim in case the insured commits suicide, within the stated term which is typically within the first two years.\u003C/li>\u003Cli>\u003Cstrong>Fraud: \u003C/strong>If the insurer realizes that the policy was acquired through deceit, then such a claim may be turned down.\u003C/li>\u003Cli>\u003Cstrong>Risky Activities:\u003C/strong> If the death results from extreme sporting activities or felonies, then the company might deny compensation.\u003C/li>\u003C/ul>\u003Cp>Understanding these exclusions leads to better understanding of how the death benefit claim works in a life insurance policy.\u003C/p>\u003Ch2>\u003Cstrong>Tax Saving Benefits on Death Benefits\u003C/strong>\u003C/h2>\u003Cp>While one purchases life insurance for the protection, the investment in this plan also comes with some tax breaks. Life insurance death benefits are typically not taxed especially if it is within the norms of premium to sum assured multiple. Usually, the proceeds paid out are not taxed in the hands of the beneficiary, thereby providing a tax-efficient means to pass along that wealth to the beneficiaries.\u003C/p>\u003Cp>However, there are some exceptions. It is generally prudent to run these details by a financial advisor or tax professional to understand their implications in your particular situation.\u003C/p>\u003Ch2>\u003Cstrong>How Does the Death Benefits Pay-Out Work?\u003C/strong>\u003C/h2>\u003Cp>The pay-out process for life insurance death benefits is straightforward:\u003C/p>\u003Ch3>\u003Cstrong>1. Notice:\u003C/strong>\u003C/h3>\u003Cp>The beneficiaries must notify the insurance company of the death of the policyholder.\u003C/p>\u003Ch3>\u003Cstrong>2. Documentation:\u003C/strong>\u003C/h3>\u003Cp>The claim intimation must also include official death certificates issued by local authority, along with required identity proofs of the beneficiary along with the policy document. Additional affidavits or documentation may be sought based on the specific policy / details and a detailed checklist from the company is readily available to guide the family with a complete submission. \u003C/p>\u003Ch3>\u003Cstrong>3. Examining the Claim:\u003C/strong>\u003C/h3>\u003Cp>The insurance company will then examine the claim based on the provided documentation, matched with the pre-existing terms of the policy. \u003C/p>\u003Ch3>\u003Cstrong>4. Payment:\u003C/strong>\u003C/h3>\u003Cp>Once examined, the process goes through the next stage, which is claim settlement. The beneficiary will receive the death benefit payout direct to the registered bank account of the named beneficiaries.\u003C/p>\u003Ch2>\u003Cstrong>How to Claim Life Insurance Death Benefits\u003C/strong>\u003C/h2>\u003Cp>Claiming death benefits against life insurance may seem daunting, but it need not be. One can ensure the following steps are taken so that should the need arise, the loved ones and beneficiaries have ready access to the documents they need\u003C/p>\u003Cp>\u003Cstrong>1. Policy Copy: \u003C/strong>Kindly provide a copy of the life insurance policy document.\u003C/p>\u003Cp>\u003Cstrong>2. Notify the Insurer:\u003C/strong> The insurance company should be notified promptly about the death.\u003C/p>\u003Cp>\u003Cstrong>3. Provide These Documents: \u003C/strong>Collect all the documents required, including a death certificate, policy number, and identification.\u003C/p>\u003Cp>\u003Cstrong>4. Fill Out Claim Forms:\u003C/strong> Most providers will have you fill out a claim form.\u003C/p>\u003Cp>\u003Cstrong>5. Send Claim: \u003C/strong>Send the completed form, and any other information the provider may require, to the insurer.\u003C/p>\u003Cp>\u003Cstrong>6. Ask: \u003C/strong>Keep in touch with the insurer to confirm that your claim is being worked on.\u003C/p>\u003Cp>In case of doubt, the customer care team can provide you with the required guidance.\u003C/p>\u003Ch2>\u003Cstrong>Choosing the right Life Insurance Policy\u003C/strong>\u003C/h2>\u003Cp>Choose the right kind of life insurance coverage to ensure that your loved ones are covered well. For this, consider the following:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Assess Your Needs-\u003C/strong> Look at your family's current financial position and potential future requirements. On the website one can find useful tools to evaluate the human life value or income replacement value - these are guidelines to understand how much life insurance coverage one should ideally take in the policy. The death benefit is a direct outcome of this number in the policy. \u003C/li>\u003Cli>\u003Cstrong>Compare Different Plans\u003C/strong>- Compare a few product plans such as \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">\u003Cspan>Assured Income Plan\u003C/span>\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/early-cash-plan\\\" target=\\\"_blank\\\">Early Cash Plan\u003C/a>, or \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/premier-assured-benefit-plan\\\" target=\\\"_blank\\\">Premier Assured Benefit\u003C/a> and choose one for your own purpose\u003Cstrong>.\u003C/strong>\u003C/li>\u003Cli>\u003Cstrong>Consider Additional Riders\u003C/strong>- Some optional riders, such as an accidental death benefit, can give you added strengthening to your coverage.\u003C/li>\u003Cli>\u003Cstrong>Find a Financial Advisor\u003C/strong>- A professional advisor can guide you on the right approach, explain the various plan options and help you match the right plan to your financial goals and affordability.\u003Cbr /> \u003C/li>\u003C/ol>\",\"category\":\"/blog/advice\"},{\"title\":\"Understanding Surrender Value in Life Insurance\",\"heading\":\"Understanding Surrender Value in Life Insurance\",\"short_description\":\"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receiv\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/45.%20Understanding%20Surrender%20Value%20in%20Life%20Insurance_0.png?VersionId=GlrBVmYgMpZCTcHGdqB5KOSMdKUWCNBm\",\"alt\":\"Understanding Surrender Value in Life Insurance\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-06T12:13:35\",\"updated_on\":\"2024-11-06T12:13:39\",\"read_more_title\":\"Know More\",\"slug\":\"/understanding-surrender-value-in-life-insurance\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Ch2>Surrender Value in Life Insurance - Explained\u003C/h2>\u003Cp>Surrender value in life insurance refers to the sum that a policyholder is entitled to receive when he or she cancels his or her insurance policy before it reaches the end of its maturity period.\u003Cbr />In simpler terms, surrender value refers to the amount of money that the policyholder shall receive at the time of cancellation of the insurance policy.\u003C/p>\u003Cp>This article will dive into what surrender value entails, how surrender values are calculated, and what financial effects come with surrendering a policy.\u003C/p>\u003Ch2>\u003Cstrong>What is Surrender Value and Why Does it Matter?\u003C/strong>\u003C/h2>\u003Cp>Surrender value is of utmost importance to policyholders to make a sound financial decision about their respective insurance policies irrespective of whether they are starting one or choosing to close one before maturity.\u003C/p>\u003Ch3>\u003Cstrong>Here’s why it is important:\u003C/strong>\u003C/h3>\u003Ch4>1. Liquidity:\u003C/h4>\u003Cp>The knowledge of surrender value indicates the extent of liquidity from the policy proceeds that would become available to the policyholder if the policy is prematurely cancelled. In some instances, policyholders might consider the sum received as immediate financial aid in case of emergencies.\u003C/p>\u003Ch4>2. Knowing about the value of the policy:\u003C/h4>\u003Cp>In case you need to liquidate a policy early, it's essential to understand the value of the policy at that point since closing the policy would mean it does not continue for the original duration with the original benefits. Knowing the surrender value is hence essential to making a financially informed decision.\u003C/p>\u003Ch4>3. Impact on Financial Planning:\u003C/h4>\u003Cp>It impacts long-term financial planning and retirement strategies if the policy is designed to be part of a large investment plan.\u003C/p>\u003Ch2>\u003Cstrong>What are the Types of Surrender Values?\u003C/strong>\u003C/h2>\u003Cp>Insurance policies can provide an array of surrender values based on the terms and conditions of the policies. These can be summarized with the help of the following key types:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Guaranteed Surrender Value (GSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is the minimum amount a policyholder will receive on surrendering the policy, which can be claimed subject to certain terms and conditions. The GSV is usually calculated as a percentage of the total amounts paid as premiums, minus all applicable charges.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>If you have a life insurance policy for which the GSV is 30%, and you have paid ₹1,00,000 on premiums, your guaranteed surrender value would be ₹30,000, subject to any other deductions applicable on the premium paid.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Special Surrender Value (SSV)\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>This is a benefit provided by certain policies wherein a higher surrender value is offered beyond the GSV. SSV is usually a higher value than the GSV, and its payment is typically made subject to specific terms and conditions. Special Surrender Value is more than GSV and is at the discretion of the insurance company based on specific plan details. This is also calculated based on the performance of the funds that the policy is invested in along with with bonus or interest earned until that time.\u003C/p>\u003Cp>\u003Cstrong>Example: \u003C/strong>For the same example mentioned in GSV, if the insurance company is providing an SSV of 40%, the special surrender value will be ₹ 40,000.\u003C/p>\u003Ch2>\u003Cstrong>How is the Surrender Value Calculated?\u003C/strong>\u003C/h2>\u003Cp>Surrender value calculation depends on some factors:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Premiums Paid:\u003C/strong> Amount of premiums paid to the policy.\u003C/li>\u003Cli>\u003Cstrong>Policy Term:\u003C/strong> The period for which your term insurance policy will remain active, this is selected and fixed at the time of purchasing the plan.\u003C/li>\u003Cli>\u003Cstrong>Bonuses or Interest:\u003C/strong> If there are bonuses or interest that are included in the policy that one is eligible for at the time of surrender of the policy. \u003C/li>\u003Cli>\u003Cstrong>Deductions:\u003C/strong> Surrender charges or penalty if any charged by the insurance company on the policy value due to pre-closure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Do All Life Insurance Policies Offer Surrender Value If You Cancel?\u003C/strong>\u003C/h2>\u003Cp>No, not all policies have a surrender value upon cancellation. The policy surrender value depends upon the kind of insurance policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Permanent Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Most permanent forms of life insurance like whole life or end policies carry a surrender value. Such policies normally accumulate some cash value over time, which may be accessed if the policyholder decides to surrender the policy.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Term Insurance Surrender Value\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Term policies usually do not have a surrender value. Term insurance policies pay through a term and cannot earn cash value. Hence, surrendering a term policy usually brings no monetary benefit.\u003C/p>\u003Ch2>\u003Cstrong>When Does Surrender Value Become Available?\u003C/strong>\u003C/h2>\u003Cp>Surrender value becomes available usually after a certain period, referred to as the \\\"lock-in period,\\\" in which the policy cannot be surrendered. This varies from one policy to another but is typically in a time frame between 1 to 3 years.\u003C/p>\u003Cp>\u003Cstrong>Example:\u003C/strong> If the lock-in period in your policy is 2 years, it means that you will have access to the surrender value only after 2 years from the policy commencement.\u003C/p>\u003Ch2>\u003Cstrong>Financial Impact of Surrendering Your Policy\u003C/strong>\u003C/h2>\u003Cp>When you prematurely cancel or close your policy, you may incur some loss in value in relation to the originally planned maturity value. The surrender value indicates to you the exact gap between original plan value and the sum you would receive on premature closure. \u003C/p>\u003Ch3>\u003Cstrong>Pros (Short-term Benefits)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Flexibility: \u003C/strong>Surrender Value brings in an element of flexibility to life insurance. One can be assured that in case circumstances change and one has to end the plan, there is some surrender value to get in hand even if plan does not continue as originally planned.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Cons (Long-term Drawbacks)\u003C/strong>\u003C/h3>\u003Col>\u003Cli>\u003Cstrong>Loss Coverage: \u003C/strong>You give up the insurance coverage during surrender which means you lose the originally intended coverage.\u003C/li>\u003Cli>\u003Cstrong>Potential Loss in Return Value:\u003C/strong> It is possible, based on the plan and investment growth that the surrender value might be lesser than the sum or cumulative amounts one would have paid for the premium until then. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Why Do People Stop Paying For Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Here are some reasons to make one surrender their policy: \u003C/p>\u003Col>\u003Cli>\u003Cstrong>Financial Need: \u003C/strong>Inability to pay the premium because of emergency expenses or loss of a source of income.\u003C/li>\u003Cli>\u003Cstrong>Policy Dissatisfaction:\u003C/strong> The policy does not meet the changing needs or expectations.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What happens if the policyholder stops paying the plan’s premium amount?\u003C/strong>\u003C/h2>\u003Cp>When you stop paying for your life insurance:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Grace Period:\u003C/strong> Most policies have a grace period (typically 30 days) during which you can still pay overdue premiums without losing coverage.\u003C/li>\u003Cli>\u003Cstrong>Policy Lapse: \u003C/strong>If you do not pay premiums in time, then the policy would lapse. This means that the coverage and benefits from the plan would end. Based on the plan, you would only get a partial amount as surrender value is available.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>What to Know About Taxes and Surrendered Policies?\u003C/strong>\u003C/h2>\u003Cp>Tax Consequences of Surrendering an Insurance Policy\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Taxable Income: \u003C/strong>The amount you receive in a surrender value may be taxable based on the kind of policy and its value.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefit: \u003C/strong>Policy premiums are generally tax-deductible; when a plan is cancelled you would not pay future premiums and must consider the change in your taxable income due to this and seek suitable alternatives for tax planning. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Tips to Using Surrender Value Effectively\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Needs to be Evaluated:\u003C/strong> Consider the present financial needs and future objectives before surrendering.\u003C/li>\u003Cli>\u003Cstrong>Seek a Financial Advisor:\u003C/strong> To know how it affects you financially and possibly measure alternatives.\u003C/li>\u003Cli>\u003Cstrong>Alternatives:\u003C/strong> Consider the option of taking a loan against the cash value or getting the policy converted into reduced paid-up insurance.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Making the Right Choice: Factors to Consider Before Surrendering\u003C/strong>\u003C/h2>\u003Col>\u003Cli>\u003Cstrong>Current Financial Situation:\u003C/strong> Weigh your short-term and long-term financial needs.\u003C/li>\u003Cli>\u003Cstrong>Policy Value:\u003C/strong> Calculate the surrender value in relation to the value that the policy would likely provide if left untouched until maturity or end of the plan period. \u003C/li>\u003Cli>\u003Cstrong>Alternatives: \u003C/strong>Explore alternative options for cash requirements if not through the surrender value. For example, some plans may allow you to draw an OD or loan against the fund value or policy amount. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>When is the Right Time to Surrender Your Policy?\u003C/strong>\u003C/h2>\u003Cp>You must surrender your policy in the following scenarios:\u003C/p>\u003Col>\u003Cli>When requiring immediate financial assistance.\u003C/li>\u003Cli>The policy does not match your requirements due to revised financial goals.\u003C/li>\u003Cli>Identification of better alternatives in the form of investment plans or insurance policies that provide better returns or coverage, respectively.\u003C/li>\u003C/ol>\u003Ch3>\u003Cstrong>Beyond Surrender: Options to Consider\u003C/strong>\u003C/h3>\u003Cp>If you decide you want to cancel your policy, there are a few options:\u003C/p>\u003Col>\u003Cli>\u003Cstrong>You can borrow against the cash value: \u003C/strong>That way, you'll be able to access the funds without having to give up the policy.\u003C/li>\u003Cli>\u003Cstrong>Reduced Paid-Up Insurance: \u003C/strong>This will result in having your insurance policy change to the extent of premiums paid-up until this point, which means a drop in the benefit value. The advantage however is that you don’t have to pay a premium anymore, reducing the ongoing and future commitment if that is causing a concern and there is no urgent need or alternative investment option for the funds.\u003C/li>\u003Cli>\u003Cstrong>Converting to term insurance:\u003C/strong> You can use your policy as the basis for a new term life insurance plan, but based on the decreased premiums and reduced amount of death coverage.\u003C/li>\u003Cli>\u003Cstrong>Partial Withdrawal:\u003C/strong> Some policies even permit for partial withdrawal from the cash value, allowing the plan to stay in force even with some reduction in coverage or benefits. \u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>The attempt to surrender value as the solution can only solve your need if there is a clear understanding of the feature. It is only to be considered in case of a financial crunch or while re-evaluating the present insurance needs after exhausting other alternatives. It will help you make the best decision based on your situation and needs in an informed manner.\u003C/p>\u003Cp>Consider seeking a financial advisor's opinion before making your final decision, as they should be able to clarify any implications and potential alternatives that better align with your long-term objectives.\u003C/p>\u003Cp>Shriram Life Insurance provides a wide range of Life Insurance Policies to suit different financial goals of individuals. By ensuring financial stability and peace of mind, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance\\\" target=\\\"_blank\\\">Shriram Life Insurance plans\u003C/a> help people navigate their financial milestones and manage their risks with confidence.\u003C/p>\u003Cp>For more information on insurance plans, visit our pages on \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">Retirement Plans\u003C/a>, \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/savings-plan\\\" target=\\\"_blank\\\">Savings Plans\u003C/a>, and \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/protection-plan\\\" target=\\\"_blank\\\">Protection Plans\u003C/a>.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Step-by-Step Guide: EPF Pension Contribution Withdrawal\",\"heading\":\"Step-by-Step Guide: EPF Pension Contribution Withdrawal\",\"short_description\":\"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a soun\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/49.%20Step-by-Step%20Guide_%20EPF%20Pension%20Contribution%20Withdrawal_0.png?VersionId=FCP9JpnbQFxJ.VVR1sxzlmroHVVZkIeg\",\"alt\":\"Process of EPF Withdrawal\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-05T11:13:01\",\"updated_on\":\"2024-11-05T11:13:08\",\"read_more_title\":\"Know More\",\"slug\":\"/step-by-step-guide-epf-pension-contribution-withdrawal\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>\",\"description\":\"\u003Ch2>How to Withdraw Your EPF Contribution in a Few Simple Steps\u003C/h2>\u003Cp>Employee’s Provident Fund, short for EPF, is a savings scheme considered a sound financial investment as it is run under government supervision. The EPF, also popularly called PF, is a way to accumulate long-term savings for employees during their years of service or employment, and it is a way to provide financial security as a part of their retirement settlement. The savings add-up through the years of work experience and the funds thus accumulated, along with the earned interest are then available to be withdrawn on or before retirement.\u003C/p>\u003Cp>For many people, the EPF funds are a big part of their retirement funds and lifetime savings. By learning about the withdrawal of one’s EPF pension amount, one can be better equipped to utilize it as an effective savings vehicle for various financial goals.\u003C/p>\u003Cp>Understanding the process of withdrawal from EPF is a key aspect of financial literacy in India, especially if it forms a large part of your savings. In this guide, we take you through the process of withdrawing your EPF amount, including the different modes of withdrawal, both online and offline. We also cover crucial aspects, such as eligibility, documents, and tax implications of EPF contributions.\u003C/p>\u003Ch2>\u003Cstrong>What is the Employee Pension Scheme (EPS) and how does it work?\u003C/strong>\u003C/h2>\u003Cp>EPS is an integral part of the Employees Provident Fund that provides pensions to employees from the time of retirement or disability. This scheme ensures that a proportion of your EPF contributions both from you and your employer are credited to the EPS account. The basic objective of EPS is to stabilize the income after the retirement of an employee.\u003C/p>\u003Ch3>\u003Cstrong>Working of EPS:\u003C/strong>\u003C/h3>\u003Cp>\u003Cstrong>- Contribution:\u003C/strong> A part of the contribution from the employer and employee gets credited into the EPF account with a percentage towards EPS.\u003C/p>\u003Cp>\u003Cstrong>- Accrual: \u003C/strong>Pension is subject to the number of years of service in addition to your basic salary. The higher the years of service, the better the pension drawn after retirement from service.\u003C/p>\u003Cp>\u003Cstrong>- Pension Payment: \u003C/strong>After spending 10 years of service or after attaining the age of 58 years, you become eligible for availing the pension monthly from EPS.\u003C/p>\u003Ch2>\u003Cstrong>When Can You Withdraw Your Pension Contribution?\u003C/strong>\u003C/h2>\u003Cp>The withdrawal of pension contributions depends entirely on the circumstances of each individual. Here are different case examples for when one might need to withdraw:\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Early Withdrawal\u003C/strong>\u003C/h3>\u003Cp>Early withdrawals are well suited in case of emergencies that demand immediate financial support. In these scenarios, one is allowed to withdraw the EPS amount before the completion of the standard service period.\u003C/p>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>Here is an easy-to-understand example: \u003C/strong>\u003C/p>\u003Cp>Lekha aged 45 years old has been working for 5 years. Right now, she is exploring different sources of financial support to pay for a medical condition. In this instance, an early EPF withdrawal is an option she can consider. However, she must also verify if doing so will affect her pension benefits and whether it will attract taxes.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Full Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>Full withdrawal from EPF is normally applicable at retirement or when leaving a job after having served a considerable period. For example, Manoj aged 58 years has had 10 years of service in an organization and can look at a full withdrawal of his EPF balance.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Partial Withdrawal\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>The partial withdrawal option is most appropriate for someone who is retiring or nearing the end of a serving period or is moving onto a new career phase. It can provide timely financial support during medical emergencies, education expenses, or while purchasing a larger asset such as a home.\u003C/p>\u003Cp>For example, Ashok aged 35 years old requires immediate financial assistance to fund his child’s education. In this case, Ashok can opt for a partial withdrawal of his EPF amount; the amount withdrawn depends on the objective and your EPF balance.\u003C/p>\u003Ch2>\u003Cstrong>How Much Can You Withdraw from Your EPF Account?\u003C/strong>\u003C/h2>\u003Cp>Depending on the kind of withdrawal and the period of service, you can make a complete or partial withdrawal from your account. Here is how it works:\u003C/p>\u003Cp>\u003Cstrong>- Full Withdrawal:\u003C/strong> The option of withdrawing the entire amount of EPF balance with contributions and interest, becomes applicable when one retires or leaves a job.\u003Cbr />\u003Cstrong>- Partial Withdrawal: \u003C/strong>Partial withdrawals, done for specific purposes, are subject to EPF regulations and balance in the PF account of the holder.\u003C/p>\u003Ch2>\u003Cstrong>Documents Required for EPF Pension Contribution Withdrawal\u003C/strong>\u003C/h2>\u003Cp>Here is a list of documents that are required for the process of withdrawal of EPF pension contribution:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>EPF Account Number:\u003C/strong> A 22-digit alphanumeric number that is assigned to the employee at the time of joining the organization.\u003C/li>\u003Cli>\u003Cstrong>Aadhaar Card: \u003C/strong>Required to verify identity as well as its linkage with the respective EPF account. \u003C/li>\u003Cli>\u003Cstrong>PAN Card: \u003C/strong>For income tax purposes\u003C/li>\u003Cli>\u003Cstrong>Details of the bank account: \u003C/strong>To where the withdrawn amount gets credited.\u003C/li>\u003Cli>\u003Cstrong>Form 19 and 10C: \u003C/strong>Required for withdrawal filled with all the necessary details.\u003C/li>\u003Cli>\u003Cstrong>Proof of Employment: \u003C/strong>To confirm the service period.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Eligibility Criteria for EPF Withdrawal\u003C/strong>\u003C/h2>\u003Cp>You can withdraw EPF amounts after completing 58 years of retirement.\u003Cbr />But, there are a few rules specifying the eligibility criteria to withdraw EPF:\u003C/p>\u003Cp>\u003Cstrong>- Service Period: \u003C/strong>In general, you should have a minimum of 5 years of service.\u003C/p>\u003Cp>\u003Cstrong>- Change of Job: \u003C/strong>You can withdraw the EPF amount if you are changing your job or you wish to discontinue the EPF account.\u003Cbr /> \u003C/p>\u003Ch2>\u003Cstrong>EPF Pension Withdrawal Online Process\u003C/strong>\u003C/h2>\u003Cp>How to withdraw the EPF amount online:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Login on the EPFO Portal\u003C/strong>\u003Cbr />Activate your login at the EPFO portal with a UAN number.\u003C/li>\u003Cli>\u003Cstrong>Step 2: KYC Details Shall be Verified\u003C/strong>\u003Cbr />Ensure that your KYC details are in sync. This should include Aadhaar, PAN details and details of the bank account which is in your name.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Choose the 'Online Services'\u003C/strong>\u003Cbr />To the 'Online Services' tab click on 'Claim (Form-31, 19 & 10C)'.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Fill the details\u003C/strong>\u003Cbr />Fill up your information including your EPF account number, the purpose of withdrawal, and the amount to be withdrawn.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Submit Claim\u003C/strong>\u003Cbr />Check the details once again, then submit it. You will get a claim ID that may track the claim.\u003C/li>\u003Cli>\u003Cstrong>Step 6: Approval and transfer\u003C/strong>\u003Cbr />Once the EPF is processed and approved, it will be directly transferred to your bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Offline EPF Withdrawal Procedure\u003C/strong>\u003C/h2>\u003Cp>To initiate an offline EPF withdrawal, follow this procedure.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Step 1: Collect Forms\u003C/strong>\u003Cbr />You can collect Form 19 and Form 10C from EPFO or simply download them from the official website of EPFO.\u003C/li>\u003Cli>\u003Cstrong>Step 2: How to Fill the Forms\u003C/strong>\u003Cbr />You would need to fill in all the fields in the forms and ensure to mention the correct EPF account, reason for withdrawal and all other personal details.\u003C/li>\u003Cli>\u003Cstrong>Step 3: Attach Documents\u003C/strong>\u003Cbr />Keep at hand and include documents like your Aadhaar card, PAN card, and details of your bank account that are linked to your PF account. This is where the credit of proceeds will be done.\u003C/li>\u003Cli>\u003Cstrong>Step 4: Form Submission\u003C/strong>\u003Cbr />Submit the complete form with attachments to your regional EPFO office.\u003C/li>\u003Cli>\u003Cstrong>Step 5: Processing\u003C/strong>\u003Cbr />The EPFO will process your request and deposit/credit the amount of the PF withdrawal in your linked/authorized bank account.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What Should You Do if Your Application for EPF Withdrawal Gets Rejected?\u003C/strong>\u003C/h2>\u003Cp>If your EPF withdrawal application gets rejected, you should do the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Review Rejection Reason: \u003C/strong>Check the reason for rejection that EPFO has communicated to you.\u003C/li>\u003Cli>\u003Cstrong>Correct Errors: \u003C/strong>Check for incomplete discrepancies in the forms and correct them on the application.\u003C/li>\u003Cli>\u003Cstrong>Resubmit: \u003C/strong>Resubmit your application with accurate details.\u003C/li>\u003Cli>\u003Cstrong>Call EPFO: \u003C/strong>You may get additional support from the call centre or at the office as well.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to check the status of my EPF withdrawal request?\u003C/strong>\u003C/h2>\u003Cp>To find the status of your EPF amount withdrawal request, you can do the following: \u003C/p>\u003Cp>\u003Cstrong>- EPFO Portal: \u003C/strong>Access the EPFO portal with your UAN and see if your claim status is available in the 'Online Services' section.\u003Cbr />\u003Cstrong>- SMS Services: \u003C/strong>EPFO SMS services can be accessed by sending an SMS containing your UAN and claim ID to the given number.\u003Cbr />\u003Cstrong>- Contact EPFO: \u003C/strong>If there are updates, then the service can be taken from the related EPFO office.\u003C/p>\u003Ch2>\u003Cstrong>Tax Implications of EPF Withdrawals\u003C/strong>\u003C/h2>\u003Cp>The tax implications of EPF withdrawals need to be known beforehand so that there is no surprise element later on. \u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Taxation Rules\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>\u003Cstrong>- Before Completion of 5 Years of Service:\u003C/strong> In case a withdrawal is made before completion of 5 years of service, then the amount is taxable.\u003C/p>\u003Cp>\u003Cstrong>- Withdrawals beyond 5 years: \u003C/strong>Most of the time, the withdrawals after 5 years are tax-exempt.\u003C/p>\u003Cul>\u003Cli>\u003Ch3>\u003Cstrong>Tax Benefits and Exemptions\u003C/strong>\u003C/h3>\u003C/li>\u003C/ul>\u003Cp>As per Section 10(12) of the Income Tax Act, withdrawals of EPF are entirely tax-free if the contributions made towards EPF are filed under Section 80C, Income Tax Act\u003C/p>\u003Ch2>\u003Cstrong>Recent Changes and Updates to EPF Withdrawal Rules You Should Know:\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Improved Online Facilities: \u003C/strong>\u003C/h3>\u003Cp>Improved online facilities allow easier withdrawal of EPF.\u003C/p>\u003Ch3>\u003Cstrong>Retiring Age: \u003C/strong>\u003C/h3>\u003Cp>Updating of the retiring age of an employee to withdraw his/her EPF.\u003C/p>\u003Ch3>\u003Cstrong>Tax Exemption Limits Revised:\u003C/strong>\u003C/h3>\u003Cp>Updating of tax exemption policies and limits.\u003C/p>\u003Cp>Knowing the process of withdrawal of EPF may make all the difference in proper financial management. Whether you want to withdraw your EPF pension contribution online or offline, there are certain rules, eligibility criteria, and necessary documents that will help you face fewer hassles during withdrawal. This will also enable you to keep updating yourself regarding the latest EPFO PF withdrawal rules and changes for informed decision-making about your EPF contributions.\u003C/p>\u003Cp>\u003Cbr />For more information on taxation rules for pensions, withdrawing your pension money quickly, NPS and PPF for retirement, PRAN number, Pension Payment Order, and Voluntary Retirement Scheme check out our blog pages for comprehensive insights.\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/\\\" target=\\\"_blank\\\">Shriram Life Insurance\u003C/a> provides a range of \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/\\\" target=\\\"_blank\\\">life insurance products\u003C/a> to enable individuals to manage their risks better and also save up funds towards their financial goals. It encourages people to be responsible about financial planning and creating a portfolio of investments that will serve their long-term needs while protecting them from uncertainty of life.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"Understanding the Taxation Rules for Pensions: A Comprehensive Guide\",\"heading\":\"Understanding the Taxation Rules for Pensions: A Comprehensive Guide\",\"short_description\":\"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibil\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-11/48.%20Understanding%20the%20Taxation%20Rules%20for%20Pensions_%20A%20Comprehensive%20Guide_0.png?VersionId=0Lw.1kBm0yhm3x.eFFHSD4TPdHKZ.g6U\",\"alt\":\"Taxation rules for pensioners\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-11-04T10:32:04\",\"updated_on\":\"2024-11-04T10:32:10\",\"read_more_title\":\"Know More\",\"slug\":\"/understanding-the-taxation-rules-for-pensions\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>Retirement years should ideally be a time to rest and relax after a tenure of rendering service to an organization or fulfilling family responsibilities. Popularly referred to as the golden years, retirement planning takes a fair bit of planning in terms of financial responsibility. Understanding the \u003Ca href=\\\"https://www.shriramlife.com/income-tax-calculator\\\" target=\\\"_blank\\\">Tax on Pension Income\u003C/a> is one area that requires clarity and accurate information.\u003C/p>\u003Cp>Proper planning for retirement involves responsible management of savings and investments. This typically demands knowledge of various investment options and also their taxation rules. One such area of knowledge is about Pension Tax Rules, which dictate the taxation of one’s pension income. Awareness about tax implications is critical to optimizing one’s financial position and ensuring that you get all the Pension Tax Benefits.\u003C/p>\u003Cp>In India, specific rules and exemptions govern the taxability of pension income and this is also linked to each person’s income slab and tax liability. Staying well-informed of these slabs can prevent unexpected tax liabilities and help individuals make appropriate financial decisions. In this guide, we explain Tax on Pension Income, clarify the finer aspects of commuted versus uncommuted pensions, and provide some practical advice on reporting and minimization of Tax on Retirement Income.\u003C/p>\u003Ch2>\u003Cstrong>Is Pension Taxable?\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>Overview of Taxability\u003C/strong>\u003C/h3>\u003Cp>In India, the Tax on Pension Income is the same as that on regular income sources. Pension income is taxed depending on the total retirement income. These retirement incomes fall under different slabs, and as your retirement income grows, so does the rate of taxation. The details of how Pension Tax Rules become applicable can change with the kind of pension you receive and the exemptions you may qualify for.\u003Cbr />Income Tax Slabs\u003C/p>\u003Cp>Pension income is taxed according to the income tax slabs as introduced by the Income Tax Department. For the financial year 2024-25, these are as follows:\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/span>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rate (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,001 to 7,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 7,00,001 to 10,00,000\u003C/td>\u003Ctd>10\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 to 12,00,000\u003C/td>\u003Ctd>15\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 12,00,001 to 15,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 15,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For senior citizens, who are 60 years but less than 80 years:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\\\"2\\\">\u003Cem>\u003Cstrong>Income tax slabs for senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 0 to 3,00,000\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 3,00,000 to 5,00,000\u003C/td>\u003Ctd>5\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 5,00,001 to 10,00,000\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>From 10,00,001 and above\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For super senior citizens, who are 80 years or more:\u003C/span>\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd colspan=\\\"2\\\">\u003Cem>\u003Cstrong>Income tax slabs for super senior citizens under the old tax regime\u003C/strong>\u003C/em>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cstrong>Income tax slabs (Rs)\u003C/strong>\u003C/td>\u003Ctd>\u003Cstrong>Income tax rates (%)\u003C/strong>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 0 to 5,00,000\u003C/span>\u003C/td>\u003Ctd>0\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 5,00,001 to 10,00,000\u003C/span>\u003C/td>\u003Ctd>20\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">From 10,00,001 and above\u003C/span>\u003C/td>\u003Ctd>30\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">These slabs guide how the Tax on Pension Income would be calculated on the monthly pension income of the individual.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Exemptions\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Deductions under Section 80C, 80 DDB, 80 TTB, and 80 D can help reduce the tax burden on pension income. Pensioners can claim a tax exemption of up to Rs. 1.5 lakh under Section 80C of the IT Act. When aged 60 years or more, exemptions of Rs. 2 lakhs can be claimed under various heads.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted And Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">A commuted pension is a one-time amount paid as a trade-off for part of one’s annuity pension. A commuted pension is useful to an individual who requires a lump sum amount to begin with, while the remaining balance of the pension gets credited to them every month periodically. To plan for your retirement, it pays to understand how this will impact your Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Commuted pension taxability varies from one employee to another. If you are a government employee, the entirety of your commuted pension is exempt from tax. However, for those employees retiring from the private sector and not government roles, the commuted pension is exempt up to one-third of the total pension amount.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Practical Example\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Consider an employee whose monthly pension is ₹50,000, who wants to commute half of it and receive ₹6,00,000 as a lump sum, of which the amount up to ₹2,00,000 might be exempted. The balance of ₹4,00,000 might be taxable under particular rules and conditions prevailing at the time of taking that benefit.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Uncommuted Pension:\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">An uncommuted pension is that portion of your pension that you receive regularly without any commuted lump sum. As an element of your pension flow, which is considered as income, the question of how it impacts Tax on Retirement Income becomes a point to consider while planning for your retirement.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Tax Treatment\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Taxes are levied on the entirety of an uncommuted pension. Compared to commuted pensions, uncommuted pensions do not benefit from exemptions.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted and Uncommuted Pension Income Taxability\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Commuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Exemption Criteria\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">For government employees, the commuted pension is fully exempt from tax. For non-government employees, the exemption goes to one-third of the commuted amount, if received in a lump sum. The excess amount is then subjected to Tax on Pension Income.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Taxable Portion\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">If the commuted amount exceeds the exempt limit, then the excess amount will be taxable. For instance, if the exemption limit is ₹2,00,000 and the commuted amount is ₹6,00,000, then ₹4,00,000 will be taxable.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Uncommuted Pension\u003C/strong>\u003C/span>\u003C/h3>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Full Taxation\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">The whole of the uncommuted pension is liable to tax. One may add it to their total income and compute tax based on the income tax slabs of the latest regime.\u003C/span>\u003C/p>\u003Ch4>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Possible Deductions\u003C/span>\u003C/h4>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">Whereas an uncommuted pension is fully taxable, other sources or investments might permit claimable deductions that can reduce the overall tax liability. This is, therefore, one of the key aspects of Retirement Planning.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Which Head of Income Should Pension Income be Disclosed Under?\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income from Salary\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Primary Reporting Head:\u003C/strong> Pension income is usually accounted for under the \\\"Income from Salary\\\" head in your tax return as pensions are a sort of deferred salary.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Integration with Other Income:\u003C/strong> If you have other forms of income besides your pension, such as salary and/or investments, you have to add these amounts in with your pension income at least in terms of reporting income. It's just the sum of these incomes which forms the basis for how much you'll really pay in taxes.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Specific Situations:\u003C/strong> International organizations and other non-resident status pensions may have different reporting requirements. Again, such knowledge of the specific rules will help in proper reporting and compliance.\u003C/span>\u003C/p>\u003Ch2>\u003Cstrong>How to Report Pension Income and Employer Details in the Income Tax Return\u003C/strong>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Form Selection\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Correct Forms: \u003C/strong>Report pension income using the appropriate income tax return forms. Most people can use forms like ITR-1 or ITR-2. The choice of form will depend on your other sources of income and such deductions.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Reporting Details\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Income Reporting: \u003C/strong>In the \\\"Income from Salary\\\" section of your tax return, report your gross pension income. Make sure all pension payments are reflected and TDS deducted is also reported.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Employer Details:\u003C/strong> Provide your last employer’s or pension authority’s details in your tax return. This will be verified for your source of pension income and, hence, is considered for the correct computation of tax.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>TDS Reporting\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Tax Deducted at Source: \u003C/strong>In case TDS has been deducted from your pension income, ensure to provide this information under appropriate sections of the tax return. The amount of TDS should remain the same as mentioned in the TDS certificate issued to you by your pension authority.\u003C/span>\u003C/p>\u003Ch2>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>New Tax Return Regulations for Senior Pensioners\u003C/strong>\u003C/span>\u003C/h2>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Recent Updates\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>New Provisions: \u003C/strong>New tax return rules may include new elevation of exemption limits and extra benefits for elderly pensioners. Such revised directions are being given to reduce the tax on pension income for pensioners and make retirement planning more favorable.\u003C/span>\u003C/p>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Benefits:\u003C/strong> New rules may introduce enhanced exemption limits, increased deductions and specific relief measures for pensioners retired thereafter. Keeping up-to-date with these changes enables you to fine-tune your tax planning strategy to achieve maximum Pension Tax Benefits.\u003C/span>\u003C/p>\u003Ch3>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Compliance Tips\u003C/strong>\u003C/span>\u003C/h3>\u003Cp>\u003Cspan lang=\\\"EN-IN\\\" lang=\\\"EN-IN\\\">\u003Cstrong>Filing Changes: \u003C/strong>Know about any changes in compliance requirements or tax return filing process of senior pensioners. News on new forms, documents required and procedures help in avoiding penalties and being compliant.\u003C/span>\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What are the best insurance policies for senior citizens?\",\"heading\":\"Insurance Policies for Senior Citizens: A Comprehensive Guide\",\"short_description\":\"\u003Cp>As the saying goes, health is wealth.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/47.%20What%20are%20the%20best%20insurance%20policies%20for%20senior%20citizens__0.png?VersionId=TtIbOMwKuDB1aTVKdYvM.BlwpaBL4s1i\",\"alt\":\"Insurance policy for seniors\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-30T07:17:56\",\"updated_on\":\"2024-10-30T07:18:02\",\"read_more_title\":\"Know More\",\"slug\":\"/what-are-the-best-insurance-policies-for-senior-citizens\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>\",\"description\":\"\u003Cp>As the saying goes, health is wealth. With improved health support, advanced medicine, and suitable lifestyle changes, many more people can be expected to live longer. Sustaining long sunset years will need wealth to support one’s expenses and lifestyle needs. While many plan their retirement years and savings decades ahead, for some others, it is possible to do so only after all family commitments are settled.\u003C/p>\u003Cp>For those who are already senior citizens and looking at sustainable options to secure their retirement years, the importance of insurance increases manifold. From supporting health expenses to financial security to being able to live comfortably, insurance plans provide some benefits that are specific to seniors.\u003C/p>\u003Cp>In this all-inclusive guide, we discuss the \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">most-suited insurance policies for senior citizens\u003C/a>. We also cover general tips on how to pick the right policy given one’s circumstances, along with an overview of India's insurance arena.\u003C/p>\u003Ch2>\u003Cstrong>Understanding Insurance Needs for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>The choice of insurance for senior citizens varies based on the specific circumstances. There are different types of insurance to consider based on these needs. The most common needs for senior citizens are:\u003C/p>\u003Ch3>\u003Cstrong>1. Health Insurance:\u003C/strong>\u003C/h3>\u003Cp>With ageing, the susceptibility to disease and health risks increases. Health insurance provides financial support for health expenses that may increase during senior years. This is especially important for senior citizens so that their retirement funds or lifetime savings are not affected by unexpected health expenses. It is important to be able to comfortably afford the best healthcare in case one faces some critical illness or health setback in one’s later years.\u003C/p>\u003Ch3>\u003Cstrong>2. Income Replacement:\u003C/strong>\u003C/h3>\u003Cp>Once retired, regular income stops. If one has prudently built up savings, there is likely to be some investment income or perhaps pension or retirement settlement to support this stage. One such investment option for those looking at saving up for retirement funds is a Life Insurance Policy. Various kinds of life insurance plans help create income as financial support in later years.\u003C/p>\u003Ch3>\u003Cstrong>3. Long-Term Care:\u003C/strong>\u003C/h3>\u003Cp>Long-term care insurance covers the expenditure that is incurred when a person requires extended care due to a prolonged illness.\u003C/p>\u003Ch3>\u003Cstrong>4. Critical Illness Cover:\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Cover provides a lump sum amount in case of diagnosis of specific diseases and illnesses and could help pay for treatments that involve high expenditure.\u003C/p>\u003Ch2>\u003Cstrong>Importance of Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>The awareness of insurance for elderly citizens in India has been growing due to the following factors.\u003C/li>\u003Cli>\u003Cstrong>Medical Expenses: \u003C/strong>Healthcare costs in one’s senior golden years will likely be higher than during middle age. Unexpected health costs could erode one’s retirement savings and insurance will effectively manage the costs and prevent this erosion.\u003C/li>\u003Cli>\u003Cstrong>Financial Security: \u003C/strong>Life insurance provides much-needed financial security, and can help in estate planning.\u003C/li>\u003Cli>\u003Cstrong>Peace of Mind:\u003C/strong> Knowing one’s financial needs are covered if there is a need for critical illness or long-term care provides peace of mind.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Types of Insurance Policies Suitable for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Life Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Life insurance plays a significant role in building up savings while protecting one’s life. It could also become a part of one’s legacy or estate planning to pass on to one’s dependents. Life insurance policies suitable for senior citizens are described below.\u003C/p>\u003Ch4>1. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan\\\" target=\\\"_blank\\\">Term Life Insurance\u003C/a>:\u003C/h4>\u003Cp>Coverage under this type of policy is available for a specific period. It is ideal for those individuals who want to provide financial security for dependents upon their demise.\u003C/p>\u003Ch4>2. Whole Life Insurance:\u003C/h4>\u003Cp>This is an insurance policy providing coverage for the whole lifetime of the insured, plus a savings component that can accumulate cash value over time.\u003C/p>\u003Ch4>3. Endowment Plans:\u003C/h4>\u003Cp>These policies combine life insurance with savings. They provide a lump sum on maturity, and they also ensure financial security in case of the unfortunate death of the insured.\u003C/p>\u003Cp>Life Insurance rates for senior citizens often come with tailored plans depending on the age and health status of the insured.\u003C/p>\u003Ch3>\u003Cstrong>B. Critical Illness Insurance Policies\u003C/strong>\u003C/h3>\u003Cp>Critical Illness Insurance Plans cover the cost of life-threatening health conditions, such as cancer, heart attack, or stroke. The features are as follows:\u003C/p>\u003Ch4>1. Lump Sum Payment:\u003C/h4>\u003Cp>A lump sum is paid to the insured when diagnosed with a critical illness included in the policy.\u003C/p>\u003Ch4>2. Comprehensive Coverage:\u003C/h4>\u003Cp>Each policy has a list of illnesses covered and provides financial support in treatment.\u003C/p>\u003Cp>Critical Illness Coverage Insurance is important because it makes it possible to manage the high cost of treatment and supports recovery without putting any financial strain on the individual.\u003C/p>\u003Ch2>\u003Cstrong>C. Long-term Care Insurance Policies\u003C/strong>\u003C/h2>\u003Cp>Long-term care insurance is designed to cover extended care needs such as nursing home care or home healthcare. Here is why it matters:\u003C/p>\u003Ch4>1. Extended Coverage\u003Cstrong>:\u003C/strong>\u003C/h4>\u003Cp>Extends financial support towards long-term care services that are otherwise not covered by regular health insurance.\u003C/p>\u003Ch4>2. Quality of Care:\u003C/h4>\u003Cp>Helps in providing the covered policyholder with the financial support to afford high-quality care, thereby enhancing the quality of life in later years.\u003C/p>\u003Cp>This is a must-have insurance in a portfolio for a senior citizen. Long-Term Care Insurance for Seniors primarily allows the applicant's mind to stay calm and stable in terms of finances for future planning.\u003C/p>\u003Ch2>\u003Cstrong>Factors to Consider When Choosing Insurance for Senior Citizens\u003C/strong>\u003C/h2>\u003Cp>When choosing an insurance policy, you have to consider a few factors to ensure that it has catered to all your needs.\u003C/p>\u003Ch3>\u003Cstrong>1. Coverage Options\u003C/strong>\u003C/h3>\u003Cp>Review the coverage scope of the policy. Be thorough in your analysis of the policy and opt for add-ons only if they significantly enhance the benefits of the plan to match your needs. \u003C/p>\u003Ch3>\u003Cstrong>2. Premium Costs and Affordability\u003C/strong>\u003C/h3>\u003Cp>Does the premium payment fit within your budget? Low premiums are desirable, but the cost at which such low premiums are achieved should not compromise the extent of coverage. Compare premiums across plans if you need to check which provides you with the best coverage options for your senior years. \u003C/p>\u003Ch3>\u003Cstrong>3. Pre-existing Conditions and Limitations on Coverage\u003C/strong>\u003C/h3>\u003Cp>Learn how pre-existing conditions affect your coverage. Some policies come with waiting periods or have exclusions for pre-existing conditions, which might not be suitable for seniors, especially if they have some pre-existing health issues.\u003C/p>\u003Ch3>\u003Cstrong>4. Policy Coverage Years\u003C/strong>\u003C/h3>\u003Cp>Each policy has a specific year or age up to which coverage is valid. It is important to choose plans that have maximum age inclusion. Shriram Life Insurance has plans such as the Shriram Life Pension Plus that provides coverage for up to 80 years and can be taken for a maximum of 35 years as a policy term. \u003C/p>\u003Ch2>\u003Cstrong>Best Insurance Companies for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>About Shriram Life Insurance Company\u003C/strong>\u003C/h3>\u003Cp>Shriram Life Insurance provides a set of great insurance plans for senior citizens. Some of the policies that would suit a senior citizen are as follows.\u003C/p>\u003Cp>\u003Cstrong>1. \u003C/strong>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">\u003Cstrong>Assured Income Plan\u003C/strong>\u003C/a>\u003Cstrong>- \u003C/strong>This would provide the senior citizen with regular income during the term of the plan, helping them lead a financially secure life and manage expenses during their old age.\u003C/p>\u003Cp>2. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/early-cash-plan\\\" target=\\\"_blank\\\">\u003Cstrong>Early Cash Plan\u003C/strong>\u003C/a>- This is a unique insurance plan with added savings benefit - that provides high returns and flexible premiums.\u003C/p>\u003Cp>3. \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/saral-pension\\\" target=\\\"_blank\\\">\u003Cstrong>Saral Pension Plan\u003C/strong>\u003C/a>- This policy provides a single premium payment option, allowing policyholders to receive regular income for life. The plan supports different annuity frequencies, making it flexible for individual needs.\u003C/p>\u003Cp>Each plan is created with a wise understanding of the requirements of senior citizens. It aims to give them stability and peace of mind through the chosen insurance policies.\u003C/p>\u003Ch2>\u003Cstrong>How to Choose the Right Insurance Policy for Senior Citizens\u003C/strong>\u003C/h2>\u003Ch3>\u003Cstrong>A. Assessing Individual Health Needs\u003C/strong>\u003C/h3>\u003Cp>Evaluate the health conditions and risks of the elders in the family and pick a policy that covers life-given existing health conditions as well as future events.\u003C/p>\u003Ch3>\u003Cstrong>B. Comparing Different Insurance Policies by Shriram Life Insurance\u003C/strong>\u003C/h3>\u003Cp>Compare different policy plans of Shriram Life Insurance based on the coverage, benefits, and premium amount for your given age to assess which one matches your long-term goals.\u003C/p>\u003Ch3>\u003Cstrong>C. Documents Required for Insurance Application\u003C/strong>\u003C/h3>\u003Cp>While one is preparing to get an insurance policy, one may be required to provide the following documents\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Age proof:\u003C/strong> Birth Certificate or passport\u003C/li>\u003Cli>\u003Cstrong>Identity proof:\u003C/strong> Aadhaar card, PAN card, or voter's ID.\u003C/li>\u003Cli>\u003Cstrong>Medical Records: \u003C/strong>The latest health check-up reports and the details of the pre-existing ailments.\u003C/li>\u003Cli>\u003Cstrong>Address Proof: \u003C/strong>Utility bills or rent agreements.\u003C/li>\u003C/ul>\u003Ch3>\u003Cstrong>D. Can You Renew Insurance Policies Online for Senior Citizens?\u003C/strong>\u003C/h3>\u003Cp>Yes, you can renew it online for most insurance plans. It is easy and allows quick updates to your policy; thus, ensure all details are correct and updated at renewal.\u003C/p>\u003Ch3>\u003Cstrong>E. Insurance Policy Validity and Renewal Schedule\u003C/strong>\u003C/h3>\u003Cp>The validity schedule of an insurance policy pertaining to senior citizens varies according to the type of policy and the period for which it has been purchased. Normally, a policy remains valid for a term of one year until the next premium becomes due. It will be renewed on payment of the next premium and the plan remains in force for the policy duration as long as premiums are paid on time.\u003C/p>\u003Cp>Insurance covers are usually applicable for between 1 year and several years. However, you shall renew the policy before the renewal date to avoid a lapse in cover and enjoy continued coverage without disruption or loss of benefits. Record renewal dates and review policy terms from time to time to stay on top of your insurance portfolio.\u003C/p>\u003Ch3>\u003Cstrong>F. Insurance Premiums and Payment Options\u003C/strong>\u003C/h3>\u003Cp>The senior citizens' insurance policy premium can be paid annually, semi-annually or monthly under the policy. Insurers should opt for the premium paying frequency that would easily fit their budget and financial planning and cash flows.\u003C/p>\u003Ch3>\u003Cstrong>G. Regulatory Aspect Of Insurance Policies for Senior Citizens\u003C/strong>\u003C/h3>\u003Cp>In India, all policies are regulated by the Insurance Regulatory and Development Authority of India or IRDAI.\u003C/p>\u003Cp>The IRDAI regulates the terms of the policies to ensure they are fair and transparent and this is meant to protect your interests as a policyholder. \u003C/p>\u003Ch3>\u003Cstrong>H. Finding Reliable Insurance Providers\u003C/strong>\u003C/h3>\u003Cp>The following criteria establish factors that can help you identify a reputed insurer that you can consider to purchase insurance policies from.\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Reputation: \u003C/strong>Your insurance company should have a good reputation and preferably high claim settlement ratio.\u003C/li>\u003Cli>\u003Cstrong>Reviews: \u003C/strong>Take a look at customer reviews and ratings provided by policyholders to know the quality of service.\u003C/li>\u003Cli>\u003Cstrong>Advisors: \u003C/strong>Seek help from insurance advisors who deal with various types of senior citizen insurance for guidance.\u003C/li>\u003Cli>\u003Cstrong>Tax planner: \u003C/strong>Your auditor or tax planner can aid in making long-term investment decisions related to insurance. They can also advise on the estate planning options and how best to gain the tax exemptions or tax breaks you might be eligible for.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>What to Consider During Insurance Medical Check-ups?\u003C/strong>\u003C/h2>\u003Cp>While undergoing medical check-ups for health insurance, one must keep in mind the following:\u003C/p>\u003Cul>\u003Cli>\u003Cstrong>Health History: \u003C/strong>Answer them correctly about your health history.\u003C/li>\u003Cli>\u003Cstrong>Pre-existing Health Conditions: \u003C/strong>Discuss all the prevalent health issues that will affect your coverage and premium charges.\u003C/li>\u003Cli>\u003Cstrong>Medical Record Updations: \u003C/strong>Ensure that your medical records are updated, so that your assessments can be precise.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>How to Claim Insurance Benefits for Senior Citizens?\u003C/strong>\u003C/h2>\u003Cul>\u003Cli>\u003Cstrong>Notify the Insurer: \u003C/strong>Report your insurance claim immediately.\u003C/li>\u003Cli>\u003Cstrong>Documents:\u003C/strong> Always keep all documents in handy, including medical reports and copies of the policy.\u003C/li>\u003Cli>\u003Cstrong>Follow-up: \u003C/strong>Keep track of the status of the claim. If there is a problem in getting the claim benefit, solve it immediately.\u003C/li>\u003Cli>\u003Cstrong>Consultation: \u003C/strong>Talk to your insurance advisor if you want some help in getting insurance benefit claims.\u003C/li>\u003C/ul>\u003Ch2>\u003Cstrong>Conclusion:\u003C/strong>\u003C/h2>\u003Cp>Choosing the best insurance policies for senior citizens requires careful consideration of goals, needs and matching those to the available plan options. Studying aspects such as required coverage, premiums and terms of the policy, and overall financial needs is key to choosing the most-suited plan. Knowledge about various kinds of insurance, as illustrated above is essential in helping seniors and their families make the right decision for securing their futures and living their sunset years with peace of mind.\u003C/p>\u003Cp>Shriram Life Insurance provides invaluable support for senior citizens during their retirement years. By providing insurance solutions, it ensures financial stability and peace of mind, enabling retirees to enjoy their golden years with confidence and security.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What is Family Life Insurance?\",\"heading\":\"What is Family Life Insurance?\",\"short_description\":\"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security.\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/6.What%20is%20family%20life%20insurance%20policy_%20-%20Know%20its%20Importance%20%26%20Benefits_0.webp?VersionId=DJWQ0.vIovW4IeYdh5rLbh6p8qETGsl2\",\"alt\":\"Life Insurance Plans for Family\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-28T11:08:06\",\"updated_on\":\"2024-10-28T11:08:13\",\"read_more_title\":\"Know More\",\"slug\":\"/what-is-family-life-insurance\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>\",\"description\":\"\u003Cp>Most of us aim to give our families comprehensive protection with regard to financial security. Family Life Insurance is designed in such a way that it ensures the financial security of the family and in case of unfortunate event of the policyholder, their family will be able to continue with their lifestyle without compromising on anything.\u003C/p>\u003Cp>Also, family life insurance also helps pay off any outstanding debts, educational expenses of the children or mortgage payments. Family Life Insurance also provides peace of mind and helps maintain the quality of life in the absence of the breadwinner.\u003C/p>\u003Ch2>\u003Cstrong>Why do we need a Family Insurance Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/blog/early-cash-plan/why-does-every-family-need-a-life-insurance-savings-plan\\\" target=\\\"_blank\\\">Family Life Insurance ensures that your family is financially protected\u003C/a> even during tough times of life. In case, if only one person is the breadwinner of the family, this type of insurance will benefit them. It can be a source of income during your absence and the financial needs are taken care of.\u003C/p>\u003Cp>Losing loved ones can be unfortunate and some uncertainties of life cannot be prevented. In such unfortunate times, insurance helps people to plan their finances accordingly. Family Life Insurance helps to cope with materialistic needs, till you can get back to your normal life.\u003C/p>\u003Ch2>\u003Cstrong>What are the features and benefits of Family Life Insurance?\u003C/strong>\u003C/h2>\u003Cp>Family Life Insurance protects loved ones and provides financial security during the unfortunate demise of the family member.\u003C/p>\u003Cp>The key features and \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan-features-and-benefits\\\" target=\\\"_blank\\\">benefits of Family Life Insurance\u003C/a> are designed in such a way that the diverse requirements of the policyholder are met. \u003C/p>\u003Ch3>\u003Cstrong>Death cover\u003C/strong>\u003C/h3>\u003Cp>In case of the sudden demise of the family member or the breadwinner, the beneficiaries will receive the Sum Assured. It will be a lump sum amount that will support the family financially and also help cover immediate expenses. Additionally, the family can use it for their children’s educational expenses and mortgage payments. \u003C/p>\u003Ch3>\u003Cstrong>Premium\u003C/strong>\u003C/h3>\u003Cp>The premium for Family Life Insurance is affordable, which allows people to safeguard their family members during unfortunate times. However, the premium may differ depending on factors like age, coverage amount, policy and health. Also, the premium can be paid in flexible terms like monthly, quarterly, half-yearly and annually. \u003C/p>\u003Ch3>\u003Cstrong>Coverage amount\u003C/strong>\u003C/h3>\u003Cp>The coverage amount will vary depending on your financial requirements and annual earnings. It will allow you to choose the coverage amount and it determines the death cover of the life cover.\u003C/p>\u003Ch3>\u003Cstrong>Payout options\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance will also allow you to determine the payout option, depending on the person’s financial situation. \u003C/p>\u003Ch3>\u003Cstrong>Renewability Option\u003C/strong>\u003C/h3>\u003Cp>Family Life Insurance provides the benefit to renew their policy at the end of the policy term without any additional medical underwriting. \u003C/p>\u003Ch2>\u003Cstrong>Types of Life Insurance Plans in India?\u003C/strong>\u003C/h2>\u003Cp>There are various types of Family Life Insurance available in India, which can be availed by the policyholder depending on their requirement.\u003C/p>\u003Ch3>\u003Cstrong>Term Insurance\u003C/strong>\u003C/h3>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/online-term-plan\\\" target=\\\"_blank\\\">Term Insurance\u003C/a> is a Life Insurance plan that provides financial coverage for a set period of time. In case, unfortunate event of the policyholder occurs within the policy term, the insurance company will pay the death benefit to the policyholder’s beneficiary.\u003C/p>\u003Ch3>\u003Cstrong>Endowment Plans\u003C/strong>\u003C/h3>\u003Cp>Endowment Plan is a type of savings plan that provides the benefit of both the life cover and maturity benefit. These types of plans can benefit people who want to save money for their future and also provide a life cover, in case of any unfortunate event of the policyholder occurs. \u003C/p>\u003Ch3>\u003Cstrong>ULIP (Unit Linked Insurance Plans)\u003C/strong>\u003C/h3>\u003Cp>ULIPs are Unit-Linked Insurance Plans that provide the advantage of both investment and insurance coverage. The premium will be linked to the stock market. \u003C/p>\u003Cp>The return and the lump sum will depend on the market fluctuations. Part of the premium will be invested in the stock market depending on the policyholder’s risk tolerance and financial goals.\u003C/p>\u003Ch2>\u003Cstrong>How to decide on the right Life Insurance Plans for a family?\u003C/strong>\u003C/h2>\u003Cp>There is a wide range of Life Insurance plans available for families in India. You can choose among the ones that \u003Ca href=\\\"https://www.shriramlife.com/blog/advice/comprehensive-guide-to-choose-the-right-life-insurance\\\" target=\\\"_blank\\\">suits your financial needs and coverage requirement\u003C/a>. Listed below are some points to consider before choosing the right Family Life Insurance policy.\u003C/p>\u003Ch3>\u003Cstrong>Assess your needs\u003C/strong>\u003C/h3>\u003Cp>Analyzing and assessing your needs is the primary step in finding the right Family Life Insurance. Considering factors like financial goals, life cover, loan repayment and other financial burden will help you to choose the right plan.\u003C/p>\u003Ch3>\u003Cstrong>Understand the Different Types of Insurance\u003C/strong>\u003C/h3>\u003Cp>Understanding the type of insurance is also important to choose the right one. Term Insurance covers the policyholder for the specified period of time and the life cover will be paid to the beneficiaries in case of unfortunate demise of the policyholder.\u003C/p>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance\\\" target=\\\"_blank\\\">Life Insurance provides life cover and maturity benefits\u003C/a>, depending on the plan chosen. It also has plans like ULIP and endowment plans. So you can choose from these types of insurance coverages.\u003C/p>\u003Ch3>\u003Cstrong>Check the Coverage Amount\u003C/strong>\u003C/h3>\u003Cp>Sum Assured is the assured amount that will be paid by the insurance company to the policyholder. In case, the unfortunate demise of the policyholder occurs, the sum assured will be paid to the beneficiaries. There are many online Life Insurance calculators available to calculate the life cover and the premium amount.\u003C/p>\u003Ch3>\u003Cstrong>Boost your Life Insurance with riders\u003C/strong>\u003C/h3>\u003Cp>Riders or add-ons are additional features that enhance your Life Insurance. For example, riders like critical illness or personal accident coverage can be a valuable addition to your Life Insurance. These riders help you to cater your policy according to your needs. \u003C/p>\u003Ch3>\u003Cstrong>Read the policy document\u003C/strong>\u003C/h3>\u003Cp>Make sure you read the policy document fully and understand the coverages. The policy document will have the inclusions and exclusions of the plan. If you think the plan will not suit your needs or you have any queries regarding the plan, you can contact the insurance provider and get all your doubts cleared.\u003C/p>\u003Ch2>\u003Cstrong>Why choose Shriram Life Family Protection Plan?\u003C/strong>\u003C/h2>\u003Cp>\u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan\\\" target=\\\"_blank\\\">Shriram Life Family Protection\u003C/a> provides Life Insurance policies at affordable premiums and you can also choose riders or add-ons that complete your Life Insurance plan. Additionally, Shriram Life Insurance provides child plans that help you safeguard your child’s dream without any financial burden.\u003C/p>\u003Cp>With Shriram Life Family Protection Plan, you can also plan for your retirement, investments and also for a future with no financial burden. \u003C/p>\u003Ch2>\u003Cstrong>Conclusion\u003C/strong>\u003C/h2>\u003Cp>Life can be unpredictable, so it is important to protect our loved ones with proper insurance that suits your needs. A Family Life Insurance plan protects your family and ensures financial protection. Additionally, Shriram Life Insurance provides Child Protection Plan, Investment Plan, Protection Plan, Retirement Plan and Savings Plan. These plans provide a wide range of insurance options that help you choose the protection for you and your family.\u003C/p>\",\"category\":\"/blog/advice\"},{\"title\":\"What is a Money Back Insurance Policy ?\",\"heading\":\"What is a Money Back Insurance Policy?\",\"short_description\":\"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the lon\u003C/p>\",\"tile_image\":[{\"media_img\":{\"url\":\"https://cdn.shriramlife.com/slic-kalam/files/2024-10/5.Money%20Back%20Insurance%20Policy%20Explained_0.webp?VersionId=r7iugaVagDwYA8yOG382jcYZxOt1xQc9\",\"alt\":\"what is Money Back insurance Policy\"},\"media_svg\":null,\"media_svg_alt\":\"\",\"media_document\":null}],\"posted_on\":\"2024-10-24T07:21:14\",\"updated_on\":\"2024-10-24T07:23:20\",\"read_more_title\":\"Read More\",\"slug\":\"/what-is-a-money-back-insurance-policy\",\"field_bl_tag\":\"\u003Ca href=\\\"/blog/guides/recent\\\" hreflang=\\\"en\\\">Recent\u003C/a>, \u003Ca href=\\\"/blog/guides/advice\\\" hreflang=\\\"en\\\">Advice\u003C/a>, \u003Ca href=\\\"/blog/guides/retirement\\\" hreflang=\\\"en\\\">Retirement\u003C/a>\",\"description\":\"\u003Cp>If you are seeking financial security, you may be torn between investments that will give you quick returns and securing your loved ones in the long run through Life Insurance. What if we told you could do both? Yes, with money-back Life Insurance, you can benefit from both life coverage as well as receiving investment returns during the policy period. Curious to learn more? Keep reading as we delve into everything you need to know about Money Back Term Life Insurance.\u003C/p>\u003Ch2>\u003Cstrong>How Does a Money Back Policy Work?\u003C/strong>\u003C/h2>\u003Cp>Money Back Life Insurance is a type of Life Insurance Policy that provides both insurance and investment benefits. Similar to a Term Insurance Policy, it offers life coverage in exchange for a premium. Additionally, it also provides a percentage of the sum assured as returns periodically, and at maturity it provides a bulk settlement. Thus, those insured under this policy will be eligible for survival, death, and maturity benefits.\u003C/p>\u003Ch2>\u003Cstrong>Why Do You Need to Buy a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>You may have financial obligations and the responsibility to make sure your \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/family-protection-plan-best-selling\\\" target=\\\"_blank\\\">family is financially secure\u003C/a>. That is exactly what a Money Back Policy helps you with- it offers a steady side income, Life Insurance, and a lump sum payout at the end of the policy term. It is therefore sensible to purchase a Money Back Policy if you have dependents that you must take care of or if you are trying to reach financial goals.\u003C/p>\u003Ch2>\u003Cstrong>Key Features of Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are some of the salient features of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Life Cover: \u003C/strong>In the event that the insured is no more, their nominees will receive a large sum of money to manage their monetary needs.\u003C/li>\u003Cli>\u003Cstrong>Assured Gains: \u003C/strong>You can select \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/assured-income-plan\\\" target=\\\"_blank\\\">non-market-linked Money Back Plans\u003C/a> if you are searching for a secure investment with guaranteed returns.\u003C/li>\u003Cli>\u003Cstrong>Regular Income:\u003C/strong> You can expect regular returns at intervals. Thus acting as a secondary source of income.\u003C/li>\u003Cli>\u003Cstrong>Terminal Bonus:\u003C/strong> In addition to the returns obtained from your funds, you will get a bonus amount at the end of the policy tenure.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Benefits of a Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Below listed are the top benefits of a Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Dual Benefit:\u003C/strong> A Money Back Policy offers the best of both worlds: periodic wealth creation during the policy term and death benefit that will benefit the insured's dependents.\u003C/li>\u003Cli>\u003Cstrong>Return on Investment: \u003C/strong>Apart from the periodic payouts, you will also receive a bulk amount at the time of policy maturity.\u003C/li>\u003Cli>\u003Cstrong>Life Insurance:\u003C/strong> Life Insurance is an important consideration for those with dependents. A Money Back Life Insurance Policy assures you that your family will be financially secure if the worst were to happen.\u003C/li>\u003Cli>\u003Cstrong>Wealth Generation:\u003C/strong> Looking to gather wealth for early \u003Ca href=\\\"https://www.shriramlife.com/life-insurance/retirement-plan\\\" target=\\\"_blank\\\">retirement\u003C/a> or a child’s education? Money Back Life Insurance offers instalment payouts for immediate needs, plus a lump sum at the end of the policy term.\u003C/li>\u003Cli>\u003Cstrong>Personalized Options: \u003C/strong>There are different Money Back Life Policies to choose from depending on your financial goals and needs.\u003C/li>\u003Cli>\u003Cstrong>Tax Benefits:\u003C/strong> With a Money Back Policy, you can claim tax exemptions for the maturity amount under Section 10(10D) and the policy premiums under Section 80C of the Income Tax Act of 1961.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Eligibility Criteria for Buying Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the eligibility criteria for Buying Money Back Policy.\u003C/p>\u003Col>\u003Cli>\u003Cstrong>Age:\u003C/strong> Typically, there are minimum and maximum age limits for purchasing a Money Back Life Insurance Policy. These limits usually range from 18 to 65 years, although they can vary between different insurers.\u003C/li>\u003Cli>\u003Cstrong>Health Status: \u003C/strong>You might be required to disclose any pre-existing medical conditions and to meet a specific level of fitness.\u003C/li>\u003Cli>\u003Cstrong>Income Proof: \u003C/strong>Generally, insurers are expected to provide proof of income to show that they are capable of making premium payments.\u003C/li>\u003Cli>\u003Cstrong>Nationality:\u003C/strong> Life insurance offered by Indian insurers is only available to Indian citizens. Therefore, Indian citizenship is a requirement for obtaining a life policy in India.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>Documents Required to Buy Money Back Policy\u003C/strong>\u003C/h2>\u003Cp>The following are the documents needed while purchasing a Money Back Policy.\u003C/p>\u003Col>\u003Cli>PAN, Aadhaar, passport, or voter ID for age proof\u003C/li>\u003Cli>Pay slips or bank statements for income proof\u003C/li>\u003Cli>Voter ID, passport, or Aadhaar card for address proof\u003C/li>\u003Cli>Medical certificates and doctor’s prescriptions for existing illnesses\u003C/li>\u003Cli>A fully filled policy application form.\u003C/li>\u003C/ol>\u003Ch2>\u003Cstrong>How to Choose the Best Money Back Policy?\u003C/strong>\u003C/h2>\u003Cp>Here are some insider tips on how to choose the best Money Back Policy.\u003C/p>\u003Ch3>\u003Cstrong>Monetary Goals\u003C/strong>\u003C/h3>\u003Cp>Before looking for a policy, we suggest that you take a moment to consider your financial goals. Building a house? Child’s Education? Long Vacation? Make a list of these financial needs before buying a suitable policy.\u003C/p>\u003Ch3>\u003Cstrong>Sum Assured\u003C/strong>\u003C/h3>\u003Cp>The sum assured is a fixed sum that the dependents of the insured will receive in the unfortunate event of the insured’s death. However, choosing a higher sum assured will increase the premium payable. Therefore, we suggest choosing a reasonable amount.\u003C/p>\u003Ch3>\u003Cstrong>Duration of Policy\u003C/strong>\u003C/h3>\u003Cp>The longer your policy is in effect, the less you will have to pay in premiums. However, please note that there may be a cap on the policy tenure based on the insured’s age.\u003C/p>\u003Ch3>\u003Cstrong>Policy Premium\u003C/strong>\u003C/h3>\u003Cp>Choose a policy that offers adequate coverage and returns for your financial requirements, all while keeping the policy premium in mind. Buying a Life Insurance policy shouldn't become another financial burden.\u003C/p>\u003Ch3>\u003Cstrong>Riders\u003C/strong>\u003C/h3>\u003Cp>Life insurance companies usually provide Riders as a way to enhance their policies with additional coverage. Common Riders include Accidental Death Cover, Critical Illness Cover, and others. Select the necessary riders only, as the more riders you select, the greater the premium that must be paid.\u003C/p>\u003Ctable>\u003Ctbody>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Parameter\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Fixed Deposit\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">\u003Cstrong>Money Back Policy\u003C/strong>\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Low risk\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Low to medium risk depending on the type of policy you choose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Returns\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Fixed interest rate\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The rate of interest is dependent on the policy type \u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Liquidity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Premature withdrawals may result in penalties\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The policy duration usually ranges from 10 to 25 years\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Tax Benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Interest earned on the FD is taxed\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">The policy premium can be claimed for tax exemption\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Purpose\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Generally used for saving purposes\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Life Insurance plus a steady source of income\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003Ctr>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Maturity benefit\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Principal plus interest at maturity\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003Ctd>\u003Cspan lang=\\\"EN-GB\\\" lang=\\\"EN-GB\\\">Sum assured plus bonuses (if applicable)\u003C/span>\u003Cspan> \u003C/span>\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003Ch2> \u003C/h2>\u003Ch2>\u003Cstrong>FAQs\u003C/strong>\u003C/h2>\u003Cp>\u003Cstrong>1. What is a Money Back Insurance Policy?\u003C/strong>\u003C/p>\u003Cp>A Money Back Insurance Policy is a kind of Life Insurance that offers both the standard Life Insurance benefit and the chance to get periodic payouts for the premiums paid.\u003C/p>\u003Cp>\u003Cstrong>2. What are the features of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The features of a Money Back Policy include Life Cover for the insured, along with period returns on the premiums paid. If the insured survives until policy maturity, they will also receive a bonus.\u003C/p>\u003Cp>\u003Cstrong>3. What are the advantages of a Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>The advantages of a Money Back Policy include Life Insurance, return on investment, maturity benefit, and tax exemption on the policy premium.\u003C/p>\u003Cp>\u003Cstrong>4. Is It risky to invest in Money Back Policy?\u003C/strong>\u003C/p>\u003Cp>Investing in Money Back Policies that are linked to the market carry some risk. You can, however, opt for guaranteed returns by selecting risk-free, non-market-linked policies; the returns on these kinds of policies are usually lower.\u003C/p>\u003Cp>\u003Cstrong>5. What are the tax benefits with Money Back Plans?\u003C/strong>\u003C/p>\u003Cp>The tax benefits of Money Back Plans include a tax exemption on the maturity amount and the policy premium paid as per Section 10(10D) and Section 80C of the Income Tax Act, 1961 respectively.\u003C/p>\u003Cp>\u003Cstrong>6. Is the amount received through Money Back Policy taxable?\u003C/strong>\u003C/p>\u003Cp>The income received through a Money Back Policy is tax exempt as per Section 10(10D) of the Income Tax Act, 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