The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
How often are portfolios disclosed for unit-linked policies? How can I take a loan against my policy?
If you have a life insurance policy that has a cash value, you may be able to
obtain a policy loan from the insurance company — provided the insurer offers the loan facility under such policies. If you have any loans outstanding at the time of your death or maturity of the policy, they will be deducted from your death benefit or the maturity benefit.
Some life insurance products also offer the facility of partial withdrawal, which will not be repaid.
I am 45 years old and my net income per year is Rs4.6 lakh. I wish to buy a scheme where I can get insurance as well as tax advantage. Please guide me.
All insurance plans — be they term or unit-linked — offer tax benefits under sections 80C and 10 (10D).
We would advise you to take a financial health check to determine what kind of policy you require. This is a need-based analysis of your financial needs and is available free of cost on the Aviva website.
Please keep in mind that since you are 45 years old, the tenure of the insurance plan should not exceed your retirement age.
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Bert Paterson, managing director and CEO, Aviva India.