Unlike health insurance, where you get protection against various ailments and medical procedures, Life Insurance provides a financial pool of savings after your unfortunate demise to your family. Life insurance comes in multiple forms and serves various purposes as compared to health insurance. Life insurance is one of the best ways to create wealth and secure the future of your family financially. When it comes to Life Insurance, choosing the best insurance policy can be exhaustive. Through this article we have discussed all the necessary factors that will help you in choosing the best life insurance policy in India. We have gathered all the necessary life insurance policy details so that you can find all the information at one place.
A life insurance policy includes a contract between a policyholder i.e. the customer and the insurer i.e. the insurance company that states that the policyholder will be given a lump sum amount after his unfortunate demise or a set period of time. The policyholder chooses a nominee on his behalf at the time of the commencement of the policy and the funds are provided to this nominee. Not all life insurance policies mature at the time of death. Many life insurance policies are bought for a certain period of time and mature after the decided tenure. There are a number of life insurance policies in the Indian market. They are as follows:
A life insurance policy is much more than a source of coverage and thus consists of numerous features.
There are a plethora of benefits when you invest in a life insurance policy. Life insurance is a financial tool that facilitates an individual to create a safety net for their loved ones in case anything unforeseen happens to their life.
With the availability of several Life Insurance Plans in the market, it's quite confusing to choose the best among them. Considering one factor and ignoring the other can cause several issues at the time of need. Therefore, it is very important to go through each & every aspect before investing in life cover insurance.
We at PolicyX.com have mentioned a few pointers that will help you to choose the Best Life Insurance Policy:
Compare and buy the most suitable Life Insurance Plan from the below-mentioned IRDAI-approved Life Insurance companies.
Know More About Life Insurance Companies
Know More About Term Insurance Companies
Deciding the best life insurance policy in India includes various important factors such as past performance, claim settlement ratio of the company, its solvency ratio, customer support etc. Using all of the listed parameters and the annual report 2020-2021 published by the insurance regulator of India we have scrutinized the best life insurance policies for you.
|Plans||Plan Type||Min/Max Entry Age||Maximum Maturity Age|
|LIC Tech Term Plan||Term Insurance Plan||18 years/65 years||80 years|
|HDFC Life Sanchay Plus||Savings Plan||5 years/60 years||80 years|
|SBI Shubh Nivesh plan||Savings Plan||18 years/60 years||65 years|
|ICICI iProtect Smart||Term Insurance Plan||18 years/65 years||75 years|
|Max Life Online Term Plan Plus||Investment Plan||18 years/60 years||85 Years|
|LIC Tech Term Plan||A pure life cover that comes out with two death benefit payout options such as Level Sum Assured or Increasing Sum Assured.|
|HDFC Life Sanchay Plus||With several other benefits, the plan offers guaranteed returns to the insured and their family.|
|SBI Shubh Nivesh plan||A traditional savings plan that comes out with two investment option - Endowment plan & Whole Life Plan.|
|ICICI iProtect Smart||Offers 360-degree protection to your family, allowing in case of your unfortunate demise.|
|Max Life Online Term Plan Plus||An online term insurance plan that looks after your family's needs and offers 3 payout options for the family - lump sum one time, lump-sum along with a monthly income, or lump sum with increasing monthly income.|
Riders are the add-ons that provide additional financial coverage to the policyholder. Some plans come with the in-built additional cover, however, generally, the riders need to be purchased separately by paying an additional premium.
Having additional coverage enhances protection for you and your family in case of death, disease, or disability.
Popular life insurance riders are:
Critical Illness Rider benefits the policyholders in case they get diagnosed with any of the critical illnesses listed in the policy document. The rider pays out the critical illness sum assured and allows the policyholders to concentrate on their treatments without worrying about the finances.
With the help of Accidental Death Benefit Rider, if the policyholder dies in an accident during the policy term, then a percentage of this additional sum along with the sum assured will be paid to the beneficiary by the insurance company.
This rider comes in force if the policyholder meets with an accident and is declared partially or permanently disabled. The rider pays the predetermined percentage amount and can be relied upon as the income source.
If the policyholder is diagnosed with any life-threatening terminal illness such as leukaemia, cancer, AIDs, etc., this rider will pay a part of the death benefit and can be used for the treatment of the policyholder.
Under this rider, if the policyholder is unable to pay his premiums due to the loss of income because of any unfortunate accident or injury, or disability, then all the future premiums will be waived off, and the policy will continue with no restrictions.
Term rider pays a fixed or monthly income to the beneficiary in case of the policyholder's demise. This rider offers extra coverage for death in addition to the base sum assured that is predetermined by the insurance company.
Surgical Rider assists the insured by providing financial coverage in case the policyholder undergoes an unavoidable surgery in India.
A life insurance premium is an amount that is paid by the policyholders for a specified period and lets them enjoy the life insurance benefits. One can select their premium payment mode as per their needs.
Below are the few important factors that are considered by life insurance companies and can affect the life insurance premiums:
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PolicyX.com offers you a reliable platform where you can compare life insurance premiums and then choose the best one as per your preference. Check out the below steps and buy your life insurance now:
If you have decided to buy life insurance, there are a few documents that you need to provide:
Driving License, 10th or 12th mark sheet, Birth Certificate, Passport, Voter ID, etc.
Electricity Bill, Telephone Bill, Ration Card, Driving License & Passport.
PAN Card, Passport, Driving License, Voter ID, or Aadhar Card.
Latest form 16, salary slips of last 3-6 months, ITR (2-3 years), etc.
**Some plans require a medical check-up to make sure that the insured does not suffer from any chronic illness. The company may ask for other documents as well.
If a claimant follows all the required steps, then filing a claim and getting a sum assured can become a very convenient and hassle-free task. Read ahead to find how a claimant can file a claim in India under the following scenarios:
In case of the insured's death, the nominee of the deceased will be able to claim in the following way:
Intimate the insurer about the death as soon as possible with all the important details such as time, place, and cause of death.
Submit needful documents and proof to the insurance company. This will consist of the insured's death certificate along with the claim form provided by the insurance company.
If the policy was assigned, the assignee will have to provide the documents. If someone else (apart from the nominee or assignee) is filing a claim, (s)he has to submit the legal proof of his/her relation with the insured.
If required, post-mortem, hospital, and attending doctor's reports have to be submitted.
In cases involving police inquiries, an investigation/survey report will have to be submitted.
Once the investigation is over, the insurance company will approve/disapprove the claim. The details of the same will be shared with the claimant.
In Case The Policy Is Matured
If the insured outlives the policy term, then he/she is eligible to avail all the maturity and surviving benefits, provided all the premiums have been duly paid. The procedure for filing a claim is as follows:
Life insurance is a must-have financial tool that can help you ensure the financial security of your loved ones while providing you life cover. A life insurance policy provides financial assistance to the life assured and their family members in difficulty. Keeping the current scenario in mind, a life insurance policy is essential for individuals who have financial dependents, if anything were to happen to an individual amidst the COVID-19 outbreak a life insurance policy can be very handy under such circumstances.
See More Life Insurance Articles
See More Life Insurance Articles
Aegon Life Insurance launches iTerm Prime
Aegon Life Insurance has launched iTerm Prime term insurance plan for self-employed individuals. The plan comes with a special discount of 10% on the first year premium and provides a minimum sum assured of 25 lakhs, with no upper limit on consumer requirements. The product can be purchased through Aegon Life’s website and its partners; The buying process is completely paperless and requires zero documentation or uploads.
The product also offers a ‘Special Exit Value’ option which allows the policyholder to ge back all the premiums when he turns 55.
“iTerm Prime is designed to encourage rising India to gain access to life insurance. Self-employed individuals make up the majority of India’s working population, yet this section remains underinsured. To make insurance accessible to them, we have simplified the purchase journey and accelerated underwriting by digitizing it. In addition, we have introduced a special discount and flexible payment options to make the product more affordable for the end consumer,” said Satishwar B, MD & CEO, Aegon Life Insurance.
Edelweiss Tokio Life Insurance launches Premier Guaranteed Star
Edelweiss Tokio Life Insurance has just launched an income-oriented life insurance product that offers guaranteed regular income till the policy term on payment of all due premiums.
Aditya Birla Sun Life launches Aditya Birla Sun Life Insurance Nishchit Aayush Plan
The plan is a non-linked, non-participating individual savings life insurance plan that offers regular income starting from as early as the end of the first policy month with a lump sum benefit at maturity. The plan offers benefits of immediate liquidity, multiple income variants, payout frequency, and choice of varied premium payment and policy terms to suit individual requirements.
Max Life Insurance becomes the official Life Insurer of Mumbai Indians’ Women’s Team
Max Life Insurance Company Ltd. has recently announced that it will serve as the official life insurer of the Mumbai Indians in the first-ever Women’s Premier League (WPL) 2023 and the men’s team at the upcoming Indian Premier League season (IPL).
Term Life Insurance is a simple plan, which takes care of the expenses of your family in your absence in the form of a huge life cover for a very small premium. In case of a policyholder's untimely death, their family or nominee receives the Cover Amount as per the policy. The plan can be customized to one's needs by including add-on benefits.
Your cover amount of Term Insurance should be a factor of your family's expenses keeping in mind the inflation as well.
A simple way to calculate is going up to 20x of your annual earnings so as to sufficiently cover your family's financial needs in your absence
Life Insurance policies offer an option of Return of Premium. In case you choose this option, all the premium paid, excluding GST, is paid back as Survival Benefit, in case the policyholder survives the Policy Term
In case of the insured's death, the nominee of the deceased will be able to claim in the following way:
Yes, the premium paid towards the policy is tax exempted up to a maximum limit of Rs 1.5 lakh in a financial year U/S 80C of the Income Tax Act.
Yes. Depending upon the cash value of a particular policy, it can be cashed in. Cash value is a part of a life insurance policy's death benefit which can be liquidated. In case the policyholder takes a loan against the cash value and passes away while the loan is unpaid, the death benefit is reduced by the amount of the outstanding loan.
It completely depends on your insurance needs. However, it is beneficial to have enhanced insurance coverage and opt for life insurance and critical illness cover both.
Yes, life insurance policies do cover accidental death. However, one must check the policy documents if it specifically states that it does not cover death by accident.
Yes. The life insurance policies offer a grace period of 30 days (to pay the premium) in case the policyholder missed his/her premium payment date.
The amount of cover depends on your income, your family's requirements, and your liabilities. However, as per the financial experts, your cover should be at least 10-15 times the annual income.
The IRDA has directed all the insurance providers to allow policyholders to revive their lapsed policy within two years from the time it is deactivated. One needs to pay the renewal fee along with the late fee and additional penalties that may vary from insurer to insurer.
In such scenarios, where both the policyholder and nominee died, then the benefit will be payable to their heirs or legal representative.
In such a case, you can add a new nominee. In case you don't, by default, the company will consider your heir your new nominee.
A term plan is the cheapest type of life insurance since it does not include any survivor benefits. When the policy period ends, the plan lapses.
The thumb rule for choosing the right coverage is getting the cover of 10-15 times your annual income. Therefore, analyze your requirements first, and then decide your ideal life insurance coverage.
If you are looking for a coverage that lasts for a shorter period of time and buys in affordable premiums then you can buy a term insurance policy. Whereas, if you want coverage for a very long time or for your entire life then go for a whole life insurance policy.
Return of Premium is a feature that you can get with your term life insurance wherein, if you outlive your term insurance policy the insurer pays you back the premiums that you paid in full or partially.
If you stop paying for your life insurance policy, your policy will lapse after the grace period and you will lose all the premiums that you have paid.
Your life insurance premiums are based on multiple factors such as your age when you decide to buy the policy, lifestyle habits which include smoking and drinking, medical history for existing diseases, gender and the tenure of your policy.
Since life insurance doesn’t fall into gross income you do not need to report about the amount you receive.
Although all kinds of life insurance serve different purposes, Term Insurance is said to be the best form of life insurance.
Short term life insurance is known as term insurance. Yes, it is an excellent option as it gives you affordable premium payment options and you get the flexibility of switch or extend your coverage.
December 14, 2022
PolicyX has a smooth service from booking policy to verification. Employees are very patient and have good knowledge and help you throughout the process. Had great experience dealing with them
December 9, 2022
I had many confusions regarding the term policies . But Policyx has handled it well, m happy that they are my wayfarer in this journey.
July 11, 2022
Good company. Presents nice term insurance plans and flexible plans also. My husband has brought one for the family.
July 11, 2022
IndiaFirst Term Insurance company ensures that your family s needs are looked after. One of the best companies offers a term plan per your needs.
July 6, 2022
I recently received the claim amount of the policy that my husband had brought for us. I am glad that the company understands the needs of its customers and their families. Well done Canara HSB...
July 6, 2022
I bought a term plan with Canara HSBC for the protection of my family and have been satisfied with the benefits received. It is simple and easy to buy their plans.
July 6, 2022
I am very happy with the term plans offered by the Canara HSBC Life Insurance company. The plans offer comprehensive coverage and I am sure will support my family after my demise.
June 9, 2022
Bharti AXA is a good life insurance company, and I am sure if something ha[opens to me, the company will look after my family s needs.
Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.