Life Insurance Plans
  • Secure Your Family's Future
  • Explore the Top 5 Life Insurance Plans
  • Understand the Types of Life Insurance Policies
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What Is Life Insurance?

Life insurance is a mutual contract between the policyholder and the insurance company, where the company promises to pay a pre-specified amount to the nominee in case of death of the policyholder or after a predetermined period, and in return, the insured needs to pay the premium for a certain period.

How does it work?

Such policies offer financial coverage to the insured or his family in the contingency linked with human life, like death, disability, accident, retirement, etc. The insurer needs to pay the premium for a specific time, and in return, your insurance company will offer you a Life Cover.

Moreover, along with financial protection, one can avail of tax benefits under Section 10(10D) & Section 80C of the Income Tax Act, 1961.

Why A Life Insurance Policy Is Important?

Our lives are uncertain and full of risks. In an unfortunate event where something happens to anyone, the entire family suffers. And if that person is the only bread earner then the suffering worsens. Here comes the role of Life Insurance. Though human life can not be measured, a monetary sum can help the dependants continue their lives without sacrificing their needs and requirements.

Moreover, a life insurance plan is also an investment tool where you can avail of the maturity benefits provided you survived the policy term. The amount can help you attain your life's milestones such as your daughter's marriage, your child's higher studies, etc. Along with protection, a life insurance plan offers peace of mind.

Let's understand the importance of life insurance with an example.

Varun and Amar are childhood friends. Amar decided to buy a life insurance policy and suggested Varun invest in the same but he refused. 20 years later, Amar's daughter wishes to pursue higher studies while on the other hand, Varun plans to get his elder daughter married. As Amar has invested in the life insurance policy which has matured by now. He can use that lump-sum amount to fulfil his daughter's dreams. Whereas Varun has to sacrifice all his life-long savings to meet the wedding expenses. Had Varun purchased a life insurance plan earlier, he would have saved his money for uncertain times.

What Are The Benefits of Life Insurance?

Benefits of Life Insurance

How Much Life Cover is Needed?

The sole purpose of having life insurance is to keep your family financially independent in your absence. However, the answer to this question varies from person to person depending on their lifestyles and necessities. You need to evaluate your income, liabilities, dependents, etc. to fix the required life cover amount.

If we go by the financial expert's thumb rule, your life insurance coverage should be at least 10-15 times the annual income.

For better understanding, let's look into the two scenarios of two different families.

FamilyMr Verma, a 30-year-old working professional, lives with his wife, his parents and has a 3-year-old child.Mr Sharma, a 30-year-old working professional lives with his wife and 2 children.
ExpensesMonthly: Rs. 50,000
Annual: 6 Lakhs
Monthly: Rs. 60,000
Annual: Rs 7.2 Lakhs
LiabilitiesAn outstanding home Loan of Rs. 50 LakhsNo loans
Money Needed for Children's education and Marriage20 Lakhs30 Lakhs
Retirement Corpus for spouse40 Lakhs40 Lakhs
Coverage Required90 Lakhs (monthly expenses*15) + 50 + 20+ 40 Lakhs = Rs. 2,00,00,000 Approximately1.08 crore (monthly expenses*15 + 30 + 40 Lakhs) = Rs. 1,78,00,000

Keeping in mind the expenses, liabilities, and responsibilities towards his child, Mr Verma would need a life cover approximately of Rs. 2 crores, whereas, Mr Sharma would need a cover of Rs. 1.78 Crores.

Top 5 Life Insurance Plans in India

Best Life Insurance Policy

Listed below are the 5 Best Life Insurance Plans:

PlansPlan TypeMin/Max Entry AgeMaximum Maturity Age
LIC Tech Term PlanTerm Insurance Plan18 years/65 years80 years
HDFC Life Sanchay PlusSavings Plan5 years/60 years80 years
SBI Shubh Nivesh planSavings Plan18 years/60 years65 years
ICICI iProtect SmartTerm Insurance Plan18 years/65 years75 years
Max Life Online Term Plan PlusInvestment Plan18 years/60 years85 Years

Key Features of Top 5 Life Insurance Plans

LIC Tech Term PlanA pure life cover that comes out with two death benefit payout options such as Level Sum Assured or Increasing Sum Assured.Explore Plan
HDFC Life Sanchay PlusWith several other benefits, the plan offers guaranteed returns to the insured and their family.Explore Plan
SBI Shubh Nivesh planA traditional savings plan that comes out with two investment option - Endowment plan & Whole Life Plan.Explore Plan
ICICI iProtect SmartOffers 360-degree protection to your family, allowing in case of your unfortunate demiseExplore Plan
Max Life Online Term Plan PlusAn 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.Explore Plan

What Are the Types of Life Insurance Policies?

  1. Term Insurance

    It is the most basic form of life insurance. Simply put, the beneficiary will avail of the death benefit only if the insured dies during the policy tenure. Once the policy matures, the insurance company is not liable to pay any benefits.

    A term insurance plan is beneficial for those who want to secure the financial future of their family at affordable premiums.

  2. Whole Life Insurance

    Whole Life Insurance Plans remain in force till the policyholder is alive, provided required premiums are paid. On the policyholder's death, the plan pays a sum assured and bonus (if any) to the nominee. A Whole Life Term Insurance can help you to leave a legacy for your children.

  3. Endowment Plan

    Also known as traditional life insurance plans, the Endowment policy is a combination of a life coverage plan and savings plan. Along with life coverage, a policyholder can also save their funds regularly for a specific period. In case the policyholder outlives the policy term, the insurance provider offers a maturity benefit to him/her.

    Such policies can be used to build a risk-free savings corpus, and on the other hand, will provide financial protection to your family in case of an unfortunate event.

    Also read Term Life V/s Traditional Life Insurance

  4. Child Insurance Plan

    It is a combination of insurance cover and investment that secure multiple stages of your child. In other words, it provides financial coverage to your child's future needs and allows you to plan his/her future in a better and stabilized way. With a child insurance plan, you can create a corpus to fulfil all your child's needs and ensure that your child doesn't have to sacrifice their dreams because of any financial crunch.

  5. Pension Plan

    This plan assists you in securing your post-retirement life financially. The benefits are given annually or once after reaching 60 years (depending on the insurer/policyholder). The plan offers a vesting benefit (maturity benefit) if the policyholder outlives the policy term.

  6. Unit-Linked Insurance Plan (ULIP)

    Unit-Linked Insurance Plans offer a combination of investment and insurance. Under the same, a small portion of your money is used for life coverage, whereas, the rest of the money is invested in the market.

  7. Investment Plans

    An investment plan allows the policyholder to invest small amounts (in a periodic manner) to boost his/her savings. The frequency of investment can vary- weekly, monthly, and quarterly. Along with savings, you get the benefit of insurance coverage.

  8. Money-Back Plan

    In a money-back plan, the policyholder is eligible to get a specified percentage of their sum assured at regular intervals. This type of life insurance is ideal for those who want to invest with the benefit of liquidity.

What Are Life Insurance Riders?

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:

1 Critical Illness Rider

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.

2 Accidental Death Benefit Rider

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.

3 Accidental and Total Permanent Disability Rider

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.

4 Accelerated Death Benefit Rider

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.

5 Waiver of Premium

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.

6 Term Rider

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.

7 Surgical Rider

Surgical Rider assists the insured by providing financial coverage in case the policyholder undergoes an unavoidable surgery in India.

What Are The Factors That Affect Life Insurance Premium?

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:

  • Age: Age is a significant factor while calculating the life insurance premium. As per the insurer's perspective, a young individual is less likely to suffer from age-related disease and pass away prematurely, and also has a higher chance of continuing their insurance policy for years. This makes younger individuals eligible for low premiums.
  • Lifestyle: If a person smokes/drinks/leads a stressful lifestyle, (s)he needs to pay higher premiums. This happens because such habits lead to life-threatening illnesses, lowering your life expectancy.
  • Gender: According to some surveys done in India, it is proven that women tend to live longer than men. Due to this disparity, women generally pay fewer premiums than men.
  • Medical History: If a person has a medical history of critical illnesses or is prone to health issues, then in such cases the insurance companies charge a higher premium.
  • Policy Tenure: The longer your policy tenure, the higher is the risk to insurance companies. Therefore, life insurance plans with shorter-term have lower premiums than long-term life insurance policies.

Why Should You Compare and Buy Life Insurance With PolicyX.com?

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How to buy Life Insurance from PolicyX.com

Check out the below steps and buy your life insurance now:

Buying Process Life Insurance from PolicyX.com

What Are The Documents Required To Buy Life Insurance?

If you have decided to buy life insurance, there are a few documents that you need to provide:

1

Age Proof

Driving License, 10th or 12th mark sheet, Birth Certificate, Passport, Voter ID, etc.

2

Identity Proof

PAN Card, Passport, Driving License, Voter ID, or Aadhar Card.

3

Address Proof

Electricity Bill, Telephone Bill, Ration Card, Driving License & Passport.

4

Income Proof

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.

How To File A Life Insurance Claim?

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:

  1. Intimate the insurer about the death as soon as possible with all the important details such as time, place, and cause of death.

  2. 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.

  3. 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.

  4. If required, post-mortem, hospital, and attending doctor's reports have to be submitted.

  5. In cases involving police inquiries, an investigation/survey report will have to be submitted.

  6. 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:

  • When the maturity date of the policy is near, the insurance provider will send an intimation to the policyholder with a discharge voucher (at least 2-3 months prior to the date of maturity).
  • The policyholder has to sign the voucher and send it back to the provider with the original policy bond.
  • If the policy is assigned to someone else (individual/entity), the amount will only be paid to the assignee who will give the discharge.
Active Cases India : 413718*              Cured / Discharged : 30857467*              Confirmed Deaths India : 424773* coronavirus life insurance plans

Life Insurance FAQ's

1. When to buy a Life Insurance Policy?

At the very moment when you feel that your family or loved ones are dependent on you for their needs, without even thinking for a minute, you should buy the policy.

2. How to know your present expenses to get the best life insurance plan?

Before buying an insurance policy, think about the liabilities which are there. From the loans of the banks to the credit card bills, keep everything in mind. If your family is living in rented accommodation, think about the rent that the policy should be able to give till your children grow up and earn.

3. What is the difference between Life Insurance & Term Insurance?

In a Life Insurance Policy, the policyholder will receive the maturity benefit of the policy. The policyholder needs to set tenure for the policy and if in an unfortunate event of his/her demise, the money is given to the nominee.

In a Term Insurance Plan, insurance companies provide financial assistance to the nominee of the policyholders in case of an unfortunate demise of the policyholder within the policy term. Under a term insurance plan, there is no claim to the money if the person survives until the policy tenure maturity.

4. Does life insurance cover accidental death?

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.

5. Do Life Insurance Policies offer Grace Period?

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.

6. How Much Life Cover Can I buy?

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.

7. Will the family of the policyholder receive life insurance benefits if they committed suicide?

In such cases, if the policyholder commits suicide within 12 months of purchasing a policy, the nominee won't get any insurance benefits. However, post 12 months, the policy will pay the death benefit to the nominee.

8. How to revive a lapsed life insurance policy?

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.

9. What will happen to the life insurance benefit if both the policyholder and nominee dies?

In such scenarios, where both the policyholder and nominee died, then the benefit will be payable to their heirs or legal representative.

10. What to do if my nominee dies before me?

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.

Life Insurance News

  NEW Buy LIC’S Arogya Rakshak for fixed benefit health insurance cover

Life Insurance Corporation (LIC) has announced the launch of a new health insurance plan named Arogya Rakshak. LIC’s Arogya Rakshak is a non-linked, non-participating, regular premium, individual health insurance plan.

 

This plan aims to provide timely support in case of medical emergencies and helping the insured and their family remain financially independent in difficult times.

 

One can purchase the plan on an individual as well as family floater basis. It is available for Principal Insured/spouse/parents aged 18 to 65 years and for children of age 91 days to 20 years.

  HDFC ERGO Launches Optima Secure Health Policy

HDFC ERGO General Insurance, India’s leading non-life insurance company in the private sector, announced the launch of Optima Secure, a new health indemnity health insurance product that seeks to redefine the value customers can get from their insurance plan.  

 

The product has the Secure, Plus, Protect, and Restore benefits built-in that combine seamlessly to offer customers up to 4 times their sum insured at no additional charge while guaranteeing coverage for listed non-medical expenses.

 

The policy offers 4 distinct features:

 

•  Secure Benefit - doubles the insurance cover instantly and automatically on purchase of the policy

•  Plus benefit - increases the base coverage automatically by 50% after 1 year and to 100% after 2 years, even if there is a claim

•  Restore Benefit - if you run out of coverage, the policy will restore your base coverage up-to 100%

•  Protect benefit - ensures Zero deduction on consumables and listed non-medical expenses

The product also offers customers discounts of up to 50%, should they choose to pay a small amount from their own pocket in the event of a claim

  Kotak Life Insurance declares bonus for policy holders

Kotak Mahindra Life Insurance Company benefits its customers with a bonus of Rs. 591 crore to eligible participating policyholders for FY 2020-21. This is an increase of 41% over the bonus declared for FY 2019-20, the insurance company said in a statement.

 

The bonus applies to traditional (with profit) policies and is the allocation of surplus generated under the With-Profits fund of the Company to With-Profit Policyholders.

 

Kotak Mahindra offers multiple life insurance plans in the category of Term, Savings & Investment, and Retirement Plan, which can be easily bought online with easy comparison and quick purchase facility. 

  PNB MetLife announces bonus for Policyholders

Following their every year’s practice, a leading life insurance company, PNB MetLife India Insurance Company has announced a bonus of INR 532 crore for all eligible policyholders of participating products for this year as well. With this scheme, the 4.6 lakh customers, whose policies are in effect as of March 31, 2021, are going to be benefitted from this bonus amount.

 

Policyholder bonus is the share of profits generated by the company's participating funds which are paid to the customers at various benefit events.

 

The company offers solutions for different life stages – Child Education, Family Protection, Long Term Savings, and Retirement benefits. Participating life insurance plans offer customers an opportunity for wealth accumulation through dividend distribution, as well as guaranteed life protection. This year PNB MetLife has launched - PNB MetLife Century Plan, a participating life insurance plan that provides you an opportunity to fulfill your dreams, secure your future with an income till age 100 years along with a lifelong cover.

 

 

 

 

  India witnesses insurance penetration in FY21

As per the report released by the Swiss Re Sigma Research, there is a marginal increase in the insurance penetration in the Indian market in the financial years of 2021. The average penetration of insurance i.e. premiums as a percentage of gross domestic product was 3.76% in 2020 has gone up to 42.% this year making a progress for different insurance products.

 

Segregating into different insurance products, Life insurance penetration has grown to 3.2% vis-a-vis 2.82%. And non-life segment rose to 1% from 0.94% in FY21.

 

The world average for insurance penetration was 7.4 percent. Here, life penetration was 3.3 percent and non-life was 4.1 percent for FY21.

 

Swiss Re conducted surveys in key Asia Pacific markets in 2020 and 2021 to better understand how the pandemic experience has changed consumer behaviour. The latest survey in 2021 finds that many respondents feel under-insured, despite most owning medical and life insurance.

 

 

Naval Goel

Reviewed By: Naval Goel

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.

Find Out What Customers Are Saying

(Showing latest 5 reviews only)

- 4.4/5 (250 Total Rating)

July 23, 2021

Deeksha Rohit Sharma

Dehradun

Got the claims settled for my husband s term insurance plan. Within a few days, with the help of the hard-working team of POlicyX.com helped in experiencing a hassle-free claim settlement.

July 23, 2021

Vedant Sharma

Delhi

Bharti AXA is one of the best Life insurance companies, and I must say that the efforts PolicyX.com s team put in with me and helped me in choosing my ideal life plan is commendable. Good Job PolicyX.com

July 20, 2021

Raghu Kapoor

Jaipur

Honestly speaking, investing in the SBI ULIP plan was one of the best decisions of my life. After investing for 20 years, I received the maturity benefit. With that amount, I will be able to send my daughter abroad for her higher studies and save something for her marriage. In this time of inflation, saving for your future expenses is a must. and SBI will help you.

July 20, 2021

Vidhya Sharma

Chandigarh

One of the best companies to invest your money and secure your family s future. 5 years before I bought the SBI life insurance policy, that too with affordable premiums. Now I am at peace if something happens to me, my children will at least have a financially secured future.

July 19, 2021

Nayanav Wani

Mumbai

ULIP so far has been generating good returns. Happy with the investment and the constant support at SBI Life

Last updated on 02-08-2021

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