How Much Does Life Insurance Cost

How Much is the Cost of Life Insurance in India?

Life insurance protects your family’s financial future upon your unfortunate demise. To enjoy life insurance benefits, you’ll need to pay premiums to the insurer during the chosen premium payment term. Now, you may wonder, how much does life insurance cost?

In India, you can get a life insurance plan starting at just Rs. 476 per month (T&Cs apply). There are several types of life insurance, and premiums for each plan may vary from product to product. While some plans are pure protection plans that offer life cover to policyholders, others can be seen as an investment or retirement tool.

But before getting into how much life insurance costs, let us look at the factors that affect life insurance premiums.

What is the Cost of Different Life Insurance Products?

Term Insurance Plans

Term insurance is a pure protection plan that offers financial protection to a policyholder’s family for a specific term. If the policyholder has an unfortunate demise during the policy tenure, the sum assured amount as a death benefit shall be payable to the nominee.

Let’s look at the details and premiums of some term insurance plans:

The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually looking for insurance coverage of 1 crore till 60 years.

Guaranteed Return Plans

A guaranteed return insurance plan is a two-in-one life insurance product that offers guaranteed returns on investment along with a life cover for the policy term. It is an ideal plan for someone with low-risk tolerance. At maturity, the policyholder receives a guaranteed payout, which can be received as a lump sum or monthly installment.

Let’s look at some guaranteed return insurance plans:

The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.

Retirement Insurance Plans

A retirement insurance plan, also known as a pension plan, helps you build a corpus for retirement. The accumulated funds provide a steady monthly income after your retirement, helping you maintain your lifestyle and cover living expenses.

Let’s look at some retirement plans below:

The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.

ULIPs – Unit Linked Insurance Plans

ULIPs (Unit Linked Insurance Plans) offer a dual benefit of insurance and investment. They offer life cover that provides financial protection for your family and also help you build wealth through market-linked returns from systematic investments. ULIPs also give you the flexibility to invest your money in different funds as per your risk appetite.

The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.

Child Plans

Child plans are a life insurance product that helps parents create wealth to fund their child’s future expenses. The plan comes with in-built insurance coverage for the parent. At the end of the policy term, maturity benefits are provided either in the form of annual installments or as a one-time payout after the child turns 18. The payout can be used to pay for your child’s education or marriage expenses. Let’s look at some child plans:

What are the Factors That Affect Term Plan Premiums?

Following are some factors that determine how much premium you may need to pay:

• Age

  Age is a major factor in determining life insurance premiums because the more you age, the higher your premiums become. As people age, the risk of developing health issues tends to increase. However, the premium remains the same during the policy term, irrespective of your health condition. Buying early can help you save money by locking in lower premiums.

• Gender

  Gender can affect life insurance premiums because insurers offer special premiums for females. According to research, women have a longer life expectancy than men, which means they have higher chances to outlive policy terms.

• Lifestyle Habits

  Insurance providers consider lifestyle habits to determine your life insurance premiums or whether you qualify for coverage. Smokers or people who drink a lot have a higher risk of developing critical illnesses like cancer and lung disease, which may lead to higher premiums.

• Riskier Occupation

  In case the risk factor associated with your job is higher, you may also be charged higher premiums. The occupations that are considered riskier include aviation, military, mining, firefighting, construction, law enforcement, and working offshore.

• Policy Duration

  The policy term of a life insurance plan is also one of the major factors in determining the premium amount. However, longer policy terms usually have higher premiums than shorter policy terms.

Conclusion

Buying a life insurance plan is important, but it’s also essential to make sure the plan you opt for best fits your budget. The cost of life insurance may vary from plan to plan; each product is designed to serve different objectives.

You can easily check and compare life plans on PolicyX and buy them from the comfort of your home. Call us today at 1800-4200-269 or visit PolicyX.com to get your queries answered today!