👪 What is Life Insurance?
Life insurance is a financial contract between you and an insurance company. In exchange for regular premium payments, the insurer promises to pay a lump sum (called a death benefit) to your family (nominee) if you pass away during the policy term.
It helps ensure your family is financially protected when you’re not around.
🧾 Main Types of Life Insurance in India
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Term Life Insurance (Most Affordable & Pure Protection):
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Offers a high sum assured for a low premium.
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Pays money only if the policyholder dies during the policy term.
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No maturity benefit.
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Whole Life Insurance:
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Covers you for your entire life (usually up to 99–100 years).
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Comes with a death benefit and sometimes a savings component.
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Endowment Plans:
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Combines insurance + savings.
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Pays a lump sum on death or on survival at maturity.
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Premiums are higher.
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ULIPs (Unit Linked Insurance Plans):
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Offers life cover + investment (linked to market performance).
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Flexible but riskier due to market fluctuations.
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Money-Back Policy:
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Pays a part of the sum insured at regular intervals.
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Ideal for those looking for liquidity.
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Group Life Insurance:
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Usually offered by employers or associations.
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Basic cover, often without individual medical exams.
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✅ Benefits of Life Insurance
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Financial security for family after your death.
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Helps pay off loans, EMIs, children’s education, or daily living expenses.
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Tax benefits under Section 80C (premiums) and Section 10(10D) (maturity/death payout).
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Acts as long-term savings or investment, in some types of policies.
💡 Tips Before Buying
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Choose term insurance if you want pure protection at low cost.
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Buy early (younger = cheaper premiums).
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Ensure coverage is at least 10–15 times your annual income.
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Compare plans online based on coverage, claim settlement ratio, premium.
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Disclose all facts honestly (health conditions, smoking, etc.).
