Life Insurance

Life Insurance is a financial product, wherein the policy holder and the life insurance company comes to an agreement. A lump sum amount is paid by the insurance company in the form of insurance coverage to the nominee/insured in return for the premium after a specific period or in case of the death of the insured.

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What is a Life Insurance Policy?

A life insurance policy offers financial coverage wherein the insurance company guarantees to pay a certain amount to the nominated beneficiary upon the policyholder's demise during the term of life insurance plans. In exchange, the policyholder agrees to pay a predefined amount of money as premium either regularly or as a single premium. 

life insurance

Under this policy, coverage is also extended for critical illnesses.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Benefits of Life Insurance Plans

The perks of buying a life insurance policy go beyond protecting the policyholder's family in tough times. Undoubtedly, it is a necessity for breadwinners to safeguard their dependents in case of their unfortunate demise, accident, or physical disabilities that lead to a loss of income. Having said that, there is a long list of other benefits that make it a must-have.

Sadly, most people are not aware of the many benefits offered by a life plan apart from death and disability benefits. There are plenty of other benefits offered by life policies such as maturity benefits and tax benefits.

Let's look at the benefits:

  • Acts as a Loan Collateral

    Many people are still unaware of the fact that life policies can also be used as loan collateral. Based on the type of life insurance policy and its surrender value, the policyholder can opt for a loan from a bank or NBFC (Non-Banking Financial Company) as per applicable terms and conditions.
    Loan Amount: Generally, the loan amount is a percentage of the surrender value of the life policy and it can go up to 90%. Only a few companies allow for a loan up to 50% of the total premium amount paid by the policyholder.

  • Online Payment Discount

    The payment mode chosen by an individual drastically affects the premium of the policy. Most individuals are unaware of the online payment benefit. The company's administrative costs considerably go down when an individual opts to pay the premiums online.

    This is because no paperwork-related costs are involved. Also, the life insurer saves a significant amount on the commissions paid to its agents for offline life insurance buying and renewing.
    It must be noted that this discount varies for different companies.

  • Discount as per the Opted Payment Periodicity

    Almost every life insurer offers various payment periodicities to its policyholders- annual, half-yearly, quarterly or monthly mode.
    If a policyholder chooses to pay the policy premium on an annual basis, the company can use it for investment purposes that automatically means more profits and benefits for the company.

    Once a policyholder chooses the payment periodicity, this discount is often already included in the premium rate charged by the life insurer.

  • Taking Care of Business

    If the policyholder who owns a business dies within the policy term, their business partners can purchase his/her share without any hassle. 

    The business partner will simply have to sign an agreement with the life insurer and the pay-out received after selling the policyholder's share will be given to their dependents.
    However, it is important to understand that the nominee or the dependents of the policyholder won’t get a stake in the company.

  • Tax Benefits

    For paying a life policy premium, a policyholder is eligible for a tax rebate under Section 80C of the Income Tax Act 1961. Irrespective of self, spouse, or their children, the premium paid for parents and in-laws is exempted.

    This benefit is offered by all the life insurers. Additionally, the maturity benefit of life policies also qualifies for tax deductions under Section 10 (10D) of the Income Tax Act, 1961.

Types of Life Insurance Policies in India

Life Insurance Plans Coverage
Term Plans Pure risk cover
ULIPs Insurance + Investment benefits
Endowment Plans Insurance cover + Savings
Money Back Plans Insurance cover with periodic returns
Whole Life Insurance Plans Coverage for a lifetime
Child Plans To create a corpus for child's education, wedding etc.
Retirement Plans Financial cushion aiding financial independence post retirement.
  • Term Insurance Plans

    Term insurance is the most basic form of life coverage. It is affordable life insurance that one can buy easily without any hassles. Simply put, a term insurance plan offers death cover for a stipulated period. 

    In the event of the sudden demise of the insured during the policy tenure, the insurance provider offers a pre-decided death benefit as a lump sum, monthly/ annual pay-out, or combined benefits to the nominee. The best term plan offers comprehensive coverage at a competitive premium.

  • Unit Linked Insurance Plans

    A unit-linked insurance plan or ULIP is a type of life coverage plan that offers a perfect blend of insurance & investment. It comes with a long-term investment opportunity along with valuable investment flexibility.

    The premium paid towards a ULIP is partly used as a risk-cover for life coverage plan and the remainder is invested in market funds such as debts, equities, bonds, market funds, and hybrid funds. 

    The selection of the market funds depends purely on the risk appetite of the insurance buyer, based on which the insurers invest in the capital market.

  • Endowment Plans

    Endowment plans are also known as traditional life insurance plans that come with an element of saving. As compared to other investment products, the risk involved in this plan is lower (so are the returns).

    An endowment policy is a combination of a life coverage plan and savings plan. It invests a particular amount in life coverage and the remaining amount is invested by the provider. In case the policyholder outlives the policy term, the insurance provider offers a maturity benefit to him/her. 

    Furthermore, some insurance endowment policies may offer bonuses on pre-specified periods. If applicable, the bonuses are paid either to the policyholder at the time of policy maturity or to the nominee in case of a death claim.

  • Money Back Plans

    True to its name, this type of life coverage plan offers a stipulated percentage of the assured sum. It is paid back to the policyholder at pre-decided intervals. This payback benefit is known as a survival benefit.

    Money back Policy is the best insurance policy for individuals who want their investments to be accompanied by an element of liquidity. Furthermore, these plans are eligible for bonuses as declared by the provider (if any).

  • Whole Life Insurance Plans

    whole life insurance plan offers life coverage for as long as the insured lives. There are a few providers that offer life coverage up to 100 years of age. Contrary to the term plans, this plan offers extensive coverage.

    The sum assured is computed while purchasing the life coverage plan and is payable to the nominee after the demise of the insured. Along with the sum assured, bonuses (if any) are also paid to the nominee. It is one of the best policies that offer coverage for whole life at low premiums.

  • Whole Life ULIP

    A variant of whole life is available in the market that clubs the benefits of life insurance plans with ULIPs. A whole life ULIP offers extensive coverage along with high returns.

    It must be noted that in case the policyholder outlives the 100 years of age, the insurer pays the benefit of matured endowment coverage to the policyholder.

  • Child Plans

    A child plan acts as a tool to generate funds for the policyholder’s child. A child plan helps one build a corpus that can be used for the child’s education, wedding, or other life goals. Generally, child plans either provide benefits as instalments on an annual basis or a 1-time payout once the insured child turns 18 years.

    In case of the untimely demise of the policyholder during the policy term, immediate premium payment is made by the insurer. In such cases, some insurers waive off future premiums but the plan continues till the opted policy term.

  • Retirement Plans

    A retirement plan, also known as an annuity or pension plan, helps the insured accumulate a corpus for their retirement. Typically, retirement plans provide benefits in the form of instalments on an annual basis or a 1-time pay-out once the policyholder reaches 60 years of age. 

    In case the insured outlives the policy term, the plan offers a vesting benefit. In case of the insured's demise, it offers the death benefit to the policy nominee.
    Please note that in case of the insured's demise while the policy is active, the life insurer pays a pre-decided amount to the insured's nominee.

Comparison of Different Types of Life Insurance Plans in India

Basis Term Policies Whole Life Insurance Policies Endowment Plans Unit Linked Insurance Plans Money Back Plans Pension/Annuity Plan
Overview Term life insurance plans are the simplest form of life coverage. These plans offer protection till the whole of life and may or may not have an investment component. These plans offer protection along with investment components. The returns have some amount of guaranteed component that could be as high as 100% guaranteed returns.. These plans offer market linked returns along with protection components. The investment returns completely depend on the performance of the fund and are not guaranteed by the insurer. These plans offer protection along with investment components. The returns could be in the form of an income for a fixed period of years. These plans offer income till a person survives. Some plans also have a return of purchase price on death.
Policy Term* Usually range from 5 years to 50 years This policy covers the whole life of life insured. Generally, ranges between 10 years to 35 years. Term ranges from 10 years to 20 years. Generally, it can be up to 25 years. No fixed term.
Maturity Benefits You are not paid any maturity benefit on the survival. You are paid the maturity benefits while you reach a certain age (maybe between 80 to 100 years). You will be paid the maturity benefits if you survive the policy term. You can avail the maturity benefits on your survival at the end of the policy term. You are offered the survival benefits on the maturity of your policy. No maturity benefit is offered. You are entitled to a regular income till you survive.
Death Benefits In case of your demise, while the life insurance policy is active, the sum assured is paid to the beneficiary. In case of your demise, while the life insurance policy is active, the sum assured is paid to the beneficiary. The death benefit is paid to the beneficiary upon demise of the life insured. The death benefit is paid to the beneficiary in case of life insured’s demise while the policy is active. The death benefit is paid to the beneficiary in case of the life insured’s demise while the policy is still active. A few plans provide a provision to return the amount invested in case of life insured’s demise.
Ideal for These plans are ideal for individuals who are seeking to safeguard the financial interest of their loved ones without paying excessive premiums. The whole life insurance plans are ideal for individuals who wish to safeguard the financial interest of their loved ones and want to leave a legacy amount These plans are perfect for individuals who want financial protection along with guaranteed returns from investment. This is a best-suited plan for individuals with a medium-term investment goal to expand their portfolio. Moreover, it is an ideal plan for people with high income and good investment sense. The individuals are looking for securing their life and wanting to earn money at a regular interval of time. Best-suited for individuals seeking protection plus investment benefit. This scheme is an ideal option for individuals who want to secure their retirement by getting a source of regular income after retirement.
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Best Life Insurance Plans in India 2021

Listed below are the best life insurance plans:

Insurance Plan Entry Age (Minimum/Maximum) Policy Term (Minimum/Maximum) Sum Assured (Minimum/Maximum)
Aditya Birla Sun Life Shield Plan 18/65 years 10, 20/30 years Rs.25 lakh/no upper limit
Aegon Life i-Term Plan 18/75 years 5/40 years 10 Lakh/ no upper limit
Aviva Life Shield Advantage Plan 18/55 years 10/30 years Option A - 35 Lakh/ no upper limit Option B- Rs.50 lakh/ no upper limit
Bajaj Allianz i-Secure 18/70 years 10/30 years 20 Lakh/ no upper limit
Bharti AXA Life Premium Protect Plan 18/65 years 10, 15/35 years  25 Lakh/no upper limit
Canara HSBC iSelect + Term Plan 18/65 years 10/30 years Rs.25 lakh/no upper limit
Edelweiss Tokio Life Simply Protect Plan 18/65 years 10/40 years Rs.25 lakh/no upper limit
Exide Life Elite Term 21/60 years 10 to 40 years Min SA: Rs. 50L ; Max SA: Rs. 10 Cr
Future Generali Flexi Online Term Insurance 18/55 years 10/75 years Rs.50 lakh/no upper limit
HDFC Click2Protect Plus 18 /65 years 10/30 years 10 Lakh/10 Crores
HDFC Life Sanchay 30/45 years 15/25 years 1,05,673/ no upper limit
ICICI Pru iProtect 20/75 years 10/30 years 3 Lakh/ no upper limit
IDBI Federal Income Protect Plan 25/60 years 10/30 years N/A
India First Life Plan 18/60 years 5/40 years 1 lakh/ Rs.5 crore
Kotak Life Preferred e-Term 18/75 years 10/40 years 25 Lakh/ no upper limit
LIC Jeevan Amar 18/65 years 10/40 years 25 Lakh/ no upper limit
LIC Tech Term 18/65 years 10/50 years 50 Lakh / no upper limit
Max Life Smart Term Plan 18/60 years 10/50 years 25 Lakh/100 Crores
PNB Metlife Mera Term Plan 18/65 years 10/40 years Rs.10 lakh/no upper limit
Pramerica Life U-Protect 18/55 years 10/30 years Rs.25 lakh/no upper limit
Reliance Nippon Life Protection Plus 18/60 years 10/40 years Rs.25 lakh/no upper limit
SBI eShield Plan 18/70 years 5/30 years 20 Lakh/ no upper limit
SBI Shubh Nivesh Plan 18/60 years 5/30 years 75000/ no upper limit
Sahara Shrestha Nivesh Jeevan Bima 9/60 5/10 years Rs.30,000/ Rs.1 crore
Shriram Life Cashback Term Plan 12/50 years 10,15,20 &25 years Rs.2 lakh/Rs.20 lakh
SUD Life Abhay Plan 18/65 years 15, 20/40 years Rs.50 lakh/---
TATA AIA life Insurance Sampoorna Raksha + 18/70, 65 years 10, 15/40 Rs.50 lakh/no upper limit
See More Plans

Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.

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How Much Life Insurance Cover Do I Need?

The market has many insurance products such as term plans, endowment plans, money back plans, and ULIPS. The tax saving instruments are also opulent and people take insurance for Rs 25 lakh, Rs 1 crore and so on. However, simply picking a random figure is not the way to buy an insurance policy.

Primarily, it depends upon the age of the person, the number of dependents, liabilities, and similar factors. Let us just assume that an unmarried person falls between the age bracket of 18-24 years of age. It means that he does not have many responsibilities. The financial liability could be a loan or his parents depending upon him. 

Under such a situation, a small insurance plan can be purchased. In case the person has a good source of income, then he could also opt for large cover as the liabilities and responsibilities tend to increase once married.

If a person falls between the age bracket of 24-33 years of age, the person may ideally be married and needs to protect the interest of his life partner. Such a person should buy the life insurance plan immediately and avoid further delay. The life insurance cover differs across various stages of life. 

The life insurance coverage should be such that it covers all outstanding liabilities, provides money to your spouse, and covers the expenses of children’s education, marriage, and life goals. 

While choosing the coverage amount, make sure to calculate the yearly family expenses and liabilities. Now multiply the sum by the number of years you are looking forward to supporting the family.

The life insurance cover should be enough at any point in time to take care of the family today and tomorrow.

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What is a Life Insurance Premium?

A life insurance premium is a payment made to enjoy the policy benefits. The premium can be paid on a monthly, half-yearly, or annual basis. This premium also helps to grow the cash value of the insurance.

The insurance company determines the premium payable by the policyholder against the chosen sum assured. Having said that, the buyer can also select the policy term and coverage amount.

To calculate the sum assured, the insurer takes various factors such as your lifestyle, occupation, number of dependents, and current financial situations into consideration.

Note- No premium calculator can determine the worth of human life.

Document Required for Buying Life Insurance Policy

While applying for a policy, the life insurer will ask for the below-mentioned KYC documents:

  • Income Certificate

    This is necessary to estimate the sum assured or coverage amount that would be offered to the insured. In most cases, the life insurers offer a cover up to 20 times the proposer's annual income. The standard income proofs include:

    • Salary slips of last 3 to 6 months (depending on the insurer)
    • Income Tax Returns (ITR) of the last 2 to 3 years
    • Last 6 months bank statements with continuous entries of 3 months credited salary
    • A certificate issued by CA for self-employed person
    • Latest Form 16
  • Address Proof

    Insurance companies also ask for address details of the applicant. The following documents can be used as address proof:

    • Voter ID card
    • Aadhaar Card
    • Saving account bank statement
    • Passbook with latest 6 months entries
    • Latest 3 months Credit Card Statement
    • Driving License
    • 3 months Utility Bills
    • Passport
    • Ration Card
  • Identity Proof

    One can provide the following documents as ID proof:

    • Passport
    • PAN Card
    • Aadhaar Card
    • Voter Id card
  • Age Proof

    Some of the aforementioned documents can also be considered as age proof. However, below is a comprehensive list of documents that can be used as age proof:

    • PAN Card
    • Aadhaar Card
    • Voter Id card
    • Driving License
    • Passport
    • Ration card
    • Marriage certificate
    • School/College leaving certificate
    • Birth certificate
  • Additional Documents

    Here are some other documents that an applicant would have to submit at the time of buying the policy:

    • Insurance application or proposal form
    • Policy declaration - necessary if someone other than the insured has filled the policy proposal form
    • A final declaration stating that provided information is true and that if anything is found untrue, the insurer has the right to reject the application. Subsequently, the contract would be rendered null and void and the premium paid would be surrendered. Thus, once declared by the proposer, the entire process is completed with utmost faith.
    • In case the policy is required to be registered under the Married Women's Property Act, a separate form needs to be filled and submitted to the insurer, mentioning the nominee.
    • Policy proposal also includes a personal statement, which is attached to the declaration form. Any incorrect statement may lead to your application rejection.

How to Choose the Best Life Insurance Policy?

Different plans are offered by various life insurance companies in India. It sometimes becomes a task to select the best plan from multiple options and avail the same at best coverage and a pocket-friendly premium.

Listed below are some key pointers that will help you choose the best life insurance policy:

  • Reputation of the Provider

    Today the market is flooded with insurance companies providing different life insurance plans. It means that the insurance sector also has providers that may not be up to the mark or are new in the business. Therefore, go with the renowned insurer who has earned goodwill in the market and most importantly fulfil your insurance requirements.

  • Claim Settlement Ratio

    The intent to buy the life insurance policy is to obtain a claim at the time of need. But what if the filed claim goes nowhere? Before selecting the insurance company, make sure that you check the claims settlement ratio of the company. This essentially gives you a better idea of the number of claims received and settled by the company in a year. The company with the highest number claim ratio is the safest bet.

  • Evaluation of Sum Assured

    Before you initiate knocking on the doors of the insurance companies it is advisable to calculate the expected sum assured. Besides, it will also get you an insight into the premium calculation that is done by the insurance companies. To know which company is suitable for you, combine both the factors and you will have the answer to make an informed decision.

  • Customer Reviews

    Last and not least. Make it a habit of reading customer reviews online. Today you can easily buy a life insurance policy online. Moreover, for any question, dilemma or clarification required, simply get in touch with the customer support of the insurance company. This will also help you to better understand the efficiency of a certain company in dealing with its customers.

How to File a Life Insurance Claim?

Filing a claim and getting the assured amount can be a cakewalk if all the necessary steps are taken care of in advance. It is important to have the right approach to file a claim. 

Here's how nominees of the policyholder or policyholders themselves can file a claim in India under the following scenarios:

  • Upon the demise of the policyholder
  • Upon maturity of the policy
  • How to File a Claim in Case of Death?

    1. Inform the Insurance Company

      Contact the insurer as soon as possible on their toll-free number or over email. It is always preferable to inform the insurer directly over a call to instantly initiate the process.

    2. Share Important Details

      The beneficiary or the claimant while lodging a claim with the life insurer needs to share all the important details like:

      • Policy Number
      • Name of the policyholder
      • Place of death
      • Name of the claimant

      If the policy has been purchased offline, then the insurer would have provided a claim intimation form at the time of the policy purchase.
      If it is an online policy, simply apply for the claim settlement through claim forms online.

    3. Claim Processing

      In case of accidental or natural death, the beneficiary or the nominee must submit all the supporting documents to the life insurer as a part of the claim process.
      The claim support team will verify the insurance documents and claim declaration. In some cases, the insurer might ask the beneficiary to submit a few other documents.

      Documents to be submitted:

      • Original copy of the policy
      • Duly filled claim form
      • Death certificate of the policyholder
      • Deeds of assignment, if any
      • Discharge form signed by the witnesses
      • Supplementary documents like post-mortem reports, hospital certificates, and doctor’s certificates (if required)
      • Investigation report in case of police inquiries

      Note- If someone other than the nominee files the claim, the insurance company can ask for the legal title of succession.

    4. Approval and Pay-out

      Once all the documents have been submitted and the life insurer has verified them, the claim will be settled by the insurer.

      The life insurer can ask for the beneficiary's bank details - a cancelled cheque or a copy of the bank account passbook, which must be attested by the bank authorities.

      For the nominee's identity proof, a copy of passport, voter identity card, PAN card, Aadhaar card etc. needs to be submitted.

      Generally, the claim settlement process takes 30 days. Once approved, the insurer immediately makes the payout.

      Some insurers make the payments through the Electronic Clearance Service or ECS, which is an alternative method to make bulk payments.

      Aforementioned are the basic set of documents that are required to process a claim.
      Here are a few other documents that the insurer can ask for (if need be):

      • Employer's certificate
      • Other forms or reports to support the verification
  • How to File a Claim for Maturity?

    If the insured outlives the policy term, he/she will be eligible to avail of policy maturity benefits. However, the insured must make sure the policy is ongoing and all the premiums have been duly paid.

    Here is a simple process to file a maturity claim with minimal paperwork.
    When the policy is about to mature, the life insurer generally intimates the policyholder at least 1-2 months in advance. All the details regarding the maturity date, maturity amount, and discharge voucher are provided to the insured.

    The discharge voucher (similar to a receipt) has to be signed by the policyholder in the presence of the witnesses. The voucher is then sent back to the insurer along with the original policy bond, based on which the policy maturity benefits are provided.

    In case the policyholder has nominated another individual or entity for the policy, then the nominee must sign the discharge voucher to the insurer, to receive the claim amount.
    Points to Remember:

    • This process applies only to the life plans eligible for maturity benefits like additional bonuses and survival benefits.
    • In the event of the policyholder’s demise after the date of policy maturity but during the policy discharge procedures, it will be considered as a maturity claim. The claim amount will be paid out to the nominees of the deceased policyholder.
    • At the time of buying a new life plan, the applicant must mention the details of the previously purchased policy (if any). The insurance provider must be aware of the existing policy. Additionally, it can help the insurance buyer choose the right policy as per his/her needs. Otherwise, misrepresentation can become a reason for the rejection of a death claim.

Life Insurance Riders & Their Importance

  • What are Riders?

    Riders provide add-on benefits offered by the insurers that help to enhance the base coverage. However, without knowing the types of riders available in the market, one shouldn't randomly opt for the same just for the sake of increasing the cover amount of the life plan.

    Choosing the right rider is as crucial as buying a life insurance plan. After all, no one wants to regret an insurance decision. That's why one must take time and expert advice before opting for a rider.

  • Types of Riders

    Here are some of the rider options available for policyholders:

    1. Critical Illness Rider

      This rider benefit covers major critical ailments like cancer, heart attack, kidney failure, stroke, coma, and paralysis. As the coverage may differ from insurer to insurer, it is important to check the list of illnesses covered by the company.

      The life insurer offers the rider benefits upon the diagnosis of the covered critical illness. Though many of the above listed critical illnesses may not cause immediate death, the treatment could cost a bomb. 

      Under this rider, the insured can use the sum assured to pay for the treatment expenses. The only condition is that the policyholder will have to survive the waiting period.
      As no one can ensure a 100 percent guarantee against a critical illness, this rider can be opted by:

      • Top-level officers working under extreme work stress
      • Chain-smokers
      • Someone leading an unhealthy lifestyle
    2. Waiver of Premium Rider

      If the insured is unable to pay the premium due to any disability that leaves him/her with no income, the life insurance policy is terminated and the insured wouldn't be offered any compensation. In such a situation, how will their family manage their finances without a regular source of income?

      Waiver of premium rider acts as life saviour as all the future premiums of the policy will be waived off and the policy remains in force.
      In case the premiums are not paid due to the death or accidental disability of the policyholder, the premium for the base policy and riders will be waived off and the policy will continue.

      While this rider can be opted along with critical illness and accidental total and permanent disability rider, the insured can opt for it separately. As uncertainties can't be predicted, one should consider buying this rider if they are a daily commuter or work on on-site civil work that involves physical work.

    3. Accidental Death Benefit Rider

      With this rider, in case of the accidental death of the insured, the nominee will receive the basic sum assured amount along with the additional accidental death benefit. In many cases, the policyholder doesn’t pass away on the spot, so most of the insurance companies set a period after the incident to extend the offered coverage.

      Let’s say, if the policyholder passes away after 100 days of the accident, the nominee will still receive the sum assured. That's why it is imperative to check the life insurance policy clause carefully at the time of opting for a rider.

      As accidents can happen anywhere, anytime, everyone should ensure the financial future of their family. While anybody can opt for this rider, it is a must-buy for those who:

      • Commute and travel by car, bike, public or commercial vehicles, daily
      • Frequently take business trips or the job involves physical work in a factory or on-site civil work
    4. Accidental Total and Permanent Disability Rider

      If the insured is unable to earn a daily income due to total temporary or permanent disability arising due to an accident, this rider provides financial assistance to their family in the form of a monthly income. The rider benefit may vary from plan to plan and is offered for a pre-decided period.

      For instance, some companies offer rider benefits for 5 years to 10 years from the occurrence of the accident. In case of the death of the insured during the policy term, the beneficiary would receive the outstanding sum assured amount.

      This rider is important to buy for the individuals who:

      • Commute and travel daily by bike, car, public transport, train, or commercial vehicle
      • Do physical work in on-site civil work or factories or travel frequently for business
      • Term Rider: This rider offers a monthly income or lump sum to the beneficiary in the event of the premature death of the insured. The term rider offers extra coverage for death in addition to the base sum assured which is predetermined by the insurer.
      • Hospital Cash Rider: Under this rider, a fixed amount is paid in case of emergency/planned hospitalization. The benefit amount, terms and conditions, and sum assured may vary for different insurers. This rider benefit is offered by life insurers for those policyholders who want coverage for expenses related to emergency hospitalization.
      • Surgical Care Rider: Under this rider, a lump sum amount is paid if the insured undergoes an unavoidable surgery in India. However, the rider benefit may vary from plan to plan or severity of the surgery. Anyone who wants to cover the expenses for surgery in case of any eventualities can opt for this rider. This helps in avoiding any out-of-pocket expenses that may burn a hole in one's pocket.

Claim Settlement Ratio of Life Insurance Companies

The figures in the below table are as per the annual report of IRDAI 2019-2020:

Insurer Total Number of Claims Claims Paid Claims Repudiated Claims Rejected Claims Unclaimed Death Claim Settlement Ratio
Aditya Birla Sun Life 5162 5035 108 0 0 97.54%
Aegon 351 344 7 0 0 98.01%
Aviva 810 790 11 4 0 97.53%
Bajaj Allianz 12127 11887 237 0 1 98.02%
Bharti AXA 1320 1285 33 0 0 97.35%
Canara HSBC OBC 1276 1252 22 0 0 98.12%
Edelweiss Tokio 326 272 54 0 0 83.44%
Exide Life 5052 4978 11 0 - 98.54%
Future Generali 1143 1089 51 0 0 95.28%
HDFC 12626 12509 54 15 13 99.07%
ICICI Prudential 11460 11212 153 0 0 97.84%
IDBI Federal 1416 1366 45 0 0 96.47%
India First 2241 2166 66 0 0 96.65%
Kotak Mahindra 3346 3225 112 0 0 96.38%
LIC 758916 733809 6124 2172 10936 96.69%
Max Life 15643 15342 120 0 0 99.22%
PNB MetLife 4364 4241 123 0 0 97.18%
Pramerica Life 569 560 7 0 0 98.42%
Reliance Nippon 8017 7866 149 0 0 98.12%
Sahara 654 585 10 13 0 89.45%
SBI Life 22490 21257 1157 0 40 94.52%
Shriram 3074 2816 195 58 0 91.61%
Star Union 1248 1210 35 0 0 96.96%
TATA AIA 2982 2954 28 0 0 99.06%

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Important Life Insurance Terms You Should Know

To understand life insurance completely it is important to know the basic terminologies that are often used within the plan. Sometimes, you may not be aware of certain terms and refrain from buying the plan.

Let us help you to understand the given below key important life insurance terms with brief explanations of each:

  • Policyholder

    Anyone who buys the life insurance plan and pays the premium is referred to as the policyholder. An individual might own the policy but may or may not be the life assured.

  • Life Assured

    In simple words, the individual who is protected or insured is known as a life assured. In case of demise of the life assured, the beneficiary will receive the insurance sum. For example, when a husband buys the life insurance policy for his wife then he is the policyholder and the wife is the life assured.

  • Nominee

    The person nominated by the policyholder is known as a nominee. The nominee will receive the life insurance payouts along with other benefits in case of any eventuality. The nominee is also referred to as the beneficiary. 

    A nominee is declared when the policy is being bought. Generally, the policyholders’ immediate family members such as the spouse, children and parents are declared as a nominee who is financially dependent upon them.

  • Policy Tenure

    The duration for which the life insurance plan provides coverage is known as the policy tenure (also known as policy term). On the premise of the type of life insurance policy and the terms and conditions of the insurance provider, the life insurance policy tenure differs.

  • Premium

    It is the amount you pay to keep the life insurance plan active. In case you are unable to pay the life insurance premium sum either before the due date or under the grace period, the policy lapses. The life insurance premium sum depends on factors such as the policy term, the age of the life assured, and lifestyle habits.

  • Sum Assured

    It is the guaranteed sum the beneficiary or nominee will receive when the life assured has passed away. Most of the time, the choice to arrive at a sum assured is upon the premise of the financial loss that might incur due to the death of the life assured. 

    At the time of buying the life insurance plan, the policyholder chooses this sum, which is then paid to the nominee if the life assured passes away during the policy term.

  • Death Benefit

    The death benefit is the sum paid to a nominee when the life assured has passed away during the policy tenure. It is to be noted that sum assured and death benefits are two different terms. This implies that the death benefit could be equivalent or higher than a sum assured as it could involve the rider benefit too.

  • Maturity Benefit

    The sum paid to the policyholder when the policy tenure is completed is known as the maturity benefit.

  • Lapsed Policy

    When the policy gets terminated because of non-payment of the premium amount even after the grace period is known as a lapsed policy. There are life insurance companies that offer the facility to revive a lapsed policy only when the outstanding premiums are duly paid by the policyholder.

  • Grace Period

    It is essentially the extension given by the insurance provider to the policyholder after the due date of the premium payment. When the policyholder pays the premium sum then the cover of the plan continues.

  • Revival Period

    When the premiums are not paid during the grace period the policy gets lapsed. 

    In case you wish to continue the plan, then you are provided with an option of re-activating the lapsed plan. However, it should be completed within a certain period after the end of the grace period. It is known as the revival period.

  • Free-look Period

    In case you are not comfortable with the terms and conditions of the plan it can be returned within a certain timeframe mentioned in the policy documents. This is known as a free-look period. After deducting stamp duty charges, medical examination, proportionate risk premium, the premium sum will be refunded.

  • Rider

    The riders are an additional benefit that enhances the overall coverage of the plan. These rider benefits are optional and enhance financial safety to secure the family against any unforeseen event by paying an additional premium sum.

  • Claim Process

    When the life assured passes away during the policy term, the nominee will file a claim to receive the death benefit. This process is known as the claim process.

  • Exclusions

    Certain situations remain uncovered within a life insurance plan. In case the claim is made on such exclusions then no benefit is provided by the insurance company.

Steps to Buy Life Insurance Plan Online from Policybazaar

To get insured from the comfort of home, an individual can buy life insurance online from Policybazaar Insurance Brokers Private Limited. 

Follow these simple steps to buy life insurance online:

Step 1- Choose your gender and enter details like your full name and date of birth

Step 2- Enter your active phone number and click on view plan

Step 3- Answer 4 simple questions to get accurate quotes

  • Do you smoke or chew tobacco? Yes or No
  • Select your annual income 
  • Select the occupation type
  • Choose the educational qualification 

Step 4- Select the best life insurance plan from the displayed options. For suggestions and help, the insurance buyers can choose ‘get free advice’. 

Step 5- Choose and compare different life insurance plans on Policybazaar Insurance Brokers Private Limited. You can choose the personalised plan option as well. 

Step6- After selecting the plan, you can pay the premium or speak to the customer care representative to make an informed choice. 

Step 8- Finally you will have to pay the premium. 

Once all the steps are completed, the policy documents will be emailed to you on the registered mail ID.

FAQs About Life Insurance Policy

Life Insurance News

Pay 29 Rupees A Day And Get 4 Lakh Rupees: LICs New Scheme For Women

Published on 12th July 2021

From the several investment schemes introduced by LIC over the period, the recently announced woman-oriented scheme is attracting attention of all.

Aadhar Shila scheme is an exclusive plan for women aged between 8 to 55 years old. The investors need to invest just 29 rupees per day to get an amount of 4 lakh rupees at the time of maturity. A guaranteed return endowment plan, it offers a minimum amount of 75,000 rupees and a maximum amount of 3,00,000 rupees as per the premium payments.
Interested women can invest in the scheme for a minimum term of 10 years and the maximum term is 20 years. They also have the choice to pay their premiums on a monthly, quarterly or half-yearly basis.

Read more

Declare Nominees/Beneficiary While Purchasing Life Insurance

Published on 7th July 2021

It is very important to appoint a beneficiary/nominee for all the assets, insurance and investment policy. Choosing the right nominee in a life insurance policy ensures that the proceeds go to the rightful heir, in case of unfortunate demise of the life assured during the policy tenure.

As per the industry experts, generally child below the age of 18 years is not considered eligible to handle the claim amount. Thus, the policyholder needs to assign a custodian. It is wise to appoint the spouse or parents as a nominee for the life insurance policy.

Read more

Standard Life Decided To Sell OFF 3.46% Stake Held In HDFC Life

Published on 30th June 2021

The UK-based firm Standard life has decided to sell off its 70 million shares through a block deal. The sale price has been fixed at ₹658-₹678 per share. The decision

was made to raise approximately ₹4606 crores in the near future. JP Morgan India and BoFA Securities India issued a term sheet to disclose the update.

Read more

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 461 Reviews)
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Life Insurance Reviews & Ratings
4.5 / 5 (Based on 461 Reviews)
(Showing Newest 15 reviews)
Dhiru
Baraut, July 09, 2021
Budget Plan
I bought a life insurance policy cover for myself. I got so many features in a single plan with affordable rate. I would like to thank policybazaar for bringing all latest plans at one place.
Manav
Bahraich, June 30, 2021
Calculate premiums
Before buying the life insurance plan I have checked the premium amount on the premium calculator page designed by policybazaar. It is easy to evaluate for me to which plan I should go for. A best plan I have got.
Himanshi
Bhagpat, June 29, 2021
Coverage up to 99 years
The life insurance plan which I have bought 2 years back has better coverage and it is up to 99 years. I will get the maturity benefits and so my family. It is one of the ultimate plans.
Vinesh
Babhleshwar, June 29, 2021
A good plan
I purchased a life insurance policy 5 years back and it was my goal. I wanted to save and secure the life of my family members. If I am not around. At least they should be secured financially and won’t be facing any financial distress. All thanks to policybazaar team.
Sugandha
Anantapur, June 28, 2021
All round protection
The life insurance plan has given me and my family an all-round protection. I found the plan very nice and up to the mark. It has so many benefits and features and such a low premium rates. Great.
Sudhanshu
Bageshwar, June 28, 2021
Protection from liabilities
One of the great things I like about life insurance plan is that my family will get the protection of various liabilities like loans. I got a loan and of in case it has not been cleared and something happened to me then my life insurance plan will take care of that. Good plan.
Sarang
Mundrajore, June 23, 2021
Get retirement benefits
I have got the retirement life insurance plan which will eventually provide the benefits to me at the time of retirement period. I luckily got a good plan by the suggestion of customer care advisor of Policybazaar. Really love the plan. Thank you team.
Amna
Balumath, June 23, 2021
Investment and insurance
While buying a life insurance plan I have invested my money as well as I got the best insurance policy. I will get the growth of money after sometime and that it will be returned after maturity date. It is a best plan I had.
Shraddha
Athagarh, June 21, 2021
Long-term plans
I got the long term life insurance policy 5 years back and I have been continuing it as I like the plan and I am getting a great number of benefits. I can rely on this plan. Good team.
Affordable
Balakati, June 18, 2021
Komal
I have got a life insurance policy from the policybazaar. I searched various plans before buying a plan. No doubt policybazaar has several good plans of various insurers and it has been the best. Also, my life insurance plan is much affordable and comes with various benefits. Thanks team.
Arya
Badagada, June 16, 2021
Save money
With the help of Policybazaar I have saved money. One of my friend suggested me to get the life insurance plan from Policybazaar. I bought it and saved money. I am happy with the decision. Good work team.
Avanti
Badayun, June 16, 2021
Tax benefits
It is easy to get the tax benefits by having a life insurance policy. I got the tax benefits under Section 80C of Income Tax Act 1961 on the premium amount which I pay regularly. I am happy that it is an investment and this giving me the rebate.
Dharam
Banagram, June 15, 2021
Claim assistance team
I recently got the claim of my life insurance plan which my father had bought 7 years back. Now I got the claim as I was nominee. The claim process has been done quickly and in next 15-20 working days I got my claim amount.
Gorav
Agalpur, June 15, 2021
Paperless plans available
It is easy to avail the plan online now. I didn’t have to move anywhere and by sitting back at my home I got the best one. I received the policy document on my email address. So Simple and easy.
Ayush
Jahanabad, June 08, 2021
Get discounts
It is another thing I like about policybazaar is that I have got a huge amount of discount when I bought the plan of life insurance. It is easy and I bought a plan which has good coverage at less premium prices. I really like the plans and services provided by the team.
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