Prices Increasing soon Prices Increasing Soon

5 Questions You Must Seek Answers for Before Buying Life Insurance Policies

"In case you cannot be there to catch them, ensure that you leave a safety net, at least."- Anonymous. Financial planning is one of the most imperative and basic responsibility for every breadwinner. Remember, sudden death of the breadwinner can bring about financial turbulence in the otherwise financially stable family. Therefore, it is important for breadwinners to ensure that their financial plans do not run into rough weathers, even when they are not around.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

This is where life insurance comes to their rescue. Life insurance plans ensure an iron-clad financial protection for the family, in the absence of the breadwinner of the family.

But there are a thousand life insurance products available in the market that can easily dumbfound even the most experienced of investors. We are sure you will agree when we say that a lot of questions cross ones’ mind pick the best life insurance products to ensure financial security for their loved ones.  In this article, we will focus on 5 such confusing questions and provide you with their best possible answers.

So let’s get started! Shall we?

Q1: I have prepared a financial plan that concentrates on building of a huge corpus through savings. Is there any need of financial protection after this?

A1: It is great that you have designed a financial plan focused on creating a huge corpus. However, is neither savings nor protection and you will need both to ensure a financially secure life for your loved ones. Your first step should be buying sufficient financial protection. This will make sure that your financial plan stays in effect even when you aren’t around. It is a long-term financial goal to build a corpus. And a protection plan will make sure that pre-determined financial goal is achieved, irrespective of the fact that you aren’t around.

Q2: What returns will I get at the end of my policy tenure?

A2: It really depends upon the life insurance product you are investing in. For example, term insurance plan purely cater to your financial security and are designed in a way that your dependents are provided with a lump-sum amount in case of your demise, during the policy tenure. The premiums for term plans are pretty affordable. On the contrary, endowment plans provide both death and maturity benefits. However, the premiums for endowment plans are little higher as against term insurance plans.

Q3: What is the cost of term insurance? How it differs from endowment plans that offer returns at maturity?

A3: The cost of term insurance plan usually depends upon the plan that you are buying. Usually, you can buy a term insurance cover of Rs. 1 crore with a premium amount ranging between Rs. 6000 and Rs. 8,000, annually. On the other hands, the cost of endowment plans is a little higher. Usually, you can buy Rs.1 Crore endowment cover for an annual premium of Rs. 1,00,000 for policy term of 30 years. Here it is important to remember in endowment policies , you get the sum assured upon maturity, whereas in term plans no maturity benefit is paid out.

Q4: How much insurance do I need?

A4: Well, it's a tricky question, but an important one that you must carefully consider when buying life insurance. Remember, the primary objective of life insurance is to ensure financial stability for your family, when you are not around. The amount of coverage should be enough to settle all dues and generate an income to help your family live a decent life. Here’s the formula to calculate life insurance cover:

{% of monthly income (you wish to cover) – monthly savings X 12 X number of years (your dependents will need financial assistance)}

Let’s understand this with an example. Let’s assume:

  • Your monthly income = Rs. 60000
  • % cover for monthly salary = 80%.
  • Monthly savings = Rs.18000
  • Estimated years of financial support for dependents = 15 years

[80% of monthly income (60000) = Rs.48000]

[48000-18000X12X15= 5400000]

So you will need Rs.5400000 as your life insurance cover.

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

Q5: Will there be any changes for the need of my life cover?

A5: Ideally, it is advised that you keep a sharp vigil on your life cover and you must revisit when you monitor amplification in expenses, income and responsibilities. As a rule of thumb, every individual who has attained an age 40 needs an insurance cover equivalent to 20-30 times the yearly income and any person who has attained an age of 50 will need a cover about 5-10 times the yearly income.

Over to You!

Remember, life insurance is an absolute must for every household. And we are sure armed with the answer for these 5 confusing and somewhat dumbfounding questions; you can make your decision-making process simpler and pick the best life insurance for you and your loved ones.

Different types of Plans


Premium By Age

Life insurance articles

Recent Articles
Popular Articles
What High Net Worth Individuals (HNIs) Do To Secure Their Family?

09 Aug 2023

High net worth individuals often opt for life insurance plans to
Read more
A Review Of ICICI Prudential Life Insurance

28 Jun 2023

“Policy Bazaar insurance clarified the term policy for me, so
Read more
A Review Of HDFC Life Insurance

27 Jun 2023

“I recently bought an HDFC term plan and it is the best
Read more
Best Life Insurance Policy in India with High Returns

20 Jun 2023

The best life insurance policy in India is a type of life
Read more
Which Insurance is Best in India?

20 Jun 2023

Insurance is a financial product that transfers the risk to a
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is about the financial protection of the family and working for life’s milestones through smart
Read more
Life Insurance Claim Settlement Ratio
The Claim Settlement Ratio is a percentage that represents the ratio of claims paid to customers by an insurance
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI
Read more
SBI Life Insurance Policy Surrender Value Calculator
Are you planning to surrender your SBI life insurance plan? But, are you aware of the amount attached to the
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL