A Detailed Guide to Life Insurance

Life insurance is one of the most essential financial tools for securing the future of your family. It offers financial protection to your family members in case of your unfortunate death and helps them repay loans, fulfill long term goals, and manage daily expenses. This detailed life insurance buying guide explains what is life insurance meaning, how it works, its benefits, its types and how to choose the right life insurance plan suited to your needs.

51 Partners Insurance Partners

12.02 Crore Registered Consumer

5.9 Crore Policies Sold

We are rated ++ rating

₹1 Crore Life cover starting from ⁺

Lowest Price Guarantee ^˜

Male

Female

Name

Date of Birth

Mobile Number

Check Your Premium Now

Get Updates on WhatsApp

What is Life Insurance?

Life insurance is a contract that promises payment of an amount the life assured (or nominee) in case of the event of event insured for. This contract is applicable for payment of the amount during:

The maturity date
Specified dates at periodic time intervals
Untimely death (if it happens earlier)

Life insurance acts as a financial safety net for your family in case of your absence. Also, it can work like a savings instrument, offering financial freedom to you during your old age and also helps in decreasing your tax liability.

So now we have understood what is life insurance, let’s learn about types of life insurance:

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

Types of Life Insurance

Below are the types of life insurance plans offered in India, and they are:

Term Life Insurance
Endowment Plans
Unit-Linked Insurance Plans (ULIPs)
Whole life insurance plans

What is Term Life Insurance?

Term insurance is one of the most affordable types of insurance that offers death benefits to the nominee of the policy in case of the policyholder’s untimely death during the policy tenure. With the regular term plans, you are only entitled to receive the sum assured on the death of the policyholder. In contrast, some variants like Term Return of Premium pay the death benefit on the death of the policyholder and offer the premiums back at the maturity of the policy.

Endowment Plans

This plan offers coverage and savings in a single plan and the policy pays a specified sum on death or at maturity.

Unit-Linked Insurance Plans

These plans offer two benefits in a single plan i.e., life cover and investment funds, where the policyholder has the freedom to invest into debt or equity funds.

Whole life insurance plans

Whole life insurance is a type of permanent life insurance that provides lifetime coverage i.e., up to 99/100 years with fixed amount of premiums and a guaranteed death benefit.

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @

Get an online discount of upto 15%^#

Compare 40+ plans from 15 Insurers

⁺Standard T&C Applied

How Does Life Insurance Work?

Let us understand how life insurance works with the help of an example:

Raman bought a 1 crore term insurance plan to ensure the financial stability of his wife and 2 kids in the event of his unfortunate demise. He diligently pays the premiums on time and receives coverage for the policy term. Unfortunately, he passed away in an accident in the 7th policy year. The insurer pays the sum assured as a death benefit to his family to help them take care of their financial needs. If Raman had outlived the policy term, he would have received the maturity benefit along with the applicable bonuses.

Note: Check all the best term insurance plan in India.

Who Should Buy Life Insurance Plans?

Here is a list of people who should consider buying a life insurance policy to secure their family:

Types of Individuals	Benefits
Young Professionals	People who are young can get life insurance at much lower rates than an older individual for a large life cover
Working Women	Working women can financially support their dependent parents, spouse, or kids in the event of their demise
Parents with Kids	Parents with dependent kids can secure the financial future of their child with a life insurance plan in their absence
People with Loans	The benefit amount can help the family of people who have an outstanding loan or debt
Old Age Individuals	People who want to secure their retirement can buy pension or annuity plans to protect their post-retirement life
Taxpayers	People who want to save on their yearly taxes can claim tax benefits u/s 80C and 10(10D) of the IT Act, 1961

What are the Benefits of Buying Life Insurance Plans?

The following are the benefits of buying life insurance plans in India 2026:

Financial Protection: A life insurance policy ensures your family is able to take care of their financial needs in your absence by offering them the sum assured as a death benefit.
Wealth Creation: Life insurance plans help you build a corpus for yourself and your family by investing in market-linked funds, offering bonuses, and cash accumulation.
Long Term Cover: Whole life insurance plans provide coverage under the plan for your whole life, i.e., till 99/100 years of age and offer guaranteed benefits to the nominees.
Tax Benefits: You can claim life insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act, 1961.
Enhanced Cover: You can customize and enhance the base cover of your life insurance policy by adding the available life insurance riders at nominal premiums.

What are the Factors to Consider When Choosing a Life Insurance Policy?

Identify your Needs
Determine the Life insurance coverage amount
Compare premiums and its affordability
Choose a trusted life insurance company
Look for Riders for Extra benefits
Check Policy Terms and Conditions

How To Buy Life Insurance Plans in India 2026 From Policybazaar?

You can follow the steps mentioned below to buy life insurance plans from Policybazaar online from the comfort of your home:

Step 1: Visit the life insurance page of Policybazaar

Step 2: Select the type of life insurance you want to buy: ‘Term insurance’ or ‘Investment plans’

Step 3: Fill in the required details like name, contact number, date of birth, and gender

Step 4: Select the right annual income, educational background, occupation type, and smoking habits

Step 5: Choose the best life insurance policy in India and proceed to pay

People also search for

What is Term Life Insurance

FAQs

What are the 4 main types of life insurance?

The 3 main types of life insurance plans are: Term Life Insurance Whole Life Insurance Endowment Plans ULIPs
What is the best life insurance company in India?

The best life insurance company in India 2026 can be selected based on your financial needs. When buying a life insurance plan, you can compare the different life insurance companies on the basis of their CSR< solvency ratio, customer satisfaction, company's track record and more.
Can I buy life insurance plans with pre-existing conditions?

Yes, you can buy life insurance plans with pre-existing conditions depending on the type and severity of the pre-existing illnesses. For example, if you have diabetes, high blood pressure, or asthma, you can still buy life plans but may have to pay a higher premium than a healthy individual. However, if you have a terminal illness, most insurers would not offer life insurance plans.
Is it worth it to buy life insurance plans?

Yes, life insurance is a worthwhile investment as it provides financial protection to your loved ones in your absence and offers wealth creation benefits. These plans are especially beneficial for people who have existing loans or dependents they want to take care of in their absence.
How to calculate the term insurance premium online?

You can easily calculate the term insurance premium online by using the term insurance premium calculator online tool
What are the benefits of term life insurance?

Here are 4 common benefits of term insurance: Low premium rates Tax Benefits Death Benefit Long term coverage

Different types of Plans

Term Insurance

View Plans

Life Insurance

View Plans

List of Term Insurance Companies

View Plans

TROP

View Plans

Term Insurance For Senior Citizen

View Plans

Term Insurance For Spouse

View Plans

Term Insurance For Family

View Plans

Term Insurance For NRI

View Plans

List of Term Insurance Plan

View Plans

Life Insurance Corporation of India

View Plans

What is Term Insurance?

View Plans

Term Insurance Calculator

View Plans

1 Crore Term Insurance

View Plans

2 Crore Term Insurance

View Plans

Explore the popular searches and stay informed

˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. ₹360/month is the starting price for a ₹99 lakhs loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.