What is Life Insurance?

Life insurance is a legally enforceable contract between an insurance company and a policyholder. As per this contract, the insurer agrees to pay a specified amount, referred to as the sum assured, to a nominee if the policyholder dies during the policy term. In return, the policyholder pays periodic premiums to continue the coverage.

In India, life insurance policies are governed by the  Regulatory to protect policyholders and promote uniform practices. Understanding what is life insurance and the different plans helps individuals meet their financial goals and objectives even in their absence.

Some of the different types of life insurance are term plan, endowment policy, and unit-linked insurance plan (ULIP). These policies are crucial in the financial planning process with the possibility of income replacement, protection of long-term goals such as children’s education, and prevention of the financial setbacks of untimely death. 

Key Terms to Understand Life Insurance

This section explains essential terms commonly used in life insurance policies to help you better understand the roles, benefits, and overall structure of your coverage.

• Policyholder

The policyholder is an individual who is the owner and payee of the life insurance policy. They have full legal rights to modify, attach riders, or surrender the policy. Moreover, they may or may not be the same as the life assured, depending on the purpose and arrangement of the coverage.

• Nominee

A nominee is the one the policyholder nominates to receive the death benefit in case of the untimely demise of the life assured. They do not have control over the policy for its tenure. The policyholder can change or update the nominees at any time so that the benefit reaches the nominated person upon settlement of the claim.

• Insurer

The insurer is the life insurance provider that issues the policy under the contract. They undertake underwriting, administer policy servicing, and pay claims as agreed. As per the guidelines of the regulatory, insurers have to be transparent, fair, and maintain trust by providing a complete understanding of what is life insurance and guaranteed financial security to policyholders and their families.

• Life Assured

The life assured is the individual whose life is insured. In case of the death of the life assured during the policy duration, the nominee is paid the death benefit. Insurers assess risk based on age, medical condition, occupation, and lifestyle factors before issuing a policy to the life assured.

• Sum Assured

The sum assured is the guaranteed amount provided to the nominee in the event of the life assured passing away within the policy term. It constitutes the policy's financial security component. Generally, the amount is calculated by applying Human Life Value (HLV) or a need basis to ascertain proper support for the future requirements of the beneficiary.

• Premium

A premium is the amount the policyholder pays monthly, quarterly or even annually to keep the policy active. Its cost relies on factors such as sum assured, policy term, age and health of the life assured. Failure to make all payments may cause policy lapse, indicating loss of coverage and associated benefits before completing the policy term.

• Policy Term

Policy term refers to the period during which the life insurance is active. It may be a short duration of 10 years or lifetime coverage up to the age of 99. A claim is payable only when the life assured passes away within the policy term while the policy is in force.

• Death Benefit

Apart from understanding what is life insurance, knowing the death benefits in the policy is also crucial. It is the sum paid to the nominee when the life assured passes away during the policy period. This payment serves to complete the ultimate intention of life insurance, which is to provide financial protection to the surviving dependents.

• Maturity Benefit

The maturity benefit is the payment offered to the policyholder on the completion of the policy term, available under savings-linked or return-of-premium plans. It can consist of the sum assured, bonuses, and loyalty additions. However, pure term insurance policies do not provide a maturity benefit but only cover death protection.

• Riders

Riders are voluntary add-ons to complement a life insurance policy's protection. For example, accidental death coverage, critical illness coverage, and waiver of premium. They involve an additional premium but offer personalised protection. The policyholder must select riders according to their personal needs because riders are not covered under all plans.

• Surrender Value

The surrender value is the sum payable if a policyholder surrenders a savings-linked policy before maturity. It increases over time, based on premiums paid and the policy duration. Pure term insurance typically provides no surrender value because it protects without any savings or investment accumulation.

• Claim Settlement Ratio (CSR)

Understanding what is life insurance will not suffice if the concept of CSR is unclear. The CSR is the proportion of claims the insurer settles out of total claims received every year. This indicates the insurance company’s reliability and trustworthiness towards settling claims.

Moreover, it reflects higher chances of successful claim settlement if the ratio is high. Hence, it is a significant aspect to consider when selecting a life insurance company.

How Life Insurance Works

Life insurance is essentially a contract between the policyholder and the insurer. The policyholder pays regular premiums, and in return, the insurer promises to pay a sum assured to the nominee if the life assured passes away during the policy term. Some types of policies, such as endowment plans or Unit Linked Insurance Plans (ULIPs), also offer a maturity benefit if the policyholder survives the entire term.

Key points to understand:

• Premium Calculation: Premiums are determined based on factors like the age of the life assured, the sum assured chosen, the individual's health status, and the duration of the policy.

• Financial Protection: If the life assured dies within the policy term, the insurer pays the sum assured to the nominee, providing financial security to the family.

• Additional Riders: Optional add-ons such as critical illness benefits or accidental death benefits can be included for extra coverage.

• Coverage Amount: The right amount of coverage varies by individual and depends on their personal financial responsibilities.

The Human Life Value (HLV) method is often used to calculate an appropriate sum assured to ensure adequate protection.

Here is an example for better illustration:

Rajesh is a 35-year-old engineer who buys a term life insurance policy with:

• Sum assured: ₹1 crore

• Policy term: 30 years

• Annual premium: ₹ 10,000^*

If Rajesh dies during the 30-year term, his wife will receive ₹1 crore. This payout can help cover expenses such as household costs and children’s education.

If Rajesh survives the term, the policy ends without any payout, but he gains peace of mind knowing his family was financially protected during the term.

Types of Life Insurance

Apart from having a complete understanding of what is life insurance, the following are the different types of life insurance policies which can be purchased:

1. Term Insurance

Term insurance is a pure protection policy. It will pay the sum assured to the nominee if the life assured passes away within the policy term. Moreover, it does not have any maturity benefit if the policyholder is alive. With low premium rates, it is suitable for those who want high coverage at a low cost for income replacement.

2. Endowment Plans

Endowment plans combine life protection with savings to pay the sum assured on death or policy maturity, whichever occurs first. They are appropriate for those who want to have both financial security and systematic savings. Such plans are best for achieving medium-to-long-term goals and ensuring a guaranteed payout to dependents in case of an unwanted occurrence.

3. Unit Linked Insurance Plans (ULIP)

   ULIPs provide life insurance cover in addition to market-linked investments in equity, debt, or balanced funds. Also, the maturity or death benefit is typically the higher of the fund value or the sum assured. ULIPs are for those who are not averse to market risks and look for long-term creation of wealth combined with insurance protection benefits.

4. Whole Life Policy

Whole life insurance covers the insured throughout their lifetime, usually until the age of 99 or 100. The death benefit is paid when the life assured dies. Some schemes accumulate cash value over time and therefore suit legacy planning, wealth transfer, or overall financial security for a lifetime.

5. Money Back Policy

A money-back policy is an endowment-style plan which provides periodic payments at intervals during the policy tenure. The balance sum assured and due bonuses are paid at maturity or on death. It provides liquidity for retirement goals while retaining protection. Moreover,  this policy is suitable for getting returns at intervals without compromising insurance coverage.

6. Retirement Plans

Merely knowing what is what is life insurance will not be enough for retirement. Retirement or pension schemes enable a corpus to be formed during the accumulation stage and provide regular income during the annuity stage. After the policyholder’s demise, the death benefit goes to the nominee. Intended for financial independence after retirement, these schemes are ideal for getting long-term security and a fixed income after retirement.

7. Savings Plans

Savings plans integrate guaranteed or non-guaranteed returns along with life insurance protection. Furthermore, they provide a sum assured on maturity and a death benefit throughout the term. Ideal for saving towards goals like home buying, education, or business, these plans facilitate goal-oriented savings and financial security benefits.

8. Child Plans

Child insurance policies ensure the financing of a child's education or other needs. They give benefits at milestone stages and maturity proceeds. In case of the parents' death, premium payments are waived, but benefits are not. Suitable for parents who want to ensure their child's financial security and aspirations are fulfilled, even without them.

Who Needs Life Insurance?

The following table shows who needs life insurance, apart from understanding what is life insurance for long-term financial planning:

How much life insurance do I need?

Selecting the appropriate life insurance coverage is crucial to help your loved ones financially secure in your absence. The optimum sum assured should substitute your income for the rest of your working life, settle remaining debts like house or personal loans, finance children's education or marriage and daily expenses.

A general rule of thumb suggests a cover worth 10 to 20 times your annual income, but the exact requirement varies based on individual financial responsibilities. Online life cover calculators can provide a more personalised estimate by factoring in your income, liabilities, and goals. It is crucial to review and adjust your life coverage regularly, especially after major life changes like marriage, childbirth, or taking on a new loan.

What is life insurance premium?

A life insurance premium is the money you pay to your insurer regularly, such as monthly, quarterly, yearly, or as a single payment, to maintain your life insurance policy. It is based on your age, health, lifestyle, type of policy, and coverage level. Moreover, paying premiums regularly keeps your beneficiaries protected, providing them with financial security in case of your untimely death during the policy period.

For instance, a 30-year-old non-smoker male choosing a term life insurance plan with ₹50 lakhs as the sum assured could pay a premium between ₹7,000* per year. This premium guarantees that in case of death during the policy tenure, his nominee will get ₹50 lakh.

Furthermore, this amount depends on age, health, and the sum covered. Thus, buying a term insurance early is advantageous for lower premium charges and long-term protection.

Factors affecting life insurance premium

Several factors determine the price of a life insurance premium. Insurers assess personal, health, and lifestyle information to establish your risk category. Apart from knowing what is life insurance, the following factors better enable you to plan and select a policy that is suitable for your finances and protection requirements:

• Age

Younger people tend to pay less premium since they are viewed as lower risk. With advancing age, the risk of health problems increases, and hence, insurance costs more. So, purchasing a policy at an early age results in cheaper premiums and future financial security for your loved ones.

• Gender

Females generally receive lower premiums because of their longer lifespan than men. As insurers calculate premiums based on statistical lifespan, women tend to be considered lower at risk. Therefore, lower rates are provided for the same coverage level and policy type.

• Medical Records

Your health history, such as current illnesses, previous surgeries, or chronic diseases, directly affects premiums. A clear medical record typically helps you get lower premiums, whereas high-risk conditions may increase rates or restrict coverage available from insurance companies.

• Lifestyle and Occupation

Hazardous work like mining or construction, and risky leisure activities, like skydiving, increase premiums because of greater chances of accidents. A low-risk or sedentary profession tends to result in cheaper rates because insurers judge the lower likelihood of early death.

• Smoking and Alcohol Habits

Tobacco smoking and heavy alcohol use dramatically increase premiums due to their potential to cause life-threatening diseases. Insurers favour non-smokers and moderate drinkers with lower rates because these habits are correlated with healthier, longer lifetimes and fewer chances of claims.

• Amount and Type of Coverage

A higher sum assured and full-coverage plans are more expensive because of increased financial exposure for the insurance company. Term plans are typically more affordable than whole-life or investment-linked coverage. This is because they offer protection for an agreed period without savings features.

What are the Benefits of Buying Life Insurance?

Life insurance offers three major benefits, namely protection, long-term savings, and investment. Here is an insight into each of these advantages.

1. Protection

Life is unpredictable and full of uncertainties. The risk of an untoward incident such as death cannot be eliminated. In such a situation, your family will have to face financial constraints caused by the loss of your regular income. life insurance plan provides the safety net during such times. Your insurance provider is liable to pay the beneficiary or nominee the pre-determined death benefit, thus keeping your family protected even in your absence.

2. Long-term savings

It is important to consider life insurance if you are seeking to make long-term savings. Such  saving schemes helps you to save systematically and build a corpus for your future. The accumulated amount may be used for multiple purposes, such as purchasing a new home, funding your child's future education or meeting his marriage expenses, among many others. What's more, life insurance plans also offer regular pay-outs in the form of annuities, and is therefore, an excellent method to meet your retirement goals.

3. Investment

Unit-Linked Investment Plans (ULIPs) offered by life insurance providers are primarily investment instruments. This market-linked product acts as a tool to create wealth. ULIPs offer significant returns on the premiums paid towards the insurance policy. Most life insurance plans provide considerable returns during maturity, thus making it an attractive investment vehicle.

Besides the major aforementioned advantages, life insurance plans offer a host of other benefits. You may claim tax deductions under Section 10, 80C, and 80CCC of the Income Tax Act, 1961 on the premium paid towards your insurance policy. You may also borrow a loan against your insurance plan in case of a financial crunch.

Buying life insurance plan is a necessity. While many invest in such a plan, not all are aware of the numerous benefits it offers. Life insurance plans help your family tide over difficult times and provide them with financial support in your absence. Besides, availing of an insurance policy inculcates the habit of disciplined savings, thereby enabling you to build a good corpus. You may, therefore, opt to invest in a life insurance plan and fulfill your obligations in the best possible way.

4. Financial Security
   

The most important benefit of life insurance is the financial security it offers to your loved ones. Upon the insured person’s death, a pre-specified sum assured is paid to the bereaved family to support them through the sudden financial struggles.

5. Tax benefits*
   

Your life insurance policy entitles you to certain tax savings. Annual premium payment up to Rs 1.5 lakh is exempted from tax, under section 80C of the Income Tax Act, 1961. In addition, while the death benefit is tax-free, the maturity benefit of policies with total premiums not exceeding Rs 5 lakh also enjoys tax exemption under section 10 (10D).

Which financial goals can you secure with life insurance?

Understanding what is life insurance will help you use it as an adaptable money tool. It will assist in protecting a range of critical financial objectives. In addition to protection, it facilitates wealth accumulation and includes substantial tax benefits*.

Some of the primary financial objectives you can attain using life insurance are:

• Financial protection:

Financial protection means providing a lump sum, the sum assured, to your family if you pass away during the policy term. This amount enables your loved ones to maintain their lifestyle, clear outstanding debts such as home loans, or pay for their daily expenses.

For instance, if a working parent with a ₹50 lakh sum assured dies suddenly, the family will receive that sum. Hence, it will leave them without hardship to meet instant financial needs.

• Corpus building:

The death or maturity benefit offered by a life insurance policy helps in building a lump sum corpus. The wealth thus created can be utilized to fund your life goals, like buying a house, funding your child’s education, wedding etc.

• Tax benefits:

Life insurance comes with tax savings options. The annual premiums up to Rs 1.5 lakh are exempted from tax under section 80C of the Income Tax Act, 1961. The death and maturity benefits are also entitled to tax benefits subject to section 10 (10D)*.

How insurance can be useful?

Insurance can prove advantageous in meeting several financial goals of the individual and his family. Here are some of the important ones:

• Financial cover against loss of life, which makes sure your family can support itself in your absence
• Child's education
• Child's marriage
• Buying a house
• Pension or regular income post-retirement
• Post-retirement income for NRIs

These are just some of financial goals you can achieve with the help of life insurance. More importantly, life insurance plans are flexible. This means although you won't find an insurance plan dedicated to buying a house, you can buy an endowment plan (traditional or market-linked) with the aim of paying for a house at a future date.

How to Choose the Best Insurance Policy?

• Engage an insurance advisor

  While this may seem trivial, engaging a reliable and competent insurance advisor at the initial stage in your quest for life insurance is critical. Most individuals are not capacitated to take a decision by themselves and need the expertise of an insurance advisor.

• Calculate the life cover

  The insurance advisor will help you calculate the amount of life cover—or the sum assured. He will assess sources of your income, the number of your dependents, your debts and liabilities, and your expenses based on your lifestyle to determine your life cover. Additionally, he will recommend the best plan, whether it's a term plan, endowment plan, unit-linked plan, or a combination of plans, to ensure you have optimum life coverage.
  
  For a more convenient way to estimate your life insurance needs, you can also use an online life insurance calculator, which is a quick and easy tool to help you determine the coverage amount that suits your financial situation.
  
  Similarly, if you have other goals like planning for your child's education, marriage, retirement, or specific women’s insurance needs, trust your advisor to do the math and come up with the ideal solution for you.

• Compare insurance plans

  Since there are many insurance companies in the market offering a variety of plans, you need to be sure you select the most suitable one. The insurance advisor will do the homework by comparing life insurance plans from various insurers across relevant parameters recommending the most apt plan based on your needs.

• Check Claim Settlement Ratio and Customer Service Reviews

Evaluating an insurer’s reliability involves looking at their Claim Settlement Ratio (CSR), which shows the percentage of claims settled out of total claims received. It is advisable to choose insurers with a Claim Settlement Ratio above 95% for better claim approval chances. However, timely claim settlement is equally important to avoid financial stress for nominees.

Moreover, make sure to review independent customer feedback focusing on responsiveness, resolution speed, and digital support quality. A trustworthy insurer offers both a high CSR and excellent customer service, ensuring a smooth and hassle-free claims experience.

Select the best life insurance plan/policy in 3 easy steps.

To make the most of your life insurance, it’s important to choose the best policy according to your needs, convenience and affordability. To ensure that, figure out the amount of coverage you need and the type of plan that best fits your requirements. Asking yourself these two questions can be helpful here:

• How long do you want to get a life cover for?
• What are the life goals or priorities for which you need to save?

For example, if you are looking to build a corpus for your child’s higher studies, a best child plan can be the right pick.

Life Insurance Buying Guide

Life insurance is an essential investment if you wish to ensure the financial wellbeing of your loved ones. The process of selecting the right type of life insurance policy, however, can be complicated. To assist you in making an informed decision, here is a concise guide:

• Step 1: Identify Your Purpose

Define your motivation for purchasing life insurance, whether you want to protect your loved ones in the event of your untimely demise, ensure financial security for family members, or fund your children's education.

• Step 2: Define Your Goals

Select an appropriate life insurance plan tailored to your needs, such as term insurance, an endowment plan, a retirement plan, a savings plan or a child plan, after defining your life insurance goals.

• Step 3: Calculate Your Coverage

Consider future life events such as marriage, children's education, inflation impact, and retirement planning when selecting life insurance coverage. A coverage of at least 10 times your annual income is recommended by experts.

• Step 4: Consider the Policy Term

Consider the potential costs of having life insurance for an extended period of time while reducing early-life premiums. Make sure your policy term aligns with your needs.

• Step 5: Explore Additional Riders

You can enhance your coverage by considering riders such as critical illness, premium waivers, and accidental death benefits. Enhanced coverage comes at an additional cost, affecting your overall premium.

• Step 6: Ensure Accurate Form Submission

Make sure the form is filled out accurately and that all relevant documents are submitted when applying for a life insurance policy. Providing incorrect information could result in future application rejections or denials of policy claims.

• Step 7: Evaluate Your Life Insurance Cover

You should consult with a life insurance provider to determine how much life cover you need based on your income, your dependents, your liabilities, and your expenses. Among the various policy types available on the market, insurance providers help consumers select the most appropriate policy.

• Step 8: Compare Insurance Plans

Explore life insurance offerings from different providers after understanding the meaning of the product. Comparing various types of life insurance plans will help you choose the most suitable plan for your financial needs.

Life insurance is a crucial part of this financial journey, so knowing what it means is essential. Make an informed decision and choose life insurance that fits your needs by following these steps.

Why should i buy Life insurance online?

Buying Life insurance online is fast, efficient and cost effective. Companies have assessed the needs to their clients over the years and have now made insurance available online. Below are some of the advantages of buying insurance online:

1. Direct Buying

Customers deal with distributors when buying insurance online. Buying offline, they save the commission that would be paid to the distributor and hence it is cost effective. You eliminate the need of a third party and hence end up saving time and money.

2. Informed deal

Whenever you decide to buy a plan, you always have an option to compare the plans in terms of benefits offered, coverage, features, claim process, renewal etc. This way one can easily weigh the pros and cons and finally can choose the right insurance plan that meets his/her needs.

3. Access to online reviews

Customers always leave an online review about their experience with the company. You can have access to these reviews and ensure you have all the details about the product and the company before making a decision.

4. Automated services

The online platform isn't restricted to sale only, instead, it is a fast and competent servicing channel at the same time. The policyholder can avail the online services like download the policy document or brochure, get prompt insurance quotes online, when the policy lapses, renew it online, pay the annual premium online, track your investments, make claim whenever required etc. You can do this independently and swiftly.

5. Customer Support

You get access to 24x7 customer support when you buy insurance online. The company has a chat option on their website where you can ask the staff anything. You can get clarity to doubts, or look for the policy options and pretty much have access to any information online.

How to Buy Life Insurance Online from HDFC Life?

Purchasing online life insurance is fast, hassle-free, and transparent. All that is required is to have a clear understanding of what is life insurance, why you need it, choose appropriate coverage, and provide the correct application information to complete the process.

Follow the simple steps below to buy life insurance online from HDFC Life:

• Step 1: Identify Your Purpose

Identify for what purpose you need life insurance, be it for your family’s financial protection, growing wealth, or retirement. This will enable you to select a policy which best suits your financial goals.

• Step 2: Define Your Goals

Define specific financial objectives like paying for your child's education, settling loans, or securing a retirement income so that you can choose a policy designed to fulfil these objectives.

• Step 3: Calculate Your Coverage

Calculate how much your family will need to sustain their lifestyle in your absence. Include current debts, regular expenses, and future financial obligations to determine the coverage.

• Step 4: Consider the Policy Term

Select a policy term that fits your financial objectives and dependents' requirements. The longer term protects during the most important earning years, and the shorter term can be applied for certain objectives.

• Step 5: Explore Additional Riders

Increase your coverage with riders like critical illness, accidental death, or waiver of premium. These riders provide additional financial security for certain life events or uncertainties.

• Step 6: Ensure Accurate Form Submission

Give accurate and full details regarding your lifestyle, income, and health in the life insurance application form. Discrepancies may result in future claim rejection.

• Step 7: Evaluate Your Life Insurance Cover

Compare your selected coverage and benefits thoroughly before finalisation. Verify that the policy is suitable for your present and future requirements without going beyond your budget.

• Step 8: Compare Insurance Plans

Utilise HDFC Life's online comparison tools to compare various plans, premiums, and benefits and make sure you choose the best for your financial security.

How to Claim Life Insurance after the Death of the Policyholder?

Filing a claim for life insurance is a significant process that helps your nominee get the financial assistance assured under the policy. Therefore, knowing the process can make things easier and faster in times of adversity.

1. Submission of a Death Certificate

The initial process to file a claim for life insurance is to present the original death certificate of the policyholder. This is the legal proof of the policyholder's death, which becomes the main document for processing the claim. A government or hospital must provide a clear and genuine death certificate to ensure no delays.

2. Getting in Touch with the Insurer

The nominee or relatives must notify the insurance company about the death in person or over the phone. They can do this by contacting the phone numbers or email IDs given by the insurer. This helps kick-start the claim process and enables the insurer to provide the nominee with the necessary documents and procedures.

3. Submission of Documentation

Upon informing the insurer, the nominee is then required to produce necessary documents like the claim form, policy document, proof of identity, bank account details, and other prescribed documents. Precise and proper documentation accelerates the claim settlement process. Moreover, the insurer checks, verifies, and pays the settlement to the nominee after approval.

FAQs on What is Life Insurance

1. What is life insurance in simple words?

Life insurance is a financial agreement where you pay regular premiums to an insurer. In return, the insurer promises to give a fixed sum of money to your nominated beneficiary if you pass away during the policy term, ensuring their financial stability and protection against unexpected life events.

2. What are the benefits of life insurance?

Life insurance offers financial security to your family, covering daily expenses, debts, and future needs. It also provides peace of mind and supports wealth creation through investment-linked plans. Moreover, it offers tax benefits under Section 80C and 10(10D) of the Income Tax Act 1961¹.

3. How to use life insurance?

You can use life insurance to protect your dependents, repay loans, or fund future goals like children’s education. Select the right policy type, which can be term life, whole life, or investment-linked, based on your personal financial needs. On a claim event, beneficiaries submit required documents to the insurer, who processes the payout for agreed-upon financial assistance.

4. Is life insurance necessary?

Life insurance is necessary if you have dependents who rely on your income. It ensures they can meet expenses, repay debts, and maintain their lifestyle in your absence. Even for unmarried individuals without a family, it can cover outstanding loans, preventing financial burdens on family members or other close relatives.

5. What is an ideal life insurance cover?

An ideal life insurance cover should be at least 10–15 times your annual income. It must factor in outstanding debts, future obligations like education costs, inflation, and lifestyle needs. This ensures your family can sustain their standard of living and meet long-term expenses even without your financial contribution.

6. How much will life insurance cost me?

The cost of life insurance depends on factors like age, policy type, sum assured, health status, and lifestyle habits. Generally, younger and healthier applicants pay lower premiums. For example, a healthy 30-year-old buying a ₹1 crore term plan might pay only ₹500* per month, making coverage affordable and accessible.

7. At what age should I buy life insurance?

The best time to buy life insurance is in your 20s or early 30s. At this age, premiums are lower, and you can secure long-term coverage while in good health. Early purchase also helps you lock in affordable rates and enjoy extended protection throughout your earning years.

8. What is the average cost of life insurance per month?

The average monthly cost varies by age, coverage amount, and health. For instance, a healthy 30-year-old buying a ₹50 lakh term plan may pay ₹500* per month, while higher coverage or older age increases costs. Comparing plans ensures you get the best balance of affordability and benefits.

9. Am I eligible to purchase life insurance if I have a pre-existing medical condition?

Yes, you can still purchase life insurance with a pre-existing medical condition. However, the insurer may require medical tests, apply waiting periods, or charge higher premiums. Full disclosure is essential to avoid claim rejections. Some policies are specifically designed to cover individuals with existing health issues effectively.

Related Articles:

• Types of Life Insurance - Best Life Insurance Policies in India
• 10 Reasons Why You Need to Invest in Life Insurance
• Key Differences Between Life and General Insurance