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Life Insurance

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What does your Term Life insurance policy cover?

Depending on the type of plan you choose, your coverage can range from pure risk protection to wealth accumulation and retirement planning. The main type of life insurance policies available in India are as follows:

Term Insurance: Pure Protection for Your Family


Coverage:Depending on your age (the younger you are, the cheaper the coverage), term insurance can provide a high life cover at an affordable premium, ensuring that your family is financially secure in case of your untimely demise. The sum assured is paid as a lump sum or in installments to your beneficiaries.

How It Works:You pay a fixed premium for a chosen policy term, and if the policyholder passes away during this period, the nominee receives the death benefit. There is no maturity benefit unless a return of premium option is chosen.

Whole Life Insurance:Unlike standard term plans that expire after a fixed term, whole life insurance provides lifelong coverage, typically up to 99 or 100 years. This ensures that your family receives a guaranteed payout regardless of when the policyholder passes away. Some whole life policies also offer a savings component, allowing you to accumulate cash value over time.

Some add-ons available:

  • Accidental Death Benefit:an additional payout in case of accidental death.
  • Critical Illness Cover:Pays a lump sum if diagnosed with a specified critical illness.
  • Waiver of Premium:Future premiums are waived if the policyholder becomes disabled or critically ill.
  • Accidental Permanent Total or Partial Disability Rider:Provides financial support in case of total or partial disability due to an accident, ensuring continued income or a lump sum payout.
  • Income Benefit Rider:Ensures that the nominee receives a steady monthly income after the policyholder’s death.
  • Return of Premium Option:Refunds the total premiums paid if the policyholder survives the term.
  • Terminal Illness Benefit:Pays out a portion of the sum assured if the insured is diagnosed with a terminal illness.
Why You Should Buy Term Insurance?

Term insurance is one of the simplest and most effective ways to secure your family’s financial future. Here’s why you should consider it:

  • Financial Security for Your Family –If you're the primary earner, your loved ones depend on you. Term insurance ensures they have the financial support to cover daily expenses, education, and important life goals, even in your absence.
  • Protection for Your Assets – Loans on your home, car, or business shouldn’t become a burden on your family. Term insurance helps pay off outstanding debts, so your loved ones can keep what you’ve built for them.
  • Covers Health and Lifestyle Risks –With increasing lifestyle diseases like heart attacks and critical illnesses in India, an untimely loss can leave families struggling financially. Term insurance provides much-needed financial relief during such difficult times through the many add-on covers available.
  • Preparedness for Uncertain Times –Life is unpredictable, as seen during the COVID-19 pandemic. Term insurance acts as a financial cushion, protecting your family from unexpected challenges and economic downturns.
  • Low Premiums, High Coverage – Term plans offer a large sum assured at an affordable premium, making it one of the most cost-effective ways to ensure long-term financial security.
  • Tax Benefits – Premiums paid are eligible for tax deductions under Section 80C, and the death benefit is tax-free under Section 10(10D) of the Income Tax Act.
  • Flexible Payout Options – Choose between a lump sum, regular income, or a combination of both, ensuring that your family receives financial support in a way that best suits their needs.

Note: The information provided herein is for general informational purposes only and is intended to serve as an illustrative guide. This information is not intended to be comprehensive or a substitute for the actual policy wording. For precise and up-to-date information, please refer to your insurer’s official policy documents or contact them directly.