Life Insurance, explained simply
If you are not around, your family's money needs are still met.
Life insurance is a promise between you and an insurance company. You pay a small amount regularly, called a premium. If you pass away during the policy period, the company pays a large amount to your family.
Think of it as an umbrella for your family's finances. You hope it never rains. But if it does, they stay dry.
Types of life insurance
Each type does a different job. Here is what the names mean.
Term Insurance
Pure protection. A large cover for a low premium. It pays your family only if you pass away during the policy term.
Savings Plans
Protection plus savings. A lump sum is paid at the end of the term, or to your family if you pass away earlier.
Child Plans
Build a fund for your child's education or marriage. The plan continues even if the parent is no longer there.
Retirement Plans
Build a fund during your working years and receive a regular income after you retire.
How it works
- 1
Work out your cover
Add up your family's yearly expenses, your loans and your future goals to see how much cover you need.
- 2
Compare plans
We show you plans from the insurer with their features, costs and conditions. You choose.
- 3
Fill the form honestly
Share correct details about your health and habits. A medical test may be required.
- 4
Pay and review
Once the policy is issued, read it carefully. You can cancel within the free-look period if it is not what you expected.
- 5
Stay covered
Add a nominee and pay premiums on time. If a claim arises, your nominee claims from the insurer and we help with the paperwork.
A term plan
Amit is 30 and his family depends on his income. He buys a term plan with a cover of ₹1 crore for 30 years and pays a premium every year. If he passes away during those 30 years, his family receives ₹1 crore. If he outlives the term, a pure term plan pays nothing, which is why it costs so little.
Illustration only. The premium depends on age, health, habits, cover amount and the insurer.
Who is it good for?
- Anyone whose family depends on their income
- People with a home loan or other large loans
- Young earners, since premiums are lower when you are younger and healthier
- Parents planning for their children's future
Things to keep in mind
- A pure term plan pays nothing if you outlive the policy term
- Hiding facts about your health or habits can lead to a rejected claim
- The policy can lapse if premiums are not paid on time
- Savings plans need a long commitment; stopping early can return less than you paid
- Read the sales brochure and policy document before buying
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Life Insurance: questions people ask
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Talk to our team. We will explain life insurance in your own language and help you compare the options. The decision always stays with you.
Disclaimer: Insurance is the subject matter of solicitation. The information provided is for illustrative purposes only. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. IRDAI License No: IRDAI/AGN/100984838. The information on this page is for general education only and is not investment, tax or insurance advice.