Life Insurance
Protect their cheer, erase their fear
What is Life Insurance?
Life insurance is a financial product designed to provide monetary compensation to beneficiaries upon the death of the insured. It serves as a safety net for families, ensuring they are financially secure in the absence of the primary income earner. The policyholder pays regular premiums, and in return, the insurer guarantees a death benefit to the designated beneficiaries.
Term Plan vs Investment Plan
| Feature | Term Plan | Investment Plan |
|---|---|---|
| Purpose | Pure insurance | Insurance + investment |
| Premiums | Lower | Higher |
| Cash Value | None | Yes |
| Benefits | Death benefit only | Death + maturity benefits |
What is a Life Insurance Policy?
A life insurance policy is a contract between the policyholder and the insurer, where the insurer agrees to pay a specified amount (death benefit) to the beneficiaries upon the insured's death. The policy outlines terms such as coverage amount, premium payments, and duration of coverage.
Types of Life Insurance Policies
- Term Insurance: Provides coverage for a specific period.
- Whole Life Insurance: Coverage lasts for the insured's lifetime with cash value accumulation.
- Endowment Plans: Combines insurance with savings; pays out on maturity or death.
- Unit Linked Insurance Plans (ULIPs): Offers both insurance and investment options linked to market performance.
Best 10 Life Insurance Plans 2025
Name of the Insurer
Term Insurance Plan
Claim Settled Amount (cr)
Entry Age
Maximum Maturity Age
Aditya Birla Sun Life Insurance Company Limited
ABSLI Income Suraksha Plan
458
21-55 years
70 years
Aviva Life Insurance Company India Limited
Aviva Signature 3D Term Plan
98
18-65 years
80 years
Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz eTouch
603
18-55 years
99 years
Bandhan Life Insurance Limited
Bandhan Life iTerm Prime
86
18-65 years
70 years
Bharti Axa Life Insurance Company Limited
Flexi Term Pro
148
18-65 years
99 years
Canara HSBC Life Insurance Company Limited
Canara Young Term Plan
186
18-45 years
99 years
Edelweiss Life Insurance Company Limited
Edelweiss Life Zindagi Plus
59
18-65 years
80 years
HDFC Life Insurance Company Limited
HDFC Life Click 2 Protect Super
59
18-65 years
80 years
ICICI Prudential Life Insurance Company Limited
ICICI iProtect Smart
1,950
18-65 years
99 years
SBI Life Insurance Company Limited
SBI eShield Next Plan
1,676
18-65 years
100 years
Types and Their Coverages
Type of Policy
Coverage Type
Term Insurance
Death benefit only
Whole Life Insurance
Death + cash value
Endowment Plans
Death + maturity benefit
ULIPs
Death + market-linked returns
Key Features and Benefits of Life Insurance
- Financial Security:
Ensures that your family has financial support in case of your untimely demise, allowing them to maintain their standard of living and meet ongoing expenses such as education, housing, and daily needs.
- Death Benefits:
The policy pays out a lump sum to the beneficiaries upon the insured's death, which can be used to settle debts, cover living expenses, or save for future goals.
- Maturity Benefits:
Certain plans offer a payout upon reaching the end of the policy term if the insured is still alive, serving as a savings tool alongside insurance coverage.
- Tax Benefits:
Premiums paid towards life insurance policies are eligible for tax deductions under Section 80C of the Income Tax Act, while the death benefit is also tax-free under Section 10(10D).
- Investment Opportunities:
Some policies, like ULIPs, allow you to invest in market-linked funds while providing life cover, helping you build wealth over time.
- Riders for Additional Protection:
Riders can enhance your policy by covering specific risks such as critical illnesses or accidental deaths, providing extra layers of security for you and your family.
Riders Available for Life Insurance
- Accidental Death Benefit Rider:
This rider provides an additional payout if the insured dies due to an accident, ensuring that beneficiaries receive extra financial support during difficult times.
- Critical Illness Rider:
This rider offers a lump sum payment if the insured is diagnosed with a specified critical illness (e.g., cancer, heart attack), helping cover medical expenses or loss of income during recovery.
- Waiver of Premium Rider:
If the policyholder becomes disabled or critically ill and cannot pay premiums, this rider waives future premium payments while keeping the policy active, ensuring continued coverage without financial strain.
Why Do You Need Life Insurance?
Life insurance is essential for anyone with dependents or financial obligations. It ensures that your loved ones can maintain their lifestyle and meet financial commitments like mortgages, education, and daily living expenses in your absence.
Events in Life When Anyone Needs Life Insurance
- Marriage:
This is often when individuals start thinking about family responsibilities; life insurance can secure your partner’s financial future in case of unforeseen events.
- Birth of a Child:
New parents should consider life insurance to ensure their child's future education and upbringing are financially secure even if something happens to them.
- Taking Out a Mortgage:
When committing to significant debts like mortgages, having life insurance can provide peace of mind that your family can maintain their home if you’re no longer there to contribute financially.
- Starting a Business:
Entrepreneurs should consider life insurance to protect their business interests and ensure that their family can continue operations or settle debts in their absence.
- Retirement Planning:
As individuals approach retirement age, life insurance can help ensure that their spouse or dependents are financially secure after they pass away.
Age-Wise Importance of Life Insurance
- 20s: Start building financial security; lower premiums.
- 30s: Family planning; higher coverage needed.
- 40s: Protecting children's future; consider additional riders.
- 50s: Focus on retirement planning; review existing policies.
Coverage Exclusions
What's covered?
- Death due to illness (Covered)
- Accidental death (Covered)
- Suicide (after 1 year) (Covered)
What's not covered?
- Pre-existing conditions - Excluded from coverage
- War-related deaths - High-risk exclusion
Documents Required to Purchase a Life Insurance Policy
- Identity proof (Aadhar, Passport)
- Address proof (Utility bill)
- Age proof (Birth certificate)
- Medical reports (if required)
- Income proof (Salary slips)
How to Buy Life Insurance Online with Acuvisor
- Visit the Acuvisor Homepage: Start by navigating to the official Acuvisor website to access their life insurance offerings.
- Select Life Insurance: From the homepage, choose the Life Insurance option to explore various plans available for purchase.
- Provide Personal Details: Enter your personal information, including your age, health status, and desired coverage amount, to receive tailored quotes.
- Compare Plans: Review the different life insurance plans based on premium rates, coverage benefits, and additional features to find the best fit for your needs.
- Select Your Preferred Plan: Choose the plan that aligns with your financial goals and provides adequate protection for your loved ones.
- Complete the Purchase Process: Fill out the necessary application details and upload any required documents. Proceed to make your payment securely online.
- Receive Policy Document: After payment confirmation, download your policy document digitally or receive it via email for your records.
Factors Affecting Life Insurance Premiums
Age of the Applicant
- Younger applicants generally pay lower premiums due to a reduced risk of mortality. As age increases, so does the likelihood of health issues, leading to higher premium costs.
Health Status and Medical History
- An applicant's health history is crucial; pre-existing conditions can significantly raise premiums. Insurers assess overall health metrics, with healthier individuals qualifying for better rates.
Coverage Amount Selected
- Choosing a higher coverage amount results in increased premiums since the insurer's potential payout is greater. Applicants should balance their coverage needs with affordability in premium payments.
Policy Term Duration
- Longer policy terms often lead to higher premiums due to the extended risk exposure for insurers. Shorter-term policies may offer lower rates but might not provide sufficient long-term coverage.
FAQs for Life Insurance
What is the primary purpose of life insurance?
The primary purpose of life insurance is to provide financial security to your beneficiaries by paying out a death benefit upon your passing. This payout can help cover living expenses, pay off debts, or fund future needs such as education.
Do I need life insurance if I am young and single?
While it may seem unnecessary, young and single individuals can benefit from life insurance. It can lock in lower premiums and provide financial protection for any debts or obligations you may have, as well as cover funeral expenses.
How much life insurance coverage should I purchase?
A common guideline is to have coverage that is 10-15 times your annual income. However, it's essential to assess your personal financial situation, including your debts, dependents, and future financial goals, to determine the right amount for you.
Can I change my life insurance policy after purchasing it?
Yes, many life insurance policies allow for changes after purchase. You can typically adjust coverage amounts, add riders for additional benefits, or convert term policies into permanent ones depending on the insurer's terms.
How do I choose a beneficiary for my life insurance policy?
When choosing a beneficiary, consider who would be financially impacted by your death. This could include family members, dependents, or even charitable organizations. Make sure to keep beneficiary information updated as circumstances change.
