Life Insurance
Pays a sum to your nominee if you die during the policy term, so your family's finances are protected.
What it covers
- Death of the insured person during the policy term
- Maturity benefit, for savings-linked plans
- Optional riders such as critical illness or accidental death
What is usually not covered
- Claims where material facts were not disclosed in the proposal
- Exclusions stated in the policy, such as suicide within the first year
Exact inclusions and exclusions depend on the policy you buy. Always read the policy wording.
Who it is for
- Anyone whose family depends on their income
- People with a home loan or other large liability
- Parents planning for a child's education
Plan types you can request
- Term plan
- Pure protection for a fixed term at the lowest premium.
- Endowment plan
- Life cover with a payout at maturity.
- Child plan
- Savings-linked cover aimed at a child's education or marriage.
Important considerations
How much cover
A common starting point is a cover that replaces several years of income and clears outstanding loans. Your advisor can work it out with you.
Policy term
Cover should usually last until your dependants are financially independent or your loans are repaid.
Full disclosure
Declare health conditions, smoking and existing policies accurately. Non-disclosure is the most common reason claims are disputed.
Nominee
Name a nominee and keep the details up to date after marriage or the birth of a child.
Typical requirements
An advisor will usually ask for:
- Age and occupation
- Annual income
- Smoking or tobacco use
- Outstanding loans and existing life cover
- Cover amount and policy term you have in mind
Documents required
Keep these ready to avoid delays:
- Identity and address proof
- Age proof
- Income proof: salary slips, Form 16 or ITR
- Medical test reports, if the insurer asks for them