Life insurance, explained plan by plan.
Every life policy is a mix of two things: protection for your family and savings for later. The trick is knowing how much of each you are actually buying — and what the fine print takes away.
Last reviewed: October 2026 · Give a missed call to +91 91766 82150 — I will call you back.
Pure protection. The foundation.
The lowest premium for the highest cover. If you die during the policy term, your nominee receives the sum assured. If you survive, nothing is paid — that is why it is so affordable.
Eligibility and term
- Entry age typically 18 to 65 (varies by insurer)
- Policy term from 5 to 40 years
- Cover yourself until your earning years end — usually age 60 or 65
- Consider an increasing sum assured option so cover keeps pace with income and inflation
What to study
- Terms, conditions and exclusions — e.g. suicide within the first year, hazardous hobbies
- Specific situations or events that limit or exclude cover
- Claim settlement ratio — check it both by number of claims and by amount paid
- Riders worth considering: accidental death, critical illness, waiver of premium
Cover plus savings, with a long commitment.
What you get
- Insurance cover on death (and disability, where included) plus a maturity amount
- Entry age usually 18 to 65
- Returns depend on premium, policy term, the insurer's investment performance and bonuses declared
What to check
- Surrender charges and penalties — leaving early can cost a large part of what you paid
- It is a long-term commitment; only commit what you can pay for the full term
- Compare the effective return with PPF and term-plus-investment before deciding
Periodic payouts during the policy.
What makes money-back different
- Entry age typically 18 to 60
- A portion of the sum assured is paid back at fixed intervals (for example every 4–5 years) while you are alive
- In most plans, if death occurs during the term the nominee receives the full sum assured — even if survival payouts were already made (confirm in the policy wording)
- Bonuses, if any, are usually paid at maturity
- Useful when you can name the future expense — school fees, a wedding, a vehicle
- Each payout reduces what is left at maturity; premiums are higher than for an endowment of the same cover
Build a corpus, then turn it into income.
The case for starting now
- Create a retirement corpus
- Start early and contribute consistently
- Let the power of compounding work for decades
- A sense of security and peace of mind
- Maintain your lifestyle after retirement
What to compare
- Young? Equity-based options carry higher risk but higher growth potential. Middle-aged? Prefer debt-based options for stability
- Plans may offer equity funds, debt funds or a combination
- Study administrative and surrender charges, flexibility and liquidity
- Check partial withdrawal, premature exit and switching investment options as circumstances change
- Research the provider's reputation, track record and customer reviews
- At vesting, part of the corpus usually must buy an annuity — check the commutation limits
Securing a child's goals even if a parent is not there.
For children aged 0 to 18
- The parent is the life insured; the child is the beneficiary
- Built around education and marriage milestones
What to check
- Premium waiver benefit — if the parent dies, future premiums are waived and the plan continues for the child. Insist on it
- Rate of return: what is guaranteed and what is not
- Additional riders, exclusions and limitations
Insurance plus market-linked investment.
Features
- You get insurance and investment in one plan
- Choice of equity, debt and balanced funds
- Switching between funds; partial withdrawals after the 5-year lock-in
- Meant for long-term growth — 10 years or more
What to study
- Charges: premium allocation, policy administration, fund management, mortality and surrender/discontinuance charges
- Review the fund's historical performance — but past returns are not a guarantee
- Maturity is tax-free only if the annual premium is within ₹2.5 lakh (for policies issued from February 2021)
Cover from your employer — useful, but rarely enough.
Typical features
- Covers full-time employees of the organisation
- Check for dismemberment benefit (loss of limbs or eyesight in an accident)
- Check for funeral expenses cover
What to check
- Can you convert to an individual policy when you leave the job, or when membership ends?
- Coverage limitations and exclusions
- Cover usually ends the day you leave — keep a personal term plan as well
Seven habits that prevent most problems.
Use the free-look period
You can return a new policy within the free-look period (30 days under current IRDAI rules) if it does not match what was promised. Read the policy document the day it arrives.
Add and update the nominee
Every policy must have a nominee. Update it after marriage, birth of a child or a death in the family.
Keep records in one place
Keep policy documents together, or in an e-insurance account, and tell your family where they are.
Never let a policy lapse quietly
Use auto-debit for premiums. A lapsed policy pays nothing; revival may need fresh medicals.
Ask for the benefit illustration
For any savings plan, ask for the official benefit illustration and compare the guaranteed column — not just the projected one.
Common questions
How much term cover do I need?
A common starting point is 10 to 15 times your annual income, plus outstanding loans, minus existing savings. I work out the exact figure with you.
What is the claim settlement ratio?
The share of death claims an insurer paid in a year. Look at both the ratio by number of claims and by amount — a high number-ratio with a low amount-ratio means large claims are being disputed.
Is an endowment plan better than term insurance plus investing?
For most families, term insurance plus separate investment (such as PPF) gives more cover and often better returns. Endowment suits people who value forced discipline and guarantees.
Is my employer's group cover enough?
Usually not. It ends when you leave the job and the amount is often small. Keep a personal term plan.
Reading is the first step. A conversation is the second.
Every family's situation is different. Call or WhatsApp — I will explain the options that fit yours, in Tamil, Telugu or English. Insurance service is at your door-step, at no charge to you.
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