Having a family that cares for you is the most precious gift in life. You do everything possible to be with your loved ones and take care of their needs – both emotional and financial. To make sure that your loved ones are protected and happy throughout their lives, you must take steps to protect their financial future if something unexpected happens to you.

It is where the decision to buy a life insurance policy plays a vital role. Life insurance acts as a tool to protect your family from potential financial losses that may come up after your unfortunate demise. The life insurance benefits your family members will receive help pay off debts, meet regular living expenses, and support various life goals.

A life insurance policy refers to the contract between an insurance provider and an individual ^[1]. As per the agreement, the policyholders pay a certain amount as the policy premium while the insurer pays a specific amount to their family on untimely demise of life insured.  

With death being the only sure thing in life, it is crucial to buy the best life insurance policy that suits your financial needs. 

insurance companies offer significant payouts for life insurance (like term plan) at a low premium, depending on your age and health condition.

Life insurance plans like ULIP (Unit Linked Insurance Plan) gives you the benefit of life cover along with market linked returns from your investment.

Along with providing financial support against the event of untimely demise, life insurance plans also work as long-term investments to meet various goals in life. By investing in life insurance at the right age, you can plan well for different life stages.

Saving money for your child’s education might be one of the biggest priorities for you, being an Indian parent. By investing in the best life insurance policies, you can plan for your child’s future and help him secure various educational milestones in life.

Life insurance is a financial instrument that you can choose to plan for retirement. The steady payouts it can offer in the form of annuities can become the source of income for your retired life.

Any individual, either male or female, falling into the age-group of 18-65 years, can buy life insurance in India as per the life insurance terms & conditions

1. Just like non-smokers, even smokers can avail life insurance, though the rate of the premium may differ. Also, they must inform the insurer about their habit of smoking while buying a life insurance policy.

2. Disabled individuals can also purchase the best life insurance policy if they can prove that they provide for their family members. They also need to undergo medical tests to determine the policy premium based on the degree of risk involved.  

3. People suffering from pre-existing medical conditions can buy life insurance. They need to inform the insurance company about the pre-existing health conditions if any. Failing to disclose the same while purchasing a policy may lead to claim rejection later.

At Max Life Insurance, we offer life insurance policies to individuals having pre-existing illnesses.

It is the means the date specified in the Schedule, on which the Policy Term expires;

It denoted an amount specified in the Policy Schedule, payable by You, by the due dates to secure the benefits under the Policy, excluding applicable taxes, cess, and levies, if any.

An individual can pay the life insurance premium in:

1. Regular mode, which is monthly, quarterly, half-yearly, or annually throughout the policy tenure

2. A specific premium payment tenure, which can be a certain pre-fixed number of years (not till the end of the policy term)

8. What are Life Insurance Riders?

Riders are essentially features, which are in addition to basic benefits under the Policy. These include accidental death benefit rider, critical illness rider, and waiver of premium rider.

A life insurance plan that is suitable for your peers may not be ideal for you. Thus, you must consider your specific needs, be it affordability, choice of sum assured or riders before you start comparing different plans.

Owing to the wide variety of life insurance plans available, you need to be sure you select the right one which offers adequate benefits. For this, you should do the required homework of comparing the plans across several parameters like premium, the sum assured, and investment component, if any.

The selection of the right life insurance provider is essential to ensure that you or your loved ones will get the benefits they seek from the purchase plan.

Consider the following aspects while choosing the best life insurance provider:

This ratio defines the claims settled by an insurer over the ones received in a financial year. The higher the CSR, the higher are the chances of getting your life insurance claim paid.

It refers to how well an insurance company can manage sufficient cash flow to deal with the debts. An insurer can provide hassle-free claim settlement if this ratio depicts its strength to meet the related liabilities.

All life insurance plans are priced differently. Thus, you need to choose the one that seems cost-effective for you. To avoid the risk of losing the life cover, make sure you do not select a plan whose premium is too high and unaffordable to you.

It defines the percentage of policyholders that pay the premium over the total active policyholders. It is a good indicator of customer satisfaction delivered by the insurer.

A simplified claim settlement procedure implies your family will not have to face any hassle to receive life insurance benefits. It is advisable to choose an insurance company which follows a streamlined process to settle claims. 

Life insurance policies are considered efficient tools for tax-planning. It is because the policyholder is eligible to get tax benefits under the Income Tax Act, 1961. The premiums paid for various life insurance schemes are tax-deductible Section 80C, while the payout or maturity benefit is tax-exempt under Section 10(10D) of the Act.

You can choose to pay the premium of life insurance plans in one go or with regular payments over time. Life insurance policies usually provide the option to choose between a single (one time) payment, regular (throughout the policy tenure) payment and limited premium payment tenure (for a payment tenure less than the policy coverage period).

With regular premium payment mode, you can select any of the following payment options:

You must also know that the life insurance premiums paid online are processed through secure payment gateways, thus ensuring the safety of transactions.