What is a Life Insurance Policy?

A life insurance plan is essentially an agreement between an insurance provider and a customer. The insurance company commits to pay a lump sum to one or more beneficiaries in the event of the insured person’s passing during the policy term. And the policyholder pays a fixed amount at regular intervals to keep the policy active. To put it simply, life insurance acts like a financial safety net for your loved ones.

Today, you will find different types of life insurance plans online. Some focus on financial returns, such as ULIPs that offer investment-linked growth and guaranteed returns plans offering a source of income. Others primarily offer financial security, such as term insurance plans and savings plans. Hence, it is imperative to gauge your needs before choosing a life insurance plan.

Is Buying a Life Insurance Policy Important?

With a life insurance plan, you can better deal with the following aspects of your and your loved ones’ lives:

Who Should Buy a Life Insurance Policy in India?

Anyone who understands the implications of future risk and wishes to secure their loved ones should purchase a life insurance policy. For someone in their 20s, a life insurance policy can help cover expenses such as school debts. Someone who has just crossed the age of 30 can use a life insurance policy for maybe a monthly income or any other similar need.

It can be said that any stage of life that a person is in, a life insurance policy can help them with unforeseen and unwelcome situations. A person can also purchase a long-term insurance policy for life.

The suitability of a life insurance policy does not restrict itself only to age.

You can also purchase a policy if the insured individual –

• Is not a permanent citizen of the country
• Indulges in smoking
• Is suffering from a medical condition
• Is affected by a disability

For the above situations, the policy particulars, such as premium value and sum assured will vary on a case-to-case basis.

Tip: One can use an online life insurance calculator to understand the particulars of a policy. The tool takes in basic personal information of the life insured, along with the selected policy features, to provide estimates of the premium payments.

Build your future with LifeLine Policy

With our range of plans offering various kinds of life insurance benefits, you can

• Protect your loved ones
• Build the family legacy
• Plan your child’s future
• Plan your retirement
• Set up a second income
• Buy a house

Basic Life Insurance Terminology

In order to understand life insurance policy details and buy life insurance, there are a few basic life insurance terms you should know.