Life insurance has one real job: replace your income for the people who depend on it. Here is how much cover you need, every type of plan with its honest pros and cons, and the rules that changed recently.
Nobody likes thinking about it — which is exactly why so many families are left without enough. A pure term plan costs a small part of your income and protects all of it.
Rent, school fees, groceries and EMIs don't stop. The cover replaces the salary your family relies on, for as many years as they need it.
A home loan or business loan doesn't die with the borrower. Cover sized to your loans means your family keeps the house, not the debt.
Your child's education, a daughter's wedding, your spouse's retirement — the plans you were saving for can still happen.
Most families are under-insured because the cover was picked from a brochure, not from their own life. These four things decide your real number.
Your exact figure depends on your family — and we work it out with you, free.
Most problems start when protection and investment are mixed in one policy. Here is what each type really does.
Pure protection = the most cover for every rupee. If you buy only one life policy, it should almost always be a term plan, with investing done separately in mutual funds.
The simplest and cheapest way to get a large cover — often ₹1 crore or more for a modest yearly premium at a young age.
Best for: anyone whose income someone else depends on.
Same cover as term, but you get your premiums back at the end — for a noticeably higher premium.
Best for: people who would otherwise skip cover entirely.
Covers you for practically your whole life — used mainly for leaving a legacy or planning an estate.
Savings plans combine a small cover with a savings component. They suit people who want certainty and discipline — but they give much less cover, and returns are usually modest. Never let one replace a term plan.
You pay a fixed premium; the plan pays a maturity amount (guaranteed, or with bonuses) or the cover on death.
Best for: a fixed, guaranteed future need — after term cover is in place.
Pays out a portion at set intervals during the term, with the balance at maturity.
ULIPs (Unit Linked Insurance Plans) invest your premium in equity or debt funds of your choice, with a life cover on top. There is a 5-year lock-in, and charges are higher in the early years.
Choose equity, debt or balanced funds inside the policy and switch between them, usually without tax on switching.
Honest view: for most families, term plan + mutual fund SIP gives more cover and more flexibility. We'll show you both side by side.
Goal-based plans are built around one goal — a child's future or a pension. Their most useful feature is often a built-in premium waiver: if the parent dies, the insurer keeps paying the premiums.
The plan keeps running and pays out at the planned age even if the parent is no longer there.
Deferred plans build savings till retirement; immediate annuities turn a lumpsum into a guaranteed income for life.
Riders are optional extras on your base policy for a small extra premium. Choose them for real gaps — not because they're offered.
An extra payout if death is caused by an accident. Cheap and useful if you travel a lot.
A lumpsum on diagnosis of listed serious illnesses such as cancer or heart attack.
Future premiums are waived after disability or critical illness — the cover stays.
Pays if an accident leaves you unable to work, when income stops but expenses don't.
Premiums for individual life insurance — term, ULIP and endowment — are exempt from GST (earlier 18% on term). Group policies are still taxed.
Notification No. 16/2025-Central Tax (Rate); Dept. of Financial Services FAQ.
Don't like the policy after reading it? You can return it within 30 days of receiving it (earlier 15). Some charges such as risk premium for the days covered may be deducted.
IRDAI master circular on life insurance products, 2024.
All life insurance savings products must now offer a policy loan facility — useful for a short-term need without surrendering the policy.
IRDAI master circular on life insurance products, 2024.
A ₹50,000-a-year savings plan may give only a few lakh of cover — far too little if the worst happens.
₹10–25 lakh sounds big, but may cover only a few years of expenses and none of the loans.
Not disclosing smoking, alcohol or an illness to save premium is the most common reason claims get disputed.
Premiums rise with age and with every new health issue. The cheapest year to buy is this year.
Employer group cover ends when the job ends — often when you need it most.
Policies go unclaimed because nobody knew they existed or where the papers were.
Your family calls or WhatsApps us — we take it from there.
We list exactly what the insurer needs: claim form, death certificate, ID, bank details, policy papers.
We help submit the claim and follow up with the insurer until it is decided.
The payout goes directly to the nominee's bank account.
No more than a car insurance premium is wasted when you don't crash. You paid for your family's safety during those years. Because term is cheap, the money you save compared with a savings plan can go into a SIP — which usually leaves you better off.
Usually until your planned retirement, or until your loans are repaid and children are independent — often 60–65. After that your investments should take over the job.
A term plan simply lapses and the cover ends (you usually get a grace period to pay). Savings plans may become "paid-up" with reduced benefits, or give a surrender value. Talk to us before stopping — there may be a better option.
Rarely. Group cover is often a small multiple of salary and ends when you leave the job. Treat it as a bonus on top of your own term plan.
Many Indian insurers offer plans to NRIs, with medical tests sometimes arranged abroad or during a visit. Rules differ by insurer and country — share your details and we'll check the options.
Send us your age, income and loans on WhatsApp — we'll suggest the right cover and compare term plans for you, honestly.