Life Insurance in India#
Types of Life Insurance#
1. Term Insurance
- Pure life cover
- Highest sum assured at lowest premium
- No maturity benefit if survival
- Best for financial protection
2. Endowment Policy
- Savings + Insurance
- Guaranteed maturity benefit
- Limited cover
- Low returns
3. ULIP (Unit Linked Insurance Plan)
- Investment + Insurance
- Market-linked returns
- Higher charges
- Flexible investment options
4. Whole Life Insurance
- Life cover up to 100 years
- Cash value accumulation
- Loan facility available
5. Pension Plans
- Retirement planning
- Annuity option
- Tax benefits
IRDAI Guidelines#
- Free look period: 15 days
- Claim settlement timeline: 30 days
- Solvency ratio requirement: 1.5
- Agent licensing norms
- Digital policy issuance
How to Choose Life Insurance#
| Factor | Consideration |
|---|---|
| Coverage | 10-15 times annual income |
| Term | Until retirement age |
| Premium | Max 10% of income |
| Rider | Add critical illness, accidental death |
| Claim Settlement | Check insurer's ratio (>95%) |
Section 80C Benefits#
- Premium paid eligible for 80C deduction
- Maximum ₹1.5 lakh
- Premium for spouse/children also covered
- 80D for health rider