‘Death is certain. Life is uncertain.’ Why do you need a life insurance cover? This English proverb explains it perfectly. And what is life insurance? Life insurance is a contract between you and the insurance company. Here, the insurer promises to pay your family a certain sum in the event of your untimely death. It is a way of ensuring the financial security of your family in your absence. There are different types of life insurance policies in India. You can use any of these as a tool to provide for your family’s well-being.

Here is all you need to know about life insurance:

What is life insurance?

Life insurance is a contract between two parties. On buying the insurance policy, you become the insured or the policyholder. The company you buy the contract from becomes your insurer. You pay a certain sum of money to the insurance company. This sum is the premium. In the event of your death, this company pays a lump sum to your designated beneficiary. Thus, life insurance serves as a provision for unforeseen situations.

Why do you need life insurance?

Do you love your family? Then you must have a life insurance policy. Life insurance is a way of ensuring your family’s well-being when you are no more. Indeed, nothing can make up for the loss of a loved one. But a financial cover will give your family the strength to deal with the tragedy. Are you the sole breadwinner of the family? Then your demise will add to the financial misery of your dependents. The policy cover will help them be financially independent.

What happens if you have no life insurance?

Your house is one of your biggest assets. You not only invest financially but also make emotional investments. Now, imagine your house being seized by the lender because you have not paid your dues. Imagine your kids having to compromise on their education due to financial constraints. Imagine a drastic shift in your family’s standard of living. The mere thought is dreadful, right? Yes, death is unavoidable. But you can shape a favourable future for your family. Just get enough insurance cover.

How should you buy a life insurance plan?

Either buy a policy online or get it through an insurance agent or broker. Online policies are cheaper, though. They exclude the commission charges of the intermediary. Besides, the online buying process is simple. Say, you want to buy a life insurance policy offered by Bajaj Finserv. You simply have to go to their website and fill in your details. You can also give them a missed call on their helpline number. They will then guide you through the entire process.
What are the types of life insurance?

  • Term Insurance

Term insurance is the simplest form of life insurance. It is also the cheapest. It covers you for a specific period of time. That is, your family gets a lump-sum amount in case of your death. But if you survive the term period, you receive no payout. That is why the premium for term insurance is quite low compared to the cover available.

  • Whole Life Insurance

As the name suggests, a whole life insurance policy offers you a lifetime cover. Your family receives a lump-sum amount after your death. Besides this, your family will also be entitled to the bonus that accrues on the sum assured.

  • Endowment Policy

An endowment insurance policy is a savings-linked insurance policy. A lump-sum amount is paid to the beneficiary in the event of your death. Should you survive the term, you will receive the maturity proceeds.

  • Money-back Policy

Here, a percentage of the sum assured will be paid to you periodically throughout the term. This is the survival benefit. Once the term expires, you will receive the balance amount as the maturity value. In the event of your death during the term, your beneficiary will receive the entire sum assured. They will receive the full sum regardless of the periodic survival benefits paid to you.

  • Unit-linked Insurance Plans (ULIPs)

ULIPs are insurance products that double up as investment tools. Under ULIPs, a part of your premium goes towards your insurance cover. The remaining amount is invested in debt or equity. Here too, the beneficiary receives the sum assured in the event of your death. But the returns on the investment amount are subject to market risks.

  • Child Plan

Such policies ensure a secure future for your children in your absence. Your child is the beneficiary here. In case of your death, your child gets a lump-sum amount as a death benefit. But the policy does not end after this payment. Your child continues to get a certain sum at specific intervals. This is planned under the policy. No further premium needs to be paid after your death.

  • Pension Plans

Pension plans are a good way of building a retirement fund. The premium you pay is actually an investment in a carefree life post retirement. In the case of your death, the beneficiary can claim a lump-sum amount. Or they can choose to receive a regular pension for the rest of the tenure.

Here are some of the best life insurance plans in India in 2017?

Life Insurance Plans

 Entry Age (Min/Max) (years)

Policy Term (Min/Max) (years)

Sum Assured (Min/Max) (Rs)

Grievances Settled for 2015–2016 (%)

Aegon Life iTerm Plan


5/62 0r 80

25 lakh/ Not Applicable (NA)


Aviva i-Life Plan



50 lakh/NA


Bajaj Allianz Life Secure

25/50 or 55


20 lakh/ NA


Bharti AXA eProtect Term Plan



25 lakh/ NA


HDFC Click2Protect Plus



25 lakh/NA


ICICI Pru iProtect



Subject to the minimum premium/ NA


Kotak Life Preferred e-Term



25 lakh/ NA


LIC e-Term Plan



25 or 50 lakh/ NA


Max Life Online Term Plan



25 lakh/100 crore


SBI eShield Plan

18/60 or 65


20 lakh/N A



The bottom line

Life insurance is a step towards securing the financial future of your loved ones. India is home to different types of life insurance policies. And Bajaj Finance offers you the best insurance plans at your convenience. Find one that’s suits you best.