What Is A Life Insurance Policy
A Life Insurance Policy is a contract between the insurance company and the insured promising that they will pay the insured a sum assured at the time of an untimely death of the policyholder while active in the policy.
Not only this some life insurance policies offer an easy way to protect your financial savings by offering other different types of plans.
Life Insurance Policy Details
If the policyholder dies during the tenure of the policy, he would receive a sum assured from the insurance company as agreed. The sum assured will also have some bonuses along with it on the successful maturity of the policy cover. This applies only after the death of the policyholder, be it natural or untimely, and usually, the amount goes to the policyholder’s nominee as mentioned in the policy documents himself.
Benefits of buying a Life Insurance Policy
Financial protection is the major benefit offered by a life insurance policy to the policyholder’s family in the absence of the policyholder. The policyholder gets life insurance benefits from term insurance plans and Investment plans. The benefit amount is paid by the insurance company either on the death of the policyholder or on the date of the maturity of the policy where the policy tenure ends.
The benefits of a life insurance policy are given as a short list below:
- Security in your finances for your family
- Benefits of the death of the policyholder
- Policy maturity benefit even if there is no unfortunate event
- Fixed returns after a certain period to help your finances
- Tax benefits up to Rs.1.5 lakhs
- Add – Ons or Riders and tax benefits for the same
- Monthly pension benefits for the policyholder on Annuity-based life insurance covers.
- Loan benefits are available in some specific life insurance plans where you can get an option of taking loans.
Types of Life Insurance Policies in India
Based on the benefits they provide, life insurance policies are further categorised into 6 other groups. They are:
- Term Life Insurance:
Term Insurance is the most basic plan available in India that provides the death benefit for a fixed time. This is the most affordable type of life insurance cover available in the insurance market. The subdivisions of term plans are:
- Return premium term plan
- Increasing term plan
- Decreasing term plan
- Level term plan
- Savings life insurance plans/Endowment Plan
These plans are also known as Endowment plans and they offer both death benefits as well as the maturity benefit and bonuses. When the death benefit goes to the nominee of the policyholder if he dies during the tenure of the policy and the maturity benefit goes to the policyholder himself while on the policy term period after it attains maturity as instructed.
- Investment plans life insurance cover
These types of life insurance cover also called ULIPs or Unit Linked Insurance Plans have an option to pay a premium which is further invested in the capital market. The insured can choose the fund in which he wants his [premium to be invested like equity funds, debt funds, liquid funds, etc.
- Child plans life insurance
As the name mentions the plan offers financial security for the child of the policyholder. Usually, it is the parent who is covered in the child’s plan.
- Unlimited term plans
Also called Whole Life Plan that covers people till 99 or 100 years of age.
6. Retirement plans
These are pension plans under which the policyholder creates a conditional form where his regular annuity payouts will be given to him when alive.
7. Money-Back Plans
These plans are one of the most suitable plans for life insurance in India where the insured receives frequent payouts usually every five years as “Survival Benefit”, while alive. This includes both insurance cover as well as investment plans.
Top 6 Insurance Companies Offering Best Life Insurance Policy In India
Some of the best insurance policy offering companies are already giving the best types of covers and plans for people according to their individual needs from which they can choose.
Those are mentioned below with the expected sum assured amount:
| Life Insurance Company Name | Death Claim Settlement Ratio | Sum Assured |
| SBI Life Insurance Policy | 98.76% | Rs. 1 Cr* |
| Max Life Insurance Policy | 99.35% | Rs.25 Lakh/ 1 Cr* |
| Reliance Nippon Life Insurance Policy | 95.17% | Rs. 1 Cr* |
| Bajaj Allianz Life Insurance Policy | 99.02% | Rs. 1 Cr* |
| ICICI Prudential Life Insurance Policy | 97.9% | Rs. 50 Lakh/ 2 Cr* |
| LIC Life Insurance Policy | 98.04% | 125% of the basic sum assured as put forward by the company.* |
*The Sums Assured are subject to changes as per the company’s change in terms and conditions and this needs to be clarified with the insurance company directly while buying the cover.
When life insurance cover is chosen the nominee should be made well aware of the claim procedures as the claim requirement might occur in any unforeseen circumstances and the process will get smoother.
Buying a life insurance policy is very important for a family to keep security during a fateful event that might occur to a family member. Life insurance plans can be bought according to the goals of the policyholder.
Checking your Life Insurance Policy Status – Companywise
Once you buy your life insurance cover you may want to check the status of your active policy for several reasons. Given below is the list of the life insurance companies where you can check the status in simple steps.
1. SBI Life Insurance policy status – you can check your policy status by logging on to SBI’s official website and you enter your login ID and password from where you will be redirected to the enrolled policies option. You will get the details of your policy there and check the status of the same by clicking on the required plan you have purchased. You may also get your policy status through SMS.
2. MAX Life Insurance Policy status check – the status of max life insurance policy can be checked through their user-friendly company website and update your details in the customer service tab. When you enter your details you will get the policy plan you have purchased. Click on the same and get the current status of your plan.
3. ICICI Prudential Life Insurance policy status– you may check your life insurance policy status by visiting their official website and entering your details with your registered email id mobile number etc. and also by downloading the ICICI Prudential Life mobile App on your smartphone too.
4. Reliance Nippon Life Insurance policy status check – you may get your policy details by visiting their official website and entering the active policy details. You should be able to check the current status of the same.
You should always be aware of getting the security codes or passwords on your phone to check your policy premiums and status while entering the website. This is meant to be done properly to avoid any fraudsters accessing your insurance policy.
Common FAQs
- How much life insurance would I need to buy for myself and my family?
Ideally, it is recommended that you buy a life insurance cover of at least 10-20 times your annual salary so that your family will be able to continue to have the same quality or at least nearer to the ways that you were living with even when the policyholder/ breadwinner of the family dies.
- What happens to life insurance coverage if the insured does not die?
The premium paid to the life insurance policy is paid back to the insured in terms of the maturity benefits with any additional benefits if available in case the policy holder survives the entire tenure of the policy.
- How do I choose the best life insurance policy in India?
The best one that you may choose is based on the type of cover it provides to meet your needs and the benefits it offers you. Checking the claim settlement ratio is also very important to choose the best cover for yourself.
- Are the term life insurance and whole life insurance the same?
Term life insurance provides coverage for a limited time while whole life insurance cover is for the entire life of the policyholder and it provides death benefits as well as savings benefits. Term life insurance does not provide any returns even if it offers a high sum assured with low premium rates.
- How do I check my MAX life insurance policy details?
You can check the policy details of max life insurance by calling them on the toll-free number 18601205577 or by simply logging into their official website and entering your basic details required by the webpage
- How do I check my SBI life insurance policy details?
You can check your policy details by logging into the customer portal of SBI life insurance. It is a self-service portal that can be used very easily. Alternatively, you may also give them a missed call at 02262458501 or send an SMS to 56161/ 9250001848