What is Life
Insurance?

Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

While there are single premium policies as well, the premium amount is usually paid on an annual basis, and there are options of paying half yearly, quarterly and monthly as well. The individual who buys the insurance is known as the policy holder.

Types of Life Insurance plans

Pure Protection

These plans are called Term plans and provide the predefined amount of money to the policyholder’s family, if the policyholder dies during a specified term. No amount is paid if the insured person survives till the end of the policy period.

This policy essentially remains active for a predefined time and is one of the most affordable policies available in the market, since the entire amount of premium is used to cover the life of the insured only.

Protection and Savings

This kind of policy works like a financial tool that helps you plan for your long-term goals like purchasing a home, funding your children’s education, retirement and more, while offering the benefits of a Life Cover.

In these kind of plans, part of the premium goes towards covering the risk of loss of life of the insured, while the other part of the premium goes towards accumulating a desired sum to meet the defined objectives.

Don't leave your family's financial security to chance.
Get life insurance now

Contact us

Popular Categories

Whole life insurance

Whole life insurance, as the name suggests provides cover to the insured for entire life till the policy is in force. The coverage period can be taken for as long as 100 years. These policies also offer loan facilities to the policyholder. The overall process of buying is simple and can be done online as well.

Money Back Policy

The main differentiator of money back policy is that it gives the policyholder different survival benefits which are linked to the period of the policy. Unlike other policies, this policy gives the policy holder money during the policy period. Regardless of the number of instalments paid, if the policyholder dies during the policy period, the family gets the entire sum. These policies are expensive as compared to other policies.

Endowment Policy

Endowment policies are different from term insurance policies in a way that in case of these policies, the insured gets a lump sum amount of money if she/he survives till the maturity date. The policy offers insurance with savings at the same time. They also come with riders that may be used to increase the coverage of the policy. In case of death, the endowment policy guarantees that along with the insured sum a participation profit is also paid according to the nature of the policy

Retirement plans

Retirement plans, in simple terms, can be defined as those plans that guarantee fixed income after your retirement. They aid in creating a retirement corpus. This corpus is then invested to generate post-retirement money flow, thus creating a financial cushion and helping in risk mitigation. The money is rolled out in the form of monthly pension.

Factors that Affect Life Insurance Premium

Discover your path
Health Conditions

This is the most important factor that decides whether insurance cover would at all be available to a person, and if yes, at what premium. This is because the insurance company perceives that the risk of claim arising sooner than later in a person who is not healthy is much more, hence the premium in a case of medically less fit person would be more than in case of an individual who is medically fit

Family Health History

Family health history also plays an important role in deciding the premium amount for a life insurance. If the insured has a family history of medical issues, especially hereditary diseases, then the premium to be paid by such person would be higher than a person with no such family history of medical issues.

Age

The higher the age of the insured at the time of taking the policy, the higher the amount of premium that the policy holder would have to pay for taking the same amount of life insurance cover

Gender

The life expectation of women in India is higher than men, hence the premium for life insurance of a female would be slightly lower than a male life.

Occupation

A person who is into hazardous occupation like mining, or adventure sports like sky diving, scuba diving, motor racing etc, would have to pay higher premiums to take a life insurance cover for oneself.

Amount of coverage

The larger the amount of cover, the higher the premium would be required to be paid for getting a life insurance cover

Benefits of life insurance

Risk mitigation and coverage

Life insurance provides financial coverage to the insured family in form of monetary compensation in lieu of premium paid to mitigate and cover financial risks after the policyholder’s death.

Tax benefits

Enrolling for a life insurance policy can guarantee you tax benefits. The premiums you pay towards the policy make you eligible for tax exemptions of up to ₹1.5 lakhs of your taxable income, under Section 80C of the Income Tax Act. The death benefits are also fully tax exempt, under Section 10(10) D of the Income Tax Act, subject to meeting certain criteria.

Guarantee of fix returns

Life insurance policies guarantee that you get a fixed amount after a fixed timeline. You need to go through the structure of different life insurance products. Whatever you choose, you can be rest assured that the promised death benefits will be disbursed to the beneficiary, if the information provided by you at the time of enrolling for the policy was accurate.

Provision for loan

Certain policies provide the option of loan and allow the insured to borrow a sum of money against the sum assured in a life insurance policy. This means that if you need to take a loan, for instance, to fund the education or marriage of a child, you can use the life insurance policy as collateral.

Health expense coverage

Most of these policies cover the health and treatment expense that may occur if the policy holder falls ill. You can also choose riders to increase the coverage of the insurance policy to protect your finances even while you are alive.

Plan ahead and safeguard your loved ones with
life insurance

Contact Us

Role Of Dealplexus In Your Decision To Take A Life Insurance Cover

If you are looking for a Life insurance cover for yourself, you may simply raise a query on Dealplexus.com, providing your name, contact details and type of insurance required. Our team shall connect with you to understand your priorities which could be any of the following:

Assessment of Insurance cover required

We will assess your assets and liabilities position and your current levels of income to understand the actual quantum of insurance that should be taken to give you sufficient cover to safeguard your financial liabilities in case of any eventuality.

Best premium rate

We strive to get you the maximum cover at the lowest premium rates, with all the features that are actually meaningful to be added to your insurance cover.

Multiple partnerships enabling requirement matching

Our partners are specialised in providing prompt and superlative customer experience in any of their dealings. Our partnership with all the major insurers gives us the flexibility to choose the best insurer who meets your requirements.

Smooth process

Taking a life insurance cover can be very tedious and time confusing, since a lot of paperwork is required to be completed, and health test also is required in many cases. Our team ensures that this entire process is smooth for you.

Frequently Asked Questions

What is life insurance?

Life insurance is a financial product designed to protect individuals and their families against the risks associated with the premature death of the breadwinner. The insurer promises to pay a sum to the policyholder's beneficiaries upon their death, offering financial support to dependents.

What is the main purpose of life insurance?

The main purpose of life insurance is to provide financial security for one's family in the event of the untimely death of an income-earning member. It ensures the wellbeing of loved ones by offering a death benefit to the policy’s beneficiaries.

What are the benefits of life insurance?

Life insurance provides a lump-sum payout to beneficiaries, which can be used to cover expenses such as funeral costs, debts, and mortgages. It offers peace of mind, financial security, and can also include investment options through policies that build cash value over time.

Which Plan is the best life insurance plan?

The best life insurance plan depends on factors like your age, income, lifestyle, and health. It is advisable to compare different plans based on your personal financial goals and protection needs before choosing one.

What is the premium for Life insurance plan?

The premium is a regular payment made by the insured to the insurance provider to keep the life insurance policy active. The amount depends on the sum assured, policy term, and the insured’s age and health condition.

What is the period for which I can take life insurance policy?

Life insurance can be taken for different durations. Term life policies offer coverage for a set period (e.g., 10, 20, or 30 years), while whole life or permanent policies cover you for life. The term depends on your age, health, and financial needs.

Is life insurance available for 100 years?

Yes, in India, some insurance companies offer policies with coverage up to 100 years. These are often limited and subject to specific eligibility criteria, but they are available as part of select long-term insurance plans.

Can I take life insurance if I am 80 years old?

Yes, individuals who are 80 years old can obtain life insurance, although the options available may be limited and premiums will be significantly higher compared to younger applicants.

I forgot to pay my life insurance premium. What should I do?

If you forget to pay your life insurance premium, contact your insurer immediately. Most policies have a grace period during which you can make the payment without losing coverage. If the grace period has expired, you may need to pay the outstanding premiums and fulfill reinstatement conditions to reactivate your policy.

Will my life insurance policy be cancelled if I do not pay the premium?

If you fail to pay your premiums, your policy could lapse after the grace period ends, resulting in loss of coverage. It’s essential to stay current with premium payments to avoid this interruption.

Is it okay to pay the insurance premium late?

While some insurers allow a grace period, late premium payments can lead to penalties, loss of coverage, or policy cancellation. It’s best to pay your premiums on time to avoid complications.

I have a health insurance plan. Will I still need a life insurance?

Yes, life insurance and health insurance serve different purposes. Health insurance covers medical costs, while life insurance provides financial support to your dependents in the event of your death. Both are important for comprehensive financial protection.

My office has provided me a good life insurance cover. Why should I pay premium for another insurance policy?

While employer-provided life insurance is beneficial, it may not be sufficient for your long-term needs and could end if you change jobs. Buying a separate policy gives you continuous and potentially more comprehensive coverage.

How can Deal Plexus help me to get a good Life Insurance Plan?

Deal Plexus helps clients choose the right life insurance plan based on their budget, lifestyle, and financial goals. Their team of experts provides personalized advice and guides you through selecting the right coverage and policy type.

Return to Home