The Ultimate Guide to Buying Life Insurance in India (Part II)

Welcome back, thoughtful planner! In Part I, we decoded the jargon of life insurance. Now, let us delve deeper into the buffet of options laid out for you.

The Cornerstone: Why Life Insurance?

Life isn’t only about the moments we live; it is about ensuring that you and your loved ones' ambitions and dreams continue even in your absence. Be it securing your child's academic future, ensuring the continuity of your legacy, or simply safeguarding against life’s unpredictabilities - the right insurance plan amplifies life's certainties.

Recognize your current life chapter and align your needs. If you need help, our find your plan tool can help!

The Insurance Buffet

Term Insurance

Consider it the “plain pizza” of insurance – straightforward and effective. You chip in a bit monthly, and, if life doesn't go as planned, your family is cushioned with a considerable sum. For instance, Bandhan Life’s iTerm Prime allows a 30-year-old to secure a ₹1 crore life cover for just ₹797 per month¹. No wonder it is one of our best-selling products!

Most term policies are set for specific durations, often covering prime years – for both, the primary breadwinner or a homemaker. You can enhance this with add-on riders, providing benefits like critical illness cover and accidental death advantage.

Wondering about the coverage amount?

💡 Pro Tip: Aim for 10-15 times your annual income. Or, let our term insurance calculator guide you.

Savings Insurance Policies

Visualize a piggy bank, one that doesn’t just store but also grows AND safeguards your savings and dreams. Savings Plans primarily merge life insurance's protective aspect with steady savings growth. Should life proceed without hitches, you enjoy guaranteed returns. If not, your beneficiaries receive a significant payout, often amounting to nearly 10x your premium. This plan caters to medium to long-term goals – perhaps a dream house renovation, or your child's overseas education.

ULIPs (Unit Linked Insurance Plans)

ULIPs are the daredevils in insurance. They flirt with market trends. A fraction of your premium provides life coverage, while the remainder is invested in the likes of equities or bonds. The associated risks are higher, but so is the potential reward. Ideal for those with extra income and a desire for higher returns. Check out Bandhan Life’s iMaximize Plan to learn more!    

Child Plans

These are your foresights for your child's significant milestones – be it higher education or matrimony. One notable feature is the premium waiver. If the policyholder meets an untimely demise, further premiums are waived, but the policy remains intact. Your child's dreams remain protected, regardless of life’s uncertainties.

Retirement Insurance Plans

Preparing for the sunset years? If not, it is a good time to start now. Retirement Plans weave a financial safety net for your post-work phase, ensuring a relaxed retirement with steady pension inflows. When considering such a plan, account for factors like monthly costs, inflation, and medical expenses. The earlier you start, the more you accumulate, ensuring a comfortable retirement.

If you are already expecting a retirement lump sum, consider annuity plans. They can convert lump-sum amounts into regular pension payments, often with options to extend benefits to your spouse after your passing. Learn how life insurance can help you plan your retirement. 

Zero Cost Term Plan

The technical insurance term is ‘Special Exit Value’ - but simply said, it is an option to retrieve all paid premiums post a certain age. It is a handy option to explore if, after reaching a life stage, you believe that your life goals have been achieved and life cover seems redundant. Our iTerm Prime offers the ‘Special Exit Value’ too. 

Vetting the Right Insurer

Your insurance is only as strong as the institution backing it. In a sea of options, the Claim Settlement Ratio (CSR) can serve as your compass. A testament to an insurer's reliability, CSR reflects their track record in honoring claims. Your family's future should not be a gamble; CSR ensures it is not.

Key Considerations

• Transparency: When filling out forms, be candid about health and habits. This ensures a hiccup-free claims process.
• Awareness: Understand your policy inside-out. Dive into the details, ask questions, and familiarize yourself with the claim's initiation procedure.

As you delve into the world of life insurance, remember it’s more than just a financial commitment. It's your silent vow, a partner in ensuring that your promises to your family aren’t left to the whims of fate. With digital ease at platforms like Bandhan Life, buy life insurance online and honor that vow with just a click. Embark on your journey today to chart a secure path for tomorrow

¹The monthly instalment premium of ₹797 has been calculated for a self-employed healthy male non-smoker, aged 30 years, and for a sum assured of ₹1 Crore for insurance coverage up to 60 years of age, for a policy term of 30 years. The premium value is exclusive of taxes, and inclusive of 5% discount on first year premium, which is applicable only when the purchase is made through digital platforms. It also includes additional  5% discount which will also be applicable only on first year premium for Self-Employed or other Non-Salaried Customers. The annualized premium for these parameters is ₹9,163 p.a.