Life Insurance! What does it really mean?

“Life Is Unpredictable” this quote is a Gentle reminder for the family bread earners.

Dependents of the earning member are negatively affected by the premature death of their earning member.


Unfortunately, most people fail to plan financially for their families in case of premature death.

The best way to provide stability for your family is to insure your life.


Buying life insurance is one of the most important financial decisions, but believe it or not, only 10% of Indians are insured.


Life insurance, including term plans, is intended to provide financial support to the beneficiaries (to family) to help them cope with the loss of income and expenses that arise due to death of family’s bread earner.


The policy’s sum insured is the amount of coverage that the policyholder selects when they purchase the policy. May be of (50 Lakhs, 1 Cr)


When the insured dies, the beneficiaries make a claim to the insurance company and provide proof of death, in the form of a death certificate. Once the claim is accepted, the death benefit is paid out to the beneficiaries. The death benefit can be paid out in a lump sum or in installments, depending on the policy.


If the policyholder dies during the term of the policy, the death benefit is paid out to the beneficiaries. However, if the policyholder outlives the term of the policy, the coverage will expire, and no death benefit will be paid out.


A bread earner works hard to make sure that the family is provided with a stable income.

The majority of people fall into the trap when they hear about Money back policy plans in life insurance.

The thing hidden is that you are charged an extra amount on your premium and charge a huge commission from your pocket. However, if you had to put that extra premium in any other instrument you would have gotten much more returns.

Remember Insurance is a risk protection solution, not an investment solution.

The best kind of insurance is the term plan where you will just pay for your life risk coverage. This would cost a lower premium than any other plan.

It is important for the policyholder to be aware of this limitation and choose the duration of the term insurance plan accordingly.


The amount for life insurance should be 20 times the amount of your annual income.

If your annual income is 5 lakhs, then your cover should be 1 CR (5,00,000*20)

The smartest thing you would do is to buy life cover early in your life as the premium will be low and the same throughout the policy term.


Life insurance provides a measure of financial security for the policyholder’s loved ones in case of the policyholder’s untimely death. It can help to ensure that the beneficiaries are able to maintain their standard of living and pay for expenses that are required to live life.



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