Call Helpline No. +91 90017 93293

Life Insurance

When we buy a new car/Scooter it is mandatory to buy a motor insurance cover. Isn’t It?

Is our live more valuable than you car/ Scooter? I am sure we all will agree that human life is much more valuable and our lives are also interconnected with many others. The financial loss is not only restricted to family but it can indirectly impact a lot of people.

Do we mandatorily and adequately cover our life against the potential risks that exists in our daily life? In most of the cases the answer would be NO.

We realize the importance of having insurance cover when we face these real life situations. Have you ever realized how stressful it can be? These incidents carry a lot of emotional and financial burden; these can be very disturbing & stressful.

All individuals must have the following type of risk protection

Life is uncertain and so are life’s events. There is always a risk & fear that something can go wrong. These events have financial implications and to protect us from the same we need Insurance protection. Proper insurance planning helps you to prevent your financial planning from being rocked. Insurance planning helps you transfer your risk for a small amount of money called "premium".

Health insurance

Life Insurance

Accidental Insurance

Asset Cover (Car/ House/ Factory etc.)

Questions to be answered before taking any policy

  • Why am I buying this insurance policy?
  • Do I actually need so many Insurance policies or I just need a few?
  • God forbid if something happens to me. How much Insurance cover do I need in order to ensure that my family do not face any financial problem?

Key Takeaways

  • Keep the highest possible term
  • Keep the maturity age as long as possible
  • Choose the plan that has the lowest premium at your parameters
  • Undergo medical tests, if required
  • Keep the nominees informed
  • Pay premiums every year

Unfortunately Insurance in India is bought either to save tax or as an investment. The basic reason & purpose of buying the insurance is to have risk cover.

Life Insurance is a contract by which you can protect yourself against specific losses by paying a premium over a period of time. Since each one of us, during our lives are faced with numerous risks - failing health, financial losses, accidents and even fatalities, our instinct drives us to cover ourselves against those risks. Though an insurance cover can't protect you against the emotional losses arising out of these risks, it softens the economic crisis that usually accompanies these losses. Insurance is a risk protection against any unforeseen incident and insured transfers the financial risk to the insurance company by paying a consideration called premium.

Questions to be answered before taking any policy

  • Why am I buying this insurance policy?
  • Do I actually need so many Insurance policies or I just need a few?
  • God forbid if something happens to me. How much Insurance cover do I need in order to ensure that my family do not face any financial problem?

We believe that Insurance cover is taken to primarily provide risk protection and transfer financial risk. It is not a good Investment option there are many more cost efficient investment option available. We recommend pure risk protection based insurance policy that provides a very high sum assured by paying a low premium. The period (number of years for which policy is issued) of risk coverage is also very important. Your Insurance policy should not leave you uninsured at the age when you need the risk cover most. Insurance product for such a need is called “Term Assurance”

Simply put, life brings with it many surprises, both pleasant and unpleasant. By taking a Life Insurance Plan one can ensure that he / she is better prepared to face uncertainties in number of ways.

Key Takeaways

  • Keep the highest possible term
  • Keep the maturity age as long as possible
  • Choose the plan that has the lowest premium at your parameters
  • Undergo medical tests, if required
  • Keep the nominees informed
  • Pay premiums every year

Types of Life Insurance

1) Term Plans: Term life insurance ensures that your family receives a large lumpsum amount, called the sum assured, in the unfortunate event of death of the policyholder. By offering this benefit at extremely competitive rates, Term insurance plans provide an opportunity to get the protection of insurance cover at extremely affordable prices. It offers high death benefit at low premium but no maturity benefit.

2) Traditional Plans: Popular and widely accepted products like Endowment, Whole life, Money Back and Pension plans with/ without guaranteed Maturity benefit fall under the category of Traditional Plans. Periodic payment of certain percentage of sum assured is made at regular intervals as premium and the Assured Sum is payable at Death / maturity.

3) Unit Linked Insurance Plans (ULIP): ULIPs offer a unique combination of security from life insurance and earnings from investments along with various funds options. Like any traditional plan, ULIP also addresses various future financial needs which may come up for an individual, like Child education, Mid and long term Investment, Retirement, etc.


Why should I start planning my life cover needs now?

  • One should have adequate cover for dependents. It's better to be prepared and ensure that the financial needs of your loved ones are taken care of, in the unfortunate event of death.
  • With age, the premiums tend to increase and therefore buying term insurance becomes more expensive.
  • Apart from the benefit of protection for your dependents, also enjoy tax benefits under Sec 80C up to Rs. 1,50,000.

Common Questions before you opt for Insurance

  • What kind of insurance do I need?
  • How much of each kind do I need?
  • Who do I insure from?
  • What happens if I’m not covered?
    What really happens if you aren’t covered, whether it’s not enough of a particular type of insurance or none at all? Imagine a scenario and play it out in your head. Will it even affect you? Can you recover from it at all? We will go through some basic scenarios together and you can decide for yourself.

There is another question that you should continually ask yourself when deciding about your insurance needs.

Two method to calculate insurance amount

  • Human Life Value approach
  • Need based approach based on existing income needs.