Life Insurance

Best Life Insurance Policy in India 2023

Buying a life insurance plan in India is one of the most important decisions one can make in this age of uncertainty. It is recommended to get a life insurance policy according to one's financial…

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Buying a life insurance plan in India is one of the most important decisions one can make in this age of uncertainty. It is recommended to get a life insurance policy according to one's financial condition. This is because the premature death of the earner can affect the life of the whole family.

A life insurance policy helps the policyholder to ensure the financial security of his family in his absence. Finding the best life insurance policy in India can be very confusing as there are many life insurance policies from different life insurance companies available in the market. Hence, we at D2C Insurance Broking Private Limited (“RenewBuy”) have done some extensive research on the best life insurance policy in India and try to make it easy for you to choose the best life insurance policy as per your need and requirements. In the sections below, we will discuss the different types of life insurance in India and their benefits.

What is Life Insurance Plan?

A life insurance plan is a contract between the life insurance company and the policyholder in which the life insurance company promises to provide a pre-determined sum insured to the beneficiary of the policyholder in case of the untimely death of the insured. If the policyholder survives, a sum assured amount will be provided to the policyholder as a maturity benefit, in return, the policyholder will have to pay premiums for a specified period.

Types of Life Insurance

To buy the best life insurance plan, you must know the types of life insurance available in India. The following is the list of different types of life insurance plans:

Types of Life Insurance Policies

Overview

Term Insurance

It is a pure risk life cover. 

Whole Life Insurance

It offers coverage for the whole life of the policyholder.

Endowment Plan

It is a combination of protection and saving plan.

Child Insurance Plan

It offers financial coverage for your child’s future needs i.e. marriage, education, etc.

Pension Plan

It provides financial coverage for your post-retirement life.

ULIP Plan

ULIP plan is a combination of investment and life insurance.

Money-Back Plan

It provides some percentage of the sum assured at a regular interval.

Best Life Insurance Plans in India 2023

Finding the best life insurance plan in India is a very difficult task as different life insurance plans are offered by different life insurance companies. We RenewBuy is making it easy for you as we have put together a list of the best life insurance plans in India with the maximum sum assured of the plans offered in the table below:

Sr.no.

Company name

Plan name

Plan type

Max. Sum Assured

  1.  

HDFC Life Insurance

Click 2 Protect Life

Term Insurance

No Limit

  1.  

Max Life insurance

Smart Secure Plus

Term Insurance

1Cr

  1.  

ICICI Pru Life Insurance

iProtect Smart

Term Insurance

No Limit

  1.  

Bajaj Allianz Life Insurance

Smart Protect Goal

Term Insurance

1Cr

  1.  

Edelweiss Tokio Life Insurance

Simply Protect

Term Insurance

No Limit

*Disclaimer: We RenewBuy does not endorse any specific insurance company or insurance product offered by any insurer and this list is just an illustration of the plan offered by different life insurance companies

Importance of Life Insurance Plans

In today’s time, Life Insurance can be very important in anyone’s life as our lives are filled with uncertainty and danger. When something bad happens to one of the family members, it affects the entire family. If that person is the only source of income, the situation becomes even more serious. This is why life insurance is very important as it provides financial support to the assured family in his/her absence. With the help of life insurance, family members can their lives without sacrificing their basic needs and requirements.

Benefits of Life Insurance Plans

Many people do not know about the benefits of Life Insurance plans. It offers various other benefits to policyholders along with the life cover. Below mentioned are some of the benefits that a policyholder can avail of by buying a life insurance plan in India.

  • Financial Security: It ensures long-term financial stability for your family. Life insurance plans pay out a lump amount to your family in the event of your uncertain death and disability.

  • Loan option: One of the most significant advantages of life insurance plans is the ability to obtain a lower-cost loan using the investment portion of your life insurance policy. Guaranteed savings plans, money-back plans, and Whole life insurance policies all have a cash value that accumulates over time. You can get a loan against this cash value at a cheap interest rate.

  • Retirement Planning: Life Insurance plan provides financial support to you even after your retirement independently post-retirement.

  • Life Stage Planning: A life insurance plan helps you to plan your multiple life stages such as marriage, home purchase, childbirth, retirement, etc.  For example, Term Insurance provides protection, a Child Plan provides for a kid's marriage and education, a ULIP plan provides for wealth building, and a pension plan provides for financial support after retirement.

  • Tax Benefits: You can avail of tax deduction of up to INR 1.5 lakh per year in premiums paid for life insurance under the provision of the Income Tax Act, 1961. In addition, the nominee's life insurance payouts are tax-free under Section 10(10D).

How to Choose the Best Life Insurance Plan in India?

There are many life insurance plans available in the market and each insurance plan has its unique coverage features and benefits. Hence, it becomes confusing for the customer to choose the best among them. Hence, it is important to examine every aspect of a life insurance plan before choosing one. We RenewBuy has done some research and brought out some points which can be very beneficial for the customer to buy the best life insurance plan in India.

  • Always check the claim settlement ratio of the life insurance company.
  • Always calculate your life insurance premium through the Life insurance calculator.
  • Always check the customer reviews of the Life Insurance Plan.
  • Always go for the insurance company that provides 24/7 customer care service.

Buying Process of Life Insurance Plans in India

You can buy your life insurance policy from RenewBuy as it provides you with a reliable and trustworthy platform. You can compare various life insurance policies and choose the best one that meets your needs. Below mentioned are the steps to buying the best life insurance plan:

  • Visit the official website of RenewBuy.
  • Scroll down and click on the “Life” section.
  • Fill in the required information such as DOB, Gender, etc.
  • The next page will show you the Life Insurance policy in India offered by various insurers”.
  • You can choose one of them and proceed with the payment.
  • Once the payment is done, the policy document will be shared with you at your registered E-mail ID.

Documents Required to Buy Best Life Insurance Plans in India

Below mentioned are the documents you need to submit to buy the best life insurance plans in India:

  • ID Proof

Voter ID, Driving License, PAN Card, Passport, or Aadhar Card.

  • Age Proof

10th or 12th mark sheet, Driving License, Passport, Birth Certificate, Voter ID, etc.

  • Address Proof

Telephone Bill, Ration Card, Electricity Bill, Driving License, and Passport.

  • Income Proof

Form 16, ITR (2-3 years), salary slips for the last 3 to 6 months, etc.

Life Insurance Claim Process

Life Insurance claim process is classified into two categories i.e. death claim process, and the maturity claim process. Let's discuss both the process in detail.

Death Claim Process

  • Nominee should intimate the Life Insurance Company with all the required detail such as cause of death, time, and place.
  • Submit all the needful documents such as the death certificate, and claim form.
  • Submit the hospital, post-mortem, and doctor’s report.
  • Once the insurance company completes its investigation, the insurer will settle the claim within 30 days of the documents being submitted by the insurer.

Maturity Claim Process

If the policyholder survives the policy term, then the insured is eligible to get benefits of maturity benefits. Below mentioned are the steps to file a maturity claim:

  • The insurance company will send a discharge voucher to the policyholder.
  • The insured has to sign the voucher along with the original policy bond and send it back to the insurance company.
  • The insurance company will settle the claim and the claim amount will be sent to the assignee.

FAQ:

Q. How many Life Insurance companies are providing life insurance in India?
A. There are currently 24 life insurance companies licensed by the IRDAI to sell life insurance plans in India.

Q. Does life insurance cover death caused due to accident?
A. Accidental death is covered by most life insurance policies. However, it is necessary to check the policy documentation to see if death by accident is specifically excluded.

Q. Is there a grace period in life insurance policies?
A. Yes. If a policyholder forgets to pay the premium, the life insurance policy provides a 30-day grace period to pay the premium.

Q. What If the nominee of the life insurance policy dies between the policy tenure?
A. You can make a new nominee in this situation. If you don't, your insurance company will make you the new nominee of the policy by default.

Q. Can I buy multiple Life Insurance Policies?
A. Yes, you can buy multiple life insurance policies at the same time.

Q. How would I choose the best life insurance policy in India?
A. Below mentioned are the steps to choose the best life insurance policy in India that meets your requirement:

  • Analyze your requirement
  • Calculate the life cover you want
  • Compare the life insurance premium amount through the “RenewBuy” life insurance premium calculator
  • Choose the policy term of the policy
  • Compare all the life insurance companies
  • Check the policy inclusions, exclusions, CSR (claim settlement ratio), and other important factors
  • Select a comprehensive life insurance plan along with some additional rider such as critical illness rider, accidental death benefit rider, etc.
  • Then, buy the best life insurance policy that meets all your requirement

Q. What are the documents required to buy the best life insurance policy in India?
A. To buy the best life insurance policy in India, the policyholder needs to submit the xerox copies of the PAN card, Voter ID card, and Aadhar card, along with the two passport-size photographs.

Q. What are the tax benefits under the best life insurance policy in India?
A. According to the Income Tax Act of 1961, you are eligible for annual deductions on life insurance premiums of up to INR 1.5 lakh. Additionally, Section 10 of the Tax Code exempts the nominee's life insurance proceeds from paying taxes (10D).

Q. What are the benefits of the best life insurance policy?
A. Below mentioned are the benefits of the best life insurance policy in India:

  • Financial Safety
  • Affordable Premiums
  • Higher Life Cover
  • Tax Benefits

Q. Can I buy my life insurance policy online?
A. Yes, you can buy your life insurance policy online as online mode provides you a safe and secure gateway and it is a very simple and quick process.

Q. Best way to find the Best Life Insurance Policy in India?
A. Below mentioned are a few points that can help you to choose the best life insurance policy in India:

  • Assess your insurance goals
  • Calculate the sum assured amount you need
  • Check the premium amount you can pay
  • Compare different life insurance policies
  • Check the best life insurance companies
  • Choose a comprehensive life insurance policy
  • Evaluate your life insurance policy regularly

Q. Why Should I Buy Life Insurance Policy?
A. A life insurance policy provides financial stability to the assured family in case of the policyholder's death. You should buy a life insurance policy to ensure your family does not face a financial crisis after your death.

Q. Does smoking affect my life insurance policy premium amount?
A. Smoking affects your life insurance premium, and Smokers have to pay a slightly higher premium amount than non-smokers.

Q. Do Life Insurance companies sell their life insurance policies online?
A. Yes, you can buy any life insurance policy from any life insurance company online and offline.

Q. What are the types of life insurance policy in India?
A. Below mentioned are the types of life insurance policies available in India:

  • Term Insurance
  • Life Insurance
  • Whole Life Insurance
  • Endowment Plan
  • Saving Plan
  • Retirement Plan
  • Child Plan
  • Unit-Linked Insurance Policy (ULIP)

Q. What is the right age for a term insurance policy?
A. There is no specific right age to buy a term insurance plan, but it is better to buy as early as possible.

Q. How much cover should I take in a term policy?
A. A term insurance plan's purpose is to fulfil your needs, and every person has a different need. So, various factors must be considered before choosing a cover. These factors are annual income, financial goals, current age, etc.

 

Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your life insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.

 

 

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