Life Insurance
Term and traditional life cover so a family's future survives the loss of an income.
What it is
Life insurance exists to replace an income that would otherwise stop. Everything else a policy might do is secondary to that single purpose.
Pure term cover is the most efficient form of it. Because there is no investment component, the premium buys a far larger sum assured — often several times what the same money would buy in a traditional endowment or money-back policy. If your objective is protection, term is almost always the correct instrument.
How much cover? A common working figure is ten to fifteen times annual income, plus outstanding loans, minus liquid assets already available to the family. The right number depends on how many people depend on you and for how many more years.
Buy young if you can. Premiums are set at entry age and stay level for the policy term, so term cover bought at 28 costs materially less every year than the same cover bought at 38.
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Explore life insurance options
Insurance is the subject matter of solicitation. Policies are issued and underwritten by the respective life insurance company; all terms, exclusions and claim decisions rest with them.
At a glance
The options, side by side
| Type | What it does | Practical note |
|---|---|---|
| Term cover | Pure protection, no maturity value | Highest cover per rupee of premium |
| Return of premium term | Term cover, premiums returned at maturity | Higher premium for the same cover |
| Endowment | Protection plus a savings element | Lower cover, modest returns |
| ULIP | Protection plus market-linked investment | Carries market risk; charges vary |
Before you commit
What could go wrong
- Non-disclosure of medical history, habits or existing policies is the leading cause of rejected claims.
- Policies carry exclusions — suicide within the first year is standard, and others vary by insurer.
- Lapsed policies provide no cover. Premiums must be paid on time for the full term.
- ULIPs and market-linked policies carry investment risk in addition to insurance terms.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Insurance is the subject matter of solicitation. Loan and deposit products are governed by the terms of the respective lender or issuer.
Enough that your family could clear outstanding loans and still replace your income for as long as they need it. Ten to fifteen times annual income plus liabilities is a reasonable starting point. We will work through your specific numbers rather than apply a rule of thumb.
Yes, always, every single one. An insurer can decline a claim for non-disclosure even of something unrelated to the eventual cause. Full disclosure may raise the premium slightly; non-disclosure can cost your family the entire claim.
A term policy lapses and cover ends, usually after a grace period. Traditional policies may acquire a paid-up value after a minimum number of years. Both outcomes are worse than simply telling us before you stop, so that we can look at options.
Ready to put a strategy behind your money?
Sit with us for a free, no-obligation conversation about your goals — at our Indore office, or over a call at a time that suits you.
