Life Insurance Plans for Families in India

You can purchase various types of life insurance plans based on your financial requirements and future needs and ensure that the future of your family is safe and secure even if you are not around with them in the future.
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Life is unpredictable and there is no getting away from that fact. If you are the sole breadwinner of your family then you have to make sure that your family is taken care of even under the most trying of circumstances and that is where life insurance for families comes in. There used to be a time when, if you wanted to take a family life insurance plan in India, your choices were severely limited but in the past few years the industry has grown and received a lot of attention. Today, customers are spoilt for choice when it comes to life insurance. They can choose from a host of plans which give them benefits like never before. These policies range from term insurance to ULIPs to endowment plans and even includes pension plans. A close examination of these will reveal that all the plans offered under these schemes are designed in such a way that they suit the individual needs of each person buying them. It does not matter if you stay in a rural area or an urban area, you need a family life insurance policy that ensures the continued wellbeing of your family even if you are not around.

Types of Life Insurance Plans for Families in India

Insurance plans come in many different forms. Some give you plain and simple insurance cover for the premium you pay, while others try to give you facilities like survival benefits, pensions, etc. Some versions of these policies are actually family protection plans which make sure that your family’s future is secure in case you die or are disabled and not able to earn anymore. The question of what the best family life insurance plan for you is answered by your own personal needs and capabilities. First let’s take a look at some of the types of insurance plans then we can look at the benefits that each of them have to offer.

  • Term Insurance plans
  • These are sometimes called the basics form of life insurance. What happens in a term plan is that you pay a premium and the insurer makes sure that you are covered by a specific amount for the duration of the policy. What this means is that you decide the duration of a policy and choose the amount you want to be covered for. You pay the premiums for said amount and, in the unfortunate event of your death, your family gets the amount you are insured for. The period of such a policy can be anything from 10 years to 20 years based on the conditions set forth by the insurer.

  • Money-back policies
  • These are policies that don’t stop at just insuring your life for a specific amount. Here too the general principles of a life insurance policy apply except in this case regular payments are made to you at certain intervals, hence the name money-back. Should the worst happen while this policy is in effect then the your family will be given the entire sum assured even if you have already received some money as part of the money-back scheme.

  • Unit Linked Insurance Plans
  • Unit Linked Insurance Plans or ULIPs are insurance plans where a part of the premium you pay is dedicated to providing life insurance cover to or your family members and the remainder is invested in the markets.

  • Pension policies
  • A Pension Policy, as the name suggests, is a plan that you take to plan for the future. It is obvious that you are not going to work forever so what happens when you retire? Pension Policies basically make sure that you keep getting a monthly income even after you retire, so that you can go ahead and enjoy some quality time with the grandchildren.

  • Joint life insurance
  • A joint life insurance plan is one which is designed specifically to be a life insurance plan for family members. Under this scheme a couple may take a life insurance policy together under one contract and the plan they take can be either a term plan or a ULIP or any other type of life insurance plan which ensures that you and your better half are going to stay financially independent should one of you die.

  • Child insurance plans
  • Many insurers offer customers the choice to take a life insurance plan for family members that makes sure that, should anything happen to you, your children don’t have to suffer. With such a plan in place you can rest easy that your children’s future is safe.

Advantages of an Insurance Policy

There are many advantages to buying life insurance for a family. The advantages are so great that they almost make it a mandatory investment. These benefits may vary from one insurer to another but the common theme they have is to make sure that there is always something that the insurance plan can do for you and your family. Let’s take a look at some of these advantages

  • Financial future
  • The first and most obvious advantage of insurance plans is that they are not simple insurance plans, they are actually family life insurance plans because the ones drawing the maximum benefit out of the scheme is the family. With a life insurance plan you can make sure that your family always has money even if you are not there. This is especially important if you are the primary breadwinner of the family.

  • Family life insurance plans for everyone
  • It doesn’t matter that you are not super rich. If you are in a position where you can’t afford to pay premiums for some of the insurance plans with money-back options then you can always go in for a term life insurance plan which still gives you the benefit of being insured and the added advantage that the premiums for such plans are not too heavy on the pocket. Term life insurance is actually a very affordable family protection plan insurance.

  • Get something in return
  • There are some for whom a simple term plan might not be enough. They want some sort of benefits at the time of maturity of the policy and during the tenure of the policy. Money-back plans offer features like regular payments to policyholders, maturity benefits and even pension planning where the insurance policy turns into a pension plan when you retire.

  • Double payment
  • If you have gone in for a joint life insurance scheme then you stand to gain more than the obvious advantage. The first is that the premiums for a joint insurance plan tends to be cheaper than other plans and the second is best explained by a small example. Let’s say there is a family of a husband, a wife and their son. The husband and wife are covered by a joint insurance plan when the husband passes away. In this case the wife is paid the entire sum assured with which she can take care of herself and her son. A few years late the wife also passes away, what happens then? If the second person also passes away, while the policy is in effect, then there is another payment made of the sum assured under the same policy.

  • Tax Benefits
  • Since many of the life insurance plans on offer today are covered by relevant tax rules, policy holders can gain tax benefits under section 80C for the premiums they pay to keep these policies active.

  • Protection not limited to death
  • Many life insurance policies talk about amounts that will be paid to the family in case the policyholder passes away but what happens if the policyholder does not pass away but it left disabled and unable to work? Certain family protection plans also cover becoming disabled and call it Accidental Total Permanent Disability. This means that if you meet with an accident which leaves you disabled for life then you can claim the sum assured under your life insurance policy.

  • Lots of options to choose from
  • With the growth in the life insurance sector many different companies have come in with offers that are meant to suit a wide variety of customers. In effect, today, there is an insurance plan to suit each policy holder’s personal needs. There are traditional term plans, endowment plans that give you maturity benefits, there are ULIPs that are linked to debt or equity markets. There are even family life insurance plans make sure that your spouse and children are taken care of in case you pass away or are disabled and are unable to work due to an accident.

How To Decide on The Insurance Plan

Now that you know what the benefits of having a proper family life insurance plan are let’s look at how you should decide on which plan you should go in for.

  • When should you buy life insurance?
  • The obvious answer is that the best time to buy life insurance is at the earliest possible because there is no point in waiting for a calamity to happen and then losing all your savings in its aftermath. If you intend on taking life insurance for family members then it’s best to do it as soon as you get married. For individual life insurance plans its best to take them at the age of 18. But if you haven’t done that and are already much older, do it immediately.

  • What do you want?
  • The most important question you have to ask is what you want your life insurance plan to give you. You have to decide if you want simple insurance cover or do you want it to be more than just simple cover and provide you with maturity benefits too.

  • Does it fit your pocket?
  • This is one of the most important questions when it comes to life insurance policies and your family. Sure there may be some plans that give you lots of benefits but you must always remember that premiums for such policies are considerably higher and if you are not in a position to afford them and take them anyway, it is just going to put unnecessary strain on your finances. If your budget isn’t very big but you still want to provide for your family then you can go in for term insurance plans because they tend to be more affordable.

  • Shop around
  • There is one rule that applies every time you decide on buying something and that is, shop around. With the boom in the insurance industry there are lots of insurers offering customers plans that can take care of different aspects of life and that is why you must always shop around and see what the best family life insurance plan for you and your family is.

  • Is the insurance cover apt for the future?
  • The cost of living is always on the rise and that is precisely why you need to factor it into your decision of which plan is best for you. Just because a life insurance plan seems attractive now you must look at its benefits from critical point of view which will help you decide if it will still be helpful in the future. You need to see if the maturity amount or the sum assured is enough to take care of your family or not.

The Importance of Comparing

Once you have decided that you need to buy a life insurance plan for the family you need to make a decision about which one you should get and that is where the comparison comes in. With multiple vendors in the market offering a multitude of products you might be tempted to jump at the first plan that looks nice but you should not do that. Comparing different insurance policies lets you get a wider view of exactly what is on offer. It may happen that at times you may thing a particular policy is great but a comparison might reveal that there is something which will give you more than what the current policy offers. If you were to use the BankBazaar tool for term life insurance then all you have to do is enter a few basic details about yourself and the tool will show you all the plans that are best suited to you. You can then compare them and see which one you like the most and apply for it.

There is no denying the importance of a proper life insurance plan. When it comes to life, nothing is certain and that is why you need to make a well thought of decision so that you are sure that what you get is the best family life insurance plan that’s available. There are lots of plans that you can choose from but you must make sure that you pick the one that suits your needs and gives you and your family the cover that they deserve.

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Life Insurance - Optimized For Your Families Happiness Reviews

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  • LIC Life Insurance
    "Normal policy"
    0.5 4.0/5 "Great!"
    Based on my friend suggestion, I have taken a life insurance policy from LIC. I need to pay the premium for 25 years for the sum assured amount of Rs. 25L. I am paying the premium amount of Rs. 1,450 on a monthly basis. I have taken the policy on 8 years before. I have no idea about tax benefits features.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 23, 2020
  • LIC
    LIC Life Insurance
    "Average Policy"
    0.5 4.0/5 "Great!"
    My friends were recommended me about the life insurance policy from LIC. I bought the policy in the year of 1997. I pay the premium amount of Rs. 450 on a quarterly basis. I need to pay this premium for 25 years. I visit the branch to pay the premium and the employee response is not that much good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 23, 2020
  • LIC Life Insurance
    "Need to improve their services"
    0.5 5.0/5 "Blown Away!"
    For the tenure period of 28 years,I have taken life insurance from LIC. I have taken this policy on 7 years back. I have faced an issue , for the premium amount to pay amount use to auto debit through ECS mode but for the past 4 months amount was not detected, so I raised to the concern company. They told that I haven't maintain a sufficient amount in my account then I have provided my bank statement. Then the amount was debited via ECS . I need to pay the premium amount of 2,162 rupees. It cover up to myself.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 22, 2020
  • HDFC Life Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance from HDFC Life on 5 years back. It cover up to myself. I am paying the premium amount on yearly basis of 50K which is high but it is fine to pay the amount. While taking this insurance the agent has given all the details about policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 22, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have taken maturity benefit policy directly through lic agent .I am paying the premium online .The policy tenure is for 15 years and the agent shared all the relevant details about the policy .The policy was closed and i have not faced any issues so far and everything is good on this policy it is for famiy benefits.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Feb 22, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy directly through LIC agent . This is a money back policy for the tenure period of 15 years. I was paying the premium through online on before but later the premium is paid through agent. Everything was good to me so far. I have closed this policy successfully and the policy details was clearly shared by the agent .
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Feb 22, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have taken a Life Insurance policy from LIC and the policy is Jeevan Anand term is for 30 years, after 30 years i am getting some returns.This policy is going to be completed and not get matured. I am getting as a pension as every month Rs. 28000. LIC is the back bone of Indian economy.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 21, 2020
  • Bajaj Allianz Life Life Insurance
    " the easiest and best investments "
    0.5 5.0/5 "Blown Away!"
    Bajaj Allianz life insurance has been one of the easiest and best investments I have made to date. Right from the initial customer service to the easy availability online, it has made me secure and relaxed about my investment. True value for money
    Was this review helpful? 1
    , chennai
    Reviewed on Feb 21, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance policy from LIC. I am paying premium on yearly basis Rs. 32,000 through online. The policy term is 20 years and will be getting some returns after this maturity. Service was good and plan benefit was super and it has good payment options.
    Was this review helpful? 0
    , kolkata
    Reviewed on Feb 21, 2020
  • HDFC Life Life Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have taken a life insurance policy from HDFC LIFE. The premium i am paying yearly Rs.26,000 with the term of 20 years, after 20 years i will be getting good returns. Customer service and responsiveness was good. This policy has good plan benefit and it has good coverage.
    Was this review helpful? 0
    , kolkata
    Reviewed on Feb 21, 2020
  • ICICI Prudential Life Insurance
    "Not recommendable policy"
    0.5 2.0/5 "Expected more"
    I have bought the life insurance from ICICI prudential on 8 years back. This is a market based policy and I have invested the money of Rs. 1L and I have paid the premium amount of Rs. 3000 on every month. After 4 years when I withdraw the money, I got only Rs. 64,000 and I had a loss of this policy. My friend told me that this policy is good for investment. This is a tax benefit policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 21, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have taken my life insurance from LIC because its a guaranteed policy since its Government based company. Whatever the commitment they are making to the customer, they are keeping the same. They have their own standard as well. Jeevan Anand is a good plan after the policyholder's death the nominees will get the money other than this there are several benefits are available.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 21, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 4.0/5 "Great!"
    I have taken a Life Insurance policy from LIC and the policy term is 15 years, after that I will be getting good return. I am paying premium Rs. 30,000 on Yearly basis through online and he given all the plan benefits properly. LIC always provides me a good service.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 21, 2020
  • LIC Life Insurance
    "Best policy "
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy through LIC agent which was a money back policy for the tenure period of 10 years. I am paying the premium through yearly basis. I will be getting maturity amount but not sure about the value. Customer service was fine.
    Was this review helpful? 0
    , dindigul
    Reviewed on Feb 20, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 4.5/5 "Excellent!"
    I have taken life insurance policy directly through lic agent .This was a Money back policy and the premium is paid on quarterly basis and the premium amount was Rs.3550.This was paid directly through agent. The process was very good and policy tenure was 15 years only. The policy features and benefits are pretty good .
    Was this review helpful? 0
    , thrissur
    Reviewed on Feb 19, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 4.5/5 "Excellent!"
    I have taken life insurance policy directly through LIC agent .This was a maturity benefit policy and the premium was paid on quarterly basis around Rs.1800 to the agent. This policy tenure is 15 years ad taken for family benefits only. The process was very smooth and the agent clearly shared the whole process of this policy .
    Was this review helpful? 1
    , thrissur
    Reviewed on Feb 19, 2020
  • LIC Life Insurance
    "Good Policy"
    0.5 4.5/5 "Excellent!"
    My ex-colleague is working as a LIC agent hence he has suggested me about money back. I pay the premium amount of Rs. 2500 approximately for every three months once. Total term period of the policy is 10 years. I will be getting a sum assured amount of Rs. 1 lakh.
    Was this review helpful? 0
    , visakhapatnam
    Reviewed on Feb 19, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 4.0/5 "Great!"
    I have taken a life insurance policy from LIC and this is a term policy. The policy tenure is 28 years and right now i have completed this tenure and will be getting returns soon. Customer service and responsiveness was good, this insurance has good benefits.
    Was this review helpful? 0
    , mumbai
    Reviewed on Feb 19, 2020
  • LIC Life Insurance
    "One of the best policy"
    0.5 5.0/5 "Blown Away!"
    Its because of the agent recommendation, i have selected the life insurance policy from LIC. Its a Jeevan Anand policy. I have selected the duration of 9 years and even my wife has recommended this policy. Monthly i am paying the premium amount of Rs. 8000. I'm satisfied with the sum assured amount.
    Was this review helpful? 0
    , guwahati
    Reviewed on Feb 19, 2020
  • LIC Life Insurance
    "Good Policy"
    0.5 3.0/5 "Satisfactory"
    Last 1 year before, i have purchased the money back policy from LIC. The agent was my neighborhood and he suggested me to take the policy from LIC. I pay the premium amount of Rs. 18000 on half yearly basis. Total duration of the policy is 20 years. I will visit the LIC office directly to pay the premium and the service is not upto the mark. I wish them to improve on the service.
    Was this review helpful? 0
    , tirupati
    Reviewed on Feb 19, 2020
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