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How Much is the Cost of Life Insurance in India?
Life Insurance protects your family’s financial future upon your unfortunate demise. To enjoy life insurance benefits, you’ll need to pay premiums to the insurer during the premium payment term chosen. Now, you may wonder how much does life insurance costs?
In India, you can get a life insurance plan for yourself starting at just Rs. 476/ per month (T&Cs apply). There are several types of life insurance, and premiums for each plan may vary from product to product. While some plans are pure protection plans that offer life cover to policyholders, others can be seen as an investment or retirement tool.
But before getting into how much life insurance costs, let us look at the factors that affect life insurance premiums.
What is the Cost of Different Life Insurance Products?
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Term Insurance Plans
Term insurance is a pure protection plan that offers financial protection to a policyholder’s family for a specific term. If the policyholder has an unfortunate demise during the policy tenure, the sum assured amount as death benefit shall be payable to the nominee.
Let’s look at the details and premiums of some term insurance plans:
Plan Maturity Age Sum Assured Premiums What makes it best? Max Life Smart Term Plan 85 years Rs. 25 Lakhs - No Limit ₹989/month Longer Coverage Duration, Life Stage Benefit, Return of Premium HDFC Life Click 2 Protect Elite 75 years Rs. 2 Crores - No Limit ₹1,181/month Smart Exit Benefit, High Life Cover Optional, Riders Benefit The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually looking for insurance coverage of 1 crore till 60 years.
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Guaranteed Return Plans
A guaranteed return insurance plan is a two-in-one life insurance product that offers guaranteed returns on investment along with a life cover for the policy term. It is an ideal plan for someone with low-risk tolerance. At maturity, the policyholder receives a guaranteed payout, which can be received as a lump sum or monthly installment.
Let’s look at some guaranteed return insurance plans:
Plan Policy Term Premium Payment Term Premiums Total Invested Amt Guaranteed Payout Edelweiss Guaranteed Growth Plan 10 years 5 years ₹10,000/month ₹6 Lakhs ₹10.2 Lakhs Bajaj Allianz Assured Wealth Goal 10 years 5 years ₹10,000/month ₹6 Lakhs ₹8.32 Lakhs The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.
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Retirement Insurance Plans
The retirement insurance plan, also known as a pension plan, helps you build a corpus for retirement. The accumulated funds provide steady monthly income after your retirement, help you maintain your lifestyle, and cover living expenses.
Let’s look at some retirement plans below:
Plan Policy Term Premium Payment Term Premiums Monthly Pension for Lifetime Guaranteed Payout Bajaj Allianz Capital Guarantee Solution 30 years 10 years ₹15,000/month ₹14.7* Lakhs ₹18.2 Lakhs Tata AIA Capital Guarantee Solution 30 years 10 years ₹15,000/month ₹3.34* Lakhs ₹18.1 Lakhs The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.
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ULIPs – Unit Linked Insurance Plans
ULIPs (Unit Linked Insurance Plans) offer a dual benefit of insurance and investment. It offers life cover that provides financial protection for your family and also helps you build wealth through market-linked returns from systematic investments. It also gives you the flexibility to invest your money in different funds as per your risk appetite.
Plan Policy Term Premium Payment Term Premiums Total Invested Amt Guaranteed Payout ABSLI Wealth Smart Plus 20 years 10 years ₹10,000/month ₹12 Lakhs ₹1.42* Cr Tata AIA Fortune Pro 20 years 10 years ₹10,000/month ₹12 Lakhs ₹1.73* Cr The sample premium is estimated for a 30-year-old male earning 10 - 15 lakhs annually.
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Child Plans
Child plans are a life insurance product that helps parents create wealth to fund their child’s future expenses. The plan comes with in-built insurance coverage for the parent. At the end of the policy term, maturity benefits are provided either in the form of annual installments or as a one-time payout after the child turns 18. The payout can be used to pay your child’s education expenses or marriage expenses. Let’s look at some child plans:
Plan Policy Term Premium Payment Term Premiums Investment Returns Guaranteed Payout Kotak Life Capital Guarantee Solution 20 years 10 years ₹10,000/month ₹53.3* Lakhs ₹12 Lakhs PNB Metlife Capital Guarantee Solution 20 years 10 years ₹10,000/month ₹67.1* Lakhs ₹1.73* Cr
What are the Factors That Affect Term Plan Premiums?
Following are some factors that determine how much premium you may need to pay-
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Age
Age is a major factor in determining life insurance premiums because the more you age, the higher your premiums become. As people age, the risk of developing health issues tends to increase. However, the premium remains the same during the policy term, irrespective of your health condition. But buying early can help you save money by locking in lower premiums. -
Gender
Gender can affect life insurance premiums because the insurer offers special premiums for females. According to research, women have longer life expectancy than men, which means they have higher chances to outlive policy terms. -
Lifestyle Habits
Insurance providers consider lifestyle habits to determine your life insurance premiums or whether you qualify for coverage. Smokers or people who drink a lot have a higher risk of developing critical illnesses like cancer and lung disease, which may lead to higher premiums. -
Riskier Occupation
In case the risk factor associated with your job is higher, you may also be charged higher premiums. The occupations that are considered riskier include aviation, military, mining, firefighting, construction, law enforcement, and working offshore. -
Policy Duration
The policy term of a life insurance plan is also one of the major factors in determining the premium amount. However, longer policy terms usually have higher premiums than shorter policy terms.
Conclusion
Buying a life insurance plan is important, but it’s also essential to make sure the plan you opt for best fits your budget. The cost of life insurance may vary from plan to plan; each product is designed to serve different objectives.
You can easily check and compare the life plans on PolicyX and buy them from the comfort of your home. Call us today at 1800-4200-269 or visit PolicyX.com to get your queries answered today!
How Much Does Life Insurance Cost : FAQs
1. What is the best age to buy life insurance?
It is advisable to buy a life insurance policy for yourself as soon as you start earning between the age of 25 to 40. Waiting for an older stage of life is unnecessary because the premiums will be expensive.
2. How much does a life insurance policy cost?
In India, you can get a life insurance plan for yourself starting at just Rs. 476/ per month (T&Cs apply).
3. Is a medical test mandatory for buying life insurance?
It may vary based on the life insurance plan you’ve chosen. For savings and investment life insurance plans, no medical test is required. On the other hand, for a term insurance plan, it is mandatory to undergo a medical examination.
4. Which life insurance plan is the cheapest?
Term life insurance is the cheapest type of life insurance that offers high life cover at affordable premiums.
5. How much life insurance coverage should I get?
The life insurance coverage you may need depends on several factors, such as your income, lifestyle, expenses, debts, and future financial goals. But, it’s always advisable to opt for a life insurance coverage that covers at least 10 times your annual income.
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Written By: Sahil Singh Kathait
A boy-in-squares bagging escapades of switching streets in groove & sensing musical airy-notes from 6 1". Under wayed nyctophile sketching the walls of life from the panorama of anime.
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