Life insurance is an excellent way of safeguarding your family from financial burdens after you pass away. Your family can use the financial help from life insurance to handle household expenses, debt repayments, school fees, etc.

Significance of Life Insurance

  • Financial Safety: Life insurance policies offer a financial safety net for the policyholder's family members in the event of their death.
  • Income Replacement: If you are the breadwinner of your house, life insurance can help your family members maintain their lifestyle even in your absence.
  • Debt Repayment: Life insurance can help your family pay outstanding debts such as mortgages, loans, or credit card balances. This ensures that your family does not inherit financial burdens during difficult times.
  • Tax Benefits: Your life insurance premium is allowed as a tax deduction under Section 80C of the Income Tax Act 1961. You can claim a deduction of up to Rs. 1,50,000 under this section.

Types of Life Insurance Plans

Term Life Insurance Plan

This policy provides coverage for a specific period, typically ranging from 10 to 30 years. If the policyholder dies during this term, the beneficiaries receive the promised lumpsum amount. If not, the sum assured is transferred to the policyholder at the end of the fixed term.

Unit-linked Insurance Plan (ULIP)

This policy combines life insurance with investing. A portion of the premium is used toward life coverage, while the rest is invested in investments like stocks or bonds. These plans are suitable for those looking to earn higher returns on their investment while also ensuring life coverage.

Whole Life Insurance Plan

This plan provides lifelong coverage and includes a savings component known as the cash value. A part of the premium is invested in stocks and other investments, which grow over time and can be borrowed against or withdrawn.

Money Back Insurance Plan

These policies provide periodic payouts to the policyholder during the term of the policy. In the event of the policyholder’s death, the full sum assured is paid to the beneficiaries, regardless of any earlier payouts.

Endowment Life Insurance Plan

Endowment plans combine life insurance with savings. The policyholder receives a lump sum at the end of the policy term if they survive, or the beneficiaries get the payout in case of the policyholder's death.

Also Read: Tax Benefits in Life Insurance

Key factors to keep in mind while buying Life Insurance Plans

Buying life insurance involves making several decisions like choosing the right insurance policy and insurance provider. Here are some things that you should keep in mind.

1. Your Life Goals

Your life insurance policy should complement your long-term life goals. For example, you can get a term plan with a maturity that aligns with your long-term goals like buying a house or paying for your child's education.

2. Sum Assured

Ensure that the sum assured of your policy would be sufficient to cover your family's essential expenses for a reasonable amount of time. Consider your annual income, outstanding loans, and household expenses before deciding on a sum assured.

3. Policy Exclusions and Conditions

Every policy specified circumstances under which the policy will not pay out. Understand the exclusions and pre-conditions of your life insurance policy. For example, life insurance policies often do not cover death by suicide.

4. Insurer's Reputation and Claim Settlement Ratio

Make sure that you purchase life insurance from a reputed and trustworthy insurer. Check customer reviews, market reputation, and the claim settlement ratio of various insurance companies before choosing one.

Benefits of Buying a Life Insurance Policy from PBPartners PoSP Insurance Agents

Are you wondering how to buy a life Insurance policy? Consider buying your policy from a PBPartners PoSP insurance agent. Here are some benefits that you can enjoy.

The Legacy of PolicyBazaar

PBPartners is backed by the industry experience and reputation of PolicyBazaar. PBPartners offers a seamless digital experience, eliminating outdated manual processes and promoting transparency in insurance dealings.

In-Depth Product Knowledge and Guidance

PBPartners PoSP insurance agents have a deep understanding of various life insurance products. They are trained to provide appropriate guidance to everyone for purchasing the best life insurance policies.

Access to Policies Offered by Multiple Insurance Providers

PBPartners PoSP insurance agents offer life insurance policies provided by multiple insurance companies. You can get a variety of insurance policies to choose from, as per your life goals and financial requirements.

Claim Support

PBPartners insurance agents support your family throughout the process of lodging a life insurance claim. They help you file the claim accurately, communicate with the insurance company, and work to ensure a fair and timely resolution.

Also read: What is Prepaid Insurance and How to Calculate it?

Bottom Line

Purchasing a life insurance policy is a wise step for safeguarding your family members during the unfortunate event of your passing away. Some life insurance plans also act as investment tools for your other life goals like buying a house. If you are wondering how to buy a life insurance policy, consider buying it through PBPartners PoSP agents to get claim support, guidance about insurance products, and access to policies offered by multiple insurance companies.

FAQs

Can I buy my life insurance?

Yes, you can buy your life insurance policy independently or through an agent.

What are the three main types of life insurance?

The three main types of life insurance policies are- term insurance plans, unit-linked insurance plans, and endowment plans.

Can I buy a life insurance policy without an agent?

Yes, you can buy a life insurance policy without an agent. However, buying life insurance through an agent offers several benefits like professional guidance about which policy to choose.

Who can buy a life insurance policy?


Any person who has dependents can buy a life insurance policy. However, you must satisfy the eligibility requirements of each life insurance plan.

What are some things to avoid while buying an insurance policy for life insurance?


Avoid purchasing any life insurance policy without doing extensive research about the market reputation, past performance, and claim settlement ratio of the insurer. Also, avoid buying life insurance policies through agents who are not officially registered.