Life insurance is a contract between a policyholder and an insurance company. In a life insurance policy, the insurance company promises to pay a sum of money, also called the death benefit, to the beneficiary if the policyholder dies during a specified period. In return, the policyholder pays a small premium to the insurance company.
Life insurance is a legal agreement between the insurance company and the policyholder. The policyholder pays the regular premiums, and if something happens to the policyholder, the insurance company will pay a sum of money, known as a death benefit, to beneficiaries. This death benefit can help beneficiaries cover expenses such as lost income, future costs, debts, or provide for a legacy.
Based on the contract, the policyholder is also eligible for life cover in the event of critical illness or terminal illness as per the T&Cs of the life insurance plan.
In short, Life insurance meaning is that it is a financial safety net for your family that pays out a sum of money on the death of the life insured or after a set period.
Are you looking for the best life insurance companies in India? Here’s a list of the top 5 insurers you can consider LIC,SBI,HDFC,ICICI and Axis Max.
These companies are known for their strong claim settlement ratios, wide range of plans, and reliable customer service. Choosing the right insurance company can make a big difference in securing your family’s future.
Disclaimer: The insurers mentioned above are arranged in order of highest to lowest annualised premium, based on data from the IRDAI Annual Report 2024–25. Rupisafe does not endorse, rate, or recommend any specific insurer or insurance product. For the complete list of life insurers in India, please visit the IRDAI website.
Here is the list of best life insurance companies sorted in order of highest to lowest Sum Assured.
| Private Insurer | Term Insurance Plan | Sum Assured |
| HDFC Life Insurance | HDFC Life Click 2 Supreme | 10,000 - No Limit ( > 65 years: Rs 50,000) |
| ICICI Prudential Life Insurance | ICICI Pru iProtect Smart Plus Term Plan | 50 Lacs – 20 Crores |
| Tata AIA Life Insurance | Tata AIA Sampoorna Raksha Promise | 25 Lacs – No limit |
| SBI Life Insurance | SBI Life eShield Next | 50 Lacs – No limit |
| Bajaj Life Insurance | Bajaj Life eTouch II | 50 Lacs – No limit |
| Axis Max Life Insurance | Axis Max Smart Term Plan Plus | 25 Lacs – 20 Crores |
| Digit Life Insurance | Digit Glow Plus | 25 Lacs - 20 Crores |
| Aditya Birla Sun Life Insurance | ABSLI DigiShield | 30 Lacs – No limit |
| India First Life Insurance | India first Life Plan | 1 Lac - 50 Crores |
| Kotak Mahindra Life Insurance | Kotak e-Term Insurance | 51 Lacs - No limit |
| Canara HSBC Life Insurance | Canara HSBC Young Term Plan - Life Secure | 25 Lacs – No limit |
| Shriram Life Insurance | Shriram Life Online Term Plan | 25 Lacs -- 10 Crores |
| PNB Metlife India Insurance | PNB Mera Term Plan Plus | 25 Lacs - No limit |
| Star Union Dai-ichi Life Insurance | SUD Life e-Lifeline | 25 Lacs - 1 Crore |
| DHFL Pramerica Life Insurance | Pramerica Life Saral Jeevan Bima | 5 Lacs - 25 Lacs |
| Aviva Life Insurance | Signature 3D Term Plan - Platinum | 30 Lacs - 5 Crores |
| Future Generali Life Insurance | Future Generali Care Plus Plan | 10 Lacs - No limit |
| Reliance Nippon Life Insurance | Reliance Nippon Life Super Suraksha Plus | 2 Crore -- No limit |
| Ageas Federal Life Insurance | Termsurance Life Protection Insurance Plan | 5 Lacs - No limit |
| Bandhan Life Insurance | Bandhan Life iTerm Prime | - |
| Bharti Axa Life Insurance | Bharti AXA Flexi Term Pro | 25 Lacs -- No limit |
| Edelweiss Tokio Life Insurance | Zindagi Protect Plus | 50 Lacs – No limit |
| Public Insurer | ||
| Life Insurance Corporation of India | LIC Jeevan Amar | 25 Lacs - No Limit |
Rupisafe offers comprehensiveRupisafe provides a secure platform to NRIs and allows them to buy a comprehensive life insurance for NRIs plan. Rupisafe ensures that NRI can easily compare all the available plans online and select the plan that aligns with their long term protection goals.
We at Rupisafe also provide a Dedicated Claim Assistance Program. The main motive of this program is to support the NRI and their families throughout the claim process. From filing a claim to claim settlement, our experts make sure that you get complete guidance to ensure timely claim settlement.
Along with this program, we also provide a dedicated claims relationship manager. The only role of this manager is to support you throughout your claim journey. They ensure that you or your nominee do not have to face any hurdles and ensure faster claim disbursal, priority processing, and transparent communication.
Rupisafe offers a digital platform that enables NRI policyholders to stay informed about their policies. They can also compare policies with ease and buy one that suits them.
Buying a Life Insurance policy for NRI from Indian insurers costs less when compared to global options. In many cases, premiums can be 50–60% lower while offering similar or even better coverage benefits.
NRIs no longer need to travel for medical checkups. Most Indian insurers now allow telephonic or video-based medical tests, often managed by IRDAI-approved third-party medical providers globally. This ensures policy issuance is simple, fast, and compliant from anywhere in the world.
Indian Insurers offer worldwide protection. Insurers also provide 24/7 customer assistance, ensuring your family can access claim help anytime, from anywhere in the world.
From 22 September 2025, the GST Council has made all individual life insurance policies completely tax-free under GST. The previous 18% GST on premiums has been reduced to 0%, making both term insurance and savings-linked plans immediately more affordable for all citizens and NRIs.
Life insurance in India began with the founding of the Oriental Life Insurance Company in 1818. As time went on, more Indian and foreign insurance companies joined the market, and the industry grew to the point where it needed clear rules. As a result, two laws went into effect. The first was the Indian Life Assurance Companies Act of 1912, and the second was the Insurance Act of 1938.
The government merged 245 private insurers into one company, the Life Insurance Corporation of India, on September 1, 1956, to bring order and public trust to the industry. This made LIC a public organization. This was done to make life insurance easier and more available to everyone.
LIC operated as India's sole life insurance provider for over four decades. During this time, it built deep customer trust, especially in rural and semi-urban areas, and significantly increased insurance penetration.
The Indian government established the IRDAI, or the Insurance Regulatory and Development Authority of India, in 1999. This was the start of allowing private and foreign companies to enter the life insurance market. This led to greater innovation, more competition, and better consumer protection.
There are only two types of life insurance plans: term insurance (protection plans) and investment plans. While Term Insurance provides pure risk coverage with a death benefit, investment plans offer protection and wealth creation. Explore the different types of life insurance plans to financially secure your future with comprehensive life cover:
| Plan Type | Best For |
| Term Insurance | Death Benefit+Income replacement |
| Endowment Plan | Investors seeking stable returns |
| ULIP (Unit Linked Insurance Plan) | Market-linked growth |
| Money Back Plan | Regular payouts |
| Whole Life Plan | Lifelong protection |
| Child Plan | Parents |
| Pension/Retirement Plan | Retirement savers |
After understanding the basics of insurance, let’s get into the detailed features and benefits of an insurance policy:
Having a life insurance plan ensures that the financial future of your family is secured and even if something unfortunate happens to you, your life insurance policy will look after them.
Term
Investment
With digitalization, you can now easily buy life insurance plans from the comforts of your home. You can use calculators such as term insurance calculator to calculate your premium amount.
Term
Investment
If the policyholder survives till the maturity of the policy, a maturity amount that usually includes sum assured plus additional bonus is given to the policyholder.
Term
Investment
Life Insurance provides guaranteed returns and is ideal for those who have a low risk appetite. Plans such as Endowment or guaranteed income policies offer fixed payouts regardless of market conditions.
Term
Investment
Some insurers offer lower premiums when you buy a policy online or pay through partner banks. Since September 2025, GST has no longer been applied to new or renewed individual policies, which reduces the overall cost of term and savings-oriented plans.
Term
Investment
Life Insurance is not just for protection. You can fulfil your long term milestones by investing your money in ULIPs, endowment plans and pension policies. These policies not only provide life protection, but also grow your money.
Investment
In case a policyholder passes away during the policy term, the nominee receives the death benefit. This payout is guaranteed and helps your family manage expenses and maintain financial stability during your absence.
Term
Investment
Life insurance offers tax benefits under the Income Tax Act. Premiums are eligible for deduction under Section 80C up to ₹1.5 lakh, and death benefits or maturity proceeds are tax-free under Section 10(10D), subject to limits.
Term
Investment
Certain life insurance policies, especially savings and endowment plans, can be used as collateral to secure loans. Banks and financial institutions may accept these policies because they carry an assured value over time. This allows you to access credit at better terms without selling your investments or disturbing long-term financial plans.
Investment
A loan facility in life insurance allows you to borrow money against the accumulated cash value or the policy's surrender value. It offers access to funds without surrendering the policy or losing future benefits. The loan amount usually depends on the policy's accumulated value.
Investment
| Gender | Male |
|---|---|
| Tobacco | No |
| Age | 30 Years |
| Life Cover | ₹1 Crore |
| Cover Till Age | 65 Years |
| Monthly Premium | ₹0 |
Getting life insurance is a way to protect your family's finances. If something bad happens to you, the insurer pays the assured amount to your nominee. This helps your loved ones pay their bills and take care of their financial obligations without going into debt.
The first step is to choose the right policy by deciding on the amount of coverage, the length of the policy, the premium, and any riders based on your lifestyle, family needs, and current debts. After you apply, the insurance company may look at your health and lifestyle to decide how much you will have to pay in premiums.
You pay the first premium after your application is approved, and the policy goes into effect. The coverage stays in effect as long as the premiums are paid on time. If you make a claim, your nominee sends in the necessary paperwork. After that, the insurer checks everything and sends the money to help your family when they need it most.
Let us understand how life insurance works in the section below:
Decide the type of policy you want to buy
Select the coverage and policy term
Compare premiums and benefits online
If your income supports your household, your absence can create an immediate financial gap. A life insurance payout ensures your family can manage daily expenses, maintain their lifestyle, and stay financially stable even when you’re not around.
If you have outstanding loans or debts, you need life insurance. With a Life insurance policy, your family doesn't inherit the burden and can keep their assets secure. Also, with the Married Women's Property Act, creditors can't touch that money.
It is the annuity-based life insurance plans that provide a regular income after retirement. These protection and savings plans ensure financial independence in your later years while continuing to offer life cover.
Some plans, like ULIPs, combine insurance with investment. They give you a structured way to build wealth over time while staying protected. It’s not just about risk coverage—it’s also about disciplined financial growth.
Knowing that your family’s financial future will be secured in your absence gives your peace. With the right plan, you can ensure that all the dreams that you have watched for your families are fulfilled even when your not there with them
For people with a spouse, children, or dependent parents, insurance becomes less of a choice and more of a responsibility. It helps protect them from sudden financial stress and gives them time to adjust without worrying about money.
Many life insurance plans today include riders that cover serious illnesses such as cancer or heart disease. These can be financially draining, especially closer to retirement. Having that extra layer of protection means you’re not forced to dip into your savings at the worst possible time.
Regular premium payments for life insurance help you get into the habit of disciplined investing. Because premiums are paid every month, every three months, or every year, you're less likely to miss a payment. This consistency over time helps build a large corpus while keeping your life insurance in force.
Submit the documents mentioned below to purchase a life insurance policy in India:
Aadhaar Card, PAN Card, Passport, Voter ID, or Driver's License is required.
Utility bills, Aadhaar Card, Passport, Rental Agreement, or any other officially accepted proof of residence.
Birth Certificate, valid Indian Passport, or any valid government document that shows your date of birth.
Updated medical reports, test results such as basic blood test, or a completely filled health declaration form from a doctor
Recent passport-sized photographs (3.5cm x 4.5 cm) for application and KYC purposes.
Salary slips, Form 16, Income Tax Returns, or a bank account statement
Rupisafe ensures you get the best deal available. If you find the same life insurance plan at a lower price elsewhere, the full premium you paid is refunded—no questions asked.
When you buy directly online through Rupisafe, you can get discounts of up to 15%. This benefit continues throughout your premium payment term and isn’t available through offline agents.
In difficult times, your family isn’t left figuring things out alone. A dedicated claims expert personally guides your nominee through the entire process—making it faster, smoother, and stress-free.
Every interaction is recorded to ensure there’s no mis-selling. What you’re promised is exactly what you get—clear, honest, and fully transparent advice.
Rupisafe combines digital convenience with on-ground support. Their advisors are present across 110+ cities in India and can even assist at your doorstep with plan selection and documentation.
Individuals between the ages of 18 and 65 who are Indian citizens or NRIs and have the financial ability to pay premiums can buy life insurance policies. Before buying a policy, they need to provide the necessary documentation and accurate medical conditions. It's essential to understand policy T&Cs and disclose information truthfully during the application process.
People who have salaried jobs can buy life insurance plans at affordable premiums. This allows salaried individuals to ensure the financial safety of their dependents in the event of their unfortunate demise.
People who are newly married or have a dependent spouse can buy life insurance plans for their spouse or a policy with joint cover to secure their spouse’s financial future in their absence.
Parents are often worried about the future of their kids, and a life insurance plan can help provide them peace, knowing that their kids will be able to fulfil their dreams and get higher education in their absence with a death or maturity benefit payout.
Now housewives can buy term insurance for housewife using their husband's income proof and ensure the financial security of her loved ones in the event of her unfotunate demise. These plans offer a large life cover at affordable premiums.
Many insurers provide life insurance for NRIs to help Non-Resident Indians secure their families living back in India. In addition to the NRIs, PIOs (Persons of Indian Origin), OCIs (Overseas Citizens of India), and foreign nationals can also buy life insurance policies via tele or video medicals in India.
Retirees may find it difficult to maintain their financial freedom after the end of their monthly income. In such cases, a pension plan can provide them with the required monthly income during their golden years.
Business owners or self-employed individuals usually take out loans to start their businesses. However, if they suffer an untimely death, the family might be burdened with the remaining loans. A payout from the insurance plan can help them pay off any remaining debts and loans.
People with outstanding loans and debts can consider buying an insurance policy. This eases the financial burden that may fall on their shoulders in your absence and allows them to pay off the remaining loans with the benefit amount received. If you outlive the policy, you can use the amount of your life insurance policy to pay off the existing loans yourself.
| Age Group | Why Buy Life Insurance |
| Early 20’s | Life Insurance in 20 will make your premiums low and will give you better coverage options. It's the ideal time to build a financial foundation before major responsibilities like marriage or home buying begin. |
| 20-30 years | Individuals between 20 and 30 can use life insurance plans to protect their future life stages, such as retirement, savings for buying a home, and more. |
| 30–40 years | When you cross 30, you grow in your life, and with that comes growing responsibilities. Children, spouses, aging parents. Thus, buying life insurance at this stage ensures that if something unfortunate happens to you, your family’s financial future will be on track. |
| 40-50 years | Worried about your post-retirement? No need to. It's not too late. Buy life insurance in your 40s and 50s to ensure that you live your post-retirement life fully without worrying about finances |
| 50 years and above, | In your old age, you want to give your family a legacy. Thus, buying life insurance after 50 can help you to leave a legacy for your children and grandchildren |
Start by understanding what you want from your life insurance policy. A term insurance plan is ideal if your goal is to protect your family's financial future. If you're planning for retirement or your child's education, consider investment-linked plans like ULIPs or pension plans.
Don’t guess your coverage. A good rule is 10–15 times your annual income, but also factor in existing loans, future expenses (like education or marriage), and inflation. Minus your savings and assets to get the ideal sum assured.
Before buying a life insurance policy, it is important for you to understand all types of life insurance policy. Understand them and then choose the type of policy that fits in with your goals and risk appetite.
Always use the online premium calculators to compare premiums across multiple insurers. While checking, look for the policy that provides maximum coverage and fits in your budget.
Go for a policy term that will cover you for the time your dependents will depend on your income. For example, if you're 30 and expect to retire by 60, go for a 30-year policy term.
CSR of the company shows the ratio of claims an insurance company has paid versus the total number of claims filed. Choosing a company with high CSR ensures that at the time of claim, your nominess won't face hassles later.
Along with CSR, check the insurer's solvency ratio. A strong solvency ratio indicates that the company has sufficient financial backing to settle large volumes of claims.
Enhance your policy with useful riders like Critical Illness, Accidental Death, or Waiver of Premium. These offer extra protection without buying a separate policy.
Hiding your smoking habits, medical history, or occupation type can cause issues with the kind of claims. Disclose all relevant information and maintain transparency.
Go through the policy document thoroughly to understand what is covered, what's not, any exclusions
When you buy life insurance early, you pay lower premiums. Thus, it is better to start early and lock in low premiums.
Checking customer feedback and reviews helps a lot in revealing about the insurance company.. Check online reviews, customer testimonials, and complaint records to understand the company’s customer service.
There are several ways to evaluate the amount of life insurance one needs. Here is an easy-to-remember method called D.I.M.E. that everyone can use to check the life insurance amount.
Debt: Start by evaluating any outstanding debts you owe, such as auto loans, personal loans, credit card balances, or other liabilities. Your life insurance coverage should be enough to clear these debts, ensuring they don’t become a financial burden for your family in your absence.
Income: If you are the breadwinner of your family, then your family's livelihood depends on your income. In case of his/her death, the family can experience huge financial stress. As a general thumb rule, you should get life insurance that is 10 to 15 times your annual income so that it can help cover your family's living expenses.
Mortgage: Mortgage or home loan payments often comprise much of the monthly expenses. Managing these payments can place a heavy financial strain on dependents if the primary earner is no longer around. That's why it's important to choose a life insurance death benefit that is sufficient to cover the outstanding loan amount.
Education: As parents, we strive to give our children the best education possible. However, the cost of education can be a significant financial burden. In your absence, not having life insurance could affect your child's future goals. To prevent this, it's essential to have a life insurance plan with a death benefit that can fully support your child's education and aspirations.
| Do’s of Life Insurance Plans | Don’ts of Life Insurance Plans |
| Buy Early: Buying as early as possible ensures that you can buy the life insurance policy at the lowest premiums applicable for your profile and get the largest cover amount. | Don’t Provide False Details: Providing false information or leaving out important details in the application form can result in policy cancellations or insurer rejections of claims. |
| Carefully Read the Policy Documents: Carefully reading the policy documents helps you avoid confusion about what the plan covers and make informed decisions accordingly. | Don’t Miss Premium Payments: Missing premium payments on time can cause a life insurance policy to lapse, resulting in the end of coverage. |
| Choose Suitable Riders: Adding the available riders can enhance the base cover of the life insurance policy at nominal premiums | Don’t Delay Policy Purchase: Delaying the purchase of your life insurance policy can increase premiums and decrease the amount of coverage offered. |
| Compare Available Plans: Comparing the available life insurance plans online will ensure that you buy the right policy for your needs. | Don’t Under-insure: Not opting for the right sum assured will lead to your family receiving a death benefit that doesn’t cover their financial needs in your absence. |
In the unfortunate event of a policyholder's death without a valid nominee, or if the nominee dies before the policyholder, the insurer can’t release the money to anyone immediately.
In this case, the decision will be taken as per the Indian Succession Act, the Hindu Succession Rules or the Muslim inheritance laws, the claim amount is divided among the legal heirs based on the rules of succession that apply to the person who owned the policy.
Yes, consuming alcohol can affect your life insurance premiums. Insurers carefully assess your drinking habits during underwriting. Occasional or moderate drinking may not have a significant impact, but if you consume alcohol frequently or excessively, it can lead to higher premiums. This is because heavy alcohol consumption increases the risk of serious health issues such as liver disease, heart problems, and certain types of cancer, making you a high-risk applicant. In some cases, insurers may also require additional medical tests if you disclose regular alcohol use. Always be honest about your drinking habits when applying for life insurance, as non-disclosure can lead to claim rejection later.
Yes, you can buy more than one life insurance plan. The final decision to buy multiple life insurance plans depends on your situation, goals and finances. Having multiple plans provides you with broader coverage and protection against more risks. Also, if the claim of one plan is rejected or the coverage is inadequate, the other life insurance policy can become a financial cushion for your family.
Multiple plans offering enhanced life coverage also increase premiums that might interfere with your financial objectives. However, managing several plans can be complicated and increase the chances of missing premium payments, thus leading to policy lapse.
| Features | Online | Offline |
|
Cost Effectiveness
Get discount while buying online |
Yes | No |
|
Convenience
Buy from your home in single click |
Yes | No |
|
Customization
Customize you plan as per your needs |
Yes | No |
|
IRDAI Certified Customer Support
27X7 availability to guide you regarding plans |
Yes | No |
**Life insurance plans offer online discounts from time to time. If you purchase a plan online, you can enjoy a discount on the premium.
Let us take a look at the following payout options available in life insurance:
Most life insurance policies provide the option of receiving the benefit amount in a single lump sum payout. This can help your family pay off any remaining loans or debts.
The monthly income payout option helps your family receive monthly income in your absence, which can act as your income replacement in your absence.
The lump sum + monthly income option pays a part of the total sum assured as a lump sum, and the remaining is paid in monthly installments over a period of time.
The increasing monthly income option pays the total sum assured in monthly installments increasing at a fixed rate every year for a fixed period of time.
You can follow these simple steps to file a claim:
You can claim your life insurance policy by either visiting the company's website or office and filling out the claim intimation form. If the policy is purchased via Rupisafe, you can contact your Relationship Manager, who will help you guide through the claim process.
Attach the required documents to the claims form and submit in either online or at the nearest company office.
As per the IRDAI rules and regulations, the insurer must respond to the claim request within 30 days from the date of claim intimation. Most insurers have a proactive claim settlement duration, with some settling the claims within 4 hours of the request.
Let us take a look at the types of deaths not covered in life insurance plans:
Death because of self-inflicted harm or suicide within a specific duration from the inception of the policy or policy revival is not covered.
In the absence of a valid nominee or if the nominee has passed away before the policyholder, a legal proof of title or a succession certificate from a competent court is required. This situation is referred to as an "Open Title" case.
Once the claim is accepted, the insurer holds the settlement amount until the necessary proof is submitted. During this period, interest is paid as mandated by the Insurance Regulatory and Development Authority of India (IRDAI). The claim is then disbursed to the individual specified in the court-issued proof.
Here is a list of four times you should revisit your life insurance plan:
Marriage often means shared financial responsibilities. It’s important to ensure your life insurance policy covers both partners and secures any joint assets, like a home.
Children bring new financial obligations, from education to daily expenses. Revisiting your policy ensures your coverage is adequate to protect their future, even if you’re not around.
Taking on a large loan increases your financial liabilities. It’s essential to update your insurance policy to ensure it can cover any outstanding debts and protect your family’s financial stability.
If a dependent faces serious health concerns, your financial responsibilities may increase. Reassessing your insurance policy ensures you have the coverage needed to handle rising medical costs and provide long-term support.
The individual who purchases the life insurance policy and pays the premiums. If you are buying an insurance plan, you are the policyholder and you promise the insurer to pay premiums as per the policy terms.
It’s the insurance companies from which you buy the life insurance policy. The insurer guarantees you a sum assured as part of the contract with the policyholder and settles claims.
The premium is the price of the life insurance policy you pay to the insurance company. Depending on your plan, you could choose to pay the premium monthly, half-yearly, annually, etc.
Exclusions in an insurance policy are a list of things not covered under the plan. The insurance company decides on these exclusions, which differ from plan to plan.
Life insurance coverage period is the duration of your life insurance plan. You can decide the coverage period when buying a life insurance policy.
The nominee or nominees refers to the person or persons who will receive the death benefit amount in case of the policyholder’s demise.
It’s the sum amount the insurance company pays to the nominee in case of the life’s insured's death. Sum assured is also called a life cover or death benefit.
Death benefit is the amount of money the insurer pays to the nominees in case of the life insured’s death. It’s also called sum assured payable on the policyholder's death during the policy tenure.
Also known as Survival Benefit, it’s the total amount that the insurance company pays when the policyholder outlives the policy term. The insurer pays the maturity benefit amount when the policyholder completes the pre-defined policy term.
Riders are add-ons to your life insurance plan that enable you to customize the plan as per your needs. Some of the most commonly purchased riders are terminal illness riders, accidental death and permanent disability rider, waiver of premium rider, etc.
Ans. The top 10 life insurance companies in India, based on the highest to lowest annualised premium, are as follows:
**Disclaimer: The insurers mentioned above are arranged in order of highest to lowest annualised premium, based on data from the IRDAI Annual Report 2024–25. Rupisafe does not endorse, rate, or recommend any specific insurer or insurance product. For the complete list of life insurers in India, please visit the IRDAI website.
The 4 major types of investment options available in India are as follows:
One should thoroughly research before investing in market-linked or guaranteed return life insurance policy plans. The following are some pointers to be considered before making a selection