Life Insurance

Individual awareness and understanding of life insurance products is extremely low, and many among the insured don't even know whether the life insurance policy they own meets their insurance needs, and in a larger context, their personal finance needs. in most cases, chances are, they could be doing better.

The first and the most important step towards 'doing better' involves being financially literate, and having, at the least, an elementary understanding of what life insurance is all about. This means being aware of the various types of insurance products on offer in the market, as well as having the ability to understand one's life insurance needs and find appropriate fits.

Life insurance is chiefly a risk management tool, meant to offer financial protection to your dependants in the unfortunate event of your death. If you are adequately insured, your life insurance should enable your dependants (spouse, children, parents) to maintain their current lifestyle and pursue their life goals till such time as they are in a position to set up an alternative income stream by themselves. That's the basic purpose of life insurance.

But in India, as in most other developing markets, life insurance has come to represent more than just risk cover. The best selling insurance products in the market double as investment options and offer attractive tax breaks. In fact, it's because of this two in one profile that they appeal to the average individual who seeks convenience in personal finance matters.

But is insurance really a good investment? Or, is there a way to get the same benefit for a lower cost? How does one make that call?

This section offers answers to such essential insurance questions, with the bigger objective of trying to equip you with the tools and the knowledge to make informed decisions on all life insurance matters. The coverage is comprehensive. Each of the next 12 chapters in this section dwells on a central aspect related to life insurance that you, as an individual with life insurance needs and savings to invest, should be aware of, so as to get your money's worth of life insurance. Information and advice, tips and strategies, documentation and processes it's all here in this section.