A life insurance cover helps you secure the financial future of everyone dependent on your income in the event of your death. Nobody can help overcome the loss of a dear one, but imagine that along with this loss the surviving members of the family are hard-pressed to maintain their lifestyles because they were partially or fully dependent on the income of the deceased. Getting an adequate life cover is absolutely essential if the sum of the total value of your assets (other than the home you stay in) less your total liabilities (including any home loan, car loan or personal loan you might have outstanding) is less than 150 times your current monthly expenses. The shortfall would be the recommended amount of life cover you should seek. At ApnaPaisa, we help you reach out to a maximum of 5 service providers who will propose alternative plans that you can compare based on:

Life Cover (also known as Sum Assured)
Annual Premium
Additional Riders Offered

Often customers get lured into combining their life cover requirements with an investment objective. We do not recommend this approach because it is always a lot more affordable to opt for a term insurance policy and invest the savings on the annual premium into any savings instrument of your choice - be it PPF, Fixed Deposits, Mutual Funds or even shares.

What does my family receive when I die within the term of my life insurance policy?

Death benefits depend on the type of policy purchased by the insured.

Apnainsurance.com Research Bureau

21 Dec 2007

Death benefits depend on the type of policy purchased by the insured. Go through the various types of life insurance policies to understand the death and survival benefits associated with each kind.

If the insured's death takes place during the term of the life insurance policy, the nominee receives the sum assured under the insured's life insurance policy. Depending on the type of policy, the nominee will also be entitled to bonus/profit/guaranteed additions if any.

If the insured's death takes place due to an accident and the insured had the accident death benefit rider on the policy, the nominee is eligible to receive double the sum assured. An additional term rider on the insured's policy also makes the nominee eligible to receive double the sum assured on the insured's death.

If death takes place after the period of the policy, i.e. the policy has matured, the nominee does not receive anything from the insurance company, unless specifically mentioned in the policy. Certain policies offer to cover the insured for the sum assured or a part of the sum assured, even after the policy has matured.

Basically, the nominee is eligible only for death benefit. Survival benefit, if any, is for the insured.