Protect What
Matters Most

A good rule of thumb is 10 to 15 times your annual income. For example, if you earn ₹10 Lakhs per year, you should consider a cover of ₹1 to ₹1.5 Crore. This ensures your family can maintain their lifestyle and meet financial obligations if something happens to you.

Term insurance provides pure life cover at the lowest premium. If you survive the term, there is no payout. Savings plans combine life cover with a guaranteed maturity amount, but premiums are significantly higher. Term insurance is best for maximum protection, while savings plans suit those who want forced savings with guaranteed returns.

No, ULIP returns are market-linked and not guaranteed. However, historically, equity funds within ULIPs have delivered 12 to 15% CAGR over long periods. You can switch between equity and debt funds based on market conditions. There is a 5-year lock-in period before you can make withdrawals.

Premiums paid qualify for deduction under Section 80C (up to ₹1.5 Lakh). Maturity or death benefits are tax-free under Section 10(10D), subject to conditions. ULIP and savings plan maturity proceeds are also tax-exempt if annual premium does not exceed 10% of the sum assured.

The earlier you start, the lower your premium and the higher your pension amount. Ideally, start a pension plan in your 30s or 40s. You can choose a deferred annuity where contributions accumulate over time, or an immediate annuity if you are near retirement and want pension to start right away.