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Life Insurance Plan

We understand how important your family’s happiness is to you and how hard you work for them. It is equally important to secure your family’s future by taking a life protection cover. A Life Insurance plan is a simple way to get comprehensive protection at an affordable price and protect your loved ones against the uncertainties that life may throw at you. We present to you a broad range of Protection Plans uniquely designed to secure your family at every stage of life.

Disclaimer: Tata Capital Limited (“TCL”) bearing License no. CA0896 valid till 21-Jan-2027, acts as a Composite Corporate Agent for TATA AIA Life Insurance Company Limited, HDFC Life Insurance Company Limited, BAJAJ Allianz Life Insurance Company Limited, Kotak Mahindra Life Insurance Company Limited, GO DIGIT Life Insurance Company Limited, TATA AIG General Insurance Company Limited,  IFFCO Tokio General Insurance Company Limited, GO DIGIT General Insurance Company Limited, Cholamandalam MS General Insurance Company Limited, Magma HDI General Insurance Company Limited, The Oriental Insurance Company Limited, Star Health and Allied Insurance Company Limited, United India Insurance Co. Ltd, National Insurance Company Limited,  and Niva Bupa Health Insurance Company limited.

Please note that, TCL does not underwrite the risk or act as an insurer. For more details on the risk factors, terms & conditions please read sales brochure carefully of the Insurance Company before concluding the sale. Participation to buy insurance is purely voluntary.

The Registered office of TCL is Tata Capital Limited, 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam, Marg, Lower Parel, Mumbai-400013

What is Life Insurance?

  • Life Insurance can be defined as a contract between an insurance policyholder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium upon the death of an insured person or after a set period.

  • Life insurance plans also serve as long-term savings or investment tools, helping you build wealth and achieve future financial goals.

How Does Life Insurance Work?

Life insurance works as a contract between a policyholder and an insurer. The policyholder pays regular premiums to the insurance company in exchange for financial protection. The insurer pays a predetermined sum (death benefit) to the nominee or family members in case of the policyholder’s death during the policy term. This amount helps them manage living expenses, repay loans, or meet future goals. 

If it’s an investment-linked or endowment plan, the policyholder may also receive maturity benefits if they survive the policy term. The process for claiming life insurance coverage involves submitting the death certificate, policy documents, and claim form for settlement.

Types of Life Insurance

Term life insurance policies in India provide a pre-defined amount of money to the policyholder’s family, only if the policyholder dies during a specified term. You are not eligible for a claim if the insured person survives till the end of the policy period. This policy essentially remains active for a pre-defined time and is one of the affordable policies available in the market.

Whole life insurance, as the name suggests, provides you with coverage at all points of your life in which the policy is in force. This coverage time can go as long as 100 years. These policies also offer loan facilities to the policyholder. The overall process of buying whole life insurance is convenient and can be completed online as well as through an easy offline process.

The main difference and advantage of a money-back policy is that it gives the policyholder different survival benefits, which are linked to the period of the policy. Unlike other policies, this policy gives you money during the policy period. Regardless of the installments paid, if the policyholder dies, the family gets the entire sum. These policies are expensive than their counterparts.

Endowment policies are different from term insurance policies in a way that, in case of these policies, the insured gets a lump sum amount of money if he/she survive till the maturity date. The policy offers insurance with savings at the same time. They also come with riders that may be used to increase the coverage of the policy. In case of death, the endowment policy guarantees that, along with the sum, a participation profit is also paid according to the nature of the policy.

A Unit-Linked Insurance Plan (ULIP) is a life insurance-cum-investment plan. It allocates a portion of your premium to life cover, and the rest is invested in equity, debt, or balanced funds, depending on your risk tolerance. It allows flexibility to switch between funds, helping you grow wealth over time while ensuring financial protection for your family. ULIPs are the best life insurance plans for long-term goals, like wealth creation or children’s education.

With a retirement plan, you can build a steady source of income for your post-retirement years. You contribute premiums during your working life, and the insurer accumulates a retirement corpus. On maturity, it provides regular annuity payouts or a lump sum, ensuring financial independence and peace of mind after retirement. It also offers life cover during the accumulation phase.

A child plan secures your child’s education and future financial goals, even in your absence. It offers both life cover and savings benefits. In the event of the parent’s unfortunate death during the policy term, future premiums are waived. The child receives the assured benefits as planned.

Group life insurance, commonly provided by employers or organizations, offers life cover to a group of individuals under a single master policy. It ensures financial protection for employees’ families in case of their untimely demise. The premiums are generally lower than those of individual policies, and the coverage may include additional riders.

    Key Benefits of Life Insurance One Should Know

  • Tax benefits

    Enrolling for a life insurance policy can guarantee you tax benefits. The premiums you pay towards the policy make you eligible for tax exemptions of up to Rs. 1.5 lakhs of your taxable income, under Section 80C of the Income Tax Act. The death benefits are also fully tax-exempt under Section 10(10D) of the ITA.

  • Guarantee of fixed returns

    Life insurance policies guarantee that you get a fixed amount after a fixed timeline. You need to go through the structure of different life insurance products. Read through the structure and terms and conditions of different life insurance products to choose a policy that best suits your needs. Whatever you choose, you can rest assured that the promised death benefits will be disbursed to the beneficiary, if the information provided by you at the time of enrolling for the policy was accurate.

  • Risk mitigation and coverage

    These policies provide the quintessential risk coverage in terms of monetary compensation to mitigate and cover risks after the policyholder’s death. By enrolling for life insurance, you are protecting your family against financial risks that would occur if the primary breadwinner meets an untimely death.

  • Provision for loan

    Certain policies provide the option of a loan and allow you to borrow a sum of money. This means that if you need to take on a loan, for instance, to fund the education or marriage of a child, you can use the life insurance policy as collateral.

  • Health expense coverage

    Most of these policies cover the health and treatment expenses that may occur if the policyholder falls ill. You can also choose riders to increase the coverage of the insurance policy to protect your finances even while you are alive.

  • Financial security

    A life insurance plan provides financial protection to your loved ones in case of your untimely death. It ensures your family can manage daily expenses, repay debts, and maintain their lifestyle even without your income. With its guaranteed payout, it brings peace of mind and long-term financial stability to dependents during uncertain times.

  • Maturity benefits

    Some life insurance plans, like endowment or money-back policies, offer maturity benefits if the policyholder survives the policy term. The insured receives a lump sum amount that can be used for major financial goals such as education, marriage, or retirement. This feature turns insurance into both protection and savings.

  • Wealth creation through insurance

    Investment-linked plans such as ULIPs help you grow wealth and stay protected. In these plans, a portion of your premium goes toward life cover, and the rest is invested in equity or debt funds. Over time, this builds a strong financial corpus for future goals. It also combines security with investment growth.

  • Death benefit

    Death benefit is one of the most prominent benefits of life insurance. The insurer pays the sum assured or death benefit to the nominee if the policyholder dies during the policy term. This payout helps the family handle financial responsibilities.

  • Flexible premium payment option

    Depending on your financial convenience, you can pay the premium for a life insurance plan on a monthly, quarterly, or annual basis. You can even pay it as a single lump sum. Some plans also allow premium holidays or limited-pay options, ensuring you can maintain coverage without financial strain.

  • Riders

    Riders are optional add-ons that enhance your life insurance coverage. The common riders include critical illness cover, accidental death benefit, or waiver of premium. They offer additional protection against specific risks at a nominal extra cost, allowing you to customize your policy according to your needs.

  • Retirement planning

    Life insurance-based retirement plans help you build a financial cushion for your post-retirement life. You pay premiums during your earning years, and the accumulated corpus provides regular income or a lump sum after retirement. It ensures you remain financially independent and can enjoy a stress-free retirement.

Who can get Life Insurance?

When it comes to the age-old and vital question of whether you actually need a life insurance policy, the answers are many. It all depends on what stage of life you’re in and what your goal is in buying life insurance. Of course, the primary goal of any life insurance is to secure your family’s finances if you pass away. It is a way to ensure that your family can carry out their day-to-day expenses, pay bills, pay rent or EMIs, and pay school fees even in your absence. But a life insurance policy can have secondary benefits as well, like tax savings and as an investment.

So, who should get life insurance and when they should get it, depends on a lot of factors. Given below, is a list of people who may or may not need to buy life insurance, along with a few situations when one should opt for life insurance.

  • Young and single adults

    If there is someone who needs life insurance the least, it is very young individuals. In most cases, very young people who are single and who do not have anyone depending on them for their finances will not require a life insurance policy.

    The one reason a young person may buy life insurance at an early age is to make sure that the premiums stay low even when the person actually needs life insurance after a few years. This is because premiums increase as a person ages, and so does the probability of diseases, leading to problems in your medical test.

  • New families

    New families or people who are about to be married should be the first in line to get life insurance. The reasons are simple. When you start a family, you immediately have someone depending on you, even if both partners are working. Any future children shall also benefit from the life insurance payout in case something happens to you.

    One of the advantages of getting life insurance just before you get married or when you’re newly married is the lower cost of premiums.

  • Existing families

    If you belong to an existing family with one or more breadwinners and children, then you must have a life insurance plan for your family in place. If you’re the sole breadwinner of the family who brings a monthly income that pays for your children’s education, house bills, rent or EMIs, and day-to-day expenses, then your family will need some financial stability if something were to happen to you. Even if both you and your partner are working, a life insurance policy is necessary to pay for people working inside the home, like child caretakers and people doing home chores.

  • People with home loans

    The purchase of a home via a home loan is a significant expense, and if you pass away, then your family may not be able to pay the EMIs. With life insurance, you can rest assured that your family home is secure because the death benefit paid out to your family can be used to pay your loan EMIs. Insurance companies also offer to pay the death benefit via monthly installments, helping your family to regularly pay the home loan EMIs.

  • Working couples without children

    A married couple who do not yet have a child, and who are both bringing in a monthly income, may or may not require life insurance. In this case, both partners have to weigh in on their options and decide whether they need life insurance. The number one factor is the salary.

    If one of the partners passes away, will the other partner be able to sustain their lifestyle comfortably with their salary alone? If the answer is yes, then they do not require life insurance. But if one partner is contributing a much higher amount to the finances, then a life insurance policy would leave the other partner in a much better position, provided that the cost of premiums is not much of a burden on the couple.

  • Employed persons who have life insurance provided by their company

    Many companies provide life insurance to their employees. But is a company providing a life insurance policy enough or should you go for a separate life insurance policy as well? The latter situation is what you should be aiming towards. The problem with a work-related life insurance policy is that, it will be terminated when you leave your job. It is always better to have a separate life insurance policy because even when you’re out of a job or between jobs, you would still have coverage.

  • Business owners

    If you’re a business owner or a business partner, you’re likely to have many people relying on you. In this case if something happens to you, they will be in an unfortunate position. Thus, a separate life insurance policy to take care of your business obligations is always a good idea.

  • Senior citizens and retired persons

    Most senior citizens and retired people do not need life insurance because they do not have anyone depending on them for their finances, and the cost of life insurance at this stage would be high. However, if the concerned person wishes to leave a good amount of money for a loved one or their family as a backup or savings, then they can go for a life insurance policy, provided that they pass the medical test and are up for paying higher premiums.

Important Life Insurance Terms You Should Know

Before you buy life insurance, you must clearly understand the meaning of the following key terms. 

  • Premium: The amount you pay to the insurance company regularly - monthly, quarterly, or annually - to keep your life insurance policy active.

  • Sum assured: The fixed amount your nominee receives from the insurer in case of your death during the policy term. It represents the guaranteed life cover.

  • Policy term: The duration for which the life insurance coverage remains valid. It can range from a few years to your entire lifetime, depending on the plan you choose.

  • Nominee: The person the policyholder chooses as the recipient of the policy benefits in the event of the policyholder’s death.

  • Riders: These are optional add-ons that enhance your life insurance coverage, such as critical illness cover, accidental death benefit, or disability protection.

  • Maturity benefit: The amount the insurer pays to the policyholder if they survive the policy term. It applies to savings or investment-linked life insurance plans.

  • Surrender value: The amount the policyholder receives if the policy is terminated before maturity.

  • Grace period: It is the extra time, usually 15 to 30 days, granted by the insurance company to pay a missed premium without policy lapse.
     

Free Look Period: A short window of approximately 15 days after purchase, during which you can cancel the policy and receive a refund if you are unsatisfied.

Documents Required to Apply for a Life Insurance Policy

The documents you need while applying for a life insurance policy are:

  • Identity proof - A copy of any valid government-issued ID. This includes PAN Card, Aadhaar Card, Voter’s ID, driving license, or passport. 

  • Address proof - A copy of your Aadhaar Card, rental agreement, ration card, utility bills, including telephone, electricity, or any other document officially accepted as address proof. 

  • Age proof - A copy of a valid government-issued document mentioning your date of birth, such as a passport, birth certificate, or school leaving certificate. 

  • Medical reports - Records of recent diagnostic tests and medical reports. If you’re applying for a high-value policy or are an aged applicant, you require a health declaration form.

  • Income proof - A copy of your Form 16, salary slips, Income Tax Returns (ITRs), or bank account statements for financial verification.

  • Passport-sized photographs - A recent photograph as per the insurer’s guidelines.

Why Life Insurance Is Important for Every Age Group

Life insurance benefits differ by age. Here’s why it’s important to have the best life insurance plan at every stage:

  • Early 20s: Starting young allows you to get the lowest life insurance quotes. It helps you develop financial discipline.

  • Ages 20 to 30: It is the ideal time to buy life insurance, as you may start a family or take on financial responsibilities. It secures your loved ones’ future, covers liabilities, and offers long-term savings benefits.

  • Ages 30 to 40: This is a crucial stage with growing responsibilities like home loans, child education, and dependents. Life insurance ensures financial stability and protection for your family in case of your absence.

  • Ages 40 to 50: At this stage, life insurance helps protect accumulated assets and secure your family’s future. It ensures continued financial security as your retirement is nearing.

  • Ages 50 and above: Life insurance supports retirement planning, covers healthcare costs, and provides a legacy for your family. It ensures peace of mind and financial independence in later years.

Things to Consider When Choosing a Life Insurance Cover?

It is vital to select a life insurance plan with the right cover, as it ensures your family’s financial security, helps meet future goals, and offers peace of mind in case of unforeseen events.

The key factors to consider when choosing a life insurance coverage are:

  • Coverage amount: Choose a coverage amount that is at least 10 to 15 times your annual income to cover expenses, debts, and long-term family needs.

  • Premium affordability: Pick a plan with premiums that fit comfortably within your budget so you can continue payments without financial strain.

  • Policy type: Select a policy based on your needs. A term plan is for pure protection, a ULIP for insurance plus investment, or an Endowment Plan for savings with life cover.

  • Claim settlement ratio: Remember to check the insurer’s claim settlement record to ensure reliability and timely claim payouts.

  • Rider options: You can enhance your coverage with riders like critical illness, accidental death, or waiver of premium for additional protection.

Why Choose Tata Capital to Buy Life Insurance Plans?

  • To be based on the trusted brand of Tata

  • Have tie ups with renowned partners in the insurance industry

FAQs on Life Insurance

Who should buy life insurance and why?

    Individuals with financial dependents should buy life insurance. It secures their family’s future, covers debts, and ensures financial stability in case of the policyholder’s untimely death.

What are the benefits of life insurance in India?

There are plenty of benefits of life insurance in India. The policy offers financial protection, tax incentives, long-term savings, and peace of mind by fulfilling your family’s expenses and goals even after your demise.

How much life insurance coverage do I need?

Ideally, your life insurance coverage should be 10–15 times your annual income. It should account for liabilities, family expenses, education goals, and inflation to ensure adequate financial support.

Can I get life insurance without a medical exam?

Yes, some insurers offer life insurance without medical tests, usually for lower coverage amounts or specific plans, depending on age and health declaration.

How to apply for life insurance with Tata Capital?

To apply for life insurance with Tata Capital, click the ‘Apply Now’ button on this page, fill out a simple form, select your preferred plan, submit the necessary documents, and complete the premium payment. If you wish to apply offline, visit the nearest branch and ask the branch executive to assist you with the formalities.

What documents are required to buy life insurance?

You need identity proof, address proof, income proof, age proof, and passport-size photographs to buy life insurance. Some lenders may ask for additional medical or financial documents for higher coverage.

How do I claim life insurance benefits?

To claim life insurance benefits, the nominee must first inform the insurer of the policyholder’s demise. Next, they must submit the claim form, death certificate, and policy documents. The insurer will process and settle the claim amount after verifying the details and the accuracy of the documents.

Are life insurance premiums tax-deductible?

    Yes, life insurance premiums qualify for tax deductions under Section 80C of the Income Tax Act, and maturity proceeds are usually tax-free under Section 10(10D).

Can I buy multiple life insurance plans?

    Yes, you can purchase multiple life insurance policies to enhance coverage, diversify benefits, and ensure better financial security for your family’s needs and goals.

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