Most people know they need insurance. But ask them how to choose the right one, and you’ll likely get a long pause or a confused shrug. That’s because comparing life insurance plans isn’t always straightforward. Every provider promises peace of mind, and every plan sounds like a must-have. But when you look at the numbers, they look good on paper, until you realise they don’t always tell the whole story.
Choosing the best plan isn’t just about finding the most affordable quote. It’s not just a matter of understanding what’s behind the numbers, what kind of coverage you have, and how that coverage intersects with your life, today and in 20 years. All of that is what will be discussed in this post.
Understanding what life insurance covers
At its core, a life insurance policy promises to pay your family a fixed amount or the sum assured if something happens to you during the policy term. But over time, insurers have added layers to this. Some plans now include benefits like critical illness cover, accidental death payouts, and even monthly income options for your family.
You’ll also find policies that double up as savings or investment tools. For example, ULIPs (Unit Linked Insurance Plans) invest a part of your premium into market-linked funds. Others offer fixed returns or retirement income. So, when comparing life insurance quotes, make sure you’re looking at the same type of plan. A pure term cover and a savings plan aren’t the same, even if the premiums seem close.
Factors that Determine the Cost of Premiums
For example, Priya and Karan both apply for a ₹1 crore cover. Priya is 27, works in IT, doesn’t smoke, and runs 5 km twice a week. Karan is 36, smokes occasionally, and has high BP. Karan’s premium is going to be higher. Not because insurers are unfair, but because they calculate risk based on factors like age, health history, habits, and even your job.
This is why when comparing quotes, you can’t just rely on what someone else is paying. Your numbers will be different, and that’s normal. You should provide the same set of details to each insurer’s premium calculator, like your age, coverage amount, policy term, and smoking status.
Premium insurance providers, like Axis Max Life Insurance, use underwriting tools that consider all of these inputs carefully. The goal is not just to give you a quote, but to offer one that reflects your real-life risk profile.
Is Cost The Only Factor To Consider While Comparing Quotes?
People often get caught up in price, which is understandable. If one policy quotes ₹700 per month and another asks for ₹900, the more affordable one seems better. But that’s only until you read the benefits closely. One might include only basic life cover. The other may offer critical illness protection, accident cover, or even a waiver of premium if you fall sick.
Here’s what you should really be looking for when comparing plans:
- Does the plan include riders like critical illness or disability benefits?
- Can you customise the payout via lump sum or monthly income for your family?
- Is there flexibility to change your coverage or add protection later?
- What’s the claim settlement record of the company offering it?
Sometimes the slightly more pricey plan actually gives you more peace of mind. And that’s what you’re buying, after all: peace of mind that your family won’t struggle if you’re not around.
How much coverage should you go for?
Before you choose an insurance plan, you should evaluate all necessary aspects. Make sure the coverage it is offering is enough to fulfil your goals. Also, assess your age, income, financial goals, and your family’s future needs. Here’s a guide to get you thinking in the right direction:
| Age Group | Why Life Insurance Matters | Suggested Coverage |
| 20s | Low premiums, early debt repayment, and starting investments | 15–20× annual income |
| 30s | Family protection, EMIs, child’s schooling | 20× annual income |
| 40s | Wealth planning, retirement savings, and higher expenses | 15× annual income |
| 50+ | Cover for debts, final expenses, spouse’s needs | 10× annual income |
This table isn’t a rulebook. But it gives you a good idea. If you’re 35, earn ₹12 lakh per year, and have two children, a cover of ₹2 crore is likely more realistic than ₹50 lakh, no matter how low that premium might be.
Tax Benefits To Consider While Deciding on Life Insurance
A life insurance policy isn’t just a safety net. It also offers tax savings. Under Section 80C (only under the old tax regime), you can claim deductions on premiums up to ₹1.5 lakh per year.
This makes a big difference if you’re in a higher tax bracket. The savings can reduce your taxable income significantly. When comparing life insurance quotes, remember to factor this in. A slightly higher premium might still be worth it once you account for the deduction.
Things To Consider When Comparing Insurance Plans
Sometimes it’s not the features, but the small things that make a plan the right choice, or a bad one. One such factor is how quickly a claim is processed. Whether the policy includes built-in critical illness cover, or if that’s extra. And what happens if you miss a premium?
Also, check whether your insurer allows digital servicing so that you can access your policy online, update nominee details, and download documents without much hassle. These little things save you time and stress later.
Premium providers with strong claim settlement ratios like Axis Max Life Insurance, which reported 99.65% in FY 2023–24, offer not just good plans but also smoother claim experiences. And that counts more than we think.
Conclusion
You don’t buy life insurance every year. It’s one of those few financial decisions that can protect your family even when you’re not around. That’s why it deserves your full attention. Compare plans, ask questions, use online calculators, and read the fine print. And once it feels right, go ahead with confidence.
Choosing the right life insurance plan isn’t about finding a good deal. It’s about building something that will hold up, no matter what life throws at you.
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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making any related decisions.