6 Features of Life Insurance Policies That Can Help You Ensure a Secure Future

Riders in Insurance

Life insurance plays a vital role in securing your loved ones' financial future in India. Beyond offering peace of mind, it comes packed with features designed to cater to various needs and life stages. Understanding these features empowers you to choose a life insurance plan that aligns perfectly with your financial goals and responsibilities. Let's delve deeper into the key features of life insurance in India.

1. Death Benefit

The cornerstone of life insurance, the death benefit is a guaranteed lump sum payout disbursed to your designated beneficiaries upon your demise (as long as premiums are paid on time). This financial cushion helps your family manage living expenses, pay off debts, and achieve crucial financial goals you envisioned for them.

  • Death Benefit Amount: The coverage amount varies depending on the type of plan and the premium you pay. Carefully consider your dependents' financial needs and future goals when determining the ideal coverage amount.

2. Policy Term

The policy term refers to the specific period for which your life insurance coverage remains active. Term life insurance plans offer coverage for a predefined period (e.g., 20 years, 30 years). Whole life insurance, on the other hand, provides coverage throughout your lifetime. Choosing the right policy term hinges on your financial goals and the duration your dependents require financial support.

3. Policy Lapse

A policy lapse occurs if you fail to pay premiums within the grace period specified in the policy document. This can lead to policy termination and loss of coverage. Most life insurance plans offer revival options, allowing you to reinstate the policy within a stipulated timeframe by paying the due premiums and any applicable revival charges.

4. Grace Period

Life throws unexpected curveballs. The grace period is a buffer window provided by most life insurance companies after a premium due date. During this grace period, you can pay the missed premium without any penalty to keep your policy active and avoid a lapse. The grace period duration varies depending on the specific policy terms.

5. Maturity Benefit (In Certain Plans)

While term life insurance focuses solely on the death benefit, some life insurance plans like whole life insurance or endowment plans offer a maturity benefit. This benefit is a lump sum payout received at the end of the policy term if you survive the policy term. The maturity benefit amount along with any accumulated bonuses can be a valuable source of funds for retirement or other financial goals.

6. Riders (Optional Add-Ons)

Riders are optional add-on benefits that can be attached to your base life insurance plan for an additional premium. These riders enhance your coverage and cater to specific needs. Here are some popular riders to consider:

  • Accidental Death Benefit Rider: This rider offers an additional payout in case of accidental death, providing greater financial support for your beneficiaries.
  • Waiver of Premium Rider: This rider waives future premiums if you become disabled and are unable to earn an income. This ensures your policy remains active without financial strain on your family.
  • Critical Illness Rider: This rider provides a lump sum payout if you are diagnosed with a critical illness covered under the policy, helping manage treatment costs.

7. Premium Payment Options

Life insurance companies offer various options for premium payment frequency. You can choose to pay premiums annually, semi-annually, quarterly, or even monthly, aligning the payment schedule with your income flow and budget.

8. Claim Settlement Process

In the unfortunate event of a policyholder's demise, the beneficiaries need to initiate a claim process. Most life insurance companies have streamlined claim settlement procedures. By understanding the required documents and claim process beforehand, beneficiaries can navigate this challenging time more efficiently.

9. Surrender Value (In Certain Plans)

Some life insurance plans, like whole life insurance plans, accumulate a cash value component over time. This cash value can be surrendered for a certain amount (subject to policy terms and conditions) if you decide to discontinue the policy before its maturity.

10. Loan Options (In Certain Plans)

Certain life insurance plans, particularly whole life and endowment plans, allow you to borrow against the accumulated cash value at a predetermined interest rate. This can be a source of funds for unexpected financial needs while keeping your policy active. However, it's important to remember that outstanding loans accrue interest and can reduce the ultimate death benefit payout or maturity benefit amount.

Choosing the Right Features

With a multitude of features available, selecting the ones that best suit your needs is crucial. Here are some key considerations:

  • Your Life Stage and Dependents: Consider the ages of your dependents and how long they might require financial support.
  • Financial Goals: Identify your long-term financial goals for your family (e.g., child's education, wedding expenses) and choose features that can contribute to achieving them (e.g., maturity benefit).
  • Risk Tolerance: Evaluate your comfort level with market fluctuations. Riders like waiver of premium rider offer additional security but come at an extra cost.
  • Budget: Life insurance premiums can vary depending on the chosen features and coverage amount. Be realistic about your budget and choose features that align with your financial capabilities.


Life insurance features offer a customizable approach to financial protection. By understanding these features and carefully considering your individual needs and circumstances, you can choose a life insurance plan that provides comprehensive coverage and peace of mind for you and your loved ones. Consulting a financial advisor can be highly beneficial. They can assess your financial situation, risk tolerance, and goals to recommend a life insurance plan with the most suitable features to create a robust financial safety net for your family's future. Remember, life insurance is an investment in your loved ones' well-being, and understanding its features empowers you to make informed decisions for their financial security.


Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Flexi Term Pro

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Bharti AXA Life Future Invest Plan

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Bharti AXA Life Shining Stars

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