Life Insurance

Securing the financial future of our loved ones is always a concern for us all. That’s why life insurance can be a source of security, promising a safeguard against the unforeseen. 

But, how straightforward is the process of purchasing life insurance in India? Let’s take a look at the step-by-step process and get some perspective on the medical realm of India.

The Significance of Life Insurance

Life insurance is not just a financial product; it’s a commitment to protect the financial interests of your family in your absence. It ensures that your loved ones can maintain their standard of living, pay off debts, cover educational expenses, and handle unforeseen medical costs without undue stress. Given its importance, the process of purchasing life insurance should ideally be straightforward and accessible.

How Easy Is It to Buy Life Insurance in India?

The advent of technology and the rise of insurance aggregators have significantly simplified the process of buying life insurance in India. Platforms like Digibima offer a one-stop solution by suggesting the best out of the many life insurance policies in the market, streamlining the process.

Step-by-Step Process of Getting Life Insurance in India

  • Assess Your Needs: Begin by evaluating your financial situation, dependents, debts, and future obligations. This will help you figure out the amount of coverage you need.
  • Research: Leverage online resources to understand the types of life insurance policies available, such as term insurance, whole life insurance, and others. Consider what suits your needs and budget.
  • Compare Policies: Use insurance aggregators to compare different policies based on their features, benefits, premiums, and exclusions. This step is crucial to finding a policy that offers the best value for your specific needs.
  • Check Insurer’s Reputation: Research the insurer’s claim settlement ratio and customer reviews. A higher claim settlement ratio indicates a greater likelihood of your claim being honored.
  • Apply Online: Once you’ve chosen a policy, you can typically apply online. You’ll need to fill out a detailed application form and provide necessary documents such as ID proof, address proof, income proof, and medical reports (if required).
  • Medical Examination: Depending on your age, health, and the policy amount, the insurance company may require you to undergo a medical examination to assess your health risk.
  • Policy Review and Payment: After submitting your application and undergoing any required medical exams, review the policy terms carefully before making the premium payment. Ensure all information is accurate to avoid issues during the claim process.
  • Policy Issuance: Once your application is approved, and the premium is paid, the insurer will issue the policy document, either digitally or in physical form. Review this document to ensure all details are correct.

Health Statistics and Medical Expenses in India

Understanding health statistics and medical expenses is crucial when considering life insurance, as these factors significantly impact the coverage you may need.

  • Health Statistics: India faces a dual burden of communicable and non-communicable diseases. While infectious diseases remain prevalent, there has been a rise in chronic illnesses such as cardiovascular diseases, diabetes, and cancer. The risk of such diseases increases with age, making adequate life insurance coverage essential.
  • Medical Expenses: The cost of healthcare in India has been rising steadily. Treatment for chronic conditions can be particularly expensive and may include ongoing medication, surgeries, and hospitalization. For instance, the cost of cancer treatment can range from a few lakhs to over 20 lakhs, depending on the type and stage of cancer. Cardiovascular treatments and diabetes management also entail significant expenses.
  • Demographic Variations: Medical expenses and health risks can vary significantly across different demographics. Younger individuals may have lower health risks but should consider the potential for unexpected accidents or illnesses. Middle-aged and older adults face higher risks of chronic diseases, which can lead to higher medical expenses. Therefore, life insurance coverage should be tailored to match these varying needs, ensuring adequate protection against potential financial burdens.


The process of buying life insurance in India has become more accessible and user-friendly, thanks to technological advancements and the proliferation of online platforms. By following the steps outlined above, individuals can efficiently find a policy that meets their needs, ensuring their loved ones’ financial security. 

It’s important to remember that life insurance is not a one-size-fits-all solution; it requires careful consideration of your financial situation, health statistics, and potential medical expenses. By taking these factors into account, you can secure a policy that provides peace of mind, knowing that your family’s financial future is protected.

Getting the right life insurance is a crucial decision that demands consideration. With the right approach and resources, it can be a straightforward and rewarding process, providing long-term security for you and your loved ones. In today’s uncertain world, having a life insurance policy is not just a wise financial decision; it’s an act of love and responsibility towards your family.

Frequently Asked Questions (FAQs)

Q1: How much life insurance coverage do I need?

A1: The amount of life insurance coverage you need depends on several factors, including your income, debts, lifestyle, and the financial needs of your dependents. A common rule of thumb is to have a life insurance policy that covers 10-15 times your annual income, but this can vary based on individual circumstances.


Q2: What is the difference between term insurance and whole life insurance?

A2: Term insurance provides coverage for a specific period (the term), offering a death benefit if the policyholder dies during this time. Whole life insurance, on the other hand, offers lifetime coverage along with a cash value component that grows over time, which can be borrowed against or withdrawn.


Q3: Can I buy life insurance if I have a pre-existing medical condition?

A3: Yes, you can buy life insurance with a pre-existing medical condition, but it may affect your premiums and the underwriting process. Insurers may charge higher premiums or impose certain exclusions based on the health risks associated with your condition.


Q4: How does a medical examination affect my life insurance application?

A4: A medical examination helps the insurer assess your health risk and determine the appropriate premium for your policy. If the examination reveals health issues, your premium may be higher, or you might be offered a policy with certain exclusions. In some cases, insurers offer policies without a medical exam, but these may come with higher premiums and lower coverage limits.


Q5: Can I change my life insurance policy once it’s in force?

A5: It depends on the type of policy and the insurer’s rules. Some policies allow you to increase or decrease your coverage, add or remove riders, or convert from term to permanent insurance without undergoing another medical exam. It’s important to review your policy documents and discuss your options with your insurer.