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Life insurance savings plans

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Savings-type life insurance mixes life cover with an investment or a guaranteed payout. Premiums are higher than term insurance for the same cover, because part of each premium is saved or invested.

Types of life insurance savings plans

EndowmentPays the sum assured plus any bonus at maturity, or on earlier death.
Money-backPays part of the sum assured at set intervals during the term.
ULIPUnit-linked plan: premiums buy units in market-linked funds, with charges and a lock-in.
Pension and annuityBuilds a corpus, or converts one into a regular income.
Child plansSavings for a child’s goals, often with a waiver of premium if the parent dies.
Whole lifeCover to a high age, with a savings element.

What is usually covered, and what is not

Usually covered
  • Death benefit during the term
  • Maturity or survival benefits, as the policy states
  • Bonuses on participating plans, when declared
Usually not covered
  • Returns not stated as guaranteed are not promised
  • Exclusions in the policy wording apply to the death benefit

Your policy wording decides. Read it before you buy.

Check these before you buy

Guaranteed vs non-guaranteedOnly guaranteed figures are promised; illustrations are not.
ChargesFor ULIPs: premium allocation, fund management and mortality charges.
Lock-in and surrender valueLeaving early can return much less than premiums paid.
Life cover amountOften low compared with a term plan for the same premium.
Benefit illustrationAsk for it and read both scenarios.
Insurer claim recordClaims paid by number and by amount, on each insurer page.

Why claims get refused

ReasonWhat it meansWhat to do instead
Non-disclosureHealth or income details were not declaredDeclare everything in the proposal form
Policy lapsedPremiums stopped and the policy lapsed or became paid-upKnow the grace period and revival rules

How to claim

1
Maturity
The insurer contacts you before maturity; keep bank and KYC details current.
2
Death claim
The nominee submits the claim with documents the insurer lists.
3
Surrender
Ask for the surrender value in writing before deciding.

Official guide: IRDAI, making a claim.

Life insurers

Names only, A to Z. Tap one for its own claims, complaints and solvency record.

Acko Life InsuranceAditya Birla Sun Life InsuranceAgeas Federal Life InsuranceAviva Life Insurance Company IndiaAxis Max Life InsuranceBajaj Allianz Life InsuranceBandhan Life InsuranceBharti AXA Life InsuranceCanara HSBC Life InsuranceCredit Access Life InsuranceEdelweiss Tokio Life InsuranceFuture Generali India Life InsuranceGo Digit Life InsuranceHDFC Life InsuranceICICI Prudential Life InsuranceIndiaFirst Life InsuranceKotak Mahindra OM Life InsuranceLife Insurance Corporation of IndiaPNB Metlife India InsurancePramerica Life InsuranceReliance Nippon Life InsuranceSahara India Life InsuranceSBI Life InsuranceShriram Life InsuranceStar Union Dai-ichi Life InsuranceTATA AIA Life Insurance

Frequently asked questions

Is a savings plan better than term plus investing separately?

They do different jobs. Compare the guaranteed return and the life cover with a term plan plus your own investments, using the insurer’s benefit illustration.

What is a surrender value?

What you get if you stop the policy early. It can be far below premiums paid in the early years.

Are ULIPs mutual funds?

No. They are insurance plans regulated by IRDAI, with insurance charges and a lock-in.

Education only. MyFinanceBandhu is not an insurer, insurance broker or web aggregator, does not sell, quote or recommend insurance, and earns nothing from it. Insurers are listed A to Z, never ranked. Claim figures come from IRDAI’s Handbook on Indian Insurance Statistics 2024-25. Your policy wording is what decides any claim: read it before you buy. Complaints: insurer’s grievance officer, then IRDAI’s Bima Bharosa, then the Insurance Ombudsman.