9 Features of a Life Insurance Policy You Need to Know

What Is a Life Insurance Policy?

Important Features of a Life Insurance Policy Explained

FAQs about Features of Life Insurance Policy?

What factors should you consider while deciding the coverage amount?


Some essential factors that you can take into consideration are as follows:

  • Number of dependent family members
  • Any pending liabilities
  • Current financial status
  • Current lifestyle of your family
  • Future goals of family members

What are the benefits of terminal illness cover?


The benefits of terminal illness cover are as follows:

  • Your family can receive the claim amount sooner than other plans.
  • You can quickly draw out about 25% of the sum assured that you can use for the treatment of your illness.
  • No additional costs are associated with this cover.
  • Offers financial benefit to policyholders on having a life expectancy of less than 12 months.

Can you get a waiver on the premium for a life insurance policy?

Some insurance companies offer a waiver on your policy premiums in some instances. For example, if you get permanently disabled due to a severe accident, the insurer will pay the remaining premiums to keep the policy intact. There are also premium waiver options in child insurance plans.

How long does a life insurance policy stay valid?

The validity of a life insurance policy ends if you have outlived the duration for which it was bought. However, it can also cease when the policyholder dies during the tenure, and the nominee receives the claim amount.

How many riders can you add to a term insurance policy?

There is no restriction on the number of riders you can add to your term insurance policy. However, you should note that they can promptly increase the premiums. Hence, it is essential to carefully evaluate and add only the essential riders.