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The Top 5 Life Insurance Policy Features You Should Consider

Life insurance is crucial for anyone who wants to ensure their loved ones are financially protected after death. However, with so many different policy features available, it is difficult to know which ones to choose. Here are the top 5 life insurance policy features to consider.


Learn more about life insurance policy features

Congratulations!! You are a step close to finding out the best life insurance policy features for you. If you are reading this article, it means that you are eager to get the best coverage. You might already read a lot of, or this is your first bits of information about a life plan. If you want to get the best coverage for your unique needs, then read on and find out more about these life insurance policy features. 

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What are the main life insurance features and benefits

what are the main features of life insurance

Now that you’ve gotten a good idea of a life insurance policy, it’s time to take a look at the many features of life insurance –
1. Issued in the name of the policyholder
One of the primary features of life insurance plans is that it is issued only in the policyholder’s name. A policyholder is an individual who purchases a life insurance policy and pays the requisite premiums.
Generally, there is just one policyholder for a typical life insurance plan. That said, that’s only sometimes the case. Like a joint life insurance plan, some plans allow you to have more than one policyholder.
2. Flexible premium payments
As you’ve already seen above, to enjoy a life cover, you must pay premiums to the insurance service provider. You can also choose the frequency of premium payments you wish to make.
For instance, you can pay your life insurance policy premiums as a lump sum amount. Alternatively, you could pay them at periodic intervals such as monthly, quarterly, half-yearly, or annually.
3. Customizable tenure
When you purchase a life insurance policy, you’re required to choose the plan’s tenure. The policy only offers protection until the end of the selected tenure, known as the policy term. The life cover is only valid during this tenure.
This tenure can be customized according to your needs and requirements. For instance, you can choose a term of 20 years if you require life insurance coverage for the next 20 years. Some life insurance plans offer you whole life coverage, meaning they are valid until you attain 99 or 100 years of age. This varies from one program to another.
4. Customizable sum assured
The sum assured component of a life insurance plan is the pay-out that your nominee gets from the insurance service provider in the event of your demise. Like the tenure of a life insurance plan, you can also customize the sum assured when purchasing the policy. That said, here’s something that you need to know. The premium you must pay for a life insurance policy depends on the sum assured amount you choose. So, for example, the premium for a life insurance plan with Rs. 1 crore as the sum assured is likely to carry a higher premium than a similar plan with just Rs. Fifty lakhs as the sum assured.
5. Pay-out on death or maturity
Another important feature of life insurance is that the insurance service provider pays out the sum assured only under one of two incidents – upon the death of the policyholder or the maturity of the life insurance plan. For pure term insurance plans, pay-outs are only made on end.
When the insurer pays out the sum assured to the nominee in the policyholder’s death, the pay-out is termed the death benefit. Similarly, when the pay-out is made to the policyholder on the policy’s maturity, it is termed maturity benefit.
6. Ability to assign nominees
Nominees are the individuals entitled to receive the sum assured in the event of the policyholder’s demise. Nominees usually need to be assigned at the time of purchase of a life insurance policy itself.
However, you can also choose to assign them at a later point as well. That’s not all. You can also choose to switch your nominees at any point during your life insurance plan tenure.
7. Features an investment component
Not all life insurance policies stick to just providing a life cover. Unit Linked Insurance Plans (ULIPs) and savings plans also have an investment component over and above a life cover. This feature ensures that you get benefits paid out to you on maturity.

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Life insurance policy details

life insurance policy detailsLife insurance policy details outline the major pieces of the policy. This includes what’s covered by the insuring company and your rights as an owner, such as changing the beneficiary and, when applicable, borrowing against the policy’s cash value. The insuring agreement comprises smaller sections, which vary based on your specific policy. They may include:

  • Tables or illustrations.
  • These are used to show potential future premiums, cash value details and death benefits. They can also demonstrate how the cost of insurance may fluctuate over time.
  • Definitions.
  • Most policies include a section that defines the terms used in the policy. Knowing what the words mean can help you better understand the policy.
  • Settlements.
  • This section provides instructions on how a beneficiary can make a claim and the choices available for receiving the policy’s benefit.
  • Endorsements and riders.
  • Additional coverages that make changes to the policy or other benefits will be listed in this section.


Additional provisions will likely be included in your life insurance policy. State insurance regulations, the insurance company and the type of policy you purchased determine the conditions contained in a policy. Common provisions include:

  • Your application.
  • Most states consider the insurance contract the application and policy pages together.
  • Incontestability provision.
  • This establishes the period during which a life insurance policy can be contested for potentially inaccurate information on the application. Assuming premiums have been paid, insurance companies can typically only investigate the application in the first two years the policy is in force.
  • Grace period.
  • If you miss a payment, most policies provide a specified amount of time for you to make a payment before the policy lapses.

5 benefits of life insurance

Life insurance provides financial protection for your loved ones during your death. Here are 5 benefits of having a life insurance policy: 1. Death benefit: The death benefit is the amount of money paid out to your beneficiaries when you pass away. This can help cover funeral expenses and outstanding debts and provide financial support for your loved ones. 2. Tax-free payout: The death benefit is typically paid out tax-free, meaning your beneficiaries will receive the full policy amount. 3. Cash value: Some life insurance policies have a cash value component that can be used as savings or investment vehicle. This can provide additional financial benefits during your lifetime. 4. Flexible premiums: Depending on the type of policy you choose, you may have the option to adjust your premiums over time. This can help you manage your budget and ensure you can continue to afford your policy. 5. Peace of mind: Knowing that your loved ones will be financially protected in the event of your death can provide peace of mind and reduce stress and anxiety.

Advantages of life insurance

Life insurance provides numerous advantages, including financial protection for your loved ones, tax-free payouts, cash value components, flexible premiums, and peace of mind. By choosing the right life insurance policy features, you can ensure that your loved ones are cared for in the event of your death and reduce stress and anxiety.

Types of life insurance policies pdf

Unfortunately, this article does not provide a PDF on life insurance policies. However, many online resources can provide detailed information on the different types of life insurance policies, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. Researching and consulting with a financial advisor is important to determine which type of policy is best for your individual needs and circumstances.

What are the three main types of life insurance?

The three main types of life insurance are term life insurance, whole life insurance, and universal life insurance. Term life insurance covers a specific period, typically 10-30 years, and pays out a death benefit if the insured dies. Whole life insurance covers the insured’s entire life and includes a savings component that can accumulate cash value over time. Universal life insurance is similar to whole life insurance but offers more flexibility regarding premium payments and death benefit amounts.

what does life insurance coverWhat does life insurance cover

Life insurance policies cover almost all deaths, with a few exclusions. As long as your policy is active when you die, life insurance providers will pay out if your death is caused by:

  • Natural causes: Like a heart attack, old age, or illnesses like cancer
  • An accident: Including accidental overdose from a prescribed medication
  • Suicide: As long as it occurs after the policy’s two-year suicide clause period ends 
  • Homicide: Unless the beneficiary played a role in the murder

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Frequently Asked Questions

What is the feature of a life insurance policy?

Some common features of a life insurance policy include a death benefit paid out to beneficiaries upon the insured's death, premium payments made by the policyholder to keep the policy active, and the ability to choose between term life insurance (coverage for a specific period) or permanent life insurance (coverage for the insured's entire life). Other features include borrowing against the policy's cash value or adding riders for additional coverage.

What is the key feature of term life insurance?

The key feature of term life insurance is that it provides coverage for a specific period, typically 10 to 30 years. During this time, the policyholder pays a fixed premium, and if they pass away during the term, their beneficiaries receive a death benefit payout. However, if the policyholder outlives the term, the coverage ends, and there is no payout.

What are the different types of life insurance?

There are several types of life insurance, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. Each type has unique features and benefits, so it's important to understand the differences before choosing a policy.

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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