How Does Life Insurance Protect You Against Inflation?

Life insurance is crucial for protecting your financial future from inflation's effects. As inflation reduces the value of money over time, having enough life insurance becomes more important. With inflation rising in the country, buying a life insurance policy is smart as you can ensure your loved ones are financially secure against rising living costs. Let us discuss how life insurance helps shield against inflation's impact on your family’s financial stability and long-term goals.

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What is Life Insurance?

Life insurance plans help secure your family financially in case of your unfortunate death. All you have to do is pay your premiums for the policy term, and during that tenure, if you suffer an unfortunate death, your family will receive the sum assured and selected at the time of policy purchase. Broadly, life insurance plans can be categorized into two simple types:

Term Insurance Plans - Term life insurance plans are pure protection plans that offer a death benefit as a lump sum payment to your family/nominee in your absence at affordable premium rates. Term plans are the most efficient and affordable life insurance policies and offer high life cover at low premium rates.
Savings Plan - These plans provide a guaranteed payout at regular intervals to meet your financial goals, such as buying a house or paying for your child’s higher education, while providing life-cover benefits.

*Note: You can use the term plan calculator to easily estimate your term insurance premium.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

How does Life Insurance Protect against Inflation?

Life insurance protects you against inflation in the following ways:

Financial Security: Life insurance ensures that your loved ones receive a set amount of money when you pass away, helping them stay financially stable despite inflation.
Locked-in Premiums: The premium you pay for life insurance stays the same throughout the policy's duration. This means your payments remain affordable even as inflation rises, giving you peace of mind.
Long-Term Stability: Getting life insurance early ensures greater protection at a lower cost. Over time, factors like age, inflation, and risk changes cause premiums to rise. Buying life insurance early benefits you from lower premiums, leading to substantial financial gains in the long run.
Protection from Price Increases: Life insurance keeps your coverage amount the same, regardless of inflation, so your family gets the full benefit no matter how prices change in the future.
Covers Future Expenses: The money from life insurance can also pay for future needs, like medical bills or funeral costs, which may become more expensive as inflation increases.

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How can you buy life insurance plans from Policybazaar?

Now that you have understood what is term insurance and life insurance are, you can follow these steps to purchase a life insurance policy from Policybazaar:

Step 1: Visit Policybazaar’s official website and click on Life Insurance.

Step 2: Select the type of life insurance plan you want to purchase, i.e., term or investment plan.

Step 3: Fill in your basic details like name, DoB, contact number, and gender.

Step 4: Answer all questions regarding your smoking and chewing tobacco habits, annual income, occupation type, and qualifications.

Step 5: Select the best term plan most suitable for you and proceed to pay.

Wrapping It Up!

Life insurance serves as a crucial safeguard against the rising inflation on one's financial stability. With life insurance plans, individuals can protect themselves and their loved ones from the rising costs of living. With life insurance, financial security remains secured against the effects of inflation, providing peace of mind for the future.

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.

Note: Check out the best term life insurance in India and choose one that suits your requirements.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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