Premium Factors, Plan Types and 2026 Rules

Life insurance in India comes in two broad families: pure protection (term plans, which pay only if the insured person dies during the term) and savings or investment policies (endowment, money-back, whole life and ULIPs, which bundle a smaller amount of cover with a maturity value). The price you pay depends on your age, health, smoking status, income documents, the cover amount, the policy term and the riders you add.

This section explains those building blocks and the rules that changed recently. Start with the overview of life insurance in India, then read what pushes term insurance premiums up or down and how term, ULIP and endowment plans compare once the arithmetic is done.

Three rule topics matter for every buyer in 2026: the GST exemption on individual life insurance from 22 September 2025, the tax treatment of death and maturity payouts including the move to the Income-tax Act, 2025, and the government schemes PMJJBY and PMSBY. If you want cover for disability or a monthly income rather than a lump sum, read the guide to income protection riders.

Health insurance and hospital bills are outside the scope of this site.