Eligibility conditions to meet to subscribe to a savings plan | India is blooming

A savings insurance plan is an important part of your financial plan to achieve your financial goals while ensuring the future of your family in your absence. It is right to invest early and maximize returns and benefits optimally. But do you know the eligibility conditions? Here is a detail that will help you understand this in a small detail.

Before we get into the details, let’s understand what a savings insurance policy means.

What is a Savings Insurance Plan?

A savings insurance plan is a comprehensive life insurance plan that provides life coverage and the ability to save a portion of your earnings for future financial commitments. This is a guaranteed income that you decide when setting up the policy.

Also, it offers flexible payment and premium payment options. For example, the premium payment can be made in one lump sum, regular or time-limited payment. Plus, you can receive payment as a lump sum at maturity or regular income for a preferred income period from maturity.

Eligibility conditions for investing in a savings contract

The conditions of eligibility for life insurance are mainly based on the age at entry and the age at maturity.

  • Age at entry – The entry age corresponds to the minimum age for taking out savings insurance. The entry age can be anywhere between 0 and 60 depending on the individual insurance provider’s product options and their terms and conditions.
  • Age at maturity – Maturity age refers to the age at which the plan ends and you become eligible to receive savings plan proceeds. The maturity age of a savings insurance contract is between 18 and 77 years old.

Insurers like Tata AIA provide Tata AIA savings plan with built-in critical illness benefit. The maturity age of the plan is between 23 and 70 years old.

The age of maturity differs from one insurer to another. So, check the policy carefully for the expiry date.

  • Duration of premium payment and duration of the policy – The premium payment period refers to the period during which you make the premium payment for your savings insurance plan. The duration of the contract refers to the duration of the savings plan for which you will be entitled to benefits.

There are three different types of premium payment terms.

  • One-time payment – Make a one-time premium payment in one installment.
  • Regular Payment – Make a regular premium payment for the life of the policy.
  • Limited Premium Payment – Make premium payment for a limited time while enjoying benefits for the defined term of the policy.

The eligibility criteria for premium payment duration and corresponding policy duration will be based on the terms and conditions of the insurer. Here is an example to help you understand better.

Premium payment option

Policy term

One-time premium payment

5 years

Regular premium payment (5 to 10 years)

Same as premium payment term

Limited premium payment period (5 years)

Between 6 and 15 years old


Life insurance eligibility issues are important to consider when buying savings plans in India. It will help you better define your financial goals and buy them at the right age to get the most protection and savings. Make sure you know the age at maturity and the premium and policy payment terms to customize the plan to your personal financial needs. Then buy and stay invested and achieve your financial goals the way you want!