Life Insurance Basics: What Every Nepali Family Should Know
Life insurance is one of the most important financial decisions a Nepali family can make. At its core, a life insurance policy provides a lump-sum payment to your family — called the sum assured — if you were to pass away during the policy term. This money can help replace your income, pay off debts, fund your children's education, and ensure your family maintains their standard of living.
In Nepal, life insurance is regulated by the Nepal Insurance Authority (NIA). There are two main types of life insurance policies available: term insurance and endowment plans. Term insurance is pure protection — it pays out only if you die during the policy term and is typically the most affordable option. Endowment plans combine insurance with savings, meaning you receive a lump sum at the end of the policy term if you survive, or your nominee receives it if you pass away.
When choosing a life insurance plan, consider your family's financial obligations, your current income, and your long-term goals. A common rule of thumb is to have coverage that is at least 10 to 15 times your annual income. At Beema Dokaan, we help you compare 50+ insurers to find the plan that fits your needs and budget — and you can pay as little as NPR 245 per year using our Daily EDI system.
Remember, the earlier you buy life insurance, the lower your premium will be. Age and health are the two biggest factors insurers use to calculate your premium. Starting young means you lock in affordable rates for the duration of your policy term.
