Term Life Insurance In India

Let us see the term insurance plans in India, their key features and the process of buying them.

What is Term Insurance?

Term insurance is the simplest and affordable type of life insurance plan that provides financial cover to the policyholder’s loved ones for a fixed policy duration, also called the ‘policy term’. This type of life insurance offers a death benefit to the nominee in the event of the unfortunate death of the life assured during the policy term. Similarly, a term insurance for NRI allows NRI customers living in the UAE to buy and secure the financial future of their loved ones at relatively low premiums.

How Does Term Life Insurance Work in India?

For example, a 30-year-old healthy, non-smoking male, with a salaried income of Rs. 12 Lakhs per annum, can buy a term cover of Rs. 2 Crore for his family for the next 30 years. And when he plans to buy Policybazaar term insurance, he must pay only Rs. 823 per month. With this 1 crore cover, he can ensure that their family will be able to maintain their current lifestyle without any hassle in case of his untimely demise.

What Are The Term Life Insurance Plans In India 2025?

The life insurance companies in India offer the following term insurance plans.

*Disclaimer: ^~Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

Why Should You Buy Policybazaar Term Insurance?

Here are some of the reasons why you should buy Indian term insurance Policybazaar:

• Financial Security: Term insurance in India ensures your family's financial well-being by offering a benefit amount if you pass away. This payout helps them sustain their current lifestyle, cover rent, child's fees, and manage any medical emergencies.

• Flexible Policy Issuance: Buying a Policy bazaar term insurance for NRI in India is easier than international term plans due to simpler documentation and formalities. You can compare and buy term plan online within minutes from the comfort of your home.

• Easily Accessible: Your grieving family can visit the Policybazaar term insurance nearest office/branch in their residential city to initiate the claim settlement without hassle.

• Larger Life Cover: If an NRI buys term insurance in India, they can get a life cover of up to Rs. 20+ Crores. You can easily buy term plan with a large life cover to ensure your family is financially stable in your absence.

• Debts and Loans: The life cover payout from term life insurance can help your family pay off any remaining loans like home or car loans and take care of their financial obligations. Therefore, it is important to buy term plan with a life cover enough to cover your family’s needs.

• Affordable Premium Rates: The level term life insurance rates for NRIs, Foreign Nationals, Persons of Indian Origin (PIO), and Overseas Citizenship of India (OCI) card holders are more affordable than international term life insurance premium rates.

• Extra Discount: You can receive an additional discount of 5% when opting for the yearly premium payment mode, along with an 18% GST waiver with term insurance upon buying term life insurance from Indian insurers.

• Special Exit Option: In India, you can select term insurance plans with a special exit option. This allows you to exit the plan at a specific time, after which you will receive a full refund of all paid premiums.

Why Should You Consider Buying Term Insurance From India?

You should buy Policy bazaar term insurance from Indian insurance companies for the following reasons:

• Bigger Pool of Insurance Companies: In India, you can get a bigger pool of insurer offering term plans for Indian expats. This allows you to compare Policybazaar term plans from various insurers before buying the plan that fits your requirements. The benefits of buying term plans from an Indian insurer are as follows:

  • Premium payment options

  • Flexibility to choose policy term

  • Large sum assured

  • Various payout options

  • Affordable premiums

• Claim Settlement Ratio (CSR): The CSR, or Claim Settlement Ratio, is the proportion of claims settled by an insurance company compared to the total claims submitted in a year. The IRDAI provides CSR values for all insurers in its annual report, helping customers make informed choices. It's recommended to choose an insurer with a consistently high CSR value, preferably over 95%, when buying a term plan.

• GST Waiver: If you purchase term or life insurance from India, you will be eligible to receive a GST waiver of 18% on the premiums payable if the premiums are paid using a non-residential external bank with freely convertible currency.

• Video or Tele Medical: Buying Policybazaar term plan from Indian insurers has been made even easier through the video or tele medical with term insurance option. You can conduct your medical sessions via video or telephone and purchase the term plan of your choice.

How to Protect Your India-Based Family with Term Insurance for NRIs in the UAE?

Living and working in the UAE often means you're building a future not just for yourself, but for loved ones back in India. However, physical distance should never come in the way of financial protection. This is where term insurance for NRIs in the UAE plays a vital role. It allows UAE-based NRIs to ensure that their India-based family members remain financially secure in case something unfortunate happens.

Here’s how term insurance in UAE for NRI helps:

• Income Replacement Across Borders: Even if you're based in the UAE, your family in India can receive the entire sum assured as a tax-free payout, helping them maintain their lifestyle and financial stability.

• Supports Long-Term Goals: Whether it’s funding your child’s education, clearing home loans, or supporting aged parents, term insurance ensures your responsibilities are taken care of even in your absence.

• Affordable Premiums from India: As an NRI, you can purchase high-cover term insurance plans from Indian insurers at comparatively lower premiums, especially if you are salaried and reside in low-risk countries like the UAE.

• Payouts in India: Most insurers offer the flexibility to disburse the death benefit in INR, depending on your family’s location and needs.

• Digital Purchase & Hassle-Free Claim Support: With online application, medical tests in the UAE, and dedicated NRI customer support, getting a policy is seamless. Plus, your nominees in India can file claims easily with assistance from local insurer offices or online portals.

By buying a term plan from India while living in the UAE, you combine global earnings with local protection, offering your family the security they deserve, even from miles away.

How to buy Policybazaar Term Insurance Plan from India?

Now, you can easily buy Policy bazaar term insurance from India in an online mode, from the comfort of your home, by following these steps:

• Step 1: Go to the Policybazaar ‘ Term Insurance’ page

• Step 2: Enter relevant information, like your name, email address, gender, and contact information

• Step 3: Fill in the information regarding your occupation type, educational background, yearly income, and smoking and drinking habits

• Step 4: Select the most suitable Policybazaar term plan and proceed to pay

• Step 5: Pay using your preferred payment method to complete the process. 

What Are The Documents Required to Buy Term Insurance from India?

Here is a list of documents required to purchase term insurance from India:

• Front and back side of the Passport

• Copy of Valid Visa

• Foreign Address Proof

• Proof of Employment ID 

• Last entry-exit stamp

• Photo of the Policyholder

• Last 3 Month salary slips & Last 6 months' bank statements

FAQs

Different types of Plans

Term Insurance

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Life Insurance

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List of Term Insurance Companies

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TROP

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Term Insurance For Senior Citizen

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Term Insurance For Spouse

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Term Insurance For Family

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Term Insurance For NRI

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List of Term Insurance Plan

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Life Insurance Corporation of India

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What is Term Insurance?

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Term Insurance Calculator

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1 Crore Term Insurance

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2 Crore Term Insurance

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