Term Insurance In India

What is Term Insurance?

Term insurance is an affordable life insurance plan that provides financial security to the policyholder's beneficiaries for a chosen period. If the policyholder passes away during this time, the policy pays a lump sum, known as the death benefit, to the designated nominees. Moreover, term insurance offers significant coverage at lower premiums.

For example, Arjun, a non-smoking 32-year-old NRI living in Australia, and earns Rs. 18 Lakhs annually, can buy term plan of Rs. 1 Crore sum assured for a 30 years policy term by simply paying Rs. 930/month. Therefore, he can now ensure that his loved ones are able to maintain their lifestyle in case of his sudden death.

What Are The Best Term Life Insurance Plans In India 2024?

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

Note: Term Insurance For NRI Premium Calculator helps you estimate the premium amount of your chosen life cover.

Why Should You Buy Term Insurance?

Here are some of the reasons why you should buy term plan from an Indian insurer:

• Financial Protection To Family: Term insurance in India assists by providing financial protection to your family by offering death benefit if you pass away unfortunately while the policy is active, thereby helping them maintain their current lifestyle, cover expenses like house rent, children's education, medical costs, etc.

• Flexible Policy Issuance: It is easy to buy term insurance in India because of simplified paperwork and procedures. Online comparison and purchasing options allow for quick selection from the comfort of home.

• Easily Accessible: Claim settlement for term insurance is convenient for your family. They can visit the nearest office or branch to start the process without any hassle.

• Larger Life Cover: You can secure a high life cover up to Rs. 20+ Crores in India, ensuring their family's financial security.

• Debts and Loans: Term life insurance provides a payout to settle outstanding debts such as home or car loans, ensuring financial stability for your family. Sufficient coverage is crucial.

• Affordable Premium Rates: Level term life insurance rates in India are more budget-friendly for NRIs, Foreign Nationals, PIOs, and OCI card holders compared to international rates, making it a cost-effective option.

• Extra Discount: Choosing annual premium payments with Indian insurers can earn a 5% discount and an 18% GST waiver, reducing overall costs.

• Special Exit Option: Term insurance plans bought from an Indian insurer offer a special exit benefit (applicable in some plans) allowing the life assured to exit his term insurance plan at a specific time period and receive back a full refund of all premiums that he had previously paid to keep the policy active. This special exit option provides flexibility which is similar to zero cost term insurance plans. 

Why Should You Consider Buying Term Insurance From India?

You should buy term insurance from Indian insurance companies because of the reasons mentioned below:

• Bigger Pool of Insurance Companies: In India, many insurers offer term plans for Indian expats, making it easy to compare options. This allows you to choose the best-suited term plan from multiple choices. Buying from an Indian insurer offers benefits like flexible premium payment, choice of policy term, high sum assured, various payout options, and affordable premiums.

• Claim Settlement Ratio (CSR): The Claim Settlement Ratio (CSR) shows the percentage of claims settled by an insurance company out of the total filed in a year. IRDAI publishes CSR values annually. It's wise to select an insurer with a consistently high CSR, preferably above 95% for five consecutive years, ensuring reliable claim settlement practices.

• GST Waiver: Buying a term plan or life insurance plan from India makes you eligible for an 18% GST waiver on premiums if paid using a non-residential external bank with freely convertible currency.

• Video or Tele Medical: Buying a term insurance plan from an Indian insurer is now much easier with the introduction of the video or tele medical facility. You can conduct your medical tests via video or telephone and buy your preferred term plan.

How to buy Term Insurance from Indian Insurers with Policybazaar?

You can now buy term plan from India in an online mode, from the comfort of your home, by simply following the following steps:

• Step 1: Go to Policybazaar's official website and select 'Term Insurance'.

• Step 2: Enter necessary details such as your name, email address, gender, and contact information.

• Step 3: Provide information about your occupation type, educational background, yearly income, and smoking and drinking habits.

• Step 4: Choose the most appropriate term plan and proceed to payment.

• Step 5: Use your preferred payment method to finalize 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:

• Copy of Valid Visa

• Photo of the Policyholder

• Copy of the Policyholder’s Passport

• Proof of Employment ID 

• Last entry-exit stamp

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

• Foreign Address Proof

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