Term Life Insurance In India

NRIs, Foreign Nationals, PIOs, and OCI cardholders can easily get these plans online with a simple tele/video medical test. Indian insurance companies have special plans for Indians living abroad. Let’s learn more about term life insurance plans in India and how to easily buy them online.

What is Term Insurance?

Term insurance (Risikolebensversicherung/RLV) acts like a financial safety net for your loved ones. It's like an income replacement that offers financial protection for a specific period in the case of you sudden death. If something unfortunate happens to the policyholder during this period, their nominee or beneficiary receives a lump sum amount, ensuring a secure future. This insurance offers comprehensive coverage at a very reasonable premium rate, making it a practical and affordable way to care for your loved ones.

For example, Ramesh, a 30-year-old non-smoker with a yearly income of Rs. 50 Lakhs, can buy term plan of life cover Rs. 1 Crore for his family for the next 30 years. By paying just Rs. 930 per month for this coverage, Ramesh ensures that his family can maintain their current lifestyle without any hassle in case of his untimely demise.

What Are The Term Life Insurance Plans In India 2025?

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

*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. 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

Note: The Term Insurance For NRI Premium Calculator can help you determine the premium amount payable for the desired cover amount.

Note: Check all the best term insurance plan in India.

Why Should You Buy Term Insurance?

Here are some of the reasons why you should buy term plan in India:

• Financial Security: Term insurance in India ensures your family's financial well-being by providing a large chunk of money if you unexpectedly die during the policy duration. This payout helps them maintain their current lifestyle, cover expenses like rent, your child's fees, and handle any medical emergencies.

• Flexible Policy Issuance: Term insurance plans in India are simpler than international ones, with easier documentation and tele/video medical tests available. You can quickly compare and buy term plan online from the comfort of your home.

• Easily Accessible: Your family can visit the nearest insurance branch in their city to start the hassle-free claim settlement process.

• Larger Life Cover: In India, you can get a life cover of up to Rs. 20+ Crores with a term insurance plan, ensuring your loved ones' financial security. Buying a term plan with comprehensive and high life cover is fairly simple because of ease of purchase from Policybazaar.

• Debts and Loans: Term life insurance provides a payout that helps your family settle outstanding loans, like home or car loans, and manage financial responsibilities. It's crucial to buy term plan with sufficient life cover to meet your family's needs.

• Affordable Premium Rates: Term insurance premiums in India are lower compared to international plans. NRIs, Foreign Nationals, PIOs, and OCIs can enjoy much more affordable level term life insurance rates.

• Extra Discount: Opting for yearly premium payment mode offers an additional 5% discount, and buying term insurance from Indian insurers comes with an 18% GST waiver.

• Special Exit Option: Choose term insurance plans in India with a special exit option, allowing you to conclude the plan at a specific time and receive a full refund of all paid premiums.

Why Should You Consider Buying Term Insurance From India?

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

• More Insurer Choices: In India, you can choose from a larger pool of insurers offering term life insurance plans with flexible options such as premium payments, policy term duration, and affordable premiums. Opt for an Indian insurer for added benefits like a higher sum assured and different payout options.

• Claim Settlement Ratio (CSR): CSR, or Claim Settlement Ratio, is the percentage of claims paid by an insurance company compared to the total claims settled in a year. Choose an insurer with a consistently high CSR value, ideally over 95%, for better reliability.

• GST Waiver: Buying a term or life insurance plan from India using a non-residential external bank can get you an 18% GST waiver on the premiums.

• Video or Tele Medical Test: Buying a term plan from Indian insurers is now simpler with the option of tele/video medical tests, making it hassle-free to find the plan for you.

How to buy Term Insurance from Indian Insurers with Policybazaar?

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

• Step 1: Visit the Policybazaar's website and then click on 'Term Insurance.'

• Step 2: Enter all necessary information like name, email, gender, and contact details.

• Step 3: Fill in details regarding your occupation, educational qualification, yearly income, and habits regarding smoking and drinking.

• Step 4: Now, compare and then choose the term plan and move on to payment.

• Step 5: Complete the payment process by paying using your preferred method.

Key Things To Know Before Buying Term Life Insurance’

Here are a few things to keep in mind before buying term life insurance from India:

•  Determine Coverage Needs: Calculate the coverage you need, and always aim for 8-10 times your gross annual income. Consider factors like pre-tax income, dependents' needs, and age. Use the Human Life Value Calculator for an accurate estimate.

• Assess Needs and Budget: Ensure the sum assured can meet future family requirements, considering inflation. You can use the Term Insurance Calculator to determine your premium.

• Choose the Right Insurer: Select an Indian insurer with a high Claim Settlement Ratio, ensuring efficient claim settlements. Check the Solvency Ratio for the insurer's financial strength and ability to handle debts. Go for an insurer with a strong financial position.

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

• Proof of Employment ID 

• Last entry-exit stamp

• Copy of Valid Visa

• Foreign Address Proof

• 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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