Term Insurance In India

What is Term Insurance?

Term insurance is a simple and cost-effective life insurance plan that provides financial protection to the policyholder’s loved ones (nominees) for a fixed duration (policy term). If the life assured unfortunately passes away during this policy term, the policy pays out a lump sum amount (death benefit) to the beneficiaries/nominee. Moreover, term insurance offers high coverage at low premiums. 

For example, a healthy, non-smoking 30-year-old earning Rs. 15 Lakhs annually can secure a Rs. 1 Crore cover for 30 years by paying just Rs. 930 per month. This ensures that their family can maintain their lifestyle in case of the policyholder’s untimely demise.

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

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

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

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 provides financial security to your family by offering a benefit amount if you pass away, helping them maintain their lifestyle, cover expenses like rent, child's fees, and handle medical emergencies.

• Flexible Policy Issuance: Buying a term insurance policy in India is easier for NRIs due to simpler documentation and formalities. You can compare and purchase term plans online within minutes from the comfort of your home.

• Easily Accessible: Claim settlement for term insurance is easily accessible for your family, who can visit the insurer’s nearest office/branch in their residential city to initiate the process without hassle.

• Larger Life Cover: NRIs can secure a larger life cover of up to Rs. 20+ Crores by buying term insurance in India, ensuring their family's financial stability in their absence.

• Debts and Loans: Term life insurance provides a life cover payout to help your family settle any outstanding debts, such as home or car loans, ensuring their financial security. Buying a term plan with sufficient life cover is crucial to meet your family’s needs.

• Affordable Premium Rates: For NRIs, Foreign Nationals, PIOs, and OCIs, level-term life insurance rates in India are more budget-friendly than international premium rates, making it a cost-effective option for securing your family's future.

• Additional Discount: Opting for the yearly premium payment mode when purchasing term life insurance from Indian insurers can earn you an additional 5% discount and an 18% GST waiver, further reducing the overall cost.

• Special Exit Option: Indian term insurance plans offer a special exit option, allowing you to terminate the plan at a specific time and receive a full refund of all paid premiums. This feature provides flexibility 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, there's a wide range of insurers offering term plans for Indian expats, allowing you to compare options easily. This means you can choose the plan that best suits your needs from a variety of insurers. Benefits of buying from an Indian insurer include flexible premium payment options, choice of policy term, high sum assured, multiple payout options, and affordable premiums.

• Claim Settlement Ratio (CSR): The Claim Settlement Ratio (CSR) is the percentage of claims settled by an insurance company compared to the total claims filed in a year. The Insurance Regulatory and Development Authority of India (IRDAI) publishes CSR values for all insurers annually. It's wise to select an insurer with a consistently high CSR, preferably above 95%, when purchasing a term plan, as this indicates reliable claim settlement practices.

• GST Waiver: If you buy term plan or life insurance plan 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 term insurance from Indian insurers has been made even easier through the video or tele medical option. You can conduct your medical sessions via video or telephone and buy term plan of your preference.

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:Visit Policybazaar’s official website and click on ‘Term Insurance’

• Step 2: Enter relevant information, ie.e 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 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

FAQ's