Your income supports everything, your family’s lifestyle, home, education plans, and long-term goals. But in case of an unexpected death, your family could struggle without it. That’s where term insurance acts as a practical form of income protection, offering a lump-sum payout that can replace your income for several years.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
While traditional income protection policies cover temporary disability or illness, term insurance ensures your loved ones are financially secure if you’re no longer around.
Income protection insurance in the UK is typically a monthly payout policy designed to replace part of your income if you're unable to work due to illness or injury. It ensures that essential expenses like rent, mortgage, childcare, and daily bills can still be paid while you recover.
However, this coverage usually ends if the policyholder passes away, which means your family could be left without long-term financial support. That’s where term insurance comes in, offering lump-sum financial protection to your family in the event of your death, helping them replace lost income over several years.
Term Plans
Term life insurance is a simple, affordable form of life cover that pays a lump sum (called the sum assured) to your family if you pass away during the policy term. This lump sum acts as a financial cushion to replace your lost income for several years to come.
Let’s say you earn £50,000 a year and want your family to be protected for the next 20 years. You could buy a term insurance policy with a £1 million cover. If you pass away during the term, your loved ones receive the full £1 million to support their financial needs, mortgage protection insurance payments, school fees, daily living expenses, and more.
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| Feature | Description |
| Type | Life insurance (term-based, not investment-linked) |
| Payout | Lump sum payment to family on death of policyholder |
| Purpose | To replace income in the event of death |
| Duration | Fixed term (e.g., 10, 20, 30 or 40 years) |
| Affordability | Cheaper than permanent life insurance or whole life policies |
| Premium Options | Monthly or annual premium payments, often level or increasing |
Note: You can also use the term insurance for NRI premium calculator for accurate estimations of the premium amount for your profile.
Term insurance is ideal for people who:
Are the primary earners in their family
Have young children or dependents
Have a mortgage or long-term financial obligations
Want to ensure financial stability for their family in their absence
Are looking for affordable protection with high coverage
Whether you're in your 30s with a young family or in your 50s planning your legacy, term insurance can serve as a reliable form of income replacement in the event of death.
To determine how much term cover to buy for income protection, consider:
Your annual income
Number of years your family may need support
Outstanding loans or mortgage
Children’s education and future expenses
If your income is £60,000 per year and you want to cover your family for the next 20 years, you should consider a cover of at least £1.2 million. You can use online life insurance calculators or speak with insurance advisors online to estimate the right sum assured.
| Feature | Term Insurance | Traditional Income Protection |
| Payout Type | One-time lump sum on death | Monthly income if unable to work |
| Trigger Condition | Death of the policyholder | Illness or injury |
| Duration of Benefit | Immediate and final payout | Monthly payments till recovery or max term |
| Purpose | Family protection after death | Personal income replacement during illness |
| Suitable For | Protecting dependents and legacy | Protecting own income while living |
For complete protection, some individuals may choose both, a traditional income protection plan and a term insurance policy.
Yes. NRIs (Non-Resident Indians) living in the UK can purchase term insurance for NRI
from India-based insurers to protect their families, whether the beneficiaries are in India or abroad, you can easily compare life insurance quotes and buy NRI term insurance plans from leading Indian insurers.
Lower premium costs compared to international term plans
Tele/video medicals for the convenience of the NRI customers
Global coverage including death outside India
Policy can be managed online with minimal documentation
Claim 18% GST waiver on term insurance premiums paid via NRE account
Income protection isn’t just about covering illness, it’s about ensuring your family remains financially stable even if you're not around. And for that, term insurance offers the most effective and affordable solution. Whether you're a UK resident or an NRI living in the UK, a well-planned term insurance policy can act as a reliable financial backup for your loved ones. It replaces your income, clears debts, and ensures they can maintain their lifestyle without disruption.
˜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. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
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