What are the Factors to Consider Before Buying Term Insurance?
Can NRIs Buy Term Insurance in India?
What are the Term Insurance Policy Features?
What are the Term Insurance Plans and Their Benefits in India 2025?
What is a Term Insurance Rider?
Term Insurance Buying Guide
Documents Required To Buy Term Life Insurance Plan
Why Compare Term Insurance Plans Online?
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Term Insurance
Term insurance is the most basic type of life insurance. It offers financial cover for a specific tenure, called the policy term, in exchange for fixed premiums. You can buy a ₹1 crore term insurance plan for premiums starting at just ₹13 per day. A term insurance plan secures the financial future of your loved ones in your absence. The death benefit from this type of life insurance product can help your family cover living expenses like healthcare, child’s education fees, home loans, groceries, and more. Therefore, buying the best term insurance plan is important for ensuring the future financial security of your family. Read more
Term insurance is a pure form of life insurance that protects your family financially by offering a death benefit if you pass away within the policy term. It's the simplest and yet affordable way to ensure they receive a lump sum to cover expenses and achieve goals. If you outlive the policy term, you don’t get any money back (unless you choose a term return of premium option). For example: A healthy 25-year-old male, non smoker can get 1 crore term insurance coverage for just ₹587 per month until age 60. This fixed amount of premiums can be paid at regular or lump sum for the complete policy term or for a limited time. The term insurance premium amount varies based on the type of premium payment method chosen by the policy buyer.
Best Term Insurance Plans in India 2025
You can buy India’s best term insurance plans at premiums starting from just Rs. 13 per day for a 1 crore cover and get an online discount of 15% and a 100% dedicated claim assistance. Policybazaar term insurance plans allow you to compare and choose the best term insurance plan, suited for your needs. Here are the best term insurance plans in India 2025, that offer affordable premiums, flexible payout options, and large coverage, from reliable term life insurance providers.
Let us understand how term insurance works with the help of an example:
Meet Sameer
Sameer, a Healthy and non smoking male.
Bought Policy
Sameer bought ₹1 crore Term Insurance for a 25-year policy term to secure his wife financially.
Unfortunate Death
In the 9th Policy year, Sameer suffered an unfortunate death.
Claim
His wife received a ₹1 Crore death benefit from the insurer.
After Claim
His wife can use the benefit & maintain her current quality of life.
15 lakh Families Secured
₹13,50,000 Crore of Life Cover Assured
Customer Rating
4.8++129,196 Reviews
The Policybazaar Advantages
Discount upto 15% # for buying online
Dedicated claim support for family FREE
Advisors available in your city
4.8 Rated
12.02 CroreRegistered Consumer
51 PartnersInsurance Partners
5.9 CrorePolicies Sold
1203 Crore worth of claim assisted since Apr’22
Free Dedicated Claim Assistance
Policybazaar for your family Guarantees claim support
Delhi
Mr. Jangir
Claim Beneficiary
Mr. Ashish
Policybazaar Executive
Claim Helpline: 1800-258-5881
Know More
Directly from Experts
Policybazaar offers its Dedicated Claim Assistance Program (DCAP) to its every customer and assigns a dedicated relationship manager to help and guide their nominees during the claim settlement process. This ensures that your nominee is not left wondering how to handle the complicated claim process and is able to properly grieve in tough times. Policybazaar’s relationship managers handle everything from claim filing to the claim settlement, on your nominee’s behalf.
We’re here for your complete help at every step, so you never have to worry.
Buying term insurance online from Policybazaar is quick and simple, with just a few clicks. Now protect your family’s future while you bid adieu to all your stress.
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Varun Agarwal
Business Head - Term Insurance
Written By:Varun Agarwal
Varun AgarwalTerm Insurance Head
Varun Agarwal leads the term insurance vertical and brings both strategic clarity and a solid understanding of the insurance space. Over the years, he has built a strong reputation for driving growth and focusing on what customers truly need. His approach centres on making protection products straightforward, practical, and easier for families to access. Under his leadership, term insurance has become a more dependable and widely understood safety net for households planning their financial security.
Reviewed By:Vivek Jain
Vivek JainChief Business Officer
Mr. Vivek Jain, Chief Business Officer (CBO) for Life Insurance at Policybazaar.com, has more than ten years of experience in the life insurance sector. An alumnus of IIM, he has played a key role in reshaping the company’s life insurance offerings to make them more customer-oriented and easier to buy. His guidance has helped the platform introduce a broader and more useful range of solutions, supporting people in protecting their families with confidence. His long-term vision is to ensure that financial security becomes a reality for every Indian household.
Term Insurance at a Glance
Categories
Specifications
Sum Assured
₹5 Lakhs to up to ₹20 Crores
Policy Term
From 5 years to 99/100 years
Premiums
Affordable
Death Benefit
Available
Critical Illness Cover
Available
Accidental Total Permanent Disability
Available
Terminal Illness Cover
Available
Accidental Death Benefit
Available
Tax Benefits
Save up to ₹46,800 on taxes with Section 80C Death Benefit is tax-free with Section 10(10D)
100% Dedicated Claim Assistance
Available
Get 100% Dedicated Claim Assistance from Policybazaar
Fully Dedicated Claim Assistance & ₹1203 Crore in Claims Processed
Policybazaar offers claim support for families who may need help during, frankly, a very stressful time. Since April 2022, the team has assisted claims adding up to about ₹1203 crore. The idea is simple: make sure families receive the amount that is due under the policy and reduce the back-and-forth that usually comes with the claim process. The support staff is experienced, and they try to handle most of the legwork so that the nominee is not left figuring things out alone.
How does Policybazaar’s Dedicated Claim Assistance Program work?
When a policyholder passes away, the nominee can reach out to Policybazaar’s team through the helpline (1800-258-5881), email, or even a quick text if that’s easier. The team starts by collecting the basic details about the policy and explains, step by step, what documents may be needed. Some documents differ depending on the situation, so they clarify that upfront.
Once the documents are shared, Policybazaar takes over most of the process. This usually means coordinating with the insurer, following up on the status, and responding to any additional requirements. They try to keep the family updated so the nominee does not have to constantly check or worry about what is happening next. The intention is to keep things moving smoothly and avoid avoidable delays.
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₹1 Crore
Life Cover
@Starting from ₹ 13/day+
View Plans
₹50 LAKH
Life Cover
@Starting from ₹ 8/day+
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₹75 LAKH
Life Cover
@Starting from ₹ 12/day+
View Plans
Why Should You Buy Term Insurance Plans in 2025?
There are various term insurance benefits that are designed to cater your financial protection needs. Here is a list of few benefits:
To Secure Your Family
If you are earning and have financial dependents like parents, spouse, children. It is important that you should buy term insurance to secure their financial future. The main purpose of a term plan is to offer the death benefit to your family in case of your demise.This amount makes sure that they can fulfill their financial goals without any hassles.
To Protect the Assets
We all work hard to build a good life for our families, including things like a house or a car. But these things usually come with loans. Term insurance can help protect those assets for your family. In case of any liabilities, in case you're not around, your family will only suffer from losing you but not be bothered by the debtors.
In case of the main breadwinner’s death, the family may find managing expenses to be difficult. Payout from the best term insurance plan, ensures that your family has financial support in their time of need and can maintain their living standards in your absence. To help reduce lifestyle risks, several insurers now offer term insurance with OPD care benefits, through which you can get regular health checkups and focus on good health and healing, without the added stress of expenses.
Non-Communicable Diseases (heart attack, stroke, diabetes, cancer) cause 56.7% of all deaths in India. (Source: CoD Report 2021-23)
Be Prepared for Uncertainties
Life throws difficult situation sometimes, and unexpected events like the COVID-19 pandemic have shown us how quickly things can change. Term insurance is like having a backup plan for your finances. It's not just for things you can predict, like education costs or loans, but also for those unforeseen moments. It gives you and your family a financial safety net to fall back on, no matter what surprises life brings.
Unintentional deaths due to injuries caused 3.7% deaths due to non-motor vehicle accidents and 2.9% due to motor vehicle accidents in 2021-23. (Source: CoD Report 2021-23)
High life cover at affordable premiums
Term insurance plan is the purest type of life insurance that gives you a lot of protection without costing a lot. If something happens to you, it's a budget-friendly way to ensure your family has a significant financial safety net. So you can have peace of mind knowing they'll be taken care of without emptying your wallet. With Policybazaar, you get the lowest price guarantee~ on term insurance premiums, starting at just ₹13 per day for a 1 Crore life cover.
Uncertainty due to lifestyle diseases
Lifestyle-related illnesses have quietly become one of the biggest reasons for early death in India. As an example, the number of deaths caused by heart attacks went up by around 12.5% in 2022 compared to 2021 (NCRB data). While taking care of your health should always come first, it’s also wise to think about how your family would manage if a serious illness ever struck. Term insurance gives your family a financial cushion during such difficult times. If you choose the right term plan today, you are creating a support wall for your family for the hours they shall need.
With 31.0%, cardiovascular disease is the leading cause of death among males as well as females. (Source: CoD Report 2021-23)
Opting for a Term Rider
Term insurance plans offer the option to add riders to base plan. This increases the financial coverage, making sure protection for your loved ones in case of a serious illness. The rider payout acts as an add-on to the base cover and by selecting the best term insurance plan, you can benefit from these added options such as accidental death rider, critical illness rider, waiver of premium, and terminal illness rider.
Over 68% of total deaths were attributed to over-speeding in 2023. Over-speeding remains top cause of death in road accidents, according to a report released by The Hindu, Road Accidents in India.
Tax Benefits
Term life insurance comes with some tax benefits. You can reduce your taxes by claiming a deduction on the premiums you pay under section 80C of the Income Tax Act, 1961. And if your family receives the death benefit, that money is typically tax-free, too, u/s 10(10D) of the ITA, 1961. As per the latest change in GST rules, there will be 0% GST on term insurance premiums, making the premiums much more affordable. However, it is important to note, that these benefits are applicable for individual term plans, and the tax benefits for group term life insurance plans may vary.
Discover the most Suitable Term Plan for you!
One of the main factors in selecting the term life insurance plan for the financial protection of your family is deciding on the right sum assured option. Below are the options available for sum assured amounts that are for you:
Term life insurance provides financial protection to your family and basically replaces your income in case you are not around. You pay a small fee every month/year to protect your family and in case something happens to you, the insurance company pays a large sum of money (life cover) to your family. It costs as little as ₹400/Month to buy a 1 crore life cover.
What are the key features of term plan?
Isha : Lucknow
Life Cover: Amount that family receives on the demise of policyholder (should be 10 times of your annual income). Cover till age: Age till which the term plan provides protection to your family (generally opted till 70). Payment Frequency: Premiums can be paid monthly or annually. Annual premiums have 15% discount.
How do I decide the amount of Life Cover (sum assured)?
Shubham : Kanpur
Life cover or sum assured is to take care of your family's expenses in your absence. Expenses include household expenses which will increase with time due to inflation and any existing loans. Thumb rule is to take a cover of 10 times your annual income. Why? Let me explain with an example: Annual Income = 10LMonthly expense = 35,000/month i.e. 4.2L/year Loan = 20LAs per trends, your expenses double in 10 years due to inflation. Net expenses for the next 20 years would be 1.3 Cr. Adding 20L to pay off your loan your family would need approx 1.5 Cr as your Life cover
What should be the Duration of your Term Insurance Plan (Policy Duration)?
Shiva : Delhi
Term insurance should cover you until your financial responsibilities are over. 1. Do you want cover till you retire? (since your financial obligations wil be over). We recommend 65 in this case. 2. Do you want to leave a legacy amount for your family? We recommend 75 in this case as life expectancy is 70 in India
How do you wish to pay? (pay for limited years, pay till policy term)
Sakshi : Mumbai
You can choose the number of years you wish to pay premiums till the age of 60 or entire policy term i.e. regular pay or in 5/10/15 years i.e. limited pay. Choosing Limited Pay has an added benefit. You can save upto 54% on your overall Premium if you select limited pay for your Term Plan. *58% of the customers select payment term of 10 years.*
How will policybazaar help my family in getting the claim?
Sejal : Pune
Policybazaar provides dedicated claim handler who can also come at your doorstep in 85+ cities. Our claim handler will get in touch and assist for free. He/she would be the one point of contact for all claim queries and work with your nominee on documentation and coordinating with your insurer. We would actively provide status updates and your nominee would have no hassle of multiple follow-ups.
What is a 20 lakh term insurance plan?
Rajesh : hyderabad
A 20 lakh term insurance is a term plan that offers 20 lakh sum assured to the family of the policyholder as the death benefit. The family can use the benefit amount to take care of their financial needs in the policyholder's absence like pay for rent, loans, child's fees, and more. It is recommended that you assess your annual income and your family's potential financial needs in your absence and buy the best 20 lakh term insurance in India.
What are the different riders (add-ons) available? Why should you choose them?
Lakhan : Indore
Commonly used riders and reasons to add them:
Waiver of Premium on critical illness/ disability - In case of permanent disability due to an accident or any critical illness, no future premiums have to be paid, and the life cover stays intact. This is available as a free add-on in most of the plans and is otherwise available at a minimal amount. Highly recommended adding this to your pure term insurance plan.
Accidental Death Benefit - In case the death happens due to an accident, an additional payout (amounting to the value of the base Sum assured) will be given over and above the base sum assured at a very nominal price. This is highly recommended to people who travel a lot or ride a two-wheeler frequently.
Critical Illness Benefit - On diagnosis of any critical illness (listed by the Insurer), you will get a lump sum payout (as decided while buying this rider) immediately. Once the benefit for the critical illness rider in term insurance has been paid out, the life cover minus the critical illness cover continues with a reduced term plan insurance premium. This might not sound very useful when you're young, but the relevance of this rider increases with your age.
Early Pay out on Terminal Illness - Get 100% payout in case you are diagnosed with any terminal illness (as listed by the Insurer). Some insurance providers may give a proportion of the sum assured as well.
Video
information
What is Term Insurance?
Term Insurance Buying Checklist
Claim Settlement Ratio (CSR): You should buy online term insurance from a company with a CSR of above 95%.
Solvency Ratio: You should check the company’s ability to take care of their future liabilities.
Grace Period: You should always check the grace period for different payment frequencies.
Free Look Period: Make sure that the free look period for the policy is per your liking.
Rider Benefits: Check the riders offered and what they actually cover, as they can be quite useful.
Smart Exit Benefit: A few insurers let you exit the plan early and get back the premiums you’ve paid.
Type of Plan: Check the ideal type of term insurance for your needs before buying.
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What are the Different Types of Term Insurance Plans and Their Benefits in India 2025?
Taking a look at the different types of term life insurance plans and their benefits can help you choose the right term plan for your needs. You should always compare and select the most suitable plan, and then customise it to fit your requirements. Here are the most common types of term insurance plans available in India and how they can benefit you:
Type of Term Plan Insurance
Benefits
Regular Term Life Insurance Plan
Regular term life policy provide large life cover at low premiums and pays the death benefit on the death of the policyholder during the policy term.
Term Insurance with Return of Premium (TROP)
Financial protection for your dependents is provided at low premium rates in case of death. You can receive a return of all the premium amounts paid if you outlive the policy term. Some insurers, such as HDFC Life Click 2 Supreme, also offer the option to increase your death benefit by up to 200% at key life stages, such as marriage, the birth of a child, or purchasing a home.
Term Insurance for Housewife
You can purchase a term policy using your husband’s annual income for the additional financial security of your family.
Term Insurance for Self-employed and Business Owners
People with an unsteady flow of income can secure their family against business loans and liabilities in their absence. You can buy a 30 year term insurance to secure your family in case of an eventuality.
Term Insurance for NRI
NRIs and expatriates can buy term insurance plans in India via tele/video medicals and get an additional 5% discount on the annual term plan premium payment mode.
Term Insurance for Diabetics
Now, you can buy term life insurance plan even if you are pre-diabetic or have type 2 diabetes at affordable term plan premium rates
Saral Jeevan Bima (SJB)
People with low incomes and educational qualifications can buy an SJB plan to financially secure their loved ones, irrespective of their educational, residency, or occupational background.
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What are the Key Features of Term Insurance Policy?
Term life insurance plan is one of the preferred types of life insurance because of its affordable premiums, low entry age, and easy-to-buy features. Long-term protection, the flexibility of choosing policy and premium payment terms, customisable cover, and liability protection are some other benefits of term insurance plans.
Parameters
Details
Low Entry Age
Term insurance plans have a minimum entry age of 18 years. This term life policy allows young individuals to secure their family from an early age at low premiums.
Long Term Protection
Term life insurance plans offer long policy terms as long as 65 years, with some plans like whole life insurance plans, providing coverage up to 99 years of age.
Easy to Buy
Term plans can easily be purchased online in a few steps. With the help of online portal Policybazaar, you can do a Term Insurance Comparison from top insurers and choose and buy term life insurance policy that suits your needs.
Easy Premium Payment Options
Term life insurance plans offer several term plan premium pay options. You can pay the premiums monthly, quarterly, bi-annually, annually, or in limited, regular, or single installments.
Customisable Cover
With the life stage benefits of a term insurance plan, you can increase the sum assured of the policy at different life stages like marriage, childbirth, or taking out home loan.
Cover against Life-threatening Diseases
Some term plans provide term coverage for life-threatening diseases such as stroke, heart attack, kidney failure and cancer. This plan also protects your family members in case of a medical emergency.
Pay Off Loans/Debts
Your family can use the term life insurance plan benefit payout to pay off any remaining loans and debts you might have left behind in your absence, such as home, business, or education loans.
Get all your Premiums Back
Some term life insurance plans offer a way to get the money you paid in premiums back. One way, sometimes called a "Smart Exit," lets you end the policy early and receive your premiums if your financial situation changes or your goals are met. The other way is through a "Return of Premium" option. If you choose this, and you live longer than the policy term, all the premiums you paid will be refunded to you.
Special Exit Benefits
Some term life insurance plans offer special exit benefits that allow customers to exit the plan at an early stage (specified by the insurer) and receive back all the premiums paid until that point.
When Should I Buy Term Life Insurance Plan?
Buying term insurance at an early age can save a lot of money. Premium increases with age, and you can lock your premiums at a lower rate by buying today. This is beneficial for non-smokers. Look at the table to see how premiums increase as you age, and you should make an informed choice by buying term insurance today!
For a 1 crore term insurance plan, the premium increases as the age of the life assured increases, highlighting that buying term insurance earlier is more cost-effective. Not only that, but smokers pay higher premium compared to non-smoking customers, as their risk to life increases with smoking.
Age of the Life Assured with PPT 60 years
₹1 Crore cover for healthy female non-smoker
₹1 Crore cover for healthy female smoker
₹1 Crore cover for healthy male non-smoker
₹1 Crore cover for healthy male smoker
25 years
₹508/month
₹922/month
₹587/month
₹990/month
35 years
₹737/month
₹1314/month
₹916/month
₹1592/month
40 years
₹940/month
₹1617/month
₹1228/month
₹2106/month
45 years
₹1251/month
₹2067/month
₹1692/month
₹3003/month
This is for male/female, smoker/non-smoker, salaried for a 1 crore sum assured with a cover till age 60 years.
For example, at age 25, a non-smoker pays ₹587/month, while a smoker pays ₹990/month. By age 45, the premiums rise to ₹1692/month for non-smokers and ₹3003/month for smokers.
Similarly, for female customers the premiums are much lower than male customers, and the premiums for non-smokers are lower than smoking customers.
Information Sourced from Policybazaar.
Who Should Buy Term Insurance Plans in 2025?
Term insurance premiums increase with age because the risk to life also increases and health tends to deteriorate as you grow older. Not only that, but the mortality risks increase, making the premiums for term life insurance higher than that of a young adult. Let us take a thorough look at why premiums for term insurance increase with age:
Types of Individuals
Term Insurance Benefits
Term insurance plan for Young Professionals
Term insurance premiums are lowest when you buy early.
As your income grows, the fixed low premium becomes even more affordable.
Early coverage protects you before lifestyle diseases or health issues increase premiums
A term plan for all ages provides lifelong peace of mind and financial security for your family.
Married couples should buy term insurance online early to secure large cover at low premiums
Ensure your partner is not burdened with existing or future liabilities
Offers peace of mind as you build a secure and stable future together
Term Insurance Plan for Working Women
Term insurance for women provides financial protection for your family even if you are the primary or equal earner.
Ensure your children’s education and future goals continue without financial disruption.
Offers affordable premiums when purchased early, making long term coverage cost-effective.
Covers liabilities such as home loan or personal loans so your family is not burdened in your absence.
Term insurance plan for Housewives
Term insurance for housewife is specifically designed for homemakers, as it provides financial security to her family in case of her unfortunate death.
A payout from term life insurance helps cover the household expenses, such as childcare and other types of expenses.
Term insurance plan for Taxpayers
Term life insurance plans provide tax benefits as per the prevailing tax laws on the premiums and the benefit payout.
You can claim tax benefits under the Sections 80C and 10(10D) of the Income Tax Act, 1961.
Term insurance plan for Parents
Term insurance for parents offer financial protection to the kids in case of the parent’s untimely death.
These plans offer long term cover against educational and household needs.
The payout can help payoff remaining loans and debts, to relieve financial burden.
You get the peace of mind by securing the future of your kids and ageing family members.
Term insurance plan for Retirees
Term plans can help you cover your medical and other such expenses.
The payout can help your family pay off any remaining loans and debts.
Your financial dependents can use the payout in your absence as income or pension.
The payout from term insurance plans may cover the expenses of business overheads and daily household expenses till the time someone else takes charge.
Term insurance plan for Non-resident Indians (NRIs) and Expatriates*
Term insurance for NRIs provides a global financial protection for your family even when you live abroad.
Ensures your financial responsibilities in India such as loans or dependents remain secured.
Offers tax benefits under Indian tax laws
Premiums can be paid easily from overseas through international payment options.
Also offer facilities such as tele -video-medical check-ups.
Term Insurance Plan for Equity Investors
Term insurance for equity investors provides financial security to their nominee in case of the investor's passing.
The policy benefits help ensure the nominee can continue or start the best SIP plan, securing their future financial well-being.
Term Insurance for Diabetics
Diabetes can make your life difficult and this increases your risk of having other critical illnesses. Thus, to offer financial protection to your family, it is suggested that you should buy term insurance plan for diabetics.
Offers customised plans based on medical history and medical condition.
Term insurance plan for Freelancers
Term plans provide income protection for families when there is no fixed monthly salary.
Secures long term financial stability despite inconsistent earnings
Covers outstanding business loans or equipment EMKIs if something happens to you.
These types of individuals can buy term plans with valid income proof documents.
Protects your home being repossessed due to unpaid EMIs
Offers peace of mind by securing your biggest financial asset
Provides long-term financial security while you build your dream home.
*Expatriate meaning: An expatriate is a person who lives outside their native country, usually for work or long term residence.
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Protect your family's financial future with a Term Insurance Plan
A term plan insurance can secure your family’s financial future in the following ways:
Income Replacement
Term life insurance plans act as income replacement plans, as they allow your family to receive the death benefit in regular instalments in your absence.
Cover Funeral Costs
There are several costs like the hospital bills and funeral costs that may pile up right after your unfortunate demise. The term insurance payout amount can help your family members take care of these financial needs in your absence.
Pay Off Loans and Debts
The financial burden of any pre-existing loans or debts like home or car loans might fall on the shoulders of your family members. Various insurance plans like home loan insurance or term life insurance payout can help them pay off these remaining loans and live a peaceful life.
Secure Your Spouse
With a term insurance plan, you can secure your spouse’s retirement in your absence. The term plan payout can help them lead a financially independent life while maintaining their current lifestyle.
Fulfill Future Goals
The term insurance payout can help your family fulfill their future goals like paying for the child’s higher education, taking care of their wedding, or funding their business endeavours.
Why Do You Need a Term Insurance Policy?
Buying a term plan online has honestly become quite simple now. You can sit at home, look at different options, compare what suits you, and even get some online-only premium discounts. There is hardly any paperwork, and most things like tracking the policy or asking for help can be done from your phone or laptop. It just saves time and effort.
Financial Security for Your Family
If your family depends on your income for day-to-day expenses or future plans like children’s studies, a term plan works as a steady financial cushion. If something happens to you, the payout helps them manage their life without sudden financial pressure. It basically keeps things stable for them at a very difficult time.
Protection for Your Assets
We all work hard to build a good life for our families, including things like a house or a car. But not everyone can afford them for their family without the loans.
This is where term insurance comes into the frame,when you the breadwinner of the family has opted for a liability. However, if something happens to you, the term life insurance plan can act as payer of those loans. So your family/nominee will not worry about losing the assets you have built with love.
Coverage for Lifestyle-Related Risks
With the way life is going these days, illnesses like heart issues or serious medical conditions have become more common. Some term plans give you an added critical illness cover, which pays a lump sum if you are diagnosed with a major illness. It can help with treatment costs and reduce the stress on your savings, giving you a bit more comfort during a tough period.
How Does a Term Insurance Plan Work?
Term insurance plans work for a limited term by providing a life cover for a specific time. To receive all the benefits, you should pay premiums at regular intervals. If something unfortunate happens to you during the policy term, your nominee/beneficiary receives the chosen life cover as the policy benefit. You can also buy term life insurance riders to increase your family’s financial security. There are 6 stages that show how a term insurance plan works:
Agreement
Term insurance is an agreement between you and the insurer, where the policyholder pays a premium to receive a life cover for family members. An individual covered by the plan is known as life assured.
Fill out the Proposal Form
Filling out the proposal form is an important step when buying a term insurance plan. This application requires details such as gender, age, income, lifestyle habits, medical history, and education. It is important to provide accurate information.
Assess Your and Your Family’s Financial Needs
To choose the term insurance, assessing your and your family’s needs is important. After assessing your financial needs properly, you can decide your life cover amount, premium payment term, policy term, term riders and more..
Calculating Term Insurance Premium Amount
Using the term insurance calculator, you can easily calculate the premium amount for your desired life cover.
Paying Premiums
Pay the premium amount by choosing the right mode of payment.
Appointing a Nominee
In term insurance, the policyholder must choose a nominee who will receive the payout (life cover) if the policyholder dies.
What are the Factors That Can Affect Term Insurance Premiums?
Various factors like your age, gender, health, family medical history, current health conditions, and lifestyle can affect your term insurance premiums in the following ways:
Factors
Details
Age
Younger people usually pay lower term life insurance premiums because they're less likely to get sick.
Gender
Women are required to pay lower term plan premiums because they tend to live longer.
Health
You and your family’s medical history can impact the premiums. The term life insurance premiums may be higher if you or your family have had serious illnesses.
Lifestyle Habits
Smoking, drinking, or participating in risky activities can lead to higher term plan premiums because they increase risk to life.
Occupation
If your job is risky, you might have to pay larger term plan insurance premiums because a risky job can affect your health.
Policy Duration
The term insurance plan premiums also change with the duration and amount for which you want coverage.
What are the Payout Options in Term Life Insurance?
The payout options in term insurance plans can help your family take care of their financial needs in your absence. Let's take a look at the following four term insurance payout options available in India:
Payout Options
Details
Lump sum Payout
Under this option, the nominee receives the full claim amount at once after the insurer settles the case. The money can then be used as needed, whether it is for clearing loans, handling immediate expenses, or managing other financial responsibilities.
Monthly Installments
With this option, the term life insurance benefit is paid to the nominee in fixed monthly instalments for a period of 5 to 10 years, depending on the policy. It provides your family with a steady flow of income, especially in the absence of the primary earning member.
Lump Sum + Monthly Payout
Under this choice, a portion of the benefit amount is paid immediately as a one-time amount, and the rest is paid every month for a set number of years. The initial lump sum usually helps the family manage things that come up right away, like any urgent payments or small debts that need to be cleared. After that, the monthly amount keeps some steady cash flow going, so your family can continue their routine without too much financial stress.
Increasing Income
With this option, the payout comes in monthly instalments, but the interesting part is that the income goes up by a fixed percentage each year. So instead of getting the exact same amount every month, the nominee gets a slightly higher amount over time. It’s useful because prices keep rising anyway, and the increasing payout makes it a bit easier to handle that.
It’s important to pick a death benefit payout option that actually suits your situation and what your family may need later on. Before deciding the right sum assured, try to look at the long-term expenses your nominees might face and any loans or dues that will still need to be cleared. If you’re unsure, speaking to an insurance advisor usually helps because they can walk you through the numbers and point you toward a 1 crore term plan that fits your budget and goals.
What are the Benefits of Buying Term Life Insurance
Term life insurance gives your family financial support if something happens to you during the policy period. It basically steps in for your income, helping your dependents manage regular household costs and other commitments without too much disruption. The top 8 Term insurance benefits are :
High life cover at low premium rates
Term life insurance plans offer extensive coverage at affordable premiums. The earlier you buy term insurance online, the lower the premium you will pay for your chosen life cover.
Protection from illnesses
Many term life insurance plans offer critical illness benefits, allowing you to receive treatment for life-threatening conditions without the stress of hospital bills. Adding a critical illness rider to your term life policy allows you to access coverage for the diseases listed in the plan.
Long term coverage
Choosing long term plan coverage up to 85 years of age to leave a legacy for your loved ones at affordable rates. Comprehensive coverage is important when choosing the term insurance plan.
Disability Benefits
Accidents can occur unexpectedly, leading to permanent or temporary disability. A disability benefit with a term insurance plan will offer financial support in case of accidental disability, available at an additional premium payment.
Protection Against Financial Liabilities
The life cover (sum assured) provided under a term insurance plan will protect dependents from your financial liabilities, such as loans and debts. This payout can easily pay off the debt, ensuring financial relief from the stress.
Multiple Premium Payment Options
Term life insurance plans provide you with the flexibility to choose the premium payment term. You can choose regular or limited pay options with your term insurance plan.
Death Benefit
In case of an unforeseen event during the policy term, your family members receive the term insurance death benefit. Your beneficiary/nominee can choose to get a regular income with a lump sum amount benefit in case of your absence.
Return of Premium Benefits
Regular term plans do not provide any benefit in case of survival of the policy term. However, there are some term insurance plans with the option of Return of Premium. These term insurance plans refund the amount that is at least equivalent to the total amount of premium paid, in case surviving the policy term.
Tax Benefits
A term insurance plan offers savings on tax up to Rs 1.5 Lakhs on the premium amount paid under section 80C of the Income Tax Act. The lump sum benefit paid under a term insurance policy is tax-exempted under section 10(10D).
Zero GST on term insurance
GST on term insurance plan premiums has been decreased from 18% to 0%. With this every individual term plan has become affordable.
Difference between Term Life Insurance and Whole Life Insurance?
Let’s discuss the difference between term life insurance and whole life insurance:
Features
Term life insurance
Whole life insurance
Coverage period
A specific term, like 10,20 or 30 years or more
The entire life of policyholder (100 years)
Cost
Generally more affordable (as low as Rs. 400/month).
Generally more expensive
Cash value
No cash value
Have savings/cash value component that grows with time
Flexibility
Flexibility in choosing premium payment terms/modes
Offers access to cash value through loans or withdrawals.
Payout
Pays out a death benefit only if the life assured dies during the policy term
Pays out a death benefit whenever the policyholder dies
Ideal for
Those looking for high coverage for a specific time period at a lower cost
Those looking for a lifelong coverage with a savings component
What is a Term Insurance Rider?
A term insurance rider is basically an extra cover that you can add to your regular term plan for more protection.
These add-ons come at an additional cost, and you can pick them based on what you actually need and what fits your budget. Common riders include accidental death benefit, permanent disability cover, and critical illness cover. Each one works a bit differently and is meant to give more support in specific situations.
What are the Types of Term Life Insurance Riders?
Here are a few important riders that you can add to your base term insurance plan for enhanced protection:
01Accidental Death Rider
With this rider, the nominee gets an extra payout if the policyholder passes away due to an accident. It adds an extra layer of protection on top of the main cover.
02Disability Rider
This rider gives financial support if the life assured becomes disabled and cannot work the way they used to. It helps manage day-to-day expenses during a tough time.
03Critical Illness Rider
This pays a lump sum if you are diagnosed with one of the major illnesses listed in the policy. The amount can be used for treatment or any other urgent need, depending on your situation.
04Waiver of Premium due to Permanent Disability
If the policyholder suffers a permanent disability, this feature ensures that all future premiums are stopped and the policy stays active. It removes the pressure of paying premiums when income may already be affected.
05Hospicare Benefit Rider
This rider gives a fixed payout for every day the life assured is admitted to the hospital. It can help cover daily medical or support expenses during the stay.
How to buy Term Insurance Online from Policybazaar ?
You can buy term plan insurance online by following the below - mentioned steps:
STEP 01
01 Visit
Visit Policybazaar and go to 'Term Insurance' plan
STEP 02
02 Fill Details
Enter your name, gender, contact number, and date of birth
STEP 03
03 Info
Fill in your smoking habits, educational qualifications, occupation type and annual income
STEP 04
04 Proceed to Pay
Select the most suitable plan and proceed to pay
Why Buy Term Insurance Online?
Purchasing a term insurance plan online is a fast, secure, and convenient way to safeguard your loved ones. The term insurance purchase process allows you to compare and buy the best term insurance plan from the comfort of your home as well as claim certain online-only discounts. Here are the reasons why you should buy term insurance online:
01Low premiums with high protection
When you buy a term plan online, the premiums are usually on the lower side, so you can get a fairly good amount of life cover without stretching your budget too much. It’s a simple way to make sure your family gets solid protection at a cost that’s still manageable.
02Comprehensive Add-ons
Most insurers let you add riders on top of your basic plan. Things like accidental death or critical illness cover can be added if you feel you need them. It just helps you shape the policy a bit more around your own situation instead of settling for a one-size-fits-all thing.
03Convenience at Your Fingertips
Buy and manage your policy anytime, anywhere, from your phone or computer. No more appointments or paperwork.
04Comprehensive Features
Online term plans provide the same solid features you get with offline plans. You still have access to high coverage options, useful riders, and premium waiver benefits, just with the added convenience of buying and managing everything digitally.
05Wellness Benefits with Financial Protection
The HDFC Life LiveWell rider is an optional add-on that mixes wellness rewards with financial coverage for death, disability, or even hospital stays. It also gives access to a wellness program, health checkups, and tele-consultations. It’s basically meant for people who want a bit of health support along with their insurance, though of course how useful it feels will depend on your own habits and needs.
What are the 5 Important Life Stages to Buy Term Life Insurance?
Buying from us comes with lot of benefits:
When you start to earn
At the start of your career, with a steady flow of income as salary or from your business, it is important to buy a term life insurance plan to financially protect your loved ones. Starting at an early age gives you the benefit of paying lower premiums. This is also the stage when many people start thinking seriously about long-term financial habits. Some even begin exploring FIRE (Financial Independence, Retire Early). During this period, term insurance quietly becomes an important safety layer, making sure your family stays financially protected while you work toward your goals.
When you start your family
Once you get married, expenses and responsibilities usually grow. For the main earning member, this can add a bit of pressure. If something unexpected happens, your spouse could face financial strain unless a term insurance plan is already in place to support them.
When you become a parent
Becoming a parent brings happiness, but it also adds new responsibilities. Your child’s future needs, such as education and overall stability, become part of your planning, so having strong financial protection becomes even more important.
When you take a loan
A home loan can cause financial stress on your family in case of your demise, as they may not be financially able to pay the EMIs. The payout from a term plan will help your family pay off the loans in your absence. Using tools like the FIRE calculator can also help you balance loan repayments with long-term wealth-building goals.
When you move to a new country
Life change rapidly when you move to a different country. Term insurance helps financially protect you abroad and your family back in India. Term insurance companies in India provide term insurance for NRIs at affordable rates.
Why is the Critical Illness Rider With Term Insurance Important?
A Critical Illness Rider with your term insurance is vital.It gives you a much-needed buffer when a serious illness strikes. The money can help with big medical bills and any income you might lose during treatment, so your family’s savings don’t get wiped out. To get a sense of why a critical illness rider actually matters, here’s one example:
Did you know?
Cardiovascular diseases are the leading cause of death in India. A recent study revealed that 50% of heart attack cases between 2020 and 2023 were among adults below the age of 40.
Source: The New Indian Express, based on data from various hospitals.
Did You Know?
Between 2018 and 2022, heart attack cases in India increased by 26%. In 2022 alone, there were 32,457 reported heart attack incidents across the country.*
*Source: Annual Report on ‘Accidental Deaths and Suicides in India’, National Crime Records Bureau (NCRB)
Did You Know?
From 2013 to 2022, cancer cases in India rose by 25%. In 2022, the country reported 14.61 lakh cancer cases, and the numbers are expected to climb to 15.7 lakh by 2025.*
*Source: National Cancer Registry Programme, India (Dec 2022) – Published in The Indian Journal of Medical Research, 156(4)
Do you know?
Globally, diabetes is a rising cause of death. Since the year 2000, deaths from diabetes have nearly doubled, with the younger population also bearing a significant burden. This condition often leads to other critical illnesses.
Source: WHO, based on global and country-specific data.
Why Choose Policybazaar to Buy Term Insurance Plans?
Dedicated claim support for family
We will help and support your family at the time of claim. A personal claim handler from our team of experts will get in touch with your family when the nominee applies for a claim on our website.
Discount up to 15% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
100% calls recorded to avoid mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to give you the best experience.
Advisors available in your city
Our advisors are available in more than 110+ cities across India and can help you at your doorstep in understanding the plans and in documentation.
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.
Lowest Price Guarantee~
Policybazaar guarantees you the lowest price~. These prices are subject to input parameters such as age, medical details, qualifications and other factors required for policy issuance remaining consistent during comparison.
Know More About Term Insurance Plan
Here is a detailed guide that you can follow when you buy term life insurance plan in India:
Higher the Claims Settlement Ratio (CSR), The Better
Every insurance provider maintains a claim settlement ratio each financial year. It is important for customers to understand the insurance company’s claim clearance track record. It indicates how easily your nominees will receive the claim benefit after you unfortunately die. Therefore, you should always opt for a term life insurance provider that has a minimum CSR of 95% for 5 consecutive years. Policybazaar offers detailed information on the Claim Settlement Ratios of various insurance companies to help you make an informed decision.
Always Check the Solvency Ratio
The solvency ratio of an insurance company represents their financial situation in accordance with the solvency norms. It indicates the size of their capital with respect to the risks taken. By checking this ratio, you know if the insurance company has sufficient funds to settle claims in the short or long run. Usually, a solvency ratio of 150% is acceptable and is the ideal ratio for customers to rely on.
Understand the Specific Benefits of the Policy
You might make the wrong buying decisions if you do not understand the T&Cs of your term life policy's benefits. It can also leave the beneficiaries needing clarification while filing a claim. Ensure that the benefits offered under the term life policy are a good match for your financial requirements. This careful analysis will help you select a term life insurance plan best suited to you. Policybazaar’s comparison tools can help clarify these benefits.
Choose The Necessary Riders While Buying Term Insurance
As a policyholder, understand that you need coverage not only for death but also for critical illness, disability, and accidents. These situations can severely impact your family's financial health, so it is wise to add suitable riders to your term life policy for enhanced financial backup. Policybazaar offers a variety of riders that you can choose and add to your term life insurance plan.
Select Your Payout Option Wisely – Whether Lump Sum or Regular Income Payout
Your life term insurance online offers a choice in the payout method. You can opt for a total lump sum payout or a combination where a part payment is made in a lump sum, and the remaining is distributed as regular monthly income. Or you can choose the One-time Lump Sum Payment + Increasing Monthly Payout option, where nominee will be paid monthly payouts that increase with each passing year for a definite period. This helps the nominees meet their immediate needs and sustains them for months. Choosing one of the right types of term insurance payouts ensures that your family’s needs are met with due course of time.
Check Online Availability
Policybazaar Insurance Advisors are available online 24x7 to solve all your doubts and queries regarding new or existing term insurance plans. The Dedicated Claims Assistance Program of Policybazaar also makes sure that you receive assistance for quick claim settlement any time of the day. You can try reaching out to see how fast your query is resolved and whether the support team is equipped to handle online queries satisfactorily. Policybazaar has built a strong digital ecosystem over the years, which makes it easier for customers to get quick support whenever they need it.
How Can I Determine the Right Term Plan Insurance Cover Amount for Myself?
Here is how you can determine the right term life insurance cover amount to get enough cover for your family:
Simple Guideline: Ideally, you should buy a term insurance with sum assured that is approximately 10-15 times your current annual income. This approach offers an easy and straightforward way of estimating the right life cover amount for you.
Human Life Value: The human life value calculator allows you to accurately calculate the suitable term life insurance cover amount. This tool is available free of cost and only requires you to put in your age, annual income, and existing policy cover amount.
D.I.M.E.: The D.I.M.E. or the Debt, Income, Mortgage, and Education formula is a unique approach to calculating the right cover amount for your profile. All you need to do is add up the debt, mortgage, and estimated educational expenses of your children, and add that with the product of your current annual income and the number of years you want the coverage for.
Let’s understand D.I.M.E example: Debt: Consider all the total liabilities you currently have. Liabilities sucg as credit card bills and personal loans worth Rs. 10 Lakhs. Income: If the annual income to be of Rs. 25 Lakhs Mortgage: If the amount of home loan is Rs. 1.5 Crore Education: The estimated cost of education for your children is Rs. 25 Lakhs Desired cover amount: 10 + 25 + 150 + 25 = 2.10 Crores. Taking all factors into account, a 2 crore term insurance for the above case would be sufficient.
What are the Factors to Consider Before Buying Term Insurance Plan?
While buying a term policy, it may be confusing to understand what term life insurance is and how to buy term insurance online. Here are steps that may help you choose the term plan insurance for yourself:
Step 1: Consider your Dependents, Life Stage, and Your Current Lifestyle
Understanding and assessing your and your family’s financial needs is important before selecting a term plan insurance. Your lifestyle involves spending habits and a basic living standard. When you have a clear idea about your lifestyle requirements, you can protect your family more efficiently.
Step 2: Check Your Existing Liabilities
Liabilities and debts are other important parameters to keep in mind when choosing the right term life insurance. In case the policy term does not cover the time of repayment of an existing loan or if the amount falls short, it can put a financial burden on your dependents.
Step 3: Add Term Policy Riders to the Base Plan
By adding life insurance term insurance riders, policyholders can enhance the coverage of the term policy to cover life’s eventualities. These can be attached to the base term life insurance plans at the time of purchasing a rider by paying a nominal premium.
Step 4: Check the Claim Settlement Ratio (CSR) of the Insurer
Term insurance claim settlement is the % of claims settled by an insurance company compared to the total number of claims received in a fiscal year. The IRDAI releases the claim settlement ratio every year. A good claim settlement ratio indicates that the insurance provider has been quick and robust in its claim settlement process.
Step 5: Solvency Ratio
The solvency ratio of a life term insurance plan provider tells us if the chosen insurance provider is financially capable of settling the claims if the requirement arises. As per IRDAI, every insurance company should maintain a solvency ratio of at least 1.5.
Step 6: Go through the Customer Reviews and Experience
Go through real customers’ reviews and see their experience with the insurance company. You should opt for an insurance company that prioritizes its customers and strives to resolve their issues at the earliest. You can also take a look at the company’s Persistency Ratio (declared by the IRDAI), to understand how many customers decide to stick with the insurance provider.
Step 7: Look at the Term Insurance Plan Details
Take a good look at the policy documents to get a better understanding of the policy details. Ensure that the term life insurance plan benefits fit your requirements. You can also consult your financial advisor to make sure you are clear about all the terms and conditions of the term life policy.
Step 8: Select the most suitable Benefit Payout Option
Most term life insurance plans offer the policyholder the option of choosing their most suitable benefit payout option. You can select the benefit amount to be paid to your nominee in a lump sum, regular/monthly income, a combination of lump sum + regular income, or increasing monthly income. If you are the main income earner of the family, you might want to consider opting for the regular income options as they can act as the new monthly source of income in case of your unfortunate demise.
Step 9: Pay the Term Life Insurance Premium
After selecting a life term life policy and customizing your plan, you basically need to finalize the plan. You can buy term insurance online easily in minutes by entering a few details and making a secure payment to buy term plan online.
Can NRIs Buy Term Insurance in India?
Yes, Indian citizens living outside India can buy Policybazaar term insurance for NRI from an Indian insurance provider.
5 benefits of buying NRI term insurance plan in India:
Get large life cover up to ₹10 Crores at affordable premium rates.
Buy term insurance online from India by scheduling medicals via video or call.
Receive an additional 5% discount on premiums in annual mode.
Get coverage that continues, no matter where you are in the world.
With the special exit option, you can exit the term life insurance policy at a specific stage and receive all the premiums paid.
Policybazaar - 100% Claim Assurance
Claim support for your family in those difficult times
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On Ground Support in 110+ Cities
Free Documents Pick-up
Worth Claim Settled ₹1203 Crore
Special Support Team of 500+ Agents
What is Covered and Not Covered in Term Insurance?
Covered in Term Insurance
Death due to natural calamities
Death due to medical issues
Death due to an accident such as road accidents, workplace accidents
Death due to Covid-19
Death due to terminal illness
Not Covered in Term Insurance
Death due to suicide in not covered in the 1st year
Death due to self-inflicted injuries or illegal activities/homicide
Death due to accident under the influence of drugs/alcohol
Death due to undeclared pre-existing illnesses
Death due to pregnancy or childbirth
Not sure which Insurance to buy?
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We help you choose the insurance based on your need
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How Long Should the Term Insurance Policy Period Be?
The term insurance policy term should be enough to cover your financial dependents in your absence. For example, if you have kids who will earn in the next 20 years, you can buy a term insurance plan with a 20 year policy term. Similarly, if you plan on retiring at 60, you can opt for a term policy with a premium pay term till 60 years, as then you won’t have to worry about premium payments in your non-earning years. However, if you want to ensure that your dependent spouse lives a financially independent life in your absence, you can opt for a term plan that covers till 99/100 years of age.
What are the 5 documents required to Buy a Term Life Insurance Plan?
S.No.
Types of Documents
Description of Documents
1.
Identity Proof
Passport, Voter ID, Aadhaar Card, PAN Card
2.
Address Proof
Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
3.
KYC Documents
Voter’s ID card, Passport, Aadhar card, Voter’s ID card
4.
Medical Proof
Latest medical reports allocated by the insurance provider
5.
Income Proof
Salaried Individuals
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
Self Employed
Last 2 years Income tax returns which are not filed in the same year, along with income computation
Last 2 years of balance sheet and loss/profit document validated by CA.
Form 26 AS
What are the KYC documents required to verify Term Insurance?
Below is a list of KYC documents which are required to verify a term insurance contract between the insurance company and the legal entity:
S. No.
Types of Legal Entities
KYC Documents
1
Hindu Undivided Family (HUF)
HUF Registration Certificate
PAN card of HUF
PAN card of HUF karta
KYC documentation of HUF Karta
2
Company
Beneficiary’s PAN
Incorporation Certificate
MOA
Company or Master Policyholder’s PAN
Copy of Power of Attorney
Declaration form of Beneficiary
KYC documents of Beneficiary
3
Partnership Firms, Trusts, and more
Registration Certificate
Partnership Firm’s PAN
Beneficiary’s PAN
Partnership Deed
Copy of power of attorney
Duly signed and stamped consent form by all partners regarding the premium amount to be paid
Declaration form of Beneficiary
Trust deed in foundations and trusts
KYC documentation of all the insurance plan’s participants
PB Guideline: Keep clear mobile photos or PDF scans of the documents required to be uploaded when buying term insurance online.
Common Mistakes People Make When Buying a Good Term Insurance
Many people make several mistakes when they buy term insurance online. Let us take a look at some of the most common mistakes people make when buying term insurance in India:
Buying at a Later Age: Many people put off buying term insurance, thinking the premiums are low enough to be bought whenever. But they often forget that the term insurance premiums increase with age. Not only that, but as you age your health might deteriorate which may end up increasing your term premiums.
Insufficient Life Cover: Insufficient life cover can lead your family still financially vulnerable even after the policy payout. This means, suppose you had a loan for 50 lakhs and a term policy for 50 lakhs as well. On your unfortunate death, the insurer will payout the 50 lakhs and your family can pay off the loan. But after the payout, your family might struggle financially in the absence of the main income earner.
Not Adding Riders: By not adding riders, you may be depriving yourself and your family of some added financial benefits at nominal costs. For example, adding a critical illness rider will pay an additional amount in case you are diagnosed with a critical illness. Similarly, there are several more riders like terminal illness, accidental death, accidental disability, and parent income riders that are available in India.
Sharing Incomplete Details: Sharing incomplete information at the time of filling out the application form can lead to your family’s claim being rejected in your absence. Not only that, but by providing not enough information, you could miss out on additional benefits like discounts for existing customers.
Buying Term Plans Offline: Buying best term life insurance plans from agents can lead to a higher premium because of agent commission being included in the premiums. Buy term insurance online to avail lower premiums, easy comparison, and unlocking special discounts that may only be available online.
How to File Term Insurance Claim From Policybazaar?
We, at Policybazaar offers seamless 100% dedicated claim assistance and offers end-to-end support. This process of filing claim includes five main steps:
Step 1: Tell Us About the Claim The first thing to do is simply let us know that a claim has to be filed. You can call 1800-258-5881 or drop an email at claims@policybazaar.com. You can also submit the claim request online through the claims section on our website.
Step 2: Share the Policy Details We will need a few basic things like the policy number, the policyholder’s name, and the date and cause of death. If the policy was taken through Policybazaar earlier, we usually have most of the data already, so the process generally moves quicker.
Step 3: Submit the Required Documents After the claim is registered, our team explains the list of documents needed. You can upload scanned copies or send the papers physically, depending on what the insurer is okay with.
Step 4: Insurer Review Once all the documents reach the insurer, they start going through everything. We stay in touch with them during this stage and update you if they need anything else or if there’s any small clarification required in the claim process.
Step 5: Claim Settlement On the successful verification, the entire claim amount is paid to the nominee’s bank account. Our team stays connected with you until the process is completed.
Term Insurance Terminology
Here is a list of some important term plan terminologies that you should know:
Premium is the amount of money the policyholder has to pay in return to receive the pure term insurance plan benefits and coverage for the entirety of the policy term.
CSR in term life insurance is the ratio of claims registered to death claims settled by an insurance company each year. A higher CSR reflects better reliability and lower chances of claim rejection.
Death benefit is the same as SA and is provided to the nominee in case of uncertainty. The insurance provider will payout the death benefit to the nominee if the policyholder suffers an untimely death during the policy term.
At the end of the policy term, with regular term plans, the insurance policy just terminates, and no benefit is payable. But, with Term insurance return of premium plans, you can claim all the premiums paid towards the policy at the maturity of the policy.
The nominee or the beneficiary is the person chosen by the policyholder as the rightful claimant of the death benefit in the absence of the policyholder.
The policy term is the duration for which the insurer will provide the policyholder with the life cover and the policy’s benefits in exchange for the life term insurance premiums paid regularly.
It is the duration for which the policyholder has to pay the term plan premiums. Most term life insurance plans offer single, limited, and regular premium payment terms for you to pay at your convenience.
Riders are the additional benefits you can include in your base term plan to increase its coverage. The available riders are different for each insurance plan and can be added at an extra amount to the base term plan premium.
Grace period is the additional period provided by the insurance provider after the term plan premium due date to pay the premiums without worrying about policy lapsing.
FAQs About Term Insurance Plans
Term Insurance
Rider
Coverage and Tenure
Premium Amount
Claims
What are term insurance plans?
Ans. Term insurance plans are types of life insurance plans that offer financial security to your family. These plans are highly affordable and offer large insurance cover, like 1 Crore or 2 Crores, to your family in the event of your unfortunate demise.
Is term insurance covered under 80C?
Ans. Yes, term insurance is covered under 80C. With term insurance tax benefits under 80C, you can claim tax benefits up to ₹46,800 per the prevailing tax laws. However, it is suggested that you consult with your financial advisor to check the applicable term insurance plan tax benefits for your profile.
What is the difference between term insurance and life insurance?
Ans.The difference between term insurance and life insurance is that term insurance offers pure risk protection, and no investment benefits in regular term plans, and life insurance plans offer both insurance and wealth creation benefits. To make the difference between term insurance and life insurance easier, here is a table listing the benefits of both types of plans:
Ans. Yes, term insurance is good if your main requirement from your insurance plan is your family's financial protection in your absence. These plans are good as they allow you to secure a large life cover like 50 Lakhs, 1 Crore, and 2 Crores, at highly affordable premiums starting at just ₹400 per month for a 1 Crore term insurance cover.
Is term life insurance worth it?
Ans. Yes, term life insurance is worth it as it ensures that your family can meet their financial needs in your absence, such as monthly rent, paying for child’s fees, and taking care of outstanding loans and debts. Not only that, it offers long term protection at low premiums and provides the peace of mind that your family will be financially stable in case of any eventuality.
What is the term insurance for?
Ans. Term insurance is for your family's financial protection in your absence at affordable premiums. These plans offer a large life cover to your family, which can help them take care of their financial needs in your absence.
Does term insurance depend on salary?
Ans. Yes, term insurance does depend on salary and annual income. Your current salary and annual income can impact the available term insurance, premiums, eligibility for rider additions, and more. It is better to consult with your insurance advisor to see the impact of your salary on term insurance plans.
What is the right age to buy term insurance?
Ans. There is no right age to buy term insurance. You can buy the plan whenever you want to. But it is suggested that you buy it as early as possible to keep your premium amount low. The sooner you buy term insurance, the lower the premium amount will be. This is because, as per the reports, you have a lower risk of getting health issues at a young age compared to people in their mid-50s or 60s.
Is medical test mandatory to buy term insurance plan?
Ans. Yes, most term insurance plans require you to undergo medical tests either physical, via tele, or video channels. However, there are certain term insurance without medical exams available that allow you to buy term plans online without undergoing medical tests.
What is the free look period in term insurance?
Ans. Free look period in term insurance refers to the review period provided after the purchase of term insurance plans. During this period, you can review the policy details, documents, terms and conditions to see if the plan meets your needs.
What is sum assured in term insurance?
Ans. Sum assured in term insurance refers to the amount selected at the time of policy purchase which is to be paid to your nominee in case of your death. The ideal sum assured for you depends on your needs, family’s expenses, and plans for the future like child’s wedding or spouse’s retirement.
What are the documents required to buy term insurance plan?
Ans. Here is a list of documents required to buy term life insurance plans:
Identity Proof: Passport, Voter ID, Aadhaar Card, PAN Card
Address Proof: Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
Medical Proof: Latest medical reports allocated by the insurance provider
Income Proof:
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
or
Last 2 years Income tax returns which are not filed in the same year, along with income computation
Last 2 years of balance sheet and loss/profit document validated by CA.
Form 26 AS
What does the term ‘rider’ mean in insurance?
Ans: The term ‘rider’ in insurance means the additional benefits that are available at low premiums that can enhance the term plan’s base coverage. These ‘riders’ include accidental death benefit, accidental total permanent disability, terminal illness, critical illness, waiver of premiums, and hospicare benefits.
What is rider benefit in term insurance?
Ans: Rider benefits in term insurance are the optional benefits you can add to your base term plan to increase its coverage. With these rider benefits, you can ensure cover against critical illnesses, terminal illnesses, accidental death, and accidental total and permanent disability.
What is the maximum age for term rider?
Ans: The maximum age for term riders can vary for different term insurance plans. Most term life insurance plans require you to opt for the term riders at the time of buying the policy and provide cover till the end of the policy term. But in case you have opted for whole life cover or cover till a later age, the rider cover term may end before the policy term. Therefore, it is suggested that you read the plan documents carefully to understand the maximum age for term riders.
What is terminal illness in term insurance?
Ans: Terminal illness in term insurance is defined as the diagnosis of an illness that reduces the policyholder’s life expectancy to the next 6 months. This diagnosis needs to be confirmed by two IMA doctors and can be availed after the potential waiting period required by the insurer. The exact terms and conditions to avail the terminal illness in term insurance can be different, and thus is preferred to check it with the insurer.
What are term plan with critical illness and disability rider?
Ans: A term plan with critical illness and disability rider provides additional coverage against certain critical illnesses covered under the policy and pays an additional amount on the diagnosis of any of these illnesses. Along with that, the disability benefits pay the additional amount on total and permanent disability caused due to an accident.
Is it good to add a rider with term insurance?
Ans: Yes, adding a rider with term insurance is good as they can enhance the base cover of your term life insurance plans. With these term riders, you can get coverage against terminal and critical illnesses, accidental death and disability, and more.
What is the 20 year term rider?
Ans: The 20 year term rider is the term insurance rider that offers coverage for 20 years. This can be because either the policy term is of 20 years, or the rider only offers coverage for 20 years.
What is the difference between rider and coverage?
Ans: The difference between rider and coverage is that the rider is available at additional cost paid along with the base premium and the coverage is provided with the base plan and can be enhanced by adding suitable riders to the plan.
Is increasing term a rider?
Ans: No, increasing term is not a rider but a plan option usually available with certain term plan options. You can choose for the increasing term option at the time of buying the policy, which can ultimately help you increase the sum assured of your term policy.
What is the term assurance rider?
Ans: Term assurance rider by LIC provides life cover in case of unfortunate death of the life assured during the cover period. It can be attached with a base policy to provide add-on benefit at a nominal cost.
What is a waiver of premium in term insurance?
Ans: Waiver of premium in term insurance refers to the add-on benefit available with term plans that waives off all the future premiums in case of diagnosis of a covered critical illness or accidental total and permanent disability.
How much term insurance do I need?
Here is how you can determine how much term insurance you need: Assess your annual income, monthly expenses, and family’s future expenses. Calculate the remaining loans and debts your family will have to pay in your absence. Analyse the potential inflation and future goals like planning for your child’s wedding.
What is 50 lakh term insurance?
50 lakh term insurance is a term plan that offers the sum assured on 50 lakh to the policyholder's nominee on the policyholder’s death. With this 50 lakh term policy payout, your family can take care of their financial needs, such as paying rent, child’s fees, the child’s future wedding, and other goals, like secure retirement for your spouse.
What does term insurance cover?
Term insurance covers the policyholder for the entire policy term and financially protects the policyholder's family by paying the death benefit in case of the policyholder’s death. Along with the base death benefit, the policy also covers terminal illnesses, critical illnesses, accidental death, and accidental disabilities, in addition to term insurance riders.
Does term insurance pay after maturity?
Ans: Yes, term insurance does pay after maturity, but only in term insurance with return of premium plans. These plans return the premiums paid during the policy tenure, and other charges. You can use this amount for survival to care for your post-retirement years.
At what age does term life insurance end?
Ans: Term insurance ends at the end of the policy term selected when buying the policy. You can choose for the term insurance to end at retirement, so you are not burdened with premium payments when you are no longer earning. You can also choose to exit the plan early at a specific stage and receive all the premiums paid back with the special exit benefit.
Will the Refund of Premiums include GST for term plans bought before 22 Sept 2025?
Ans: No, in term insurance with return of premium plans, the premiums will be returned, excluding GST and other nominal charges.
What happens to term life insurance if you stop paying?
Ans: If you stop paying the premiums for your term insurance plans on your payment due date, the policy will go into the grace period. Once the grace period is complete, and you still have not paid the outstanding premium, the policy will lapse and will no longer provide coverage unless revived.
How many years do we need to pay term insurance?
Ans: We need to pay the premiums for a term insurance policy for the entire premium payment term selected at the time of policy purchase. At your convenience, you can choose the suitable premium pay tenure from limited pay, regular pay, and single pay terms.
What does a 20-year term life insurance policy mean?
Ans: 20 year term life insurance policy means a life insurance plan with a policy term of 20 years. If the policyholder dies in an unfortunate event during that policy term, the life insurance company pays a death benefit to his/hrer beneficiaries, nominees, often family or dependents.
Can you cash out a 20 year term life insurance policy?
Ans: No, you cannot cash out a 20 year term life insurance policy, as they do not have cash value accumulation benefits.
What is the cost of term insurance in India?
The cost of term insurance in India depends on your age, gender, and other such factors. It mainly depends on the type of term insurance, the sum assured and the policy term of your choice. For example, the 1 crore term insurance starts at just ₹400 per month.
How does smoking affect term insurance premiums?
Ans. Smoking increases the term insurance premiums applicable for your profile as smoking can increase the mortality rates as they can lead to severe lung diseases and cancer. However, this means that term insurance is all the more important for smokers, as their life expectancy is decreased due to smoking.
Does term insurance premium increase every year?
Ans. No, term insurance premium do not increase every year for most types of term insurance plans. However, the premiums may increase if you have purchased a special variant of a term plan that has increasing cover, and the annual rise of premiums is mentioned in the plan details and policy documents. It is better to check the policy documents thoroughly to check the potential rise of premiums each year.
Is term insurance premium tax exempt?
Ans. No, the term insurance premiums are not tax exempt, but you can claim term insurance tax deductions on the premiums paid under section 80C of the Income Tax Act, 1961. You can claim the applicable tax benefits as per the prevailing tax laws.
What does term insurance premium calculator do?
Ans. The term insurance premium calculator allows you to calculate the estimated premiums you will need to pay for the desired life cover. You simply need to select your age, gender, and tobacco consumption habits, choose the right life cover and cover till age, and the lowest applicable premiums will be displayed on the screen.
Can I use term insurance premium calculator without personal information?
Ans. Yes, you can use the term insurance premium calculator without personal information like name, annual income, and other legal documents like your Aadhaar card or PAN card details. You can easily provide your required sum assured and policy term along with age, gender, and smoking habit details, as these can affect your term insurance premiums.
What is a term insurance with return of premium?
Ans. A term insurance with return of premium plan is a type of term insurance that offers a death benefit in case of the policyholder’s death during the policy term, and in case of survival, the plan returns all the premiums paid throughout the policy term. This plan takes care of your family in your absence with the death benefit and allows you fulfil your financial needs in case you outlive the policy term. Your family can use the death benefit to take care of rent, child’s fees, and other financial obligations like loans. You can receive all the premiums paid and use them to take care of your retirement or fulfill any other goals you may have for your future, like funding for your child’s wedding or paying for their higher education.
How to claim term insurance after death?
Your nominee can easily claim term insurance after death by following the below steps: Initiate the claim: If you purchased the term insurance policy from the insurance company, your nominee needs to initiate the claim with the insurer by submitting the claim form. However, if you have purchased the policy from policybazaar, you can simply contact your relationship manager to initiate the term insurance claim. Submit the Documents: After initiating the claim with the insurer, your nominee must submit the required documents like death certificate, policy documents, medical records, bank details, and KYC details. With policybazaar, your claim assistance person will handle all the on-ground support and document submissions for you. Verification and Disbursal: The insurance company will pay out the death benefit to your nominee’s bank account on successful verification of all the documents and details provided.
What are term insurance claim rejection reasons?
Ans. The most common term insurance claim rejection reasons are as follows: Suicidal deaths within the 1st policy year. Death due to pre-existing conditions undisclosed at the time of policy purchase. Policyholder’s death wherein the nominee is involved. Death due to adventure activities like racing, paragliding, and others. Death due to undisclosed childbirth or pregnancy. Death due to consumption of excessive drugs or alcohol.
Can we claim 2 term insurance from two companies?
Ans. Yes, we can claim 2 term insurance from two companies. Your nominee needs to inform both the insurance companies of your death, submit the required documents, and on successful verification the death benefit will be paid.
Can term insurance be claimed under 80d?
Ans. Yes, term insurance can be claimed under 80D of the Income Tax Act, 1961, as per the prevailing tax laws. However, term insurance under 80D can be claimed only if the policy has health riders like hospicare benefits, critical illness, and more.
Is term insurance claim amount taxable?
Ans. No, term insurance claim amount is not taxable. The death benefit is exempt from taxes under Section 10(10D) of the Income Tax Act, 1961. You should check with your financial advisor to see your policy's applicable term insurance tax exemptions.
How much term insurance can I buy in India?
Ans: To answer how much term insurance can I buy in India, insurers typically offer term cover up to 15 to 20 times your annual income, depending on your age, income source, and existing policies. You can estimate how much term insurance do I need calculator to get the approximate premiums for your profile. For high-income individuals, sum assured options can go up to ₹5 Crore or even ₹20 Crore. Insurers may ask for income proof (like ITR, salary slips) to approve higher coverage.
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What our customers had to say about our term insurance plans:
Anushka
Vadodara, November 24, 2025
Bajaj Allianz Plan Experience
"Purchased Bajaj Allianz Life eTouch II through Policybazaar and their support team was professional quick and well informed about the top term insurance plan"
Tanaya
Indore, November 24, 2025
Helped My Father in Law
"We were unsure if a senior citizen could get coverage but they guided us well and helped get a top term insurance plan"
Ishaan
Thane, November 24, 2025
Good for Critical Illness
"I wanted a plan with health related riders and they helped me add critical illness cover that fits my needs perfectly"
Grishma
Bhopal, November 24, 2025
Step by Step Guidance
"From policy comparison to premium payment and policy delivery they supported me at every step with zero confusion"
Jeetendra
Visakhapatnam, November 24, 2025
Bought for My Family
"I bought a term plan to protect my wife and kids and now I feel more confident about their future safety with the best term insurance"
Mahima
Pimpri-Chinchwad, November 24, 2025
Return of Premium Explained
"I was not sure about return of premium feature but they explained it clearly and helped me choose based on my budget"
Surya
Patna, November 24, 2025
Axis Plan Bought
"I chose Axis Max Smart Term Plan Plus because it gave good coverage at a reasonable premium for my age group"
Satyam
Agra, November 24, 2025
Shared With Friends
"I had a good experience so I referred three of my friends who also ended up buying their top term insurance plans from here"
Arvind
Faridabad, November 24, 2025
Everything Done Online
"I was able to search compare consult and buy a suitable top term insurance plan without ever stepping out of my home"
Heena
Nashik, November 24, 2025
Beneficial for Self Employed
"As a small business owner I needed life cover without too many financial documents and they helped me qualify smoothly for a good term insurance plan"
˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
˜Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
Rs. 400/month 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 30 years of age, rounded off to nearest 10.
Rs. 400/month (Rs.13/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 30 years of age.
+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.
+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs.679/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 30 years of age.
+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 1,374/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 30 years of age.
+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
Women
+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.
1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.
Prices offered by the insurer are as per the IRDAI 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
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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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