Term Insurance is a type of life insurance policy that provides coverage for a specific number of years, i.e., a term. This type of life insurance offers a death benefit to the beneficiary or nominee in case of the insured’s death during the policy term.Read more
Term insurance is a type of life insurance plan that provides financial coverage to the policyholder’s family for a fixed time or years, called the ‘term’ of a policy. This type of life insurance offers a death benefit to the nominee in case of the death of the insured during the policy term. A term insurance plan provides high life cover at low premium rates.
For e.g., A 30-year-old healthy, non-smoker male can buy a term cover of Rs. 1 Crore for his family for the next 20 years. If he buys a term plan, he must pay only Rs. 725/month. With this 1 crore cover, he can ensure that their family will be able to maintain their current lifestyle without any hassle in case of his untimely death.
Note: The premium differs based on the type of premium payment option opted by the policy buyer.
Let us understand how the term insurance works with the help of Example.
Sameer, a Healthy and non Smoking male.
Sameer bought a ₹1 crore Term Insurance for a 25 yrs policy term to secure his wife financially.
In the 9th Policy year, Sameer suffered an unfortunate death.
His wife received a ₹1 Crore death benefit from the insurer.
His wife can use the benefit & maintain her current quality of life.
Get term life insurance plans starting at Rs.17 per day. Compare and buy the best term insurance plan in India online from the top 15+ insurance companies at PolicyBazaar. Here is a list of the best term insurance plans in India 2023 that you can compare based on factors like premium rates, payout options, and coverage offered.
|Insurance Company||Term Insurance plans||Entry Age||Max Maturity Age|
|ICICI Prudential Life Insurance||iProtect Smart||18-65 years||99 years|
|HDFC Life Insurance||Click 2 Protect Super||18-65 years||85 years|
|Max Life Insurance||Smart Secure Plus||18-60 years||85 years|
|Tata AIA Life Insurance||Tata AIA SRS Vitality Protect||18-60 years||85 years|
|Bajaj Allianz Life Insurance||eTouch Plan||18-55 years||99 years|
|PNB Metlife Life Insurance||Mera Term Plan Plus||18-50 years||80 years|
|Canara HSBC Life Insurance||Young Term Plan - Life Secure||18-45 years||99 years|
|Kotak Life Insurance||Kotak e-Term||18-65 years||85 years|
|Edelweiss Tokio Life Insurance||Zindagi Protect||18-65 years||100 years|
|Aegon Life Insurance||iTerm Prime||18-65 years||70 years|
|Aditya Birla Sun Life Insurance||ABSLI DigiShield Plan||18-60 years||85 years|
|SBI Life Insurance||SBI eShield Next||18-65 years||100 years|
Term life insurance provides financial protection to your family and 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 Rs 525/Month to buy a 1 crore life cover.
"Life Cover: Amount that the family receives on the demise of the policyholder (should be 10 times your annual income).
Cover till age: The age till which the term plan protects your family (generally opted till 70).
Payment Frequency: Premiums can be paid monthly or annually. Annual premiums have a 10% discount.
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.
The thumb rule is to take a cover of 10 times your annual income. Why? Let me explain with an example:
Annual Income = 10L
Monthly expense = 35,000/month i.e. 4.2L/year
Loan = 20L
As 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
Term insurance should cover you until your financial responsibilities are over. 1. Do you want cover till you retire? (since your financial obligations will 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
You can choose the number of years you wish to pay premiums till the age of 60 or the 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 up to 54% on your overall Premium if you select limited pay for your Term Plan. *58% of the customers select a payment term of 10 years.*
Policybazaar provides a dedicated claim handler who can also come to 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 work with your nominee on documentation, and coordinate with your insurer. We would actively provide status updates, and your nominee would have no hassle of multiple follow-ups.
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 to add this to your 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 critical illness benefit has been paid out, the life cover minus the critical illness cover continues with a reduced 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 Insurers may give a proportion of the sum assured as well. This is available as a free rider in most of the top plans we have.
Term insurance plan is like a safety net for your family's future. It's an affordable and easy way to ensure they are financially secure if something unfortunate happens to you. Here is why buying term life insurance is important:
Anyone who has financial dependents should buy term plans as they offer financial protection at affordable premiums. These can include parents, married couples, self-employed or businessmen, new parents, or taxpayers. Let us take a look at how each type of individual would benefit from buying a term life insurance plan.
|Types of Individuals||Term Insurance Benefits|
|Non-resident Indians (NRIs)||
Term life insurance 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.
When looking for the best term policy, you should thoroughly assess the available plans to find what best suits your needs and requirements. You can assess the different types of term policy available and select the right type of plan yourself. Here is a list of best term plans offered by various insurers, along with their benefits:
|Type of Term Plan||Benefits|
|Basic Term Plan||Death benefit is offered in a lump sum amount at low premium rates|
|Term Insurance with Return of Premium (TROP)||Financial protection to your financial dependents at low premium rates in case of your death
You are eligible to receive a return of all the premium amounts paid in case of outliving the policy term.
|100% Refund of Premium at No Cost term insurance||This term insurance plan variant allows you to exit at a specific stage and receive all the premiums paid at the end of the policy|
|Term insurance for Housewife||You can purchase 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 unsteady flow on income can secure their family against business loans and liabilities in their absence|
|Term Insurance for NRI||NRIs can buy term insurance plan in India via tele/video medicals and get GST waiver of 18% with additional 5% discount on annual premium payment mode|
|Coronavirus Term Insurance||Secure your family in case of an eventuality caused due to COVID-19 with coronavirus term insurance plan|
|Term Insurance for Diabetics||Now, you can buy term insurance plan even if you have pre-diabetic or have type 2 diabetes at affordable premium rates|
|Saral Jeevan Bima||People with low income and educational qualifications can buy SJB plan to financially secure their loved ones, irrespective of their educational, resident background and occupation.|
Choosing the right term insurance plan involves comparing multiple plans until you find the ideal one. Here are some steps that can help you assess and choose the right term plan:
Your term policy period depends on your needs. Most insurers offer a policy term ranging from 5 to 40 years, allowing you to choose a tenure per your specific needs. You can also opt for whole life (till 99 or 100 years of age) coverage through which you can financially secure your dependents for your whole life.
The right time to buy a term plan is as early as possible. This is because the premiums increasing age and changing health conditions. Thus, as you grow older, your health conditions may deteriorate, ultimately increasing your premiums. Buying an online term plan allows you to secure your family at affordable premiums with a large life cover for a long tenure.
Before buying term insurance, it is essential to determine the right life cover for your profile. You can use a human life value calculator to estimate the sum assured you are eligible to buy. An HLV calculator uses your current annual income, age, and cover of existing life insurance to provide you with the right term insurance cover amount.
Term insurance payout works by providing the sum assured to the nominee in the event of the policyholder's death during the policy term. The nominee can choose from among the 4 payout options to receive the amount:
Several factors can affect how much you pay for a term insurance plan. These include your age, gender, family medical history, current health conditions, and lifestyle. Here's a list elaborating on these factors:
A term life insurance rider is an additional benefit or add-on cover that increases the coverage of the base term plan.
Let us take a look at some of the important term riders that you can add to your base term insurance plan:
This term rider provides the rider sum assured in addition to the base sum assured, to the nominee of the term life insurance policy in case the policyholder suffers an unfortunate death due to an accident within the policy tenure.
Under this term rider, the life assured receives a fixed amount for every day spent at the hospital. If the policyholder is admitted to the general ward or the ICU of the hospital, the insurer pays a fixed percentage of the sum assured.
The rider sum assured is paid to the policyholder in a lump sum, on the diagnosis of any of the critical illnesses specified under the term life insurance.
The rider sum assured is paid to the policyholder in case of a total and permanent disability due to an accident during the policy tenure.
The entire/part of the sum assured is paid to the policyholder in advance if the policyholder is diagnosed with a terminal illness.
This rider waives off future term life insurance premiums if the policyholder is unable to pay the premiums due to a job loss caused by a critical illness or permanent total disability.
There are multiple benefits of buying term insurance online. Let’s understand them:
Buying term insurance online is advantageous for several reasons. Firstly, because you are free from agents’ participation, and that results in saving the commission that you eventually pay them. Moreover, you can compare different insurers before eventually buying a term plan and receive all the details instantly.
|Types of Documents||Description of Documents|
|Identity Proof||Passport, Voter ID, Adhaar Card, PAN Card|
For Salaried Individuals
|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 insurer|
Eligibility criteria helps you understand the conditions you need to satisfy to buy term insurance plan in India. Here is the list of eligibility conditions you need to keep in mind before buying term insurance plan:
|Entry Age||18 years - 65 years|
|Policy Tenure||5 years (may vary with insurer) - No limit for the term plan (may vary with insurer)|
|Premium Payment Terms||
|Premium Payment Modes||
|Add-ons or Rider||
Term policy ensures the financial security of your family by providing death benefits in the event of your unfortunate death. This payout helps cover living expenses and debts and ensures your family's financial stability. It is a safety net during tough times, ensuring to meet their essential needs even when you are no longer there.
By comparing term insurance plans in India 2023, you can select the most suitable plan for your profile and ensure the financial security of your loved ones at affordable premiums. You can compare the claim settlement ratio (CSR) of the insurers released by IRDAI every financial year.
|Term Policy||Entry Age||Maximum Maturity Age||Policy Term||Sum Assured|
|Max Life Smart Secure Plus||18 - 60 years||85 years||10 - 67 years||25 Lacs - 10 Crore|
|Bajaj Allianz e-Touch||18 - 55 years||99 years||10 - 81 years||50 Lacs - 10 Crores|
|Tata AIA Sampoorna Raksha Supreme||18 - 60 years||100 years||10 - 67 years||50 Lacs - 20 Crores|
|ICICI Pru iProtect Smart||18 - 65 years||99 years||5 - 69 years||50 Lacs - 20 Crores|
|HDFC Life Click 2 Protect Super||18 - 65 years||85 years||5 - (85 - entry age) years||50 Lacs - 20 Crores|
One of the main factors in selecting the best 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 best for you:
Term insurance plan is important during COVID-19 for several reasons:
Ans: Term life insurance is a life insurance plan which offers financial protection to the policyholder for a specified time. In case of unforeseen death of the insured during the policy term, the insurer pays the death benefit to the beneficiary.
Ans. The term life insurance offers financial protection for the family in case of the untimely policyholder’s death. And you can also get optional coverage for accidental death or critical illnesses. Term plans also cover you for the long term at low premium rates.
Ans. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a 1-year term life insurance yojana for a 2 lakh life cover. It offers death coverage because of any cause. This scheme comes with a risk cover of Rs. 2 Lakhs in case of the insured's demise for any reason.
Ans. The disadvantages of term life insurance are:
Ans. There are no specific criteria but it is always best to invest in a policy as early as possible. The premiums tend to be higher for people in their 30s than for those in their 20s and so on. Buying insurance is always a good idea whether you are in your 20s, 30s, or above.
Ans. You can find a quick answer to this question by computing your Human Life Value or HLV. HLV is a simple number that helps you calculate your required life insurance.
Ans. Yes, there is no limit on buying multiple-term plans to fulfill your life objectives. Buying more than one term insurance plan is certainly beneficial in terms of a number of death benefit payout options, cost-effective premiums, riders, coverage, hassle-free claim settlement, and tax exemption u/s 10(10D) of ITA.
Term insurance riders are additional attachments made to an existing term plan at affordable premium rates, giving the policyholder additional coverage, thus enhancing the utility of the policy. Different types of riders that one can avail of are:
Ans: Yes, it is a good idea to opt for riders with term plan as it enhances the effectiveness of a term insurance plan. Choosing which riders to attach to your plan shall depend on your risks, requirements, and preferences. Upon assessing the various types of risks to your life, you should supplement your life cover with a suitable rider to enjoy comprehensive coverage.
Ans: Although the selection of a rider depends on risks, your needs, and preferences, one of the best options is the waiver of premium rider. The rider protects policyholders against policy lapses in case of non-payment of insurance premiums due to an illness or under critical circumstances.
Ans: A term rider is the extra or additional cover a life assured can opt for along with their base term plan to increase their coverage benefits. A life assured can easily purchase a term insurance rider by paying an additional premium amount.
Ans: Most of the riders are comparatively inexpensive. A rider usually costs around 5 to 10% of the total premium you pay for your base cover. There is no limit to the number of riders that you can add to your base term cover, but the premium amount on all the riders should not be more than 30% of your base premium.
Yes, you can take critical illness cover with a term life insurance plan, if you already have a health insurance plan, the critical illness cover would pay a claim if you got sick. During any critical illness, this cover can be helpful to enhance an existing term life insurance plan.
The critical illness cover provides you financial protection and security against several life-threatening medical conditions such as stroke, cancer, cardiovascular diseases, and kidney failures. This cover includes a lump sum payment if you are diagnosed with stated illnesses in the policy.
Ans: Best term plan with critical illness cover is a plan that meets the following criteria:
Ans: Term insurance plans with Critical illness cover provide a lump sum payment if you are diagnosed with any of the illnesses in the pre-specified list of the policies. This typically includes paralysis, heart attack, lung diseases, cancer, and others.
Ans: The coverage amount depends on various factors such as the number of, dependents in the family, investment goals, affordability, and the lifestyle you’d like your family to sustain in the future. For calculating the minimum term policy cover you need, you can follow the rule to have a sum assured that is 10X your yearly income. Further, you should factor in your existing debt obligations and liabilities when you are deciding your coverage amount.
The insurance company decides the term plan premium payable based on several factors such as age, gender, smoking habit, medical history, etc.
Ans. As per the experts, the average Indian woman lives longer than their male counterparts. Thus, term life insurance premiums are lower for women than that of men belonging to the same age bracket. Some plans also offer discounts to women on their premium amounts.
Ans. Tobacco/nicotine use directly affects the life expectancy of a person. Considering that non-smoker is expected to live longer, their term plan premiums are consequently lower.
Ans. If term life insurance premiums remain unpaid even after the grace period, the policy shall lapse along with its benefits. Some Insurers provide a revival period within which one can revive their lapsed policy.
Ans. If the death of the life assured occurs before the payment of the due premium, the policy will still be considered valid. In such a case, the death benefit is reduced by the amount of due premiums that remain unpaid. The due amount is basically deducted from the sum assured on death.
Ans. Term life insurance policies do not offer paybacks unless you have opted for the ‘return of premium’ variant. Therefore, if you were to outlive the policy term, you do not receive any benefits. This is why term insurance plans are rendered as a pure risk policy. It is the chance that you take to ensure a strong financial safety net for your loved ones in case you are not around for them.
Ans. In a regular term plan, there is no return, maturity, or money back at the end of the policy. But a Term return of premium plan returns the premiums paid back, at the end of the policy term as a maturity benefit. This returned amount is subject to some deductions like GST, Admin charges, and other nominal charges. However, it is better to understand what is term insurance first, before learning more about returns in term policy.
Long-term disability insurance for income replacement is aRead more
In the world of making sure everyone can get important servicesRead more
Income Replacement Insurance for self-employed is the termRead more
Edelweiss Tokio Income Replacement Insurance Plan is aRead more
Buying term insurance is a great way to protect your loved ones financially in the unfortunate event of yourRead more
Term insurance offers a sum assured to the beneficiary of the policyholder upon their death that can help themRead more
LIC of India offers various plans to help you secure the financial future of your loved ones. In order to makeRead more
Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs andRead more
With the re-emergence of COVID-19 in the country, a term policy...Read more
ICICI Pru iProtect Smart term plan recently introduced a new...Read more
Term insurance plans are definitely the easiest way to secure...Read more
HDFC Life Click 2 Protect Super is one of the most comprehensive...Read more
TATA AIA Sampoorna Raksha Supreme is a comprehensive plan and...Read more
+Rs. 525/month (Rs.17/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 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
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 09/06/2024, License category- Direct Broker (Life & General) 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.
© Copyright 2008-2023 policybazaar.com. All Rights Reserved