Term Insurance

Term Insurance is a type of simple life insurance plan that provides coverage for a specific number of years i.e., term. This type of life insurance plan offers a death benefit to the beneficiary or nominee in case of the insured’s death during the policy term.Read more

Term Insurance Benefits
Life is Unpredictable! “Protect your family’s future” ₹1 Crore Life cover starting from ₹478/month+
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Directly from Experts

Buying term insurance from Policybazaar is beneficial for you as not only the entire process is simple, quick, and hassle-free, but you also get the benefit of availing our Dedicated Claim Assistance Program.

Under this program, Policybazaar takes care of the claim settlement in the absence of the policyholder and ensures that the nominee receives their promised death benefit. The company does all the fieldwork on your behalf, allowing you to get end-to-end support from the insurer till the claims are settled.

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What is Term Insurance?

Term insurance is a type of life insurance plan which 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 policybuyer.

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What is Term Insurance?

How Term Insurance Works?

Let us understand how the term insurance works with the help of Example.

  • Meet Sameer

    Sameer, a Healthy and non Smoking male.

  • Bought Policy

    Sameer bought a ₹1 crore Term Insurance for a 25 yrs 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.

Rhishabh Garg
Written By: Rhishabh Garg
Rhishabh Garg
Rhishabh GargTerm Insurance Head
Rhishabh Garg is the Business Unit Head of Term Insurance at Policybazaar.com. He has over 10 years of experience and currently plays a crucial role in shaping the future of term insurance in the company. Rhishabh also has experience in customer services and crafts new strategies for organizational success, one of which is Policybazaar’s claim assistance program.
Santosh Agrawal
Reviewed By: Santosh Agrawal
Santosh Agrawal
Santosh AgrawalChief Business Officer
Santosh Agarwal is the Chief Business Officer- Life Insurance, Policybazaar.com and has over a decade of experience in the domain of insurance. She has helped shape the life insurance vertical of Policybazaar and ensures the effective execution of the company's overall strategy. Santosh is also responsible for the Term Insurance for Women domain in Policybazaar.com and educates the mass about its importance and benefits.

What are the Best Term Insurance Plans in India 2024?

Buy best term insurance plans starting at Rs.16/- per day. Compare and buy best term insurance plan online in India 2024 at PolicyBazaar and choose the plan that fits your needs. Here is a list of the best term insurance plans in India 2024 for you. These term plans are listed based on various factors, including affordable term premium rates, flexible payout options, coverage, and reliability of insurance providers.

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 Life Insurance Zindagi Protect 18-65 years 100 years
Bandhan 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
*You can easily use a term insurance premium calculator calculate the premium amount of your chosen term plan.
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Discover the most Suitable Term Plan for you!

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:

Common Customer Queries Resolved

What is Term Insurance?

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 478/Month to buy a 1 crore life cover.

What are the key features of term plan?

"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.

How do I decide the amount of Life Cover (sum assured)?

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

What should be the Duration of your Term Insurance (Policy Duration)?

Term insurance plans 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

How do you wish to pay? (pay for limited years, pay till policy term)

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.

How will policybazaar help my family in getting the claim?

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.

What are the different riders (add-ons) available? Why should you choose them?

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.

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Why Should You Buy Term Insurance Plan?

Financial Protection for the Family

Financial Protection for the Family

As the sole breadwinner of your family, it falls on your shoulders to look after the well-being of your spouse, parents, and children. Buying term insurance is important to make sure that you fulfil your responsibilities to your loved ones, even in your absence.

Long Term Coverage

Long Term Coverage

You can choose long term coverage till 99/100 years to leave a legacy for your loved ones at a premium you can afford. This long term cover benefit is one of the important factors that you need to check when looking for the best term insurance plan.

1 crore term plan @473/month

1 crore term plan @478/month

Term life insurance plan is the most budget-friendly type of life insurance and offers a large amount of life coverage at an affordable premium rate. This life cover can help take care of financial obligations and liabilities.

Protection from Critical Illnesses

Protection from Critical Illnesses

Various term plans provide critical illness benefits to help you get good treatment for life-threatening diseases/ailments without worrying about the hospital bills. You can easily avail of critical illness cover for diseases mentioned under the plan by buying a critical illness rider with a term plan.

Coverage against Disability

Coverage against Disability

Accidents can occur anytime, anywhere and may lead to permanent or temporary disability. Disability coverage with a term policy will provide financial support to your family in case of accidental disability. This can be availed by paying additional premiums.

Survival Benefits

Survival Benefits

Regular term policy does not provide any survival benefits if you outlive the policy term. However, a TROP plan provides you with a lump-sum payment after the policy ends to help you achieve varied financial objectives. The returned amount is almost equivalent to the total amount of premium paid.

Multiple Premium Payment Options

Multiple Premium Payment Options

Term plan offer you the flexibility to choose the premium payment term. You can either choose regular payment through the policy term or the limited pay option.

Tax Benefits

Tax Benefits

A term insurance plan offers tax savings benefits up to Rs. 1.5 Lacs on the premium amount paid under section 80C of the Income Tax Act, 1961. The death benefit paid under this plan is exempted from taxes under section 10(10D).

What are the Factors to Consider Before Buying Term Insurance?

While buying a term policy, it may be confusing to understand what term insurance plan is better and how to find the best term life insurance plan. Here are steps that may help you choose the best term plan for yourself:

Step 1: Consider your Dependents, Life Stage, and Your Current Lifestyle

It is important to understand and assess your and your family’s financial needs before selecting a term plan. 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 term insurance riders, policyholders can enhance the coverage of the term policy to cover life’s eventualities. These can be attached to a base term life insurance 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 insurer 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 term insurance plan provider tells us if the chosen insurer 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 insurer. 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 policy 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 policy.

Step 8: Select the most suitable Benefit Payout Option

Most term 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 picking a life term plan and customizing your plan, you basically need to finalize the plan. You can buy a pure term insurance plan online easily in minutes by entering a few details and making a secure payment to buy term plan online.

++All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply

₹1 Crore
Life Cover
@Starting from ₹ 16/day+
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₹50 LAKH
Life Cover
@Starting from ₹ 8/day+
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₹75 LAKH
Life Cover
@Starting from ₹ 12/day+
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Who Should Buy Term Insurance Plans?

Anyone who has financial dependents should buy a term plan, including parents, couples, businessmen, young individuals, and housewife. Since these plans have lower premiums than most types of life insurance, you can not only secure your loved ones, but also claim tax benefits as per the prevailing tax laws with the best term insurance plan in India.

Types of Individuals Term Insurance Benefits
Young Professionals
  • Young professionals often start their careers without financial dependents, like a spouse or parents they support. However, it's a smart decision to buy term insurance plan early because the premiums stay the same for life.
  • Waiting until later could mean higher premiums due to increasing costs with age. This means the younger the policyholder's age, the lower the term life insurance premium.
Newly Married
  • Jewellery, dinner dates and chocolates are nice, but here's a gift that keeps on giving to your spouse - term life insurance. It won't just bring temporary happiness; it'll protect your spouse's future.
  • Term plans ensure that your spouse will have financial help if something happens to you. So, if you're married, it's a good idea for couples to get term life insurance soon.
Working Women
  • Today, women are equal to men in managing finances and contributing to their families. Families now rely on both partners' income, emphasizing the need for financial security in case of any unfortunate event.
  • Term insurance for women ensures that your loved ones, like parents, spouses, and children, remain financially secure even if you're not around. It helps them maintain their lifestyle and achieve their goals, covering outstanding loans, such as home and education loans.
  • These plans also include a critical illness rider, offering an additional payout if you are diagnosed with a serious condition like cervical or breast cancer.
  • With term insurance for housewife, homemakers can now secure the financial future of their spouse, children, and parents in the event of their unfortunate death.
  • Housewives can buy the most suitable term policy online using their husband’s annual income proof and ensure that the family can maintain their current quality of life in their absence.
  • Term policy offers term insurance tax benefit under sections 80C and 80D on the premiums paid, which helps taxpayers to lower their tax liabilities.
  • With section 10(10D), you can receive tax exemption on the death and maturity benefit proceeds as per the new Budget rules.
  • Hence, taxpayers can use term life insurance to reduce their tax burden significantly.
  • Parents are often the primary financial support for their children, covering everything from school fees to university costs. To safeguard their children's future in case of an unfortunate event, they can purchase term insurance for parents, which provides a payout (death benefit) to meet their children's expenses.
  • With this financial safety net of term insurance policy, they never have to worry about their children’s dreams.
  • If you're a new parent you might want to think about protecting your family. You spend a lot of time to think about unique name of baby girl or unique name for your baby boy. But have you ever given a thought 35% of new parents buy term plans to protect their new born baby boy and baby girl.
  • Retired individuals with spouses or families depending on them should think about getting term life insurance. It can work as a way to pass on some money to their loved ones when they're not around anymore.
  • If something happens to the person with the insurance, the family gets a tax-free payout, as long as they meet the rules in Section 10(10D) of the Income Tax Act, 1961.
Senior Citizens
  • Term insurance for senior citizens offers a greater chance of financial security to their family members like spouse, thus providing them with a kind of lifestyle they should get in their absence.
Self-Employed People
  • Being self-employed means dealing with various challenges. Unlike those with regular jobs, your income isn't stable; it goes up and down with the market. Also, you might have loans from banks, creditors, or even friends and family.
  • That's why you must consider getting term insurance for self-employed. It helps ensure your family stays financially protected even if something happens to you.
Non-resident Indians (NRIs)
  • Term insurance for NRI is the best term plan if you want to secure your family back in India.
  • NRIs can now easily opt for plans in India that allow them to schedule a video or telemedical check-up from their country of residence.
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How Does a Term Insurance Plan Work?

How Does a Term Insurance Plan Work

Here is how term insurance works in India:

  • Step 1: The policyholder buys the term insurance plan of the required cover and policy term
  • Step 2: The policyholder regularly pays the premium to ensure continued coverage of the policy
  • Step 3: In case the policyholder passes away during the policy tenure, the insurer will pay the chosen sum assured to the nominee of the policy in the selected payout option
  • Step 4: In case the policyholder outlives the policy term, no benefit will be paid for the regular term plan, whereas the total premiums paid will be returned in case of TROP plans
  • Step 5: Once the benefit amount is paid, the term policy will terminate, and the cover will end

What are the Features of Term Insurance Plans in India?

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.

  • Low Entry Age: Term insurance offers a large age group the opportunity to buy term plans in India. People between the ages of 18 and 65 years can buy term insurance as per the policy’s T&Cs.
  • Long Term Protection: With term life insurance, you can get long term protection against life's eventualities. Various term policy also provide the option of getting cover till 99/100 years of age.
  • Easy to Purchase: Term plans are easy to purchase as you can easily buy term plans within just a few steps. On Policybazaar, you can easily compare and buy the best term life insurance on the same platform.
  • Premium Pay Options: Term life insurance offers several premium pay options wherein you can choose to pay the premiums in monthly, quarterly, bi-annual, or annual modes. You can also choose to pay the premiums in limited, regular, or single installments.
  • Customisable Cover: You can easily customise the life cover of the term insurance plans as per your individual needs. You can also extend the life cover after buying the policy using the life stage benefits.

What are the Different Types of Term Insurance Policies and Their Benefits?

When it comes to looking for the best term insurance policy, there is no one plan that fits all your needs. You should align your requirements with the available plans to find what suits your needs the best. Here is a list of 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 of 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 are 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.
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How to Buy Term Life Insurance from Policybazaar?

How Can a Term Plan Protect Your Family’s Future?

A term plan can secure your family’s financial future in the following ways:

  • Income Replacement: The term life insurance plans offer the option of selecting the suitable payout option, through which you can ensure your family receives the benefit amount in installments over a span of a few years which serves as income replacement in the event of the main income earner’s absence.
  • Cover Funeral Costs: In case of the policyholder’s death, the family might struggle to take care of the funeral costs and other miscellaneous expenses that come with dealing with the death of a loved one. The lump sum payout from a term policy might help them cover these costs.
  • Pay Off Loans and Debts: The financial burden of any pre-existing loans or debts like home loans or car loans might fall on the shoulders of your family members and burden them. The term life insurance payout can help them pay off these remaining loans and live a stress-free life.
  • Cover Against Critical Illnesses: Critical illness treatments at any point in life can drain your savings and leave you with hefty medical bills. With a critical illness rider in a term plan, you can take care of the medical costs and treatment bills with the payout amount received on the diagnosis of a critical illness listed under the plan.
  • Tax Saving Benefits: Term plans provide tax benefits u/s 80C, 80D, and 10(10D) of the IT Act of 1961 as per the prevailing tax laws. The policyholder's family can benefit from the term policy as the death benefit payout is completely tax exempted.

What is a Term Insurance Rider?

A term life insurance rider is an additional benefit or add-on cover that increases the coverage of the base term plan.

These term riders are added at an extra rate over and above the rates of premium and can be selected as per your requirements. In simple words, the rider aims to strengthen term insurance plan with numerous benefits apart from its base benefits.

What are the Types of Term Life Insurance Riders?

Let us take a look at some of the important term riders that you can add to your base term insurance plan:


Accidental Death Rider

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.


Hospicare Benefit Rider

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.


Critical Illness Rider

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.


Accidental Total And Permanent Disability Rider (ATPD)

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.


Accelerated Death Benefit Rider

The entire/part of the sum assured is paid to the policyholder in advance if the policyholder is diagnosed with a terminal illness.


Waiver of Premium Rider Benefit

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.

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Term Insurance Buying Guide

Here is a detailed guide that you can follow while buying your term insurance plan:

The Importance of Comparing Term Plans

Different people have different financial needs and goals. Therefore, it is essential to compare term plans before buying the ideal one. This comparison will help you find the plan that offers the best features, benefits and riders so that you are covered against all life uncertainties. You can easily compare among top term plans from over 15+ best Indian insurers using Policybazaar’s comparison engine and buy the best plan.

Higher the Claims Settlement Ratio (CSR), The Better

Every insurer maintains a claim settlement ratio each financial year. This is a very crucial information 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 an insuer that has a minimum CSR of 95% for 5 consecutive years. Policybazaar offers detailed information on the Claim Settlement Ratios of various insurers to help you make an informed decision.

Always Check the Solvency Ratio

The solvency ratio of an insurer 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 need clarification about your policy's benefits. It can also leave the beneficiaries needing clarification while filing a claim. Ensure that the benefits offered under the policy are a good match for your financial requirements. This careful analysis will help you select a policy 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 plan for enhanced financial backup. Policybazaar offers a variety of riders that you can choose and add to your plan.

Choose Your Payout Option Wisely – Whether Lump Sum or Regular Income Payout

Your term insurance plan 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’s robust online presence ensures prompt and efficient customer support.

How to Choose The Best Term Insurance Plan in India 2024?

Here are some pointers that can help you choose the best term insurance plan in India:

  • Assess your needs: Look at your money situation, what your family needs, and the costs you'll have in the future to decide how much coverage you should get and how long it should last. 
  • Compare different plans: Research to check out the term insurance plans from different companies. Pay attention to how much you'll pay (premiums), what's covered, and any extra features. 
  • Think about buying riders: Depending on your needs, add riders to your term insurance to give you more protection. 
  • Check if the company is reliable: Before you buy term insurance, it's smart to ensure it is trustworthy. You can do this by looking at how often they pay out claims, how many people they cover, how many claims they've settled, how financially secure they are i.e., the solvency ratio, and how long they've been around. This helps you choose the right insurance company that suits your needs.

What are the Factors That Can Affect Term Insurance Premiums?

Various factors can affect your term insurance premiums. These factors include your age, gender, health, family medical history, current health conditions, and lifestyle. Here's a simple list:

  • Age: Younger people usually pay less because they're less likely to get sick.
  • Gender: Women tend to pay lower premiums because they live longer.
  • Health: Your past and current health and your family's health can impact the cost. The premiums may be higher if you or your family have had serious illnesses.
  • Lifestyle habits: Smoking, drinking, or risky activities can lead to higher premiums because they increase health risks.
  • Occupation: If your job is risky, you might pay more because it can affect your health.
  • Policy Duration: How long you want the insurance and how much coverage you need can also change the cost.
  • Lifestyle: If you do risky sports like mountain climbing, your premiums might increase due to the added danger.

What are the Payout Options in Term Life Insurance?

Various term insurance plans in India offer the option of choosing the most suitable payout options. For example, in the absence of the main breadwinner of the family, the family might suffer from meeting their monthly expenses in case of loss of regular income. In such cases, a term life insurance with a monthly payout option will help payout in instalments over a span of 5 to 10 years. The available death benefit payout options in term life insurance are

It's important to select the death benefit payout option that best fits your needs and the requirements of your beneficiaries. You need to consider factors like the sum assured on death, the financial goals of your nominees, and any ongoing financial obligations like loans that may need to be covered. You can consult with a insurance advisor to help you make an informed decision about the best term insurance plan for you.

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Documents Required To Buy Term Insurance Plan

Types of Documents Description of Documents
Identity Proof Passport, Voter ID, Adhaar Card, PAN Card
Income Proof
For Salaried Individuals
  • Statement of the bank showing credit of salary for last 3 months
  • Last 2 years Income Tax Returns
  • Recent year Form 16
For Self Employed
  • Last 2 years Income tax returns which are not filed in the same year along with income computation
  • If income calculation is not available, submit the last 3 years income tax returns (not filed in the same year)
  • Form 26 AS
Audited balance sheet and profit loss document certified by CA for last 2 years
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

Why Compare Term Insurance Plans Online?

Comparing term insurance plans online can have the following benefits:

  • Check the availability of all term life insurance plans from different insurance companies.
  • Access accurate information directly from the insurer itself.
  • Receive additional 5% discount on premiums in annual mode.
  • Purchase a term insurance plan that fits your budget and is suitable for your needs.
  • Easily compare term life insurance from different insurers.

Online comparison of term life insurance will help you determine the right term plan as per your financial capacity and budget. It is important to compare the best term insurance plans online before buying any policy.

Note: The following information has been sourced from the official websites of insurance companies.

Comparison Of Term Life Insurance Plans

To help you make an informed decision, here is a comparison of the best term insurance plans in 2024. Refer to this table and find out the right term insurance plan for you.

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

What are the 3 Easy Steps to Buy Term Insurance Plan in India?

The 3 easy steps to buy term insurance plans in India are as follows:

Step 1: Choose the most suitable sum assured and policy term as per your individual needs

Step 2: Compare the available plans on the basis of their premiums, premium payment options, and benefits offered

Step 3: Buy the best term insurance plan in India and proceed to pay

What is the Importance of Term Insurance Plans During COVID-19?

Term insurance plan is important during COVID-19 for several reasons:

Importance of Term Insurance During COVID-19
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  • Financial protection: COVID-19 has highlighted the importance of having financial protection in place for unexpected events. Term life insurance can provide financial protection for your loved ones in the event of your untimely death, helping to cover expenses like funeral costs, debts, and living expenses.
  • Affordability: During COVID-19, everyone was struggling to meet their financial obligations. Term policy ensures that you are able to meet those needs and still secure your loved ones, as it is one of the most affordable types of life insurance policies, making it a good option for many people during these uncertain times.
  • Health considerations: COVID-19 has brought health considerations to the forefront, and many people are looking to secure term coverage while they are healthy. Term insurance plans typically require a medical exam, but the application process can be completed online or over the phone as per the policy details, making it a convenient option during the pandemic.
  • Peace of mind: The COVID-19 pandemic has caused a lot of stress and anxiety for many people. Knowing that you have term insurance plan coverage in place can provide peace of mind and help ease financial worries for both you and your loved ones.

Common Term Related to Term Insurance Plan

Here is a list of some important term plan terminologies that you should know:

  • Claim Settlement Ratio: CSR in term insurance plans is the ratio that represents the total number of claims registered in a year and the number of death claims settled in a year by an insurance company. The higher the CSR, the good the reliability of the company, and the chances of claim rejection is low.
  • Death Benefit: Death benefit is the same as SA and is provided to the nominee in case of uncertainty. The insurer will payout the death benefit to the nominee if the policyholder suffers an untimely death during the policy term.
  • Grace Period: Grace period is the additional period provided by the insurer after the premium due date to pay the premiums without worrying about policy lapsing.
  • Maturity Claim: At the end of the policy term, with regular term plans, the policy just terminates and no benefit is payable. But, with Term return of premium plans, you can claim all the premiums paid towards the policy at the maturity of the policy.
  • Nominee/Beneficiary: 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.
  • Policy Term: 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 term insurance premiums paid regularly.
  • Premium Payment Term: It is the duration for which the policyholder has to pay the premiums. Most term plans offer single, limited, and regular premium payment terms for you to pay at your convenience.
  • Riders (Add-on benefits): Riders are the additional benefits you can include in your base term plan to increase its coverage. The available riders are different for each plan and can be added at an extra amount to the base premium.
  • Sum Assured (SA): Sum Assured is the amount that the nominee/beneficiary will receive in case of an unforeseen event.
  • Term Insurance Premiums: Premium is the amount of money the policyholder has to pay in return to receive the term insurance plan benefits and coverage for the entirety of the policy term.

FAQs About Term Insurance Plans

  • Term Insurance
  • Rider
  • Critical illness
  • Premium Amount
What does term life insurance do?

Ans. Term plans 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.

What are the 3 benefits of term insurance?

Ans. The term insurance plan offers financial protection for the family in case of trhe untimely policyholder’s death. And you can also get optional coverage for accidental death or critical illnesses. Term plans also cover you for long term at low premium rates.

What is term insurance for 2 lakh?

Ans. Pradhan Mantri Suraksha Yojana 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.

What is the meaning of LIC term insurance?

Ans. LIC term insurance plans are the term plans offered by the Life Insurance Corporation of India. These plans allow customers of all backgrounds to get life insurance coverage of high cover at affordable premiums. You can take a look at the available term life insurance plans to choose the one that best suits your needs.

What are the disadvantages of term life insurance?

Ans. The disadvantages of term life insurance are:

  • No-investment factor
  • Premium differ based on age factor
  • Surrender value
When should I buy term policy?

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.

How much term insurance coverage do you need?

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.

Can I take 2 term life insurance?

Ans. Yes, there is no limit on buying multiple-term plans to fulfill your life objectives. Buying more than one term life 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.

What are riders in term life insurance?

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:

  • Accidental death Benefits
  • Accelerated Death Rider Benefit
  • Waiver of Premium Benefits
  • Accidental Disability Rider Benefits
  • Critical Illness Benefits
  • Income Replacement Benefits
Should we take riders with term life insurance?

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.

Which rider is best with term life insurance?

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.

What is the term rider?

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.

What is the cost of riders?

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.

What are the benefits of adding a term life insurance rider?
  • Additional Coverage
  • Cost-effective
  • Choose as per your needs
  • Tax-saving Benefit
  • Multiple benefits in a single policy
Should I take critical illness cover with term insurance plan if I have health insurance?

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.

What is covered against critical illness in term 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.

Which is the best term plan with critical illness cover?

Ans: Best term plan with critical illness cover is a plan that meets the following criteria:

  • Illnesses covered: Determine the number of critical illnesses covered. If you have a family history of any cardiac disease or any other major ailment, ensure these are covered within the term plan.
  • Adequate sum assured: Always consider the average cost of managing major ailments while determining the size of a term life insurance cover. Always take inflation into account.=
What is a term plan with a critical illness?

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.

How much term insurance should I take?

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.

Who dictates what the premium amount for a term plan should be?

The insurance company decides the term plan premium payable based on several factors such as age, gender, smoking habit, medical history, etc.

How important is the gender of the life assured?

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.

Why is the use of tobacco/nicotine a determining factor for term insurance premiums?

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.

What happens if I don’t pay the term insurance premium?

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.

What is the consequence of the life assured dying before the premiums have been duly paid?

Ans. If the death of the life assured occurs before the payment of due premium, the policy will still be considered valid. In such a case, the death benefit reduces by the amount of due premiums that remain unpaid. The due amount is basically deducted from the sum assured on death.

What am I entitled to if the premiums are duly paid off and I survive the term period?

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.

Do we get return in term insurance plans?

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.

question mark illustration

Key Takeaways - Term Life Insurance



  • Low Entry Age
  • Additional Riders
  • Cover against Critical Illnesses
  • Payment Flexibility
benefits offered

Benefits Offered

  • Low Premium
  • Death Benefit
  • Long-term Cover
  • Tax Benefit
type of term plan

Types Of Term Plans

  • Regular Term Plan
  • Term Return of Premium Plan
  • No-cost Term Plan
  • Whole Life Insurance
Long Term Coverage

Who Should Buy

  • Individuals
  • Newly Married
  • Parents
  • Taxpayer
Different types of Plans
Term Insurance For Family
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Term Insurance For NRI
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Best Term Insurance Plan
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LIC Of India
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Life Insurance
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Best Term Insurance Companies
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Term Insurance For Senior Citizen
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Term Insurance For Spouse
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Reviews & Rating
4.8 / 5
(Showing Newest 10 reviews)
Financial Protection for the Family
Ghaziabad, July 22, 2024

Great support

"Thank You for your support and guidance while taking term insurance"

Financial Protection for the Family
Delhi, July 22, 2024

Good Experience

"Overall it was a good experience of obtaining Term Insurance through Policybazar."

Financial Protection for the Family
Delhi, July 22, 2024

excellent service

"I hope this message finds you well. Thank you for your email. I want to express my appreciation for the excellent service provided by Policy Bazaar, particularly by Jyoti Thakur. Jyoti was incredibly helpful throughout the process, addressing all my concerns and providing resolutions during any setbacks. Her dedication and support were truly commendable.In terms of feedback, I was very pleased with the customer-centric approach demonstrated at every stage of the policy process. Thank you once again for your excellent service."

Financial Protection for the Family
Hyderabad, July 22, 2024

Excellent experience with policybazaar

"The experience with Policy Bazar was really excellent, many queries were addressed instantly and overall the guidance in buying and briefing about the policy was really well done."

Financial Protection for the Family
Kerala, July 22, 2024

Smooth Experience

"Thank you for the smooth experience."

Financial Protection for the Family
Gurgaon, July 22, 2024

prompt response and resolution of the issue

"The issue has been resolved. Thank you for your prompt response and resolution of the issue. Really amazing to receive such customer support. Highly appreciated"

Financial Protection for the Family
Delhi, July 22, 2024

Experience has been good so far

"Experience has been good so far. Like the swiftness and guidance on the matters I discussed. Hope to receive the same service in future as well. "

Financial Protection for the Family
Mumbai, July 22, 2024

Outstanding support

"I hope this message finds you well. I wanted to take a moment to express my deepest gratitude for the outstanding support and guidance you've provided as my life insurance advisor.From our very first meeting, your professionalism and expertise were evident. You patiently listened to my concerns, answered all my questions with clarity, and ensured that I understood the complexities of life insurance. Your dedication to helping me find the right policy tailored to my needs did not go unnoticed.I want to thank you for your exceptional service. You have made a significant difference in my financial planning journey, and I am grateful for your guidance in every step of the way. Please know that I will not hesitate to recommend you to anyone seeking reliable insurance advice.Wishing you continued success and fulfillment in your career."

Financial Protection for the Family
Madhya Pradesh, July 22, 2024

Quick and Reliable

"Quick and reliable process with Policybazaar. Went with SBI Life for its reliable coverage and affordable premiums."

Financial Protection for the Family
Patna, July 22, 2024

Happy in buying term insurance from policybazaar

"Hi Rhishab, Thanks for your mail. I am quite happy in buying term life insuarance from PolicyBazaar rather than buying it directly from online insuarance provider website as I can rely on PolicyBazaar for any claim assistance needed by my family. I do feel I should have pre talked about taking life insurance before on a call with policybazaar adviser as there as I purchased every year five percent increasing cover for which I was not eligible. I think the process would have been smoother as I had to rollback certain options selected but atleast I had selected policybazaar so the application wasn’t rejected but they helped regularly in fine tuning the application to get it accepted and provided help. Overall my experience with policybazaar was very helpful in selection of right term life insuarance for me. I have also received the soft copy of term life insurance on watsapp and email."


+Rs. 478/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

Prices offered by the insurer are as per the 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 09/06/2027, 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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Current Version
Jul 22, 2024
Written By
Rhishabh Garg
Reviewed By
Santosh Agrawal
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