What are the Different Types of Term Insurance Policies and their Benefits?
How to Buy Term Life Insurance from Policybazaar?
What is a Term Insurance Rider and type?
Why compare Term Insurance Plans online?
Choosing the Best Term Insurance Plan with the Right Sum Assured Option
What is the Importance of Term Insurance During COVID-19?
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Term Insurance
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
Life is Unpredictable! “Protect your family’s
future”₹1 Crore Life cover starting from ₹525/month+
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.
Reviewed By: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 is Term Insurance?
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.
Video
information
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.
What are the Best Term Insurance Plans in India?
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.
*You can easily use a term insurance calculator to calculate the premium amount of your chosen term plan.
See More Plans
Common Customer Queries Resolved
What is term life 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 525/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 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?
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:
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 a term life insurance is important to make sure that you fulfill your responsibilities to your loved ones, even in your absence.
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 @525/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
Various term plans provide critical illness coverage to help you get good treatment for life-threatening diseases/ailments without worrying about 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
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
A regular term policy does not provide any survival benefits if you outlive the policy term. However, a TROP (term plan with return of premium) 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
Term insurance plans 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
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).
₹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 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
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 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 insurance. It won't just bring temporary happiness; it'll protect your spouse's future.
Term policy ensures 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 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.
Term insurance plans also include a critical illness rider, offering an additional payout if you are diagnosed with a serious condition like cervical or breast cancer.
Housewife
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.
Taxpayers
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 insurance to reduce their tax burden significantly.
Parents
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 policy, they never have to worry about their children’s dreams.
Retirees
Retired individuals with spouses or families depending on them should think about getting term insurance as it can help pass on some money to their loved ones when they're not around anymore.
If something happens to the policyholder of term 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 spouses, 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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What are Term Insurance Policy Features?
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.
Can NRIs Buy Term Insurance in India?
Yes, Indian citizens living outside India can buy term insurance for NRI from Indian insurers. Here is a list of benefits of buying NRI term insurance in India:
Get large life cover up to Rs. 20 Crores at affordable premium rates.
Buy term plans in India by scheduling medical checkups via video or call.
Receive additional 5% discount on premiums in annual mode.
Get an 18% GST waiver as per the prevailing tax laws.
With the special exit option, you can exit the term policy at a specific stage and receive all the premiums paid.
How Does a Term Insurance Plan Work?
What are the Different Types of Term Insurance Policies and Their Benefits?
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
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.
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 Choose the Right Term Insurance Plans?
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:
How Long Should Your Term Insurance Policy Period Be?
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.
When is the Right Time to Buy Term Insurance?
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.
How much Term Insurance Cover do you need?
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.
What Are The Different Types Of Term Insurance Payout Options?
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:
Lump Sum Payment: Single payment of the full amount
Monthly Income: Regular and equal monthly payments
Lump Sum + Monthly: Partly lump sum, rest monthly income
Increasing Monthly: Monthly payments with a yearly increase
What are the Factors That Can Affect Term Insurance Premiums?
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:
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 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:
1
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.
2
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.
3
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.
4
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.
5
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.
6
Waiver of Premium Rider
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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Benefits of Buying Term Insurance Online
There are multiple benefits of buying term insurance online. Let’s understand them:
Easy Comparison: Compare from among multiple insurers to buy your ideal term plan.
Quick & Easy: Buy a term plan online and receive confirmation & documents instantly.
Customer Convenience: Buy a term plan from the comfort of your home without visiting insurer branches and offices.
Easy Premium Payment & Renewal: Save time by paying your premiums & renewing your policy online.
Reasons to Buy Term Insurance Online
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.
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
Proof of income tax returns of the last 2 years which were not filed in the same year, along with tax 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
Eligibility Criteria To Buy Term Insurance Plan
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:
Parameters
Eligibility Criteria
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
Single Premium Pay
Limited Premium Pay
Regular Premium Pay
Premium Payment Modes
Monthly
Quarterly
Semi-annually
Annually
Payout Options
Lump-sum
Monthly Payout
Lump-sum with monthly income
Lump-sum with increasing monthly
Add-ons or Rider
Waiver of Premium Rider
Accidental Death Benefit Rider
Accidental Total Permanent Disability Rider
Hospicare Benefit Rider
Accelerated Death Benefit Rider
Critical Illness Rider
How Does Term Insurance Plan Secure a Family's Future?
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.
Why Compare Term Insurance Plans Online?
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.
Note: The following information has been sourced from the official websites of insurance companies.
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
Choosing the Best Term Insurance Plan with the Right Sum Assured Option
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:
What is the Importance of Term Insurance Plans During COVID-19?
Term insurance plan is important during COVID-19 for several reasons:
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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.
FAQs About Term Insurance Plans
Term Insurance
Rider
Critical illness
Premium Amount
What does a term life insurance do?
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.
What are the 3 benefits of term life insurance?
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.
What is term life insurance for 2 lakh?
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.
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 plans?
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.
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 Benefits
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 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.
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.
A term insurance plan is the best way to ensure the financial well-being of your family members in case of any
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Reviews & Rating
4.8 / 5
(Showing Newest 10 reviews)
Kulbir
Delhi, December 08, 2023
Advisor Appreciation
"Policy Bazaar team Mr. Himanshu ji whose employee code is BPW49752 is very nice and talks very well and understands each and every thing about the policy very well. Himanshu ji is very educated."
Vinothkumar
Mumbai, December 05, 2023
Better Guidance
"I have taken a life insurance with iProtect Smart Revised Lumpsum through policy bazaar. They have explained me about the benefits. The tenure period and all the things. The customer service is good. I am okay with the benefits and coverage. there was a counter offer in my policy and its very tough to me to take decesion on my policy then i have words with MR.Ashish Rana emp code (pw42373) and he will help me to solve the query as well as to provide me a better guidance and that was very helpfull for me. Thanks policybazaar team"
Fatema
Delhi, December 05, 2023
Successful claim settled
"I would like to inform you that my both claims have been settled by TATA AIA on 04.10.2023 and 30.11.2023
I would really like to thanks both of you for helping me throughout the claim process in this difficult time of my life.
No one is mentally prepared to file a death claim. People handling death claims, should be very active with prompt services and updates.
I was fortunate to have Ashish as the concerned person from policy bazaar handling my case. Starting from claim form to follow up with the insurer and updating the same through mail and calls, Ashish was on his toes with all the updates.
Moreover, we made a good decision by going with policy bazaar and would recommend my family and friends for the same"
Bharat
Mumbai, November 22, 2023
Thanks to the advisor
"I had a great experience with the expertise of the advisor PW 47881 - srinivas. He cleared all my doubts with absolute clarity. So I would like to appreciate his expertise."
A
Delhi, November 22, 2023
Admiring the Service Provided
"I generally don't write feedback, but I felt to compelled to write this mail. I am very impressed with the quality of your service in particular of the work of Vidur Gaur (pw48653). The way he assisted me in clearing the doubts was impeccable. He was calm and maintained his patient demeanour throughout the process. May the good work continue."
Rahul
Patna, November 22, 2023
great support
"Dear PB team,
It is to inform that the case in trailing mail, has been resolved now. And I am reviewing the revised issued policy documents.
Further, I would like to thanks to Shalu. She Supported me greatly.
She did really great Job.
I appreciate her Immense efforts that she did for my case.
Her close follow up with Insurer and timely updates to me, was excellent.
Take Care, keep doing great support to PB customers always."
Sai
Delhi, November 16, 2023
Prompt and compassionate assistance
"I have been a policyholder with Policybazaar TATA AIE for the last 4 months and during this time, I have had several interactions with your team. I must say that the level of communication and assistance I have received has been truly impressive. Thank you so much for helping me to get a term insurance plan from TATA AI. Especially for resolving my issues related to premium payments. In addition, during these days your representative Ms.Pulakit went above and beyond to ensure a smooth and efficient resolution. The support I received during a challenging time was invaluable, and I am grateful for the prompt and compassionate assistance. Thank you for consistently exceeding my expectations. I look forward to continuing my relation with Policybazaar.com and will not hesitate to recommend your services to friends and family. Thanks and Regards"
Deepak
Delhi, November 14, 2023
Claim Settlement
"I am very greatful to the members of policy bazaar Sh. Ashish Sharma and Sajal sir, who helped me in a kind manner to settle the claim. Thanx again sir, I will always remember this favour."
Mohit
Delhi, November 14, 2023
Appreciation
"Thank you for issuing my policy with so many hurdles. but the man behind the scenes was Satwikk Datta from Policy Bazaar team, he has gone miles in getting this done. He is an asset to the company, a man with huge respect for his customer, he goes way beyond miles to get the things done. Great Hep from him always."
Rudrani
Delhi, October 30, 2023
Appreciation
"This email is to appreciate The Efforts Given By Mr Vikas Gupta Employee Code PW26650 to get my plan into reconsideration with the insurance company and got my policy issued from rejection which is commendable. Best wishes to Policybazaar Who put their Customers to their top priority."
+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.
