Term Insurance

Term insurance is a type of pure life insurance policy that provides life insurance cover against the fixed premium paid for a specified term of the year. As a protection plan, term life insurance offers higher insurance coverage at lower premium rates. The term life insurance plan provides financial coverage to the beneficiary of the policy if the life insurer dies during the active 'term' of the policy.
Note: In the case of survival of the life insured the coverage at the earlier rate of premiums is not guaranteed after the expiry of the term insurance policy. The buyer has to either obtain extended coverage with different payment conditions or forgo the coverage entirely.

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** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

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What is Term Insurance?

"Term Insurance" is a pure life insurance policy that has financial coverage for a specific tenure. It provides financial protection to the beneficiary of the policy in case of the unfortunate demise of the policyholder during the policy tenure.

why buy term insurance why buy term insurance

A term life insurance plan not only offers financial security to your family but also is capable of fulfilling its future needs such as your child’s higher education, child’s marriage, etc. Among all the life insurance products, term life insurance offers the highest life coverage for the minimum premiums during the term of the policy. For example, an individual can buy a life cover of Rs. 1 Crore at a premium rate of a minimum of Rs. 411 per month. Some insurance companies also cover permanent or partial disability wherein the policyholder’s regular income is disrupted.

Why Should You Buy Term Life Insurance Plan?

Why buy Term Insurance early?

Your premium is decided on age at which you buy the policy and remains same, throughout your life

Premiums can increase between 4-8% each year after your Birthday

Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease

See how age affects Term Insurance Premiums
See how age affects Term Insurance Premiums
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There are various reasons to buy a term life insurance plan. However, here are the key and basic reasons that you must buy term insurance:

  • The Dependency of your Family: You can use the term life insurance money to meet the monthly expenses of your dependents and family when you’re not around. Moreover, it fulfills vital life goals such as education and the marriage of your child.
  • Protection of the Assets: A term plan allows you to take loans for assets such as a car or a house. Nevertheless, if you’re not around, your dependents and family might be burdened with the repayment of loans. In such circumstances, your family can utilize the term insurance pay-out in paying off the outstanding debts.
  • Risks Related to Lifestyle: Present-day lifestyle problems often lead to various ailments and diseases. Some term insurance plans do not just safeguard your dependents and loved ones after the demise of the policyholder but also offer critical illness protection for a lifetime. This key feature pays on the diagnosis of some critical illnesses such as heart attack or cancer.

Online Term Plan

Term life insurance plans offer financial security to the family of the insurer with the highest life coverage for the minimum premiums during the 'term' of the policy

Who Should Buy Term Plan?

Any individual with financial dependents should consider purchasing an online term insurance policy. This includes young professionals, parents, married couples and people who want to gain tax benefits as a term insurance plan provides tax benefits under section 80C of Income Tax Act 1961. Hence, any individual who wants to provide life protection to their family at an affordable premium rate along with the benefit of tax exemption should purchase a term insurance policy.

  • Parents: Parents are generally the single breadwinner of the family and the only financial support for their children. Thus the best way to secure the financial future of the children is to have a term insurance policy. As in the term plan, a death benefit is paid to the beneficiary of the policy in case of the unfortunate demise of the insured person.
  • Newly Married: A term insurance policy can work as a financial safety net for your spouse even in your absence. In case of any eventuality, the term life insurance plan not only provides financial security to the beneficiary but also takes care of the liabilities.
  • Young Professionals: If you are a young professional who has recently started working, buying a term life insurance plan is highly recommended. The reason for the same is very simple, you will get a substantial coverage amount at lower premiums.
  • Taxpayers: Along with the benefit of life coverage, one of the major advantages of purchasing a term insurance policy is that it offers the benefit to save on taxes. The premiums paid towards the term policy are tax exempted under section 80C of the Income Tax Act. Thus, if you want to save on taxes along with the benefit of life cover then you should certainly consider buying a term policy.
  • Retired or those who are recently retired: At this stage of your life you may think twice about buying a term plan. This can be because of the lesser number of responsibilities by this age. However, if you have a non-working spouse or child, you must buy a term plan even at the sunset years of your life.
  • Self-Employed People: If you come under this category, buying a term plan is beneficial for you. This is to ensure that the aspirations of your financial dependents are not compromised.
  • Working Women - For working women who have started this new phase of life, buying a term plan is beneficial.

Best Term Life Insurance Plans In India

Insurers Term Plan Claim Settlement Ratio Max Maturity Age Premium (for a cover of 1 crore)
Aditya Birla Sun Life Insurance ABSLI LifeShield Plan 98.02% 75 years Rs. 623/month
Aegon Life iTerm 98.01% 100 years Rs. 479/month
Bajaj Allianz Life Cover 98.48% 85 years Rs. 458/month
Canara HSBC OBC Life Insurance iSelect+ LumpSum 98.12% 99 years Rs. 480/month
EXIDE Life insurance Exide Life Elite Term 98.54% 70 years Rs. 451/month
Edelweiss Tokio Zindagi Plus+ Lump sum 97.0% 80 years Rs. 478/month
Future Generali Future Generali Flexi Online Term-Lumpsum 95.2% 75 years Rs. 486/month
HDFC Life Life Option 98.01% 85 years Rs. 709/month
ICICI Prudential iProtect Smart Lumpsum 97.9% 85 years Rs. 647/month
India First e-Term Plan 96.81% 65 years Rs. 422/month
Kotak Life e-Term 98.5% 75 years Rs. 654/month
Max Life Smart Term Plan Life Cover 99.35% 75 years Rs. 571/month
PNB Metlife Mera Term Plan-Full Lumpsum payout 98.17% 99 years Rs. 585/month
Reliance Nippon Life Insurance Reliance Digi-Term 97.71% 65 years Rs. 500/month
SBI Life eShield 94.5% 80 years Rs. 589/month
Tata Aia TATA Maha Raksha Supreme Lumpsum 98.02% 85 years Rs. 927/month
Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

Key Features of Term Insurance Policy

Key Features Benefits Offered
Death Benefits of Term Life Insurance A predefined amount is paid out to the nominee in case of the unfortunate demise of the policyholder
Maturity Benefits Available under Term Insurance with Return of Premium option
Tax Benefits Available under all types of term insurance plans.
Riders/ Add-on Covers A number of rider benefits or add-on covers such as critical illness, waiver of premium, extra payout on accidental death/disability are available with Term insurance plans.
Coverage Against Various Liabilities of Term Insurance Most of the Term insurance policies provide coverage against various liabilities of the policyholders like mortgage, loans, and other types of debts.
Buying Process Online and Offline
Claim Assistance Available
Claim Process The easy online and offline claim process
Physical Paperwork Only in case of offline policy purchase
Premium Payment Frequency in Term Life Insurance Annual
Quarterly
Half-yearly
Monthly
Single
Payout Options of Term Plan One Time Payout, One Time Lump-Sum Plus Fixed Monthly Payouts, Fixed Monthly Payouts, and One Time Lump Sum Payment Plus Increasing Monthly Payouts
Sum Assured (Min/Max) Minimum – Starts at Rs. 5 Lakhs/ Maximum – No Limit

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What are the Variants of Term Insurance Plan?

Variants of Term Insurance Plan Benefits
Basic Term Plan The death benefit is offered in a lump sum amount at low premium rates
Term Plan with Monthly Income Offers Fixed and stable income for family along with the death benefit
Term Insurance with Growing income (monthly) The death benefit is offered along with the growing monthly income for a family
Term Insurance with Return of Premium (TROP) Upon the maturity, return of all the paid premiums, along with the death benefit during the policy term.
Group Term Insurance This plan provides life coverage for a group of individuals under a single policy

Term insurance plan are specifically designed to secure your family's basic financial needs in case of death or uncertainty. According to the plan, family/dependents of the life insured is/are eligible for a lump sum amount in case of death or critical illness (if applied for) of the life insured during the tenure of the policy.


Best term Insurance Plans in India Best term Insurance Plans in India

What are the Types of Term Plans in India?

There are a number of term plans available in the market from various insurance companies in India. All of these companies offer both types of online and offline term life insurance with each term policy having its own set of specific features that make it the best term insurance plan in the market. To understand these term plans we need to look at them a bit more in-depth.

  • Level Term Plan

    The level term plan is one of the easiest types of term plan wherein during the policy tenure the sum assured remains unchanged and the benefits are paid to the beneficiary on the demise of the policyholder. The level term plan is easily available in PAN India and is offered by various insurance companies. The rule is simple the younger you are when buying this type of term life insurance plan the premiums will be that pocket-friendly.

  • Term Insurance with Critical Illness Cover

    Along with the benefit of life cover, this term plan comes with critical illness cover that is paid out in case the life assured is diagnosed with any of the 34 specific critical illnesses such as heart attack, cancer, kidney failure, etc.

  • Term Insurance with Limited Pay

    Under this term plan option, the policyholder can choose to pay the premium of the policy for a limited tenure. However, the benefits of the plan continue for the entire tenure of the policy.

  • Term Insurance With Accidental Death Cover

    Under this plan option, the beneficiary of the policy receives the life cover along with the benefit of accidental death cover in case of accidental demise of the life assured during the policy tenure.

  • Standard Term Insurance Plan

    A standard term life insurance plan is one where the insured person gets a cover against various risks against payment of a certain term life insurance premium amount. The most common term plan and generally also considered the best term insurance policy is the one that charges a yearly premium for an annual cover.

  • Term Return of Premium (TROP) Plan

    A term insurance return of premium policy is a term plan that refunds the premium paid for the cover in case the insured party survives the policy period. These term plans are increasingly becoming popular as the policyholder gets the money they have invested in the term insurance policy at the end of the policy period.
    These term insurance policies also give the insured the option to add on riders that they feel are essential. These riders add to the premium of such a term plan just like any other standard term insurance policy.

  • Group Term Insurance Plan

    Group term insurance are a term insurance plan that is specially designed for businesses, companies, societies, associations, or large families and provides term plan insurance cover for all the members of the group. These policies provide the same set of benefits that an individual term plan offers but the overall coverage is generally more in terms of illnesses or other factors that are generally excluded in the individual policies. Most of these term plans are offline as each policy is generally customized to suit the needs of the group taking the policy.

  • Increasing Term Plan

    The cover and the term life insurance premium increase over the overall tenure of the renewable term insurance plan. This term plan helps to cover against risk from rising inflation costs that may affect the real value of the death benefits that the insured individual's family would receive. The cover under these term insurance plan rises at a pre-specified rate and keeps increasing until the overall value of the cover is 1.5 times the original cover under the term policy.

  • Decreasing Term Plan

    The decreasing term insurance plan is a renewable term plan where the sum assured of the policy decreases every year by a fixed percentage over the tenure of the policy. These policies are generally offered as mortgage clearing plans. Decreasing term plan is taken to clear debts and loans. In case of the demise of the insured person, the available sum assured amount is paid towards the repayment of the loan. The premium rate of decreasing term plans is less as compared to the normal term Plan. This term insurance policy provides financial security to the insured’s family and offers the benefit of tax exemption at an affordable premium rate.

  • Convertible Term Plan

    This type of term insurance plan is generally offered by some insurance companies in India. As the name suggests the key highlight of taking a term plan is that when buying this term insurance plan you can opt for the alternative to convert the plan into some other plan in the coming times and accordingly select a date. For instance, if you had taken a term insurance plan let’s just assume for 25 years, however, after 5 years, you intend to convert this into any other plan like an endowment plan or any other plan, you can go ahead.

  • Single Life and Joint Life Term Insurance Plan

    A joint term insurance plan works out to be cheaper than buying two individual term insurance plans. Moreover, the features and benefits remain the same, ensuring both the members get the same advantages of the plan.
    These policies are ideal for a couple with children as they will ensure the dependents will not have to worry about their future if the unfortunate comes to pass and both parents pass away. A joint term insurance policy is the best option to go with as it also provides insurance cover for the surviving spouse.

  • Offline and Online Term Plan

    Offline term plans are those that are sold through traditional methods such as through an agent or a branch, while online term plans refer to term insurance plans that are sold over the internet. Term insurance providers offer an online term plan at a significantly discounted rate than the offline plan. The primary reason for this is the lack of any intermediaries such as the agent or the branch between the policyholder and the insurance company for an online term insurance plan.

    People could now buy online life insurance at the click of a mouse in a few minutes. Research shows that an online term insurance plan may be cheaper by as much as 40% in some cases than the offline plan that offers the same features and benefits. There are various reasons for the low premium in an online term insurance policy.

Term Plan Comparison

For a better understanding of our readers, here we have shown the term plan comparison chart.
Plans Entry Age Policy Term Premium Paying Term Sum Assured Incurred Claim ratio
Aviva Life Shield Advantage Plan 18 years/55 years 10 years-30 years Single pay, Regular pay Min-Rs.35,00,000 Max-Option A- No upper limit Option B- Rs.50,00,000 96.06%
Bajaj Allianz iSecure Plan 18 years/60 years 10,15, 20,25 & 30 years Regular pay Min- Rs.2,50,000(general category)Rs.20,00,000 (split category) Max- No upper limit 95.01%
Bharti Axa Life Flexi Term Plan 18 years/65 years 5, 10,15,20 years Regular pay Min- Rs.10,00,000 Max-Rs.25,00,000 97.28%
Canara HSBC iSelect Term Plan 18 years/65,55, 50, 45 years N/A Single pay, limited pay Min-Option 1- Rs.25,00,00 Option 2- Rs.50,00,000 Option 3- Rs.15,00,000 Max- No upper limit 94.04%
Edelweiss Tokio Life Protection Plan 18 years/60 years 10-30 years Single pay, regular pay Min- Rs.15,00,000 Max- No upper limit 95.82%
Exide Life Elite Term Plan 21 years/60 years 10-40 years Regular Pay Min- 50L Max- 10 Cr 98.54%
Future Generali Flexi Online Term Plan 18 years/55 years 10 years- 65 years minus entry age(smokers) 10 years-75 years minus entry age (non-smokers) Equal to policy term Min- Rs.50,00,000 Max- 10,00,00,000 95.16%
HDFC Life Click 2Protect Plus 18 years/65 years 5 years-85 years minus the age at entry 10 years-40 years Regular pay, limited pay & single pay N/A 99.04%
ICICI Pru iProtect Smart Plan 18 years/65 years 5,10,15,20 years Single pay, limited pay, regular pay N/A 98.58%
IDBI Federal Termsurance Life Protection Plan 18 years/60 years 10-30 years Single Pay, regular Pay Min-Rs.5,00,000 Max- No upper limit 95.79%
Kotak e-Term Plan 18 years/65 years 5 years-40 years Regular pay, limited pay, single pay Min-Rs.25,00,000 Max- No upper limit 97.40%
LIC Tech Term Plan 18 years/65 years 10 years-40 years Equal to policy term Min-Rs.25,00,000 Max- No upper limit 97.79%
Max Life Smart Term Plan 18 years/60 years Regular Pay- 10 years-50 years Limited Pay- 15 years-50 years Regular pay, limited pay Min-Regular Pay- Rs.25,00,000 Limited Pay- Rs.25,00,000 Max- Rs.100 crore 99.22%
PNB Metlife Mera Term Plan 18 years/65 years 10 years-81 years Regular Pay & limited pay N/A 96.21%
Pramerica Life TruShield 18 years/45,50,55 years 7 years, 10 years, 12 years, 15 years &20 years Regular pay, limited pay Min-Rs.5,00,000 Max-Rs.50 Crore 96.80%
SBI Life eShield Plan 18 years/60 years, 65 years 5 years- 80 years minus the age at entry 10 years-75 years minus the age at entry Equal to Policy Term Min-Rs.35,00,000 Max-No upper limit 95.03%
Shriram Life Smart Protection Plan 18 years/65 years 10 years-30 years Equal to policy term Minimum- Rs,1,00,000 Maximum-Rs.14,00,000 85.03%
Star Union Dai-ichi Life Abhay 18 years/65 years 15 years-40 years Single pay, regular pay Min-Rs.50,00,000 Max-Rs. 100crore 96.74%
TATA AIA Sampoorna Raksha 18 years/70,65,50 years 10years-85 years minus age at entry, 15 years-85 years minus age at entry For Whole Life- 100 years minus age at entry Limited Pay, Regular Pay Min-Rs.50,00,000 Max- No upper limit 99.07%
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Disclaimer- “Policybazaar does not endorse, rate and recommend any particular insurer or insurance product offered by an insurer.
Best term Insurance Plans in India Best term Insurance Plans in India

What are the 5 Reasons to Buy Term Plan Online?

Apart from the hassle-free and simple process of purchase, an online term plan offers many other benefits.

  • Affordability:

    Purchasing an online term insurance plan is more affordable as compared to purchasing the plan offline. This is because there are no agents involved in between. The policy buyers can directly purchase the online term plan by visiting the website of the insurance company. By purchasing the plan online, the paperwork and processing fees automatically decrease as everything is done online and these benefits are offered to the customers as discounts. Thus, buying an online term plan is more beneficial as compared to the offline term insurance policy.

  • Sum Assured

    This is yet another benefit of buying an online term insurance plan. Mostly, the sum assured amount offered by an online term plan tends to be higher in contrary to an offline term insurance plan, because the overall cost of purchase is low. Moreover, while purchasing the term plan online, most insurance companies do not ask for any medical test. A medical test of the insurance buyer has only required in case the sum assured amount of the policy is above Rs.50 lakhs.

  • Comparison

    One of the perks of buying an online term insurance plan is that it offers the advantage to compare term insurance policies online and then choose a particular plan as per one’s own requirement and suitability. By comparing term insurance plan online, the insurance buyers can zero in on the most beneficial plan at the most affordable premium rates.

  • Reliability

    The online process of policy purchase is more reliable. The online term insurance policy offers transparency while purchasing a policy. The policy buyers can know about the features, terms and conditions of the policy in a more detailed way by simply visiting the website of the insurance company. Moreover, in order to make an informed decision, the insured can also check the reviews of the plan.

  • Easy Access

    Unlike offline term insurance policies, the online term insurance plan can be accessed easily. The insurance holder has the convenience to access and know the policy details whenever they require. Moreover, they can also check and keep track of the policy status from time to time.

How Can I Purchase Term Insurance How Can I Purchase Term Insurance

What are the Three Steps to Find the Right Online Term Plan?

The best thing about the online term plan is the freedom of the policy holder to select the most suitable policy. In addition to this, the online term insurance plan as well brings some additional responsibility on the insured of staying focused and informed about the features of the product. It is only when one matches his/her requirements with the term plan; he/she is eligible to purchase it. Mentioned below are three steps for making the right choice while buying a term policy:

  • Select the Right Term Life Insurance Amount

    The first step that every term life insurance buyer should consider while purchasing is to find out the amount of coverage as per the requirements of his/her family’s future needs. To find out the same, there are many term insurance calculators available online. One can use one of these calculators and find out how much he/she should invest per month so that the future requirements of his/her family are met when he/she is not around.
    If one wants to calculate it manually, then he/she can do the same by following the thumb rule of the term policy calculation. According to this rule, the life or term insurance coverage should be 15 times the annual salary of the policyholder. So, if Mr. A’s annual income is Rs.12 Lakh, then he requires term insurance of Rs.1.8 Crore. However, the second step is also added in this, wherein one should also find out the required coverage from term life insurance for covering his/her other financial obligations like the higher education of policyholder’s children and other outstanding loans. For example, the sum of these financial obligations on Mr. A is Rs.50Lakh, and then the total coverage from the life or term insurance that he wants is Rs.2.3 Crore.

  • Term Insurance Plan Comparison

    Term insurance plans are the purest form of life insurance. Term insurance premiums are lower than other life insurance plans. However, in order to ensure the right plan, one should go for a term insurance comparison. Compare term insurance with other insurance plans online and stay covered.
    A term insurance aspirant as well is suggested to compare term insurance Plan through online term insurance comparison websites. One should compare different term insurance plans on various features such as duration of the term, maximum coverage provided, etc. It is also suggested to search for the background of the term insurance provider like the claim settlement ratio of the company, the company’s existence in the insurance industry, etc.

  • Consider the Riders for Better Risk Coverage

    Term Plan as well allows purchasing riders for widening the risk coverage for the family of the policyholder. For example, to provide coverage against critical illnesses or accidents, there are riders provided by most of the term insurance providers. One can check for an appropriate rider on an online term insurance provider’s website. The riders are available at an additional cost, but most of the insurers make these available at affordable premiums. Therefore, it is worth attaching a suitable rider in the term insurance plan. In this way, the policyholder will have better risk coverage and he/she can give better protection to his/her family.
    Purchasing an online term plan provides its policyholder with a lot of coverage. However, it is the responsibility of the insured to select the most affordable and suitable term insurance plan without missing out on any required detail. This is because a term plan secures the future of the family of the insured.

Complete Guide to Buy Term Insurance Plan

To select the best term insurance plan, a policyholder should look into the following factors:

  • Claim Settlement Ratio

    The record of term insurance claim settlement provides a clear picture of the insurance provider to the prospect policy buyers. The ratio of claim settlement is released by the Insurance Regulatory and Development Authority (IRDA) India every year. A claim settlement ratio that is consistently good indicates that the insurance provider has been quick and robust in its claim settlement process.

  • Company Reliability

    The reputation of a company and stability is very important in any sector of business, especially in the sector of life insurance for the customers to trust. Before zeroing in on a plan, it is important to check the credibility of the insurance company.

  • Premium Waiver Rider upon Diagnosis of Terminal Illness:

    If the policyholder gets affected by some terminal illness, then all the future premiums for his/her term policy will be waived off.

  • Solvency Ratio

    The solvency ratio is something that tells whether the insurance provider chosen will be capable financially of settling the claims if the requirement arises. As per IRDA, every life insurance provider should maintain a solvency ratio of 1.5 at least.

  • Enhanced Cover

    Some of the specific insurance companies offer the option of enhanced cover in the term plan. In this option, the policyholders can enhance the coverage of the policy under particular circumstances or critical situations.

cover against critical illness cover against critical illness

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

When is the Right Time to Buy a Term Life Insurance Policy?

The ideal time to buy the online term plan is as early as possible. The early one buys the better it will be. Buying the right term plan ensures that you obtain the desired life coverage. Moreover, buying term policy at an early stage of life means that the insurance premiums will be low compared to the times if bought at a later stage of life.
The moment one realizes that they have dependent on their life, they should immediately look for a plan and buy the best term policy. In case one has missed investing in the term plan at an early stage of life, do not neglect it further by buying the best online term insurance now. It is better to be safe than sorry.
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How Much Term Insurance Cover Do You Need?

There are various factors that determine how many terms insurance coverages one should take. For the convenience of the insurance buyers, here we have discussed some of the factors.
  • Current Income and Expenses: The current expenses and income of the individuals determine how many terms of life insurance premium they can pay towards the online term insurance plan. While determining the insurance coverage one needs, it is important to analyze the monthly income and all the expenses incurred in a month.
  • Current and Future Liabilities and Assets: While determining the sum assured amount of the term insurance policy, it is very important to consider the loan installments like home loan, personal loan, car loan, etc. and the EMIs that the term insurance buyers have opted for. As the liabilities and monthly assets also include investments such as fixed deposit, ELSS, ULIPs, gold, capital market, etc. it is always important to leave room for such investment and decide the coverage amount of the term plan accordingly.
  • Future Financial Goal for Family and Self: Keeping the long-term and short-term financial objectives of life, the insurance buyers should determine how much premium they can pay towards the policy and how much coverage they need to secure the financial future of their loved ones and family.
  • Make Use of Human Life Value Calculator: There are various term insurance providers which offer human life value calculators. It helps the policy buyers to get an idea of how much sum assured amount they require for a term insurance policy. The human life value calculator calculates the sum assured amount based on the simple formula of time value for money. An individual just needs to enter certain details such as the current age, expenses, present yearly income, and estimated future inflation rate, in order to get the sum assured amount that they should opt for. To know the right coverage amount for you, please use the human life value calculator here.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

How Does a Term Life Insurance Plan Work?

As the simplest form of life insurance product, term insurance is the most affordable insurance plan which offers higher insurance coverage. As the purest insurance product, the only death benefit is offered by the term plan. Under the online term insurance plan, the insurance company gets into an agreement with the insurance buyers.
According to this agreement, a lump-sum, sum assured amount is paid to the beneficiary of the term insurance policy as a death benefit in case of the unfortunate demise of the policyholder during the policy tenure. The insurer pays the sum assured amount to the beneficiary as mentioned in the term insurance policy documents.
The sum assured amount is paid on the basis of the type of payout option chosen by the insured at the time of policy purchase. The payouts can be made as a lump-sum payment at one go or as monthly income at specific intervals of time.

Term Insurance Payouts

1. Lump-sum The entire sum assured amount is paid at one go to the beneficiary of the term insurance policy.

For example- Sum assured= 1 crore Payout= Rs.1 crore as a lump-sum payment to the beneficiary of the term insurance policy.

2. Lump-sum + Monthly Income Half of the sum assured amount is paid as a lump-sum payment to the beneficiary of the term insurance policy, whereas, the other half of the sum assured amount is paid as monthly income to the beneficiary of the policy.

For example- Sum assured= Rs.1crore Payout= Rs.50 lakh as a lump-sum payment at the time the claim is made by the nominee and Rs.50,000 every month as a death benefit.

3. Income Replacement or Monthly Income A fixed percentage of the sum assured amount is paid as monthly income from the first month of the life insured’s death.

For example- Sum assured= Rs.1 Crore Payout= Rs. 1 lakh per month (Rs. 12 lakh yearly) for 83 months approximately.

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How Does a Term Plan from Policybazaar Help You?

A term plan from Policybazaar helps you in the following way: The Plan offers the benefit of tax saving under section 80C of the Income Tax Act. The plans are available for the long policy term. Offers long-term coverage. It protects from critical illness when diagnosed. Offers a regular income for meeting the household needs. Offers disability benefit riders to be added to the term plan. Provides coverage against life-threatening illness. The Plan provides a high maturity age.
Best term Insurance Plans in India Best term Insurance Plans in India

Term Insurance Plan Eligibility Criteria

The eligibility criteria to buy a term insurance plan is as follows:

Minimum age at entry

5 years

Maximum age at entry

65 years

Minimum Policy Tenure

5 years (may vary with insurer)

Maximum Policy Tenure

No limit for term plan (may vary with insurer)

Disclaimer: The aforementioned eligibility criteria are generic and may vary with the insurer. Please check with your insurer about the exact eligibility criteria for its term insurance plan.

What factors to consider before buying the Right Term Plan?

The right term life insurance plan will depend on your needs. But before buying the right term plan online you should consider these factors:

  • Cost Of Premiums

    Term life insurance policies are ideal for those individuals who want high coverage at low premium rates. Entire life customers pay more premium charges for less life coverage but they have the security and protection for life. Most of the buyers favor the cost-effectiveness of term insurance, paying premiums for a long time and availing of no such benefit after the expiration of the term plan is an unpleasant feature. At the time of renewal, the premiums of term policy increase with age and become high-priced over time. The renewal term premium charges may be comparatively higher than the permanent life insurance premium charges. 

  • Availability Of Coverages

    The insurance company could refuse to renew the term life coverage at the end of the policy term if in case the life assured is diagnosed with a serious disease/illness. Permanent insurance companies provide life coverage if the premiums are paid timely. 

  • Investment Value

    Some of the buyers prefer permanent life insurance because the policies can have savings or investment instruments. A part of each payment of premium is assigned to the cash value, which might give you a guarantee of growth. Some policies pay bonuses, which may be paid or kept in deposits within the policy tenure. At this time, the growth of cash value may be adequate to pay the policy premium charges. Different types of tax benefits are also there. 

    Financial advisors advise that the policy’s growth rate along with the cash value is sometimes worthless when compared to other financial instruments like mutual funds. Further, administrative charges are also deducted from the rate of returns. So, buy the term and invest in the differences. It is fixed and has tax benefits. 

  • Other Factors

    There are some other factors to be considered in term insurance which are: 

    • Always check if the rate of returns that is earned on investments is adequately good or not 
    • Does your permanent policy have a provision of loan or other features? 
    • Do you have any business? Or have any intention to have a business that needs coverage? 
    • Does your life insurance have tax benefits for a substantial estate?

Term Insurance Premium Payment Options

The premium payable for term insurance is an important parameter that governs the purchase decisions. The policyholder should always make the selection as per their requirements and future goals. Term insurance plan offers different premium payment options such as regular pay, limited pay, and single pay. 

  • Regular Pay – In this, assured is required to pay premiums periodically for the complete policy period. You can select yearly/ half-yearly or monthly options to pay premiums. 
  • Limited Pay – Assured can make recurring payments for a pre-decided limited time. In this, the premium payment term is less than the policy term.
  • Single Pay – This option allows assured to pay the complete premium amount at one time when you purchase the plan.
The amount of preferred sum assured Term life insurance premium payment option which can be one-time, limited pay or regular pay. Term of the policy add-on protection term insurance offers flexible plan options to suit the needs of every individual. You can choose:

What are the Benefits of Buying the Best Term Plan?

A Term life Insurance policy is a must for every person and one cannot articulate its importance completely. Term plan is the only life insurance product that is specially designed to solve the sole purpose of protection. Now that everyone knows, it covers death perils and risks; here are some other core benefits of term insurance Plan in India:

  • Safety for Loans and Liabilities

    Term insurance also aids in providing safety for the dependents from your fiscal liabilities such as loans or any other debts that you have.

  • Cover Critical illness

    Together with offering life cover, a term life plan also offers protection against critical illness. For a tiny add-on premium amount, Critical Illness cover offers lump sum payment when any critical illness such as kidney failure, cancer, or heart attack, etc. is first detected. Online Term Plan also takes care of family in case of your disability or critical illness. It provides

    • Supplementary income in case of loss of income due to accidental disability or illness.
    • Get a lump sum amount if diagnosed with critical illnesses.
    • Additional sum insured in case of accidental death.
  • Higher Sum Assured at Affordable Premiums

    One of the most alluring features of a term plan is that the premiums are always the lowest, unlike the other life insurance products. Moreover, the sum assured offered under the term plan is relatively higher when compared to the premium amounts. Regular term insurance plan, including TROP Plan, come with a 105% return on the premium benefit when the policy matures.

  • Tax Benefits

    The term plan comes loaded with tax benefits on the term policy premiums paid. New-age term life insurance plan along with critical illness cover also provide some additional tax benefits on the premiums paid by the policyholder. One can also avail benefits subject to the conditions u/s 10(10D) on the amount that his/her family receives in the case of an untimely demise or unfortunate event.

  • Support in the case of Disability

    In some of the term plans, the insurance provider pays the future premiums in the case of permanent or total disability. Consequently, the policyholder’s life insurance cover continues even if s/he is not able to make payment of the premiums.

  • Add-on Protection

    So as to amplify the security of the family, a term insurance plan offers add-on pay-out in the case of an accidental or untimely demise.

  • Death Benefits

    On the demise of the life assured during the tenure of the policy, the nominee/ beneficiary of the policy receives the total death benefit chosen at the time of commencement. Depending on the type of term life insurance plan, the death benefit may stay the same over the whole tenure of the plan (standard term Plan), decrease (decreasing term Plan), or increase (increasing term Plan). The insurers provide various options of payment for the term life insurance. These include a lump sum payment, lump-sum payment plus an annuity that may be monthly, quarterly or yearly, or simply annuities that are spread over the agreed number of years.

  • Maturity Benefits

    Term insurance plan don't come with any survival or maturity benefits. If one wants maturity benefits, then a TROP (Term Return of Premium) plan is suggested.

  • Survival Benefits

    A standard term plan does not have any survival benefits. However, the demand from investors has meant that various companies have opted to launch term insurance plan with survival benefits. Called Term Return of Premium (TROP) Plan, the term plan refunds the premium at the end of the term plan tenure if the insured person survives the period. The TROP plan is becoming popular with people who are looking for savings as well as insurance with their term plan.his term insurance plan has a higher premium than the standard term plan but has the advantage of assurance that the policyholder will get back the premium he or she paid to the life insurance company for the cover. Policyholders should read the insurance terms and conditions carefully to ensure they know the amount of money they will get back as survival benefits. Check out the term insurance policy that meets your needs with our term insurance comparison.

What is Term Insurance Premium Calculator?

The term insurance calculator is an online tool designed specifically so that one can calculate the premium that needs to be paid monthly and accordingly know the sum assured amount. The term insurance plan calculator is simple and easy to use. When intending to buy a term insurance plan, it is advisable to use a term insurance premium calculator. The term insurance premium calculator permits you to modify the sum as per your convenience that you think your family would require in case of your demise. Listed below are some major advantages of using a term insurance premium calculator:
  • Saves Time: The term insurance plan calculator saves time wherein you do not need to submit any of the hard copies to obtain term insurance premium quotes. Figure out a term insurance plan that suits your requirements and buy a term plan online enjoying the hassle-free experience.
  • Compare Plans: The term insurance plan calculator compares various term insurance premium quotes offered by different insurance companies in India.
  • Pocket-Friendly Plans: Today, buying term insurance online is a preferred option as you have the opportunity to avail of discounts on the term insurance premiums. Therefore, use term insurance premium calculators online, grab the best deal, and save on money.
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  • What is Term Life Insurance?
    Term insurance is the simplest form of life insurance product, which financially safeguards the future of the family and takes care of the liabilities in case of an eventuality.
  • What are the Death Benefits under Term Insurance?
    of the policy receives the total death benefit chosen at the time of commencement. Depending on the type of term insurance plan, the death benefit may stay the same over the whole tenure of the plan (standard term Plan), decrease (decreasing term Plan) or increase (increasing term Plan). The insurers provide various options of payment for the term insurance plan. These include a lump sum payment, lump-sum payment plus an annuity that may be monthly, quarterly or yearly, or simply annuities that are spread over the agreed number of years.
  • What are the Term Insurance Riders?
    Term insurance riders are add-on benefits offered under the policy, in order to enhance the coverage of the policy. Policyholders can add riders to the plan by paying an extra premium along with the basic premium of the policy.
  • What is Claim Settlement Ratio in term insurance? The claim settlement ratio of an insurance company is the number of claims settled in a year against the number of claims filed. The higher the claim settlement ratio of the company, the more reliable the insurance company is. While purchasing a term insurance plan, it is very important to check the claim settlement ratio of the company.
  • What is a Traditional Term Plan?
    It is a pure term insurance plan, wherein only death benefit is paid to the beneficiary of the policy in case of the unfortunate demise of the insured person during the tenure of the plan.
  • What is Term Insurance Premium?
    The term insurance premium is a specific amount paid by the policyholder to the insurance company in yearly, half-yearly, quarterly or monthly mode. The premium paid by the policyholder determines the term insurance coverage of the policy. The term policy is known to provide higher insurance coverage at an affordable premium rate.

FAQs About Term Insurance Plan

Rider
Tax Benefit
Term Life Insurance
Critical Illness
  • Q: What are riders in term insurance?

    Ans: Term Insurance riders are the add-ons or additional benefits which you can opt for along with your existing term insurance plan at affordable premium rates. Riders are valuable instruments that enhance the coverage of your life insurance policy. Different types of riders are available for term insurance:
    • Accidental death benefits
    • Accelerated Death Rider Benefit
    • Premium Waiver
    • Accidental Disability Benefit Rider
    • Critical illness
    • Income Benefit
  • Q: Should we take riders with term insurance?

    Ans: Taking rider along with your term insurance plan depends on your risks, requirements, and preferences. By choosing riders, you can enhance the effectiveness of a term insurance plan. You can attach a rider to the base policy by paying a little extra amount of premium. While assessing the various types of risks to your life, you should include corresponding riders, so that you can enjoy the comprehensive coverage.
  • Q: Which rider is best with term insurance?

    Ans: Though, the selection of a rider depends on risk, your needs, and preferences. Various riders are available along with the term plan, but a waiver of premium rider is a great option for protecting policyholders against policy lapse in case of not paying the insurance premiums. Most policies cease to be active in case you fail to pay a premium for a specific time.
  • Q: 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.
  • Q: What is Rider's cost?

    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 you might add to your base term cover, but the premium amount on all the riders should not be more than 30% of your base premium.
  • Q: What is a rider benefit?

    Ans:
    • They provide additional coverage under the term plan, which can be a very important help in times of financial difficulties.
    • Purchasing a rider is less expensive than buying a separate insurance plan, since you can choose what riders you want, it is more pocket-friendly and cost-effective.
    • Enjoy the tax benefits on term riders as per the prevailing laws of the Income Tax Act, 1961.
    • The riders also provide protection in case of death, permanent or partial disability, life-threatening diseases such as stroke, kidney failure, cancer, etc.
  • Q: Is term insurance covered under 80D?

    Ans: Yes. By opting for critical illness coverage with term insurance plans from an insurance company, you can avail of tax benefit under 80D as per the Income Tax Act, 1961.
  • Q: Is term insurance claim tax-free?

    Ans: You are allowed to claim a deduction of up to 1.5 lacs yearly on the premiums you have paid under section 80C. And, the death benefits of your term plan are exempted from Income tax.
  • Q: Is ITR mandatory for term insurance?

    Ans: If you are looking out to purchase life insurance, you may be required to provide ITR. Although, it is not mandatory but to start your salary, insurance companies may insist on ITRs mainly in case of term plans if the sum assured amount is high i.e., Rs 50 lacs or 1 Crore or above than that.
  • Q: Which insurance is the best term or life?

    Ans: Both term and life insurance plans have their unique benefits and features. Individuals can make the ideal choice between these two plans by comparing the benefits and choosing the one that rightly suits them. Term insurance is a type of pure protective plan that helps the life assured’s loved ones to meet their daily expenditure and accomplish their financial objectives. The premium rates of term plans are lower in comparison to life insurance plans. The coverage offered by term plans is for a fixed tenure such as 5,10,15 or 30 whereas life insurance comes with the option of flexible tenure. So, it is worth buying term plans when compared to other life insurance plans.
  • Q: What is the difference between life insurance and term insurance?

    Ans:
    Type of Benefit Term Insurance Life Insurance
    Coverage Term insurance provides cover for the premature death of the life assured within the fixed tenure Life insurance provides cover on the maturity of the plan
    Tenure 10 to 30/45 years 5 to 30 years
    Duration Term insurance is less expensive in comparison to life. The premium rates are low and pocket-friendly. Premium rates are comparatively higher than the term insurance cover.
    Death Benefits Death benefits are payable if the life assured dies till the policy’s maturity Life insurance plans provide benefits for both types of the condition if the life assured is alive or with his death on the policy’s maturity.
  • Q: What is the catch with term life insurance?

    Ans: Term insurance is a pure protection plan that helps the policyholder’s family to meet their day-to-day expenses and achieve their financial objectives also. The premium rates of term insurance are less expensive and pocket-friendly. So, it is worth going for term plans when compared to other types of life insurance products.
  • Q: Can you cash out term life insurance?

    Ans: Term life insurance plans have no cash value. It is one of the reasons that term life plans are usually the least expensive form to purchase life insurance coverage.
  • Q: What is cover against critical illness in term insurance?

    Ans: 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.
  • Q: Should I take critical illness cover with term insurance if I have health insurance?

    Ans: Yes, you can take it. If you already have a health insurance plan covering your illness, the critical illness cover would pay a claim if you got sick. During any critical illness, critical illness insurance can be helpful to enhance an existing health insurance plan.
  • Q: 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. Adequate sum assured: Always consider the average cost of managing major ailments while determining the size of a cover. Always take inflation into account.
  • Q: What is term plan with critical illness?

    Ans: Term insurance plans with Critical illness cover provide a lump sum payment if you are diagnosed with any of the illnesses stated in the pre-specified list of the policies. This typically includes paralysis, heart attack, lung diseases, cancer, and others.
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Term Insurance Reviews & Ratings
4.6 / 5 (Based on 605 Reviews)
(Showing Newest 15 reviews)
Prakash
Jaganpur, November 21, 2021
Budget friendly
I was looking for a good and affordable term insurance policy for my wife and my childen then i landed to policy bazaar where i compare each and every policy and choose the affordable premium policy plan for me. Good services provided by policybazaar. Happy to be their customer.
Amreet
Meerut, November 21, 2021
Like this plan
I buy aditya birla capital term plan from policybazaar website and the product is term insurance plan. The premiums are Rs.40,000 per year. The claims are good and easily sanctioned. Service facilitate by executives and staff members are very nice and fast. The policy saves taxes and it is really very good investment for future. Daily updates are send to me timely. Thanks team policybazaar.
Pawan
Purvanchal, November 21, 2021
Good plan
I was looking for a good term policy for me then i found policybazaar website where i got policy which has all benefits and the investments are also low. Around Rs.37 L is payback amount. Max iterm plan provide me traditional plan which has good facilities and the service is very quick. The upgradation details in policy is mailed to me time to time. Fantastic future investment. Good behaviour of executives of policybazaar is really very impressive.
Anuj
Jaganpur, November 08, 2021
Good plan
Purchased my term insurance policy from policybazaar 2 years back . My friend is working as an agent hence he suggested me to take this policy here. Yearly, I am paying the premium amount of Rs. 20,000. They are giving me a sum assured amount of Rs. 3,00,000 lakhs for the term period of 10 years plan. This policy has tax benefits also. Happy to be their customer.
Aditi
Meerut, November 08, 2021
Good experience
I have purchased term insurance policy online from policybazaar. I have chosen Max Life Online Term Plan. The policy conditions mentioned were satisfactory. The policy is for 15 years and the premium I have to pay is around Rs. 35,000 per year. I had a very good experience with the customer service people they helped me a lot. Happy to be their customer.
Abhisht
Purvanchal, November 08, 2021
Quick services
I bought a term Insurance plan last month and my experience with Policybazaar was good. Right from buying the plan online till medicals and receiving of all the policy related documents, process was quite easy and hassle free. So overall it was a good experience and even if you need help, just drop a mail to your sales executive and they will call and resolve your queries on immediate basis.
Prem
Rajasthan, November 02, 2021
Extremely efficient
Policybazaar is extremely efficient when it comes to providing digital policy related services. The team takes care of claim settlement, issuance and everything else that concerns an insurance policy. I am glad that I bought Reliance digi term plan from here. Thank you policy bazaar.
Shiv
Delhi, November 02, 2021
Risk Minimise
I was looking for term insurance plan for me and my family, I looked into policy bazaar website and i found the best term plan for me, one of the best benefit is we can minimise the risk for our loved once. Thank you team policy bazaar for suggesting me and helping me out.
Akshara
Jaipur, November 02, 2021
Easy Purchase
I have purchased the India first e term plan from policybazaar and I must say, it was such an easy process and the policy was issued almost instantly. There was no hassle while I was purchasing the term plan, and I received the soft copy of the policy as soon as I made the payment. I am satisfied with my purchase with policy bazaar. Thank you team for your support.
Surili
Patna, November 02, 2021
Multiple rider option
The riders collection available on policybazaar is remarkable. Each one helps to enhance the base coverage of an insurance plan with minimal addition to the premium. I bought Accidental Total and Permanent Disability Rider under Exide Term Insurance Plan. Impressed with the services of policy bazaar. Happy to be their customer.
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