Term insurance, is also called as term life insurance, which is a type of life insurance policy that provides financial coverage to the policyholder against fixed premiums for a specific term. It is a simple and affordable way to ensure your loved ones are financially secure when you're no longer there to support them. A term insurance plan also offers multiple benefits such as long term protection, high cover at low premium rates, and tax benefits.
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Term insurance is a type of life insurance that provides coverage for a fixed duration i.e , the policy 'term'. These plans offer a financial benefit to the policyholder’s nominee/beneficiary in case of an unforeseen death of the policyholder during the policy tenure. Term insurance plans provide high life cover at low premium rates.
For example, an 18-year-old healthy, salaried, and non-smoking male can buy a 1 Crore term insurance and secure the future of his family for 12 years at just Rs. 384/ month.
*Note: Policy rates of term plans are lower for younger people and for those who do not consume tobacco products.
Term Plans
Here is a list of 5 reasons why you need term life insurance:
To Protect your family: Being a sole earning member of your family, you are responsible for the well-being of your parents, spouse, and children. Buying a pure term life insurance plan is important to make sure that your family is able to meet their financial obligations even when you are not around.
To Pay Off your loans: You might have built different assets such as an office, vehicle, or home through loans. This plan ensures that the weight of these borrowings will not cause any financial difficulty to your family after you.
To lessen the risks related to lifestyle: The unforeseen death of the breadwinner in a family can turn your family’s life upside down. Buying the best term insurance plan cannot compensate for the loss of a family member, but it can help reduce the financial difficulties of losing the family’s breadwinner.
Stay Prepared for uncertainties: Just like life insurance plans, in case of your unforeseen death, the benefits from a term insurance plan can help your family pay for their regular expenses and also accomplish their long-time objective.
Tax benefits: You also enjoy tax benefits under Section 80C and 10(10D) of ITA, 1961, if you have an active term insurance plan.
Term insurance is important as it is one type of life insurance plan that provides long-term coverage (till 99 or 100 years of age) at the most affordable premium rates. These plans offer financial security to the family of the policyholder in his/her absence and income tax benefits on the premiums paid towards keeping the policy active. One of the most important benefits of term insurance plans is that they have a low claim rejection rate and offer multiple benefit payout options, along with the option of including available riders in the base plan for enhanced coverage. You can easily buy term plans online by comparing them easily on the side by side on the same platform, selecting the suitable plan, and proceeding to pay.
Term insurance works by paying a death benefit to the policyholder’s family in the event of the policyholder’s unfortunate death during the policy term.
You can choose for the death benefit to be paid in a lump sum, regular income, or a combination of lump sum + monthly income.
You can add add-on riders to enhance the coverage of your base term insurance plan at nominal extra premiums.
In case you outlive the policy term, the TROP plans return the premiums at the end of the policy tenure.
You can pay the term insurance premiums at the preferred premium payment term and premium payment modes.
*Note:
Premium payment modes are of 4 types: Monthly, Quarterly, Half-yearly, Yearly.
Premium payment terms are of 3 types: Single, Regular, Limited
Everyone can buy term insurance until a certain age, but let’s understand in a categorized way who should buy term plans:
| Types of Individuals | Term Insurance Plan Benefits |
| Young Professionals |
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| Newly Married |
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| Working Women |
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| Taxpayers |
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| Parents |
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| Retired People |
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| Self-Employed People |
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| NRI |
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Yes, Indian citizens living outside India can buy term insurance for NRI from Indian insurers. Following is the list of benefits of buying NRI term insurance in India:
Get large life cover up to Rs. 20 Crores at affordable premium rates
Purchase term plans in India by scheduling medicals 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 insurance plan at a specific stage and receive all the premiums paid
Let’s discuss the different features of a term life insurance plan:
Low entry age: Term insurance plans offer a low entry age and people as young as 18 years old can buy term policy.
Long-term protection: The term plan offers long-term protection, i.e., you can stay covered under a term insurance plan till 99/100 years of age.
Flexible Cover: Term policy offers the customer the flexibility to increase their life cover as per their needs. For example, you can increase your sum assured to fit your changing needs on getting married, having children, or getting loans.
Easy to buy: You can compare and buy term plans easily in just a few clicks from the comfort of your home. The documents submission, premium payment, and all other customer concerns can be submitted online.
Multiple Premium Payment Options: You can select from a wide variety of easy premium payment options when buying the most suitable term plan online.
Protection Against Liabilities: The term insurance plan also helps in providing safety for the dependents from your fiscal liabilities such as loans or any other debts that you have. They can easily pay all the debt amount from the benefits received.
Death Benefits in Installments: While buying a term life insurance plan you can select for the death benefits to be paid in regular installments.
Apart from providing financial security to your family, there are various benefits of term insurance plans. Read the following benefits and choose your plan wisely:
Term life insurance plans offer a large amount of life coverage at an affordable premium rate. This life cover can pay for several years of lost income.
Various term life insurance plans also provide critical illness benefits to help you get good treatment for different life-threatening diseases/ailments without worrying about the expenses or bills. Policyholders can easily avail of critical illness cover for diseases mentioned under the plan by buying a critical illness rider with a term plan.
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.
In case of the unforeseen event of demise during the tenure of the policy, the nominee/ beneficiary of the term insurance plan receives the total death benefit chosen at the time of commencement. He/she can also select to receive a regular income along with a lump sum payment in case of your absence.
A standard term insurance plan does not provide any survival benefits if you outlive the policy term. However, a term plan with a return of premium plan (TROP) also provides you with a lump-sum payment or regular income in the form of guaranteed benefits to help you achieve varied financial objectives. This plan pays back the sum that is almost equivalent to the total amount of premium paid. You get these guaranteed payouts at the end of the term insurance plan tenure.
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. Also, the death benefit paid under this plan is exempted from taxes under section 10(10D).
Let us take a look at some of the types or variants of term insurance plans available in India:
| Type of Term Plan | Benefits |
| Basic term plan | Death benefit is offered in a lump sum amount at low premium rates |
| Convertible Term Insurance Plan | Convert limited period term insurance plan into whole life insurance |
| Term Insurance with Return of Premium (TROP) | Upon maturity, receive a return of the paid premiums, along with death benefit payable on death during the policy term |
| 100% Refund of Premium at No Cost term insurance | This term insurance plan variant allows you to exit at a specific stage and receive all the premiums paid at the end of the policy |
| Term insurance for Housewife | You can purchase term policy using your husband’s annual income for the additional financial security of your family |
| Term Insurance for Self-employed and Business Owners | People with unsteady flow on income can secure their family against business loans and liabilities in their absence |
| Term Insurance for NRI | NRIs can buy term insurance plan in India via tele/video medicals and get GST waiver of 18% with additional 5% discount on annual premium payment mode |
| Coronavirus Term Insurance | Secure your family in case of an eventuality caused due to COVID-19 with coronavirus term insurance plan |
| Term Insurance for Diabetics | Now, you can buy term insurance plan even if you have pre-diabetic or have type 2 diabetes at affordable premium rates |
| Saral Jeevan Bima | People with low income and educational qualifications can buy term plan to financially secure their loved ones |
Get best term insurance plans starting at Rs. 13 per day. Buy and compare best term insurance plan online from top 15+ insurance companies at Policybazaar and choose the plan that fits your needs. Here is a list of best term insurance plans in India 2023 for you. These term insurance plans are filtered on the basis of various factors including affordable term premiums rates, flexible payout options, coverage, and reliability of insurance providers.
| Insurance Company | Term Insurance plans | Claim Settlement Ratio | Entry Age | Max Maturity Age | Premium (for a cover of 1 crore) | |
| ICICI Prudential Life Insurance | iProtect Smart | 97.82% | 18-65 years | 85 years | Rs. 856/month | |
| HDFC Life Insurance | Click 2 Protect Super | 98.66% | 18-65 years | 85 years | Rs. 771/month | |
| Max Life Insurance | Smart Secure Plus | 99.34% | 18-65 years | 75 years | Rs. 695/month | |
| Tata AIA Life Insurance | Tata AIA Sampoorna Raksha Supreme | 98.53% | 18-45 years | 100 years | Rs. 683/month | |
| Bajaj Allianz Life Insurance | Bajaj Allianz eTouch | 99.02% | 18-60 years | 85 years | Rs. 567/month | |
| PNB Metlife Life Insurance | Mera Term Plan Plus | 97.33% | 18-65 years | 99 years | Rs. 721/month | |
| Canara HSBC Life Insurance | iSelect Smart360 Term Plan | 98.44% | 18-65 years | 99 years | Rs. 858/month | |
| Kotak Life Insurance | Kotak e-Term | 98.50% | 18-55 years | 75 years | Rs. 789/month | |
| Edelweiss Tokio Life Insurance | Total Protect Plus | 98.09% | 18-65 years | 80 years | Rs. 608/month | |
| IndiaFirst Life Insurance | e-Term Plus Plan | 96.92% | 18-65 years | 65 years | Rs. 517/month | |
| Aegon Life Insurance | iTerm Comfort | 99.03% | 18-65 years | 100 years | Rs. 1132/month | |
| Bharti AXA Life Insurance | Bharti AXA Flexi Term Pro | 99.09% | 18-65 years | 85 years | Rs. 675/month | |
| Aditya Birla Sun Life Insurance | ABSLI DigiShield Plan | 98.04% | 18-65 years | 75 years | Rs. 856/month | |
| SBI Life Insurance | SBI eShield Next | 93.09% | 18-65 years | 80 years | Rs. 875/month | |
| LIC Term Insurance Policy | LIC New Tech Term Plan | 98.74% | 18-65 years | 80 years | - |
A term life insurance rider is an additional benefit 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.
Let us take a look at some of the important term insurance riders that you can add to your base term insurance plan:
This term rider provides the rider sum assured in addition to the base sum assured, to the nominee of the term life insurance policy in case the policyholder suffers an unfortunate death due to an accident within the policy tenure.
In this, if the policyholder is diagnosed with a terminal illness, the entire/part of the sum assured is paid to the policyholder in advance.
The rider sum assured is paid to the policyholder in lump sum, on the diagnosis of any of the critical illnesses specified under the term life insurance.
Under this term rider, the life assured receives a fixed amount for every day spent at the hospital. If the policyholder is admitted in the general ward or the ICU of the hospital, the insurer pays a fixed percentage of the sum assured.
The rider sum assured is paid to the policyholder in case of a total and permanent disability due to an accident during the policy tenure.
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.
Here is a list of eligibility criteria you need to qualify to buy a term life 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 |
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| Premium Payment Modes |
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| Payout Options |
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| Medical Test | It is mandatory to undergo a medical test for a term policy. It helps the company to be aware of any health conditions and risk factors. |
| Add-ons or Rider |
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| Documents Required |
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You can buy the best term insurance plan in India online by following the below steps:
Step 1: Go to Term Insurance Plan application form
Step 2: Enter basic details like Name, DOB, and Phone no. and click on ‘view plans' button
Step 3: Submit details about your occupation type, annual income, educational qualifications, and smoking habits
Step 4: Compare the policy details of the different term plans available
Step 5: Select the term life insurance plan that fits your requirements the best
Step 6: Proceed to pay via net banking, debit or credit card
While buying a term policy, we always have questions like which term insurance plan is best and how to compare the best term life insurance plan. Here are steps that may help you choose the best term plan for yourself:
Step 1: Consider your dependents and life stage, and assess your current lifestyle
When you secure a life cover, your age and financial condition set the groundwork for choosing the right plan. Also, it is important to understand how to select a term policy on the basis of your lifestyle requirements. Your lifestyle involves spending habits and a basic living standard. When you have a clear idea about your lifestyle requirements, you can protect your family more efficiently.
Step 2: Check for current liabilities
Liabilities and debt are other important parameters when choosing the right term life insurance plan. Sometimes, people have loans to repay over a long period. In case the policy term does not cover the time of repayment or if the amount falls, it can be financially difficult for your dependents.
Step 3: Add term policy riders to the Base Plan
In this option, the policyholders can enhance the coverage of the term policy under particular circumstances or critical situations by the use of riders. They can be attached to a base term life insurance at the time of purchasing a rider by paying an additional premium
Step 4: Check the claim settlement ratio (CSR) of the insurer
Term insurance claim settlement is the % of claims paid successfully by an insurer compared to the total number of claims received in a fiscal year. The ratio of claim settlement is released by the IRDAI 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.
Step 5: Solvency Ratio
The solvency ratio of a term plan provider tells us if the chosen insurer is financially capable of settling the claims if the requirement arises. As per IRDAI, every insurance company should maintain a solvency ratio of at least 1.5.
Step 6: Go through the Customer Reviews and Experience
Go through real customers’ reviews and see their experience with the insurer. You should opt for an insurance company that prioritizes its customers and strives to resolve their issues at the earliest. You can also take a look at the company’s Persistency Ratio (declared by the IRDAI), to understand how many customers decide to stick with the insurance provider.
Step 7: Look at the Term Policy Details
Take a good look at the policy documents to get a better understanding of the policy details. Ensure that the term life insurance policy benefits fit your requirements. You can also consult your financial advisor to make sure you are clear about all the terms and conditions of the term policy.
Step 8: Select the most suitable Benefit Payout Option
Most term insurance plans offer the policyholder the option of choosing their most suitable benefit payout option. You can select the benefit amount to be paid to your nominee in a lump sum, regular/monthly income, a combination of lump sum + regular income, or increasing monthly income. If you are the main income earner of the family, you might want to consider opting for the regular income options as they can act as the new monthly source of income in case of your unfortunate demise.
Step 9: Pay the Term Life Insurance Premium
After picking a life term plan and customizing your plan, you basically need to finalize the plan. You can buy a pure term insurance plan online easily in minutes by entering a few details and making a secure payment to buy term plan online.
++All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply
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:
Various term insurance plans in India offer the option of choosing the most suitable payout options. For example, if you are the main breadwinner of the family, in your absence, your family might suffer from meeting their monthly expenses in case of loss of regular income. In such cases, you can opt for a term insurance plan with a monthly payout option which will pay the life cover in installments over a span of 5 to 10 years. The available death benefit payout options in term life insurance are
Lump sum payout: This option provides the entire life cover amount in a lump sum at the time of claim settlement to the nominee of the term policy. The nominee can use the payout to meet their financial obligations as per their suitability.
Monthly income: This option provides the sum assured in regular installments over a period of 5 to 10 years as per the policy details. This option helps replace the loss of regular income in the absence of the main income earner.
Lump sum with monthly income: Under this option, the insurer pays a fraction of the sum assured as a lump sum payout on the death of the policyholder while the remaining amount is paid as monthly income for a specific period. The immediate lump sum payout can help take care of the funeral costs and pay off any remaining loans whereas the regular income can help maintain the family’s financial stability.
Increasing income: This option provides the life cover amount as monthly installments where the income amount will increase by a fixed % every year until the entire sum assured is paid off. This option can help the nominee beat inflation as the income amount will increase with time.
It's important to select the death benefit payout option that best fits your needs and the requirements of your beneficiaries. You need to consider factors like the sum assured on death, the financial goals of your nominees, and any ongoing financial obligations like loans that may need to be covered. You can consult with a financial advisor or insurance professional to help you make an informed decision about the best term insurance plan for you.
You can calculate the required premiums for your desired term insurance plan by using a term life insurance premium calculator. A term insurance calculator takes several factors into account, like gender, occupation type, age, lifestyle habits, current monthly expenses, annual income, policy tenure, and liabilities. After you have accurately entered all the required information, you can check the available term insurance plans and purchase the one most suitable for you.
As per industry experts, your term policy coverage should be at least 15 to 20 times your existing annual income. You can get this easily by calculating HLV (Human Life Value). HLV is a numerical process of computing the amount of term life cover that you may require.
There are various insurers that offer human life value calculator. It helps the policy buyers to get an idea of how much sum assured amount they require for a term 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 year income, and estimated future inflation rate, in order to get the sum assured amount that they should opt for.
The ideal term insurance policy tenure will vary depending on your individual circumstances and financial goals. Generally, the term length should be long enough to provide coverage for your dependents until they no longer rely on you financially, such as until they finish college or reach retirement age.
Let us understand this example:
If you have young children and want to ensure that they are financially protected until they finish college, you may want to consider a term length of 20-25 years. On the other hand, if you are close to retirement age and your children are financially independent, a shorter term length may be more appropriate.
It's important to consider factors like your age, existing health conditions, financial obligations, and future term insurance plans when determining the ideal term length for your policy. You can also consult a financial advisor or insurance professional to help you make an informed decision and ensure that your coverage meets your needs and goals. Keep in mind that you can always renew or extend your policy if needed, but the cost may be higher due to your age and health status at that time.
The best time to buy a term life insurance will be as early as possible. This is because the premiums increase with age and if you purchase the term insurance plan at a younger age, you will be able to secure a large life cover for your family at highly affordable premiums for a long policy tenure. The premium rates are lower for a young individual in comparison to an older person because as you grow older the chances of getting serious illnesses increase.
Let us understand this with an example:
The table below illustrates the change in base premium rates for the same term policy at different ages. As you can see the premium for a healthy male is Rs. 621 per month but the premium rate increases to Rs. 2,441 per month for the same term policy as soon as the person turns 50 years old. This shows that term insurance premium increasesw with age.
| Age of the policyholder | Monthly Premium Rates |
| 20 years | Rs. 621 |
| 30 years | Rs. 799 |
| 40 years | Rs. 1,284 |
| 50 years | Rs. 2,441 |
Note: Premium Rates mentioned above are for a healthy non-smoking male. For reference, we have kept the life cover at Rs. 1 Crore and the policy term covering till 60 years of age.
Term insurance plan is important during COVID-19 for several reasons:
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: Term policy 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.
It's important to review your term coverage regularly to ensure that it meets your current needs and circumstances, including during the COVID-19 pandemic. If you don't currently have a term policy, consider speaking with a financial advisor or insurance professional to explore your options.
Let us take a look at some of the most common term life insurance myths:
You should buy term policy online due to the following reasons:
Easy Research: Buying a term insurance plan online allows you to research your most suitable term life insurance easily. Instead of visiting different offices of various insurers to see the list of term insurance plans they offer, you can quickly go through the list of available term plans in India all on the same platform.
Quick Comparison: A person trying to compare term insurance plans offline would have to sit down with various brochures from different insurers and compare them manually. Comparing term life insurance plans online saves you the extra time and energy spent you would have to spend on comparing these plans physically.
Hassle-free Customisation: You can easily customize your term insurance plan by adding different riders and optional benefits online. This way you can see the applicable premiums for your desired term policy after modifications in real-time.
Convenient and Secure Purchase: Buying term insurance plans online allows you to buy plans at your own convenience. This means you can buy term policy from the comfort of your home or anywhere in the world in just a few minutes.
Reliable Information: The process of buying a term policy online is reliable as the information is transparent and provided directly by the insurer. You can go through the term insurance plan’s details and T&Cs online and consult your financial advisor for a better understanding of the policy features.
Increased Savings: A lot of insurance companies offer term insurance plans at special online discounts of 5-10%. This is because buying a term policy online removes the agent commission from your premiums and thus helps you save on your overall premiums.
Comparing term insurance plans online can have the following benefits:
Check the availability of all term insurance plans from different insurance companies
Access accurate information directly from the insurer itself
Purchase a term insurance plan that fits your budget and is suitable for your needs
Easily compare term life insurance from different insurers
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Online comparison of term life insurance will help you determine the right term insurance plan as per your financial capacity and budget. It is important to compare the best term insurance plans online before buying any policy.
Note: The following information has been sourced from the official websites of insurance companies.
To help you make an informed decision, here is a comparison of the best term insurance plans in 2023. Refer to this table and find out the right term insurance plan for you.
| Term Policy | Entry Age | Maximum Maturity Age | Policy Term | Premium Payment Term | Sum Assured |
| Max Life Smart Secure Plus | 18 - 65 years | 85 years | 10 - 67 years | 5 -15 years | 20 Lacs - No Limit |
| Bajaj Allianz e-Touch | 18 - 45 years | 99 years | 10 - 81 years | 5 - 20 years | 50 Lacs - 10 Crores |
| Tata AIA Sampoorna Raksha Supreme | 18 - 60 years | 100 years | 10 - 67 years | 5, 10, 12 years | 50 Lacs - 20 Crores |
| ICICI Pru iProtect Smart | 18 - 65 years | 99 years | 5 - (85 - entry age) years | 5 - (60 - entry age) years | 50 Lacs - 10 Crores |
| HDFC Life Click 2 Protect Super | 18 - 65 years | 85 years | 5 - (85 - entry age) years | - | 50 Lacs - 20 Crores |
Term life insurance premium rates are computed through an underwriting process that employs the use of various statistical and mathematical calculations around the insured person. Some of the major parameters which can affect the term insurance plan premium rates are:
Age: Younger individuals are at a lower risk of getting life-threatening diseases. Younger people are offered lower life term insurance plan premium charges than an older person who is likely to claim much earlier.
Gender: As per various studies, women tend to live longer than men. So, many insurers charge a lower premium to women because they have a higher probability of paying more premiums.
Family’s Medical History: An individual whose family has a history of ailments such as cancer or heart attack, has an increased probability of contracting or diagnosing these diseases. Therefore existing medical conditions in the family can increase the term plan premiums.
Existing Medical Conditions: A person’s existing medical conditions and ailments can also affect the term life insurance premium rates.
Smoking and Drinking Habits: The term insurance premium rates for smokers and alcohol users are higher in comparison to non-smokers.
Policy Duration: If the policy term is longer, then you will end up paying a high amount of premiums as the insurer will have to cover your life for higher risk. And, a small policy tenure will have a low rate of premium as compared to a longer one.
Occupation: Individuals working in industries such as shipping, transport, gas, mining oil, etc. are at higher risk of accidents. Thus, in such cases, the term insurance plan premium rates will be higher as compared to a desk job.
Lifestyle Habits: Lifestyle habits like participating in frequent adventurous activities like skydiving, paragliding, and deep sea diving, can increase the term insurance premium rates.
| Types of Documents | Description of Documents |
| Identity Proof | Passport, Voter ID, Adhaar Card, PAN Card |
| Income Proof | For Salaried Individuals
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| 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 |
Here is a step-by-step guide on how to file a term insurance claim online:
Step 1: Inform the Insurance Company
You need to inform the insurance company of the policyholder’s death as soon as possible and submit the company’s claims form with the required documents. You can download the term insurance plan claims form online from the company’s website.
Step 2: Assessment of Term Plan Claim
The insurance company will receive and assess the term insurance claim and check if the documents and details provided are accurate or not.
Step 3: Settlement of Term Life Insurance Claim
Depending on the outcome of the assessment the insurance company will either accept or reject the term insurance plan claim. If all the documents and details provided are correct, the insurer will approve and transfer the claim amount to the nominee’s bank account within 30 days of claim intimation.
You can file a life term insurance claim by submitting the following documents:
Duly filled term life insurance company’s claims form (available online and offline)
Medical records like the death/discharge summary, admission note, and test results
Original term policy documents
Post-mortem report (if applicable)
Death Certificate
Photo and ID Proof of the nominee (Voter ID, Adhaar Card, PAN Card)
Nominee’s canceled cheque and NEFT mandate form
Here is a list of some important term plan terminologies that you should know:
Accidental Total Permanent Disability: Accidental Total Permanent Disability, as the name suggests, is a lifetime disability which has occurred by an accident (as per definition of accident) to the policyholder. It is excluded in some of the policies as per their policy document.
Claim: In case the policyholder suffers an unfortunate death within the policy term, the nominee can file a claim in the insurance company to receive the sum assured on death.
Entry Age: It is the age range between which a person can purchase a term insurance plan. If the person is over or under the specified age range for a particular plan then he/she would not be eligible to purchase the term plan.
Grace Period: The grace period is the extra time period provided by the insurer for the policyholder to pay their term insurance premiums even after the due date. In case the premiums are not paid before the end of the grace period, the policy will lapse.
Life Assured: Life assured is the person who is covered under the term plan. In case of an untimely death of the life assured, the nominee will receive the sum assured as death benefit.
Maturity Age: Maturity age is the maximum age at which the policyholder can be when the term insurance plan ends.
Maturity Benefit: There is no maturity benefit available in regular term plan, but in term return of premium (TROP) plans, you can receive the premiums paid at the end of the policy term as a maturity benefit.
Nominee: The nominee is the person appointed by the policyholder to receive the death benefit in the event of the life assured’s unfortunate death during the term insurance policy term.
Policy Term: Policy term is the period of time for which the insurer has agreed to provide the policy coverage and in case of the life assured’s unfortunate death during this period, the benefits promised at the inception of the policy will be payable.
Premiums: Premium is the amount of money the policyholder has to pay in return to receive the term insurance plan benefits and coverage for the entirety of the policy term.
Premium Payment Mode: It is the frequency with which a policyholder has to pay their term life insurance premiums. The premiums can be paid on a monthly, quarterly, semi-annual, or annual basis.
Premium Payment Term: The premium payment term signifies if the policyholder has to pay their premiums regularly for the entire policy term, a limited period which is less than the policy term, or purchase the term plan in a single lump sum amount.
Revival Period: This is the period during which the policyholder can revive his/her term insurance plan and continue the benefits of the pre-existing plan.
Riders: Riders are the additional benefits you can include in your base term plan to increase its coverage. The available riders are different for each plan and can be added at an extra amount included in the base premium.
Sum Assured/Death Benefit: Sum Assured or the life cover is the amount for which the term plan has been purchased. It is the amount that is payable to the nominee in case of an eventuality during the policy term.
Tax Benefits: The Government of India offers several tax benefits for term insurance policyholders under sections 80C and 10(10D) of the Income Tax Act of 1961.
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+All savings provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.
