Term Insurance

Term Insurance is a simple type of life insurance policy. It provides financial coverage for specific years, i.e., a term in exchange for a fixed premium. This plan offers the beneficiary or nominee a death benefit in case of the insured’s death during the policy term. Term plans provide large life cover at affordable premiums that start from just Rs. 473 per month. This plan helps cover many expenses, such as home or education loans. Read more

Protect your family’s future
Term Insurance
Term Insurance Benefits
Pure Protection Plan
Pure Protection Plan
Tax Deduction Under 80C
Tax Deduction Under 80C
Affordable Premium
Affordable Premium
Financial Security to your Family
Financial Security to your Family
Life is Unpredictable! “Protect your family’s future” ₹1 Crore Life cover starting from ₹525/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Term Insurance
Get Updates on WhatsApp
×
The Policybazaar Advantages
  • Dedicated claim suppport for family FREE
  • Upto 10% discount for buying online
  • Only certified experts will call you on 100% recorded line
  • Cheapest Price on Policybazaar
  • 4.8 Rated
  • 58.9 Million Registered Consumer
  • 51 Partners Insurance Partners
  • 26.4 Million Policies Sold
Rhishabh Garg
Written By: Rhishabh Garg
Rhishabh Garg
Rhishabh GargTerm Insurance Head
Rhishabh Garg is the Business Unit Head of Term Insurance at Policybazaar.com. He has over 10 years of experience and currently plays a crucial role in shaping the future of term insurance in the company. Rhishabh also has experience in customer services and crafts new strategies for organizational success, one of which is Policybazaar’s claim assistance program.
Santosh Agrawal
Reviewed By: Santosh Agrawal
Santosh Agrawal
Santosh AgrawalChief Business Officer
Santosh Agarwal is the Chief Business Officer- Life Insurance, Policybazaar.com and has over a decade of experience in the domain of insurance. She has helped shape the life insurance vertical of Policybazaar and ensures the effective execution of the company's overall strategy. Santosh is also responsible for the Term Insurance for Women domain in Policybazaar.com and educates the mass about its importance and benefits.

What is Term Insurance?

Term insurance is a type of life insurance plan that provides financial coverage to the policyholder’s family for a fixed time or years, called the ‘term’ of a policy. This type of life insurance offers a death benefit to the nominee in case of the death of the insured during the policy term. A term insurance plan provides high life cover at low premium rates.
For e.g., A 30-year-old healthy, non-smoker male can buy a term cover of Rs. 1 Crore for his family for the next 20 years. If he buys a term plan, he must pay only Rs. 725/month. With this 1 crore cover, he can ensure that their family will be able to maintain their current lifestyle without any hassle in case of his untimely death.

Note: The premium differs based on the type of premium payment option opted by the policy buyer.

  • Video
  • information

What is Term Insurance?

How Term Insurance Works?

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

  • Meet Sameer

    Sameer, a Healthy and non Smoking male.

  • Bought Policy

    Sameer bought a ₹1 crore Term Insurance for a 25 yrs policy term to secure his wife financially.

  • Unfortunate Death

    In the 9th Policy year, Sameer suffered an unfortunate death.

  • Claim

    His wife received a ₹1 Crore death benefit from the insurer.

  • After Claim

    His wife can use the benefit & maintain her current quality of life.

What are the Best Term Insurance Plans in India 2024?

Get term life insurance plans starting at Rs.17 per day. Compare and buy the best term insurance plan in India online from the top 15+ insurance companies at PolicyBazaar. Here is a list of the best term insurance plans in India 2024 that you can compare based on factors like premium rates, payout options, and coverage offered.

Insurance Company Term Insurance plans Entry Age Max Maturity Age
ICICI Prudential Life Insurance iProtect Smart 18-65 years 99 years
HDFC Life Insurance Click 2 Protect Super 18-65 years 85 years
Max Life Insurance Smart Secure Plus 18-60 years 85 years
Tata AIA Life Insurance Tata AIA SRS Vitality Protect 18-60 years 85 years
Bajaj Allianz Life Insurance eTouch Plan 18-55 years 99 years
PNB Metlife Life Insurance Mera Term Plan Plus 18-50 years 80 years
Canara HSBC Life Insurance Young Term Plan - Life Secure 18-45 years 99 years
Kotak Life Insurance Kotak e-Term 18-65 years 85 years
Edelweiss Tokio Life Insurance Zindagi Protect 18-65 years 100 years
Aegon Life Insurance iTerm Prime 18-65 years 70 years
Aditya Birla Sun Life Insurance ABSLI DigiShield Plan 18-60 years 85 years
SBI Life Insurance SBI eShield Next 18-65 years 100 years
*You can easily use a term insurance calculator calculate the premium amount of your chosen term plan.
See More Plans

Common Customer Queries Resolved

What is term life insurance?

Term life insurance provides financial protection to your family and replaces your income in case you are not around. You pay a small fee every month/year to protect your family, and in case something happens to you, the insurance company pays a large sum of money (life cover) to your family. It costs as little as Rs 473/Month to buy a 1 crore life cover.

What are the key features of term plan?

"Life Cover: Amount that the family receives on the demise of the policyholder (should be 10 times your annual income).
Cover till age: The age till which the term plan protects your family (generally opted till 70).
Payment Frequency: Premiums can be paid monthly or annually. Annual premiums have a 10% discount.

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

Life cover or sum assured is to take care of your family's expenses in your absence. Expenses include household expenses, which will increase with time due to inflation and any existing loans.

The thumb rule is to take a cover of 10 times your annual income. Why? Let me explain with an example:

Annual Income = 10L
Monthly expense = 35,000/month i.e. 4.2L/year
Loan = 20L
As per trends, your expenses double in 10 years due to inflation. Net expenses for the next 20 years would be 1.3 Cr. Adding 20L to pay off your loan, your family would need approx 1.5 Cr as your Life cover

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

Term insurance should cover you until your financial responsibilities are over. 1. Do you want cover till you retire? (since your financial obligations will be over). We recommend 65 in this case. 2. Do you want to leave a legacy amount for your family? We recommend 75 in this case as life expectancy is 70 in India

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

You can choose the number of years you wish to pay premiums till the age of 60 or the entire policy term, i.e., regular pay, or in 5/10/15 years, i.e., limited pay. Choosing Limited Pay has an added benefit. You can save up to 54% on your overall Premium if you select limited pay for your Term Plan. *58% of the customers select a payment term of 10 years.*

How will policybazaar help my family in getting the claim?

Policybazaar provides a dedicated claim handler who can also come to your doorstep in 85+ cities. Our claim handler will get in touch and assist for free. He/she would be the one point of contact for all claim queries work with your nominee on documentation, and coordinate with your insurer. We would actively provide status updates, and your nominee would have no hassle of multiple follow-ups.

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

Commonly used riders and reasons to add them:

Waiver of Premium on critical illness/ disability - In case of permanent disability due to an accident or any critical illness, no future premiums have to be paid, and the life cover stays intact. This is available as a free add-on in most of the plans and is otherwise available at a minimal amount. Highly recommended to add this to your Term insurance plan.

Accidental Death Benefit - In case the death happens due to an accident, an additional payout (amounting to the value of the base Sum assured) will be given over and above the base sum assured at a very nominal price. This is highly recommended to people who travel a lot or ride a two-wheeler frequently.

Critical Illness Benefit - On diagnosis of any critical illness (listed by the Insurer), you will get a lump sum payout (as decided while buying this rider) immediately. Once the benefit for critical illness benefit has been paid out, the life cover minus the critical illness cover continues with a reduced premium. This might not sound very useful when you're young, but the relevance of this rider increases with your age.

Early Pay out on Terminal Illness - Get 100% payout in case you are diagnosed with any terminal illness (as listed by the Insurer). Some Insurers may give a proportion of the sum assured as well. This is available as a free rider in most of the top plans we have.

Customer Query Resloved

Did you Find the Content Helpful?

If yes, Please rate us.

Did you Find the Content Helpful?

What are the Benefits of Term Insurance?

Term insurance plan is like a safety net for your family's future. It's an affordable and easy way to ensure they are financially secure if something unfortunate happens to you. Here is why buying term life insurance is important:

Financial Protection for the Family

Financial Protection for the Family

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

Long Term Coverage

Long Term Coverage

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

1 crore term plan

1 crore term plan @473/month

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

Protection from Critical Illnesses

Protection from Critical Illnesses

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

Coverage against Disability

Coverage against Disability

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

Survival Benefits

Survival Benefits

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

Multiple Premium Payment Options

Multiple Premium Payment Options

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

Tax Benefits

Tax Benefits

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

₹1 Crore
Life Cover
@Starting from ₹ 16/day+
View Plans
₹50 LAKH
Life Cover
@Starting from ₹ 8/day+
View Plans
₹75 LAKH
Life Cover
@Starting from ₹ 12/day+
View Plans

Why Should You Buy Term Insurance Plan?

Many individuals now understand the importance of term insurance and actively compare and select the best term insurance plan for them. With term insurance, you get coverage for unexpected events like death or critical illness and COVID-19. Let us take a look at why you should buy term insurance:

  • Secure Family’s Future: If you are the family's main breadwinner, the family will be left with no source of income in your absence. A term plan will give them the financial help to take off their monthly expenses.
  • Attractively High Life cover at low premium: A term plan offers a cost-effective way to secure the financial interests of your loved ones. You can get high-life coverage at affordable premium rates and leave a large sum for your financial dependants. This helps in securing financial protection without putting a burden on your finances.
  • Protect Your Assets: Many people build assets like homes, businesses, or vehicles through loans. Your family members might be financially burdened trying to pay them off when you are no longer around. They can use the payout to pay off the remaining loans and debts.
  • Cover Against Covid: Term insurance covers you against the uncertainties of life like COVID-19 and provides you with comprehensive coverage. This means the nominees will be financially secure in case of the policyholder’s untimely death due to COVID-19.

Who Should Buy Term Insurance Plans?

Anyone who has financial dependents should buy term plans as they offer financial protection at affordable premiums. These can include parents, married couples, self-employed or businessmen, new parents, or taxpayers. Let us take a look at how each type of individual would benefit from buying a term life insurance plan.

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

Who Should Buy Term Insurance Plans?

What are Term Insurance Policy Features?

Term life insurance is one of the preferred types of life insurance because of its affordable premiums, low entry age, and easy-to-buy features. Long-term protection, the flexibility of choosing policy and premium payment terms, customisable cover, and liability protection are some other benefits of term insurance plans.

Features of term Insurance Features of term Insurance
1

Low Entry Age

Term insurance offers a large age group the opportunity to buy term plans in India. People between the ages of 18 and 65 years can buy term insurance as per the policy’s T&Cs.

2

Long Term Protection

With term life insurance, you can get long term protection against life's eventualities. Various term policy also provide the option of getting cover till 99/100 years of age.

3

Easy to Purchase

Term plans are easy to purchase as you can easily buy term plans within just a few steps. On Policybazaar, you can easily compare and buy the best term life insurance on the same platform.

4

Premium Pay Options

Term life insurance offers several premium pay options wherein you can choose to pay the premiums in monthly, quarterly, bi-annual, or annual modes. You can also choose to pay the premiums in limited, regular, or single instalments.

5

Customisable Cover

You can easily customise the life cover of the term insurance plans as per your individual needs. You can also extend the life cover after buying the policy using the life stage benefits.

6

Pay Off Loans/Debts

Your family can use the benefit payout to pay off the remaining loans and debts you might have left behind in your absence, like home or education loans.

View More

How Does a Term Insurance Plan Work?

How Does a Term Insurance Plan Work

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

When looking for the best term policy, you should thoroughly assess the available plans to find what best suits your needs and requirements. You can assess the different types of term policy available and select the right type of plan yourself. Here is a list of best term plans offered by various insurers, along with their benefits:

Type of Term Plan Benefits
Basic Term Plan Death benefit is offered in a lump sum amount at low premium rates
Term Insurance with Return of Premium (TROP) Financial protection to your financial dependents at low premium rates in case of your death
You are eligible to receive a return of all the premium amounts paid in case of outliving the policy term.
100% Refund of Premium at No Cost term insurance This term insurance plan variant allows you to exit at a specific stage and receive all the premiums paid at the end of the policy
Term insurance for Housewife You can purchase term policy using your husband’s annual income for the additional financial security of your family
Term Insurance for Self-employed and Business Owners People with unsteady flow on income can secure their family against business loans and liabilities in their absence
Term Insurance for NRI NRIs can buy term insurance plan in India via tele/video medicals and get GST waiver of 18% with additional 5% discount on annual premium payment mode
Coronavirus Term Insurance Secure your family in case of an eventuality caused due to COVID-19 with coronavirus term insurance plan
Term Insurance for Diabetics Now, you can buy term insurance plan even if you have pre-diabetic or have type 2 diabetes at affordable premium rates
Saral Jeevan Bima People with low income and educational qualifications can buy SJB plan to financially secure their loved ones, irrespective of their educational, resident background and occupation.
See More Plans
How to Buy Term Life Insurance from Policybazaar?

How to Choose the Right Term Insurance Plans?

Choosing the right term insurance plan involves comparing multiple term plans until you find the ideal one. You need to consider their claim settlement ratio, solvency ratio, critical illness, accidental death cover, terminal illness, and more. Here are some steps that can help you assess and choose the right term plan:

When is the Right Time to Buy Term Insurance?

The right time to buy a term plan is as early as possible. This is because the premiums increase with age and changing health conditions. Thus, as you grow older, your health conditions may deteriorate, ultimately increasing your premiums. Buying an online term plan allows you to secure your family at affordable premiums with a large life cover for a long tenure.

  • Video
  • information

When is the Right Time to Buy Term Insurance?

How much Term Insurance Cover do you need?

Before buying term insurance, it is essential to determine the right life cover for your profile. You can use a human life value calculator to estimate the sum assured you are eligible to buy. An HLV calculator uses your current annual income, age, and cover of existing life insurance to provide you with the right term insurance cover amount.

  • Video
  • information

How much Term Insurance Cover do you need?

What Are The Different Types Of Term Insurance Payout Options?

Term insurance payout works by providing the sum assured to the nominee in the event of the policyholder's death during the policy term. The nominee can choose from among the 4 payout options to receive the amount:

  • Video
  • information

What Are The Different Types Of Term Insurance Payout Options?

What are the Factors That Can Affect Term Insurance Premiums?

Several factors can affect how much you pay for a term insurance plan. These include your age, gender, family medical history, current health conditions, and lifestyle. Here's a list elaborating on these factors:

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

What is a Term Insurance Rider?

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

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

What are the Types of Term Life Insurance Riders?

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

1

Accidental Death Rider

This term rider provides the rider sum assured in addition to the base sum assured, to the nominee of the term life insurance policy in case the policyholder suffers an unfortunate death due to an accident within the policy tenure.

2

Hospicare Benefit Rider

Under this term rider, the life assured receives a fixed amount for every day spent at the hospital. If the policyholder is admitted to the general ward or the ICU of the hospital, the insurer pays a fixed percentage of the sum assured.

3

Critical Illness Rider

The rider sum assured is paid to the policyholder in a lump sum, on the diagnosis of any of the critical illnesses specified under the term life insurance.

4

Accidental Total And Permanent Disability Rider (ATPD)

The rider sum assured is paid to the policyholder in case of a total and permanent disability due to an accident during the policy tenure.

5

Accelerated Death Benefit Rider

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

6

Waiver of Premium Rider

This rider waives off future term life insurance premiums if the policyholder is unable to pay the premiums due to a job loss caused by a critical illness or permanent total disability.

View More
advisor abstract
Not sure which Insurance to buy?
Talk to an Advisor right away!

We help to choose best insurance based on your need

Schedule Callback

Benefits of Buying Term Insurance Online

There are multiple benefits of buying term insurance online. Let’s understand them:

  • Easy Comparison: Compare from among multiple insurers to buy your ideal term plan.
  • Quick & Easy: Buy a term plan online and receive confirmation & documents instantly.
  • Customer Convenience: Buy a term plan from the comfort of your home without visiting insurer branches and offices.
  • Easy Premium Payment & Renewal: Save time by paying your premiums & renewing your policy online.

Reasons to Buy Term Insurance Online

Buying term insurance online is advantageous for several reasons. Firstly, because you are free from agents’ participation, and that results in saving the commission that you eventually pay them. Moreover, you can compare different insurers before eventually buying a term plan and receive all the details instantly.

Documents Required To Buy Term Insurance Plan

Types of Documents Description of Documents
Identity Proof Passport, Voter ID, Adhaar Card, PAN Card
Income Proof
For Salaried Individuals
  • Statement of the bank showing credit of salary for last 3 months
  • Last 2 years Income Tax Returns
  • Recent year Form 16
For Self Employed
  • Proof of income tax returns of the last 2 years which were not filed in the same year, along with tax computation
  • If income calculation is not available, submit the last 3 years income tax returns (not filed in the same year)
  • Form 26 AS
Audited balance sheet and profit loss document certified by CA for last 2 years
Address Proof Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
Medical Proof Latest medical reports allocated by the insurer

What Factors Need to Be Considered Before Buying the Best Term Insurance Plan in India?

Here is a list of factors that you should consider while buying the best term insurance plan in India:

  • Claim Settlement Ratio (CSR): The claim settlement ratio of a company is the number of claims settled by a company in a financial year against the total number of claims registered in the same year.
  • Solvency Ratio: A company's solvency ratio is the company's tendency to settle all the existing liabilities. As per the IRDAI, every company must maintain a solvency ratio of 1.5 or above.
  • Critical Illness Benefit: The critical illness benefit ensures that the policyholder is covered against various illnesses and receives an additional amount to take care of their medical expenses on the diagnosis of covered illnesses.
  • Accidental Death Cover: In case of an accidental death of the policyholder, the nominee will receive an additional amount on top of the base sum assured. This ensures your family receives a larger amount in your absence.
  • Terminal Illness Cover: The terminal illness cover pays the sum assured to the policyholder in advance and allows them to seek quality treatment on the diagnosis of a terminal illness.

Eligibility Criteria To Buy Term Insurance Plan

Eligibility criteria helps you understand the conditions you need to satisfy to buy term insurance plan in India. Here is the list of eligibility conditions you need to keep in mind before buying term insurance plan:

Parameters Eligibility Criteria
Entry Age 18 years - 65 years
Policy Tenure 5 years (may vary with insurer) - No limit for the term plan (may vary with insurer)
Premium Payment Terms
  • Single Premium Pay
  • Limited Premium Pay
  • Regular Premium Pay
Premium Payment Modes
  • Monthly
  • Quarterly
  • Semi-annually
  • Annually
Payout Options
  • Lump-sum
  • Monthly Payout
  • Lump-sum with monthly income
  • Lump-sum with increasing monthly
Add-ons or Rider
  • Waiver of Premium Rider
  • Accidental Death Benefit Rider
  • Accidental Total Permanent Disability Rider
  • Hospicare Benefit Rider
  • Accelerated Death Benefit Rider
  • Critical Illness Rider

How Does Term Insurance Plan Secure a Family's Future?

Term policy ensures the financial security of your family by providing death benefits in the event of your unfortunate death. This payout helps cover living expenses and debts and ensures your family's financial stability. It is a safety net during tough times, ensuring to meet their essential needs even when you are no longer there.

Why Compare Term Insurance Plans Online?

By comparing term insurance plans in India 2024, you can select the most suitable plan for your profile and ensure the financial security of your loved ones at affordable premiums. You can compare the claim settlement ratio (CSR) of the insurers released by IRDAI every financial year.

Note: The following information has been sourced from the official websites of insurance companies.
Term Policy Entry Age Maximum Maturity Age Policy Term Sum Assured
Max Life Smart Secure Plus 18 - 60 years 85 years 10 - 67 years 25 Lacs - 10 Crore
Bajaj Allianz e-Touch 18 - 55 years 99 years 10 - 81 years 50 Lacs - 10 Crores
Tata AIA Sampoorna Raksha Supreme 18 - 60 years 100 years 10 - 67 years 50 Lacs - 20 Crores
ICICI Pru iProtect Smart 18 - 65 years 99 years 5 - 69 years 50 Lacs - 20 Crores
HDFC Life Click 2 Protect Super 18 - 65 years 85 years 5 - (85 - entry age) years 50 Lacs - 20 Crores

Choosing the Best Term Insurance Plan with the Right Sum Assured Option

One of the main factors in selecting the best term life insurance plan for the financial protection of your family is deciding on the right sum assured option. Below are the options available for sum assured amounts that are best for you:

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

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

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

FAQs About Term Insurance Plans

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

Ans: Term life insurance is a life insurance plan which offers financial protection to the policyholder for a specified time. In case of unforeseen death of the insured during the policy term, the insurer pays the death benefit to the beneficiary.

What are the 3 benefits of term life insurance?

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

Who are eligible for term insurance?

Ans. Ideally, everyone should have at least one term insurance policy as it provides long term protection to your loved ones in the event of your untimely demise during the policy term. Individuals who are single, have dependant parents, spouse, or in-laws, people who have kids, or people who pay taxes should buy term plans. People eligible to buy term insurance plans should be between the ages of 18 and 65 years old. However, the exact eligibility age for each plan may differ. Therefore, it is important to go through the policy details while buying the best term insurance plan in India.

What is term life insurance for 2 lakh?

Ans. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a 1-year term life insurance yojana for a 2 lakh life cover. It offers death coverage because of any cause. This scheme comes with a risk cover of Rs. 2 Lakhs in case of the insured's demise for any reason.

How Long Should Your Term Insurance Policy Period Be?

Ans. Your term policy period depends on your needs. Most insurers offer a policy term ranging from 5 to 40 years, allowing you to choose a tenure per your specific needs. You can also opt for whole life (till 99 or 100 years of age) coverage through which you can financially secure your dependents for your whole life.

What are the disadvantages of term life insurance?

Ans. The disadvantages of term life insurance are:

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

Ans. There are no specific criteria but it is always best to invest in a policy as early as possible. The premiums tend to be higher for people in their 30s than for those in their 20s and so on. Buying insurance is always a good idea whether you are in your 20s, 30s, or above.

How much term insurance coverage do you need?

Ans. You can find a quick answer to this question by computing your Human Life Value or HLV. HLV is a simple number that helps you calculate your required life insurance.

Can I take 2 term life insurance plans?

Ans. Yes, there is no limit on buying multiple-term plans to fulfill your life objectives. Buying more than one term insurance plan is certainly beneficial in terms of a number of death benefit payout options, cost-effective premiums, riders, coverage, hassle-free claim settlement, and tax exemption u/s 10(10D) of ITA.

What are riders in term life insurance?

Term insurance riders are additional attachments made to an existing term plan at affordable premium rates, giving the policyholder additional coverage, thus enhancing the utility of the policy. Different types of riders that one can avail of are:

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

Ans: Yes, it is a good idea to opt for riders with term plan as it enhances the effectiveness of a term insurance plan. Choosing which riders to attach to your plan shall depend on your risks, requirements, and preferences. Upon assessing the various types of risks to your life, you should supplement your life cover with a suitable rider to enjoy comprehensive coverage.

Can I add riders after taking term insurance?

Ans: No, most term life insurance plans do not allow you to add the riders to the policy after buying the plan. However, it is important to check with your insurer and their specific T&Cs.

Which rider is best with term life insurance?

Ans: Although the selection of a rider depends on risks, your needs, and preferences, one of the best options is the waiver of premium rider. The rider protects policyholders against policy lapses in case of non-payment of insurance premiums due to an illness or under critical circumstances.

What is the term rider?

Ans: A term rider is the extra or additional cover a life assured can opt for along with their base term plan to increase their coverage benefits. A life assured can easily purchase a term insurance rider by paying an additional premium amount.

What is the cost of riders?

Ans: Most of the riders are comparatively inexpensive. A rider usually costs around 5 to 10% of the total premium you pay for your base cover. There is no limit to the number of riders that you can add to your base term cover, but the premium amount on all the riders should not be more than 30% of your base premium.

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

Yes, you can take critical illness cover with a term life insurance plan, if you already have a health insurance plan, the critical illness cover would pay a claim if you got sick. During any critical illness, this cover can be helpful to enhance an existing term life insurance plan.

What are critical illness covered in term insurance?

The critical illnesses covered under term life insurance are stroke, blindness, cardiovascular diseases, specific stages of cancer, and more such illnesses of varying degrees. Minor and major critical illnesses may have different payouts. Therefore, it is suggested to always check the policy documents for accurate details to avoid confusion in the future.

What is covered against critical illness in term insurance plan?

The critical illness cover provides you financial protection and security against several life-threatening medical conditions such as stroke, cancer, cardiovascular diseases, and kidney failures. This cover includes a lump sum payment if you are diagnosed with stated illnesses in the policy.

Which is the best term plan with critical illness cover?

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

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

Ans: Term insurance plans with Critical illness cover provide a lump sum payment if you are diagnosed with any of the illnesses in the pre-specified list of the policies. This typically includes paralysis, heart attack, lung diseases, cancer, and others.

How much term insurance should I take?

Ans: The coverage amount depends on various factors such as the number of, dependents in the family, investment goals, affordability, and the lifestyle you’d like your family to sustain in the future. For calculating the minimum term policy cover you need, you can follow the rule to have a sum assured that is 10X your yearly income. Further, you should factor in your existing debt obligations and liabilities when you are deciding your coverage amount.

How much is term insurance premium?

Term insurance premium is the amount the policyholder has to pay to keep the policy active. If the policyholder fails to pay the premiums on time, the policy will lapse and the insurer will no longer cover the life assured. Therefore it is essential to pay the term insurance premiums on time to ensure the financial stability of the family in case of an eventuality.

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

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

How important is the gender of the life assured?

Ans. As per the experts, the average Indian woman lives longer than their male counterparts. Thus, term life insurance premiums are lower for women than that of men belonging to the same age bracket. Some plans also offer discounts to women on their premium amounts.

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

Ans. Tobacco/nicotine use directly affects the life expectancy of a person. Considering that non-smoker is expected to live longer, their term plan premiums are consequently lower.

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

Ans. If term life insurance premiums remain unpaid even after the grace period, the policy shall lapse along with its benefits. Some Insurers provide a revival period within which one can revive their lapsed policy.

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

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

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

Ans. Term life insurance policies do not offer paybacks unless you have opted for the ‘return of premium’ variant. Therefore, if you were to outlive the policy term, you do not receive any benefits. This is why term insurance plans are rendered as a pure risk policy. It is the chance that you take to ensure a strong financial safety net for your loved ones in case you are not around for them.

Do we get return in term insurance plans?

Ans. In a regular term plan, there is no return, maturity, or money back at the end of the policy. But a Term return of premium plan returns the premiums paid back, at the end of the policy term as a maturity benefit. This returned amount is subject to some deductions like GST, Admin charges, and other nominal charges. However, it is better to understand what is term insurance first, before learning more about returns in term policy.

question mark illustration

Common Term Insurance Terminology

Here is a list of some of the most common term insurance terminologies that you should be aware about:

  • Coverage: The life cover or the sum assured for which the policy is valid. This amount will be paid to the nominee on the policyholder’s death.
  • Insurability: Insurability refers to all factors that influence life assured's health, vulnerability to injury, and life expectancy.
  • Life Assured: Life Assured is the person covered under the policy, and in case of his/her death the benefit will be payable.
  • Maturity Date: The maturity date refers to the date on which the policy will stop covering the life assured, and the maturity amount will be paid.
  • Maturity Claim: A maturity claim is the process of claiming the maturity amount for your policy at the end of the policy term.
  • Nomination: Nomination is the process of appointing someone to receive the death benefit in csae of the policyholder’s death.
  • Premium: Premium is the amount paid by the policyholder in exchange for the coverage and benefits provided by the insurer.
  • Surrender Value: Surrender value is the amount payable by the insurer to the policyholder in case of early cancellation of the policy.
  • Vesting Age: The vesting age refers to the period after which the pension will be paid in a pension/annuity insurance plan.
  • Death Claim Settlement Ratio: Death claim settlement ratio is the ratio of the number of claims received by the company to the number of claims settled by them in a financial year.

Key Takeaways - Term Life Insurance

feature

Features

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

Benefits Offered

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

Types Of Term Plans

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

Who Should Buy

  • Individuals
  • Newly Married
  • Parents
  • Taxpayer
Different types of Plans
Term Insurance For Family
View Plans
Term Insurance For NRI
View Plans
Best Term Insurance Plan
View Plans
Life Insurance
View Plans
Financial Protection for the Family
View Plans
Best Term Insurance Companies
View Plans
TROP
View Plans
Term Insurance For Senior Citizen
View Plans
Term Insurance For Spouse
View Plans

Term insurance articles

  • Recent Article
  • Popular Articles
27 Feb 2024

SBI Life 5 Crore Term Insurance

SBI life insurance offers a variety of plans with different life

Read more
27 Feb 2024

Bajaj Allianz Life Insurance Customer Care

Bajaj Allianz Life Insurance is one of India’s leading life

Read more
26 Feb 2024

Kotak 2 Crore Term Insurance

Securing your family's financial future involves detailed

Read more
26 Feb 2024

Tata AIA 2 Crore Term Insurance

Protecting your family's financial future requires careful

Read more
26 Feb 2024

PNB 1 Crore Term Insurance

Ensuring your family's financial future requires careful

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
12 Jun 2018

Claim Settlement Ratio of Term Insurance Plan Providers

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
Term Insurance News
29 Feb 2024

Max Life Insurance Introduces STEP Term Plan With Instant 2 Lakhs On...

Max Life Insurance has launched the 'Smart Total Elite...

Read more
29 Feb 2024

Max Life Insurance Introduces STEP Term Plan With Instant 2 Lakhs On...

Max Life Insurance has launched the 'Smart Total Elite...

Read more
28 Feb 2024

Insurers offer up to 1 Crore life cover for self-employed/business...

Many insurers now offer self-employed and business owners the...

Read more
24 Apr 2023

Protect Your Loved Ones from the Uncertainties of COVID-19 with Term...

With the re-emergence of COVID-19 in the country, a term policy...

Read more
06 Apr 2023

ICICI Pru iProtect Smart now offers a 100% Refund of Premium at No...

ICICI Pru iProtect Smart term plan recently introduced a new...

Read more
Reviews & Rating
4.8 / 5
(Showing Newest 10 reviews)
Financial Protection for the Family
Aakash
Delhi, February 29, 2024

Helpful and Professional Team

"This is Aakash Soni.I have taken a term plan from policy bazaar.I would like to appreciate each and every one who guided me to take a very important step to buy the term plans.Special thanks to Sunil and Shivam who had been supper helpful.They have delivered the best experience which I did not expect.Each and every thing was explained to me in such a manner that a 5 year old boy will also able to understand.Shivam has been very transparent, he knew what was my expectations and need.Being a banker and ireda certified I took the plan from him because of his ability to deliver and and knowledge which he hold thanks Shivam I would also like to appreciate Sunil,For all the after sales service which was the smoothly completed.Sunil has been very calm and helpfullHe helped me for all the documentation and medical process.His level of patience is commendable,He was available for me whenever I needed any help.He has already guided me what are the necessary documents which is supposed to be kept for future.He explained me about the claims and everything for future."

Financial Protection for the Family
Kranthi
Delhi, February 29, 2024

Patient and Professional Team

"Dear Prabhjeet Kaur,I am writing to express my gratitude for your help in resolving my queries regarding my Term insurance policy. You have been very patient, professional, and informative throughout the process. You have answered all my questions and explained the benefits and features of the policy in a clear and concise manner.I appreciate your dedication and expertise in providing me with the best possible service. You have made the whole experience easy and hassle-free for me. I am very satisfied with the policy and the coverage it offers. I am glad to have you as my insurance advisor. Thank you once again for your assistance. I look forward to working with you in the future."

Financial Protection for the Family
Arun
Delhi, February 29, 2024

Keep Indian People Insured in bad times

"The policy bazar,I am with the services provided by you. I hope you will keep helping all the customers and keep indian people insured in there bad times."

Financial Protection for the Family
Shiju
Delhi, February 29, 2024

Supportive team

"Thank you very much for the support from Policy Bazaar especially Prakhar Singh. He was much supportive and patient enough to understand the concern and handled the issue really well. Really appreciate it, and thank you so much."

Financial Protection for the Family
Krishna
Delhi, January 24, 2024

Delighted with the service

"I am absolutely delighted with the service offered by Mr. Soubhagya. His knowledge was commendable on the query i had regarding the name change of location in aadhar card for my term life purchase with Max Life. He explained the issue in brief and offered a viable turnaround."

Financial Protection for the Family
Paramjit
Karnataka, January 24, 2024

Successful Death Claim

"I sincerly, heartfully saying thank you for your help during this time. Your help was much needed. Once again I thank you."

Financial Protection for the Family
Paramjit
Gurdaspur , January 09, 2024

Satisfied with Claim Filing Service

"I am satisfied with your service.you are very nice and your service for guidance for my policy is very valuable to me."

Financial Protection for the Family
Mrs
Gujrat, January 05, 2024

Successfully Claim Settled

"ICICI prudential life policy holder Manish K Prajapati had died on 12 th of August, 2023. Nominee had claimed policy on 29 th of November, 2023. It was so difficult time for nominee but, you and your team had gave excellent support. Without any issues and trouble nominee received amount of respective claim in her account on 26 th of December, 2023.The whole process of claiming was so easier for all of us. When it was our tuff time.Nominee of Manish Prajapati, his mother named Bharti Ben Prajapati highly appreciated and obliged for your and your team immense support. We wish for your prosperous life and future."

Financial Protection for the Family
Ms
Noida, January 05, 2024

Thankful to Dedicated Claim Assistance Card

"Thank you Team for all the support!The term benefit is helpful at least for my 2 kids future investments and loan settlement."

Financial Protection for the Family
SK
Delhi, December 21, 2023

Thanks for support

"Thank you so much for your sincere support"

Disclaimer+

+Rs. 525/month (Rs.17/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

Prices offered by the insurer are as per the IRDAI approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2024, License category- Direct Broker (Life & General) Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

© Copyright 2008-2024 policybazaar.com. All Rights Reserved

Current Version
Feb 28, 2024
Written By
Rhishabh Garg
Reviewed By
Santosh Agrawal
Need Help? Request Callback
Is this helpful?
We hope that we have covered everything.
Yes No
Submit
THANK YOU!
We are so glad that......
Ok, Great
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL
top