Term Insurance

Term insurance is a type of life insurance policy that provides financial coverage to the beneficiary of the policy if the life insurer dies during the active 'term' of the policy. A term insurance plan provides life insurance cover against the fixed premium paid for a specified term of the year. As a pure protection plan, a term life insurance policy offers higher insurance coverage at lower premium rates. For example, an individual can purchase a 1 Crore term life insurance plan at the lowest premium rate of Rs 411/month.

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What is Term Life 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.

A 'term' 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.
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.

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 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 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 plan offers 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 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 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 term insurance 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
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 Key Features 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
Let’s take a look at the salient features of the Term Life Insurance
  • Cost-Effective

    Buying a term insurance plan is extremely cost-effective and does not create a hole in the pocket of the individual. A term plan provides instant insurance solutions, which can easily be availed by making premium payments. The term life insurance premiums are low when compared to any other life insurance product.

  • Easy to Buy

    Buying a term policy is no more a tedious task rather one can easily buy an online term plan on the premise of their requirements. Before one zero down a term insurance policy, it is recommended that one conduct thorough research in regards to the same and only then make an informed decision of buying an online term plan.

  • Long-term Protection

    Choosing the right term life insurance plan from a long-term perspective will protect your family from any financial liabilities. One has the option to choose a term life cover for up to 50 years of age.

  • The Convenience of Payment

    One can easily make the payment towards term plan premium on a monthly, quarterly, or yearly basis on the premise of their convenience.

  • Rider Benefits

    One has the option to enhance the term insurance plan by opting for riders or any other variants for instance including the return of premium.

  • Additional Rider Benefits

    Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured are also available under the term insurance policy. The benefits can be added to the term plan by paying an additional premium amount. The best term plan in India is the one that offers these riders at a comparatively lower price than opting for such coverage through individual Plans. Choose the additional optional benefits for your term policy with our website. Use the term plan comparison features to shortlist the additional benefits you need.

    Some common term insurance riders are:

    • Critical Illness Rider

    • Waiver of Premium

    • Accidental Death Benefit Rider

    • Accidental Total and Permanent Disability Rider

    • Income Benefit Rider

  • Adjustable Cover

    With buying the best term insurance plan one has the liberty to either increase or maybe decrease the sum assured subject to the financial changes in one’s life.

  • Disability Benefit

    A disability is mostly caused because of an unfortunate accident or sometimes even because of the illness. In case the earning member of the family faces any sort of disability it directly affects the income earning capacity of the family. Therefore, when buying a term insurance plan, it is advisable to include a disability benefit and make the term plan even more secured at an affordable additional premium price.

  • Cover Against Life-threatening Ailments

    The mere thought of a life-threatening disease scares anyone. In case, somebody from a family is diagnosed with a life-threatening disease it could be a matter of great concern both mentally and financially. When buying a term insurance plan, choose a critical illness cover and secure the family from any financial stress that may occur.

  • Tax Benefits

    Term insurance plan comes with excellent tax benefits. You can avail of lucrative tax benefits within Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Moreover, the term life insurance premiums paid for the Critical Illness Benefit towards the term plan, also qualify for a deduction within Section 80D.


    Tax benefits are subject to changes in tax laws. Please consult your tax advisor for details.

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 plan. 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 it 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 plan are those that are sold through traditional methods such as through an agent or a branch, while online term plan refer to term insurance Plan 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.

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.

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

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.

  • Feature to Add Terminal/Critical Illness Benefit:

    A critical medical issue such as brain surgery or cancer costs a lot of money and cripples the finances of the family. However, if a term plan chosen by a policyholder covers critical illness or if it has the feature to add-on critical illness cover in it, then one can easily safeguard self from such risks. Most of the critical illness add-ons immediately payout upon diagnosis of the critical illness.

  • 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

    The premium rate of a term insurance plan plays a vital role while purchasing the plan. Hence it is important to compare term insurance policies online and choose the term plan which offers higher coverage at an affordable premium rate. Additionally, choose a company that provides discounted premiums to non-smokers.

  • 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.

  • Riders

    While purchasing a term plan, it is important to check the rider benefits offered by the term insurance provider in a detailed way. An insurance rider is extra to the essential plan that offers advantages far beyond the subject of the policy in case of any eventuality.

  • Go for a Regular Income Payout Option:

    Since their inception, life insurance plans like term insurance plan have provided a large sum of money to the nominee of the policyholder. However, some modern term insurance policies are providing the option of regular payout along with some lump-sum. So, opt for a policy that provides a regular payout option.

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.
Compare and Buy Compare and Buy

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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The Best Price
Get an online discount of up to 10% when you buy online. You will not get a better price anywhere else.
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Policybazaar is regulated by IRDAI and will always act in the policyholder’s interest.
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In case you aren’t happy with your purchase, you can cancel your policy from MyAccount hassle-free at the click of a button.

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 offer 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.
Why buy from Policybazaar?
The Best Price
Get an online discount of up to 10% when you buy online. You will not get a better price anywhere else.
Certified Expert
Policybazaar is regulated by IRDAI and will always act in the policyholder’s interest.
100% calls on Recorded Lines
Every call happens on recorded lines to ensure unbiased advice & No misselling. We believe in transparency & honest selling.
One Click Easy Refund
In case you aren’t happy with your purchase, you can cancel your policy from MyAccount hassle-free at the click of a button.
  • 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.

Term Insurance Terminologies

  • Major Types of Term Life Insurance

    With the availability of several plans, choosing the right plan is a quite difficult task. The right option will depend on the policyholder’s requirements. There are 2 basic types of term insurance plans available i.e., level term insurance, and decreasing term insurance. Let’s understand each type in detail:
    • Level Term Plan – The level term is the default term life insurance coverage where the sum assured selected at the time of purchasing the plan remains constant throughout the policy term. The earlier you buy a level term plan; the lesser will be your premium. 
    • Decreasing Term Insurance – The sum assured amount decreases at a predetermined rate, generally with a one-year increment during the policy term. With the increase in age, your responsibilities might decrease and the requirement of a high sum assured amount might also decrease. 
  • Value of Term insurance

    The term life insurance coverage may depend on your financial requirements and objectives. To calculate the minimum value coverage, the reasonable amount for term insurance is 10 times the amount of annual salary. For example, if your current annual income is Rs. 8 lakhs, you should go for a life cover worth Rs. 80 lakhs. One of the convenient ways to compute the income replacement value is Insurance Cover = Annual income (current) multiplied by the number of years left for retirement. If you are 30 years old and earn Rs. 10 lakhs annually. And you are planning your retirement after 20 years i.e., at 50, so the cover you will require at that time will be Rs. 2 Crore. 
  • Purpose of Term Insurance

    The term insurance plan offers multiple benefits to buyers. Here’s a quick laydown:
    • Low premium rates – Cost-effectiveness is one of the distinctive benefits of term insurance as compared to the whole life insurance plan. You can purchase a term plan at low premium rates with high coverage and enjoy the benefits rest of your life. The payment of premium amount can be made either monthly, half-yearly, or monthly. The earlier you buy a term insurance plan, the lower the premium rate you are required to pay. 
    • Sum assured payout – In case of the policyholder’s demise, the family will receive a sum assured in a form of a payout for fulfilling their financial expenses. The policyholder has the option to choose the payout in the form of a lump sum, an income either monthly or annually, and as a combination of both lump sum and income. This payout will take care of your financial requirements and other household expenses. 
    • Critical Illness Cover – You are eligible to receive a lump sum payout upon the diagnosis of critical illness (such as cancer, brain surgery, stroke) as mentioned in the policy’s documents. 
    • Terminal illness Cover – Term insurance plans provide you a lump sum payout in case of the diagnosis of terminal illness such as AIDS 
    • Tax Benefits – Get the tax benefit on the premium paid u/s 80C along with the premiums paid for the critical illness u/s 80D. The sum assured received by the beneficiary/nominee is also exempted from the taxes u/s 10(10D) of the Income Tax Act, 1961.
  • Mortality Cost

    It is the amount charged by the insurance company every year to provide life coverage to the policyholder. It is for the guaranteed SA (sum assured) that is paid in case of the untimely demise of the life assured. These charges decrease preferably with the increase in the fund value throughout the policy term. The mortality charge is based on the sum that is at risk i.e., the sum assured minus the fund value.

FAQs About Term Insurance Policy

  • Q. What is term insurance?

    Ans: Term insurance is the purest and simplest form of life insurance policy, which offers comprehensive financial coverage to family members against any life uncertainty. On the premise of the term insurance plan purchased, the family gets the life cover or the sum assured in case the policyholder passes away untimely while the policy is still active.
  • Q. What are the benefits of a term plan?

    Ans: A term insurance plan offers multiple benefits. Some of the key benefits of the term insurance plan are listed below:
    • Cost-effective Premium: An individual can get a high-value life cover from the term plan by paying a cost-effective premium amount. The term insurance premium amount can be made either monthly, half-yearly, or yearly. The earlier one buys the term insurance plan; the lower will be the premium amount that needs to be paid.
    • Easy to Understand: When it comes to buying the term plan, one of the prime features is that it is easy to understand. As it is a pure life cover, the term plan does not have the investment component. The individual will pay the premium and the insurance provider covers the life for a fixed period to offer the benefits of term insurance.
    • Additional Rider Benefit Options: The term insurance plan comes with different rider benefit options that can be chosen by the policyholder, which will enhance the base plan. These riders can be added to the term insurance plan by simply paying an additional nominal premium.
    • Death Benefit Payout Options: In case the policyholder passes away, the financial liabilities will fall on the family members. It is when the different payout options of the term plan play an important role. The dependents will get the lump sum amount when the policyholder is no more. This lump sum will enable the dependents to manage the financial liabilities. There is a term insurance plan that also gives the option to receive monthly income along with a lump sum amount as a death benefit. With the monthly income. The family finds it easy to manage the everyday expenses.
    • Tax Benefits: The term insurance plan also offers tax benefits. The term insurance premiums are tax-deductible and the payout comes with tax exemptions as per the prevailing tax laws. Under Section 80C, the premium paid remains tax exempted up to the limit of Rs 1.5 lakh in a year. The death benefit also remains tax exempted under Section 10(10D) of the IT Act.
  • Q. What are the minimum and the maximum age to buy a term insurance policy?

    Ans: Anyone who intends to buy the term insurance policy should be between the age group of 18 years to 65 years and should have an income of at least Rs 2 lakh.
  • Q. How much risk cover should I buy?

    Ans: How much risk cover you should buy primarily depends on your annual income. The general thumb rule says that risk cover should be 10 - 15 times of your annual income. It means if you are earning Rs 4 lakh/annum then you should buy a term risk cover of at least Rs 40 lakh. The idea is to arrange for the self-sustainability of dependents so that lifestyle can be maintained and future needs could be settled after the demise of a policyholder. This also depends on the age. Younger age people should and can buy higher term insurance cover – up to 25 times. This is because their dependents will take a longer time to be on their toes. To know more click here.
  • Q. Is it possible for an NRI to buy a term insurance policy?

    Ans: Today the insurance companies in India do offer term insurance policies, which fulfill the insurance requirements of the NRI.
  • Q. If my term insurance policy claim is rejected, whom should I contact?

    Ans: Even after submitting all the required documents and adhering to the rules your term insurance policy claim gets rejected you should immediately get in touch with the specific insurance company and seek help.
  • Q. In case if I wish to cancel my term insurance policy, is it possible?

    Ans: Yes, if you wish to cancel the term insurance policy, you may do but within the free-look period offered within the plan.
  • Q. Can I switch my term plan from one company to another if I get better benefits in another plan?

    Ans: Term insurance portability is not yet available and hence one cannot switch from one insurance company to another but you can surrender your policy and buy a new plan with desired benefits. However, surrendering a term policy is not recommended because that will cost you a lot as the entire term insurance premium paid towards the current plan will lapse without any return, and the new policy, which you will buy comes at a high cost since your age has increased. In such a case, it is advised to continue with your current term policy and buy another term insurance policy after declaring your current insurance plans, thus availing the benefits of both plans. For the term plans bought offline, one can consider closing them down after analyzing the cost difference. Generally, online term plans will be way cheaper with the age factor as well.
  • Q. Is it possible to add a rider in an existing term insurance policy?

    Ans: Yes, if you wish to, you can add an optional rider to your existing term insurance policy by paying a nominal charge.
  • Q. If I die in a foreign land, will my term insurance policy be effective?

    Ans: Once you have bought the term insurance policy, it will be effective and taken into consideration irrespective of the geographical location.
  • Q. Why term insurance premium rates for a smoker are higher than that of a non-smoker?

    Ans: According to current rules and regulations, insurance companies charge a high premium of term plans from smokers or tobacco users than non-smokers as there is more risk involved in insuring a smoker. Also, a smoker becomes more susceptible to diseases, especially heart-related disorders, and therefore, increasing the risk for the insurer. To combat high risk, insurers charge higher term insurance premium rates from smokers. To know more click here.
  • Q. Are there any benefits of buying insurance at an early age?

    Ans: Yes, buying term insurance at an early stage would entitle you to a lower premium on the policy. The earlier you buy an insurance policy; the lower will be your premium amount. Also, the chances of getting a policy are higher because of your good health.
  • Q. Which are the traditional life Insurance instruments available?

    Ans: Traditional Insurance products consist of Term Insurance, Term with Return of premium, Endowment, and Whole Life Policies. The cash value increases every year as you pay the premiums under these policies. Some traditional life insurance policies are participating, that means they offer bonus and dividend to their customers.
  • Q. Should I buy a term plan even if my employer has already covered me under group policy?

    Ans: Yes, it is always advised to buy individually to buy term plan even if you are covered under a group policy because:
  • Q. What documents will I need to buy term insurance plan?

    Ans: Here List of documents required
    • Documents you need to buy term plan are:
    • Age proof (Voter’s ID card, Passport, Driving license, etc.)
    • Address proof (Voter’s ID card, Passport, Utility bills, etc.)
    • Photo identity proof (Passport, Voter’s ID card, PAN card, Driving license, etc.)
    • Recent passport size photographs Income proof (Salary slip, Form 16, ITR etc.)
    • Some insurance companies might need specific documents apart from these.
  • Q. For how long should I buy a term plan?

    Ans: term insurance plan are beneficial if they are bought for the longest duration possible. A term insurance policy should cover the person until the age he intends to work. Also, late marriages and children at a high age mean responsibilities do not end at 60 years, which was earlier considered as a retirement age. Our financial experts at PolicyBazaar believe that a person needs coverage at least till 65 years, though it may vary as per circumstances. You should go for plans that offer you the flexibility of fixing the tenure. For example, a businessman might have planned for extended earning years and therefore, it makes sense to buy an income replacement plan.
  • Q. Can I avail loan on term insurance plan?

    Ans: No, you can’t avail loans on term insurance plan because these policies do not have maturity benefits.
  • Q. How can I change my communication address?

    Ans: You can get the changes done by visiting the branch office of your insurance company. Written communication is required. This can also be done via registered email id in case the branch is not easily accessible. Few insurers allow the change through the customer portal.
  • Q. Will the term plan cover me if I am traveling abroad for business/leisure purposes?

    Ans: Yes, a term plan covers an insured even if he/she travels abroad for business/leisure purposes. However, if any such trip is scheduled at the time of buying the term insurance policy then the same should be mentioned in the proposal form.
  • Q. What is the sum assured?

    Ans: Sum assured is usually referred to as the amount of insurance in a term plan. It is the amount that would be paid to the nominee in case of the death of the policyholder. Sum assured plays a major role in deciding the premium rates of a term insurance policy. Few policies also pay additional cover along with sum assured. This increases total life cover for the same sum assured.
  • Q. Can I increase or decrease the value of the sum assured in the future?

    Ans: Slightly unrelated, there are a few plans, which have increased income facilities in their structure. It means, these term insurance plan offer the benefit of a monthly income increase every year. For example, HDFC Click2Protect Plus Increasing income, Max Life Increasing Monthly Income Plan, etc.
  • Q. What is a premium paying term?

    Ans: It is a term during, which a policyholder pays a premium to the insurance company.
  • Q. What is the death benefit?

    Ans: The amount received by nominees at the time of death of a policyholder is called the death benefit.
  • Q. Who is a proposed insured?

    Ans: A proposed insured is a person whose interests are safeguarded by the insurance company. For instance, if you are an individual whose life is going to be covered under the life insurance policy then you will be called proposed insured.
  • Q. What if I become an NRI after purchasing term insurance plan?

    Ans: Your term insurance plan coverage will remain active even if you become an NRI post-policy issuance. It is good to keep the insurer informed about the change in status though.
  • Q. How does a life insurance company evaluate my risks?

    Ans: The life insurance company’s decision to insurer your life or not relies on the information you provide in the application form. The evaluation of your risk is determined by several factors such as your age, habits, occupation, and medical history. If you have any pre-existing medical condition then the insurer will raise the premium of the term insurance policy. The increase in premium is subject to the actual medical status of the policyholder and risk posed to his life.
  • Q. Do term plans cover death due to natural disasters?

    Ans: Yes, term insurance plan cover death due to natural disasters, like flood, earthquake, storm, etc.
  • Q. Does the insurance company cover death due to a terrorist attack?

    Ans: Yes, death due to terrorist attack/war/natural calamities is covered in the term insurance policy (unless specifically excluded by the insurance company) and the claim is settled if documentation is in order.
  • Q. Who is a preferred non-smoker and how is an individual declared as a preferred non-smoker?

    Ans: Non-smoker refers to a person who does not consume tobacco in any form. A preferred non-smoker is the one who does not have any pre-existing medical conditions at the time of signing the term insurance policy. Below are the situational requirements to fall under this category: No use of tobacco or nicotine-based products in the last 12 months Cholesterol level not exceeding 280, with or without treatment Blood pressure not exceeding 152/92, with or without treatment No cardiovascular or cancer death of more than one parent before age 60 These customers generally fall under non-medical category – depending on their age. Preferred rates are applicable for this category if there is any differentiation by the insurer.
  • Q. Can I get term insurance cover if I am a smoker or tobacco user?

    Ans: Yes, you will be entitled to get term insurance cover even if you are a smoker or tobacco user. However, the premium rates will be higher than a non-smoker. Do declare in the proposal form.
  • Q. I am an occasional smoker. Do I need to declare myself as a tobacco user?

    Ans: Even if you are an occasional smoker, you need to declare yourself as a tobacco user in the proposal form.
  • Q. I used to smoke earlier but now I have quit smoking. Shall I declare myself as a smoker or non-smoker?

    Ans: Anyone who has not consumed tobacco products in the last 5 years will be considered as a non-smoker. In your case, if you haven’t smoked for the last 5 years, you can declare yourself as a non-smoker in the proposal form. Usually, the time frame is mentioned in the proposal form.
  • Q. Currently, I am a smoker but if I quit smoking a few years down the line, can I get my re-assessment has done and avail rebate on policy in the middle of the policy term?

    Ans: Once you have booked your term plan policy under smoker category, it is not possible to do re-assessment for a non-smoker category. Your term insurance policy will continue with the same premium rate. You can apply for a new one if you wish to. Chances are that the premium will become the same after those 5 years.
  • Q. How do you decide if a customer is a non-smoker at the time of policy issuance?

    Ans: A customer needs to declare his tobacco and alcohol usage at the time of filling the proposal form. Also, the insurer conducts additional nicotine/continue medical test to confirm tobacco usage by a customer.
  • Q. What would happen if I start taking alcohol after the policy issuance?

    Ans: If the insured starts smoking & drinking after buying the policy, it will not affect the base cover.
  • Q. What is the policy number?

    Ans: A policy number is a unique identifier that attaches a policy to a specific individual. It is the number by, which the insurer keeps the track record of your term policy details.
  • Q. Are policy conditions different for all term insurance plan?

    Ans: Yes, every policy has distinct features to meet the specific needs of the insured. The features that your policy holds will vary according to the plan and term of the policy. Hence, you must read the policy document and understand the policy conditions.
  • Q. How do I know if the agent is authorized to sell life insurance policy?

    Ans: You must buy a term policy directly through the insurance company or an authorized agent. To check whether the agent is authorized to sell a life insurance policy or not, you can ask for his authorization card issued by IRDA (Insurance Regulatory and Development Authority). A safer option is to buy an online term plan!
  • Q. Can I change the policy duration after the issuance of the policy?

    Ans: No, it is not possible to change the policy duration after its issuance. However, if you wish to increase the duration of the policy then a good idea is to buy a fresh policy with a longer duration.
  • Q. Will my premium amount change during the policy tenure?

    Ans: No, the premium amount will not change during the policy tenure, provided you continue paying your term insurance premiums on time.
  • Q. What are the different options to pay the premium?

    Ans: There are various options provided by insurance companies by, which you can pay your term insurance premiums. Policyholders can make their insurance premium payment via: National Electronic Fund Transfer (NEFT) Net Banking Credit card Debit card Electronic Clearing Services (ECS) Direct payment at branch offices
  • Q. Is there any policy where I can get the money during the policy tenure?

    Ans: Yes, money back policy is the insurance plan under, which you can get money at regular intervals during the tenure of the policy. It is an anticipated endowment policy with an additional feature of receiving regular benefits during the policy term. Even if the installments are already paid to you in advance, the risk cover continues for the entire sum assured. In case you outlive the policy, the balance sum is paid back to you along with the accumulated bonus.
  • Q. What is the age eligibility to buy an income replacement plan?

    Ans: Any individual lying in the age bracket of 18-65 years can opt for this plan. Even NRIs are allowed to buy this term plan.
  • Q. What is the tenure of receiving money under the income replacement plan?

    Ans: Usually, there is no fixed period of payouts under the term plan and thus, it could vary between 10-20 years.
  • Q. What is underwriting?

    Ans: Underwriting is a term used by insurance companies to evaluate the proposal and assess risks, ensuring that the cost of cover is proportionate to the risks faced by an individual. The evaluation is done based on information submitted by the proposer in the term insurance form along with the reports of medical tests. Usually, insurance companies take 3-4 days for underwriting after receiving all documents like medical certificates, financial and other relevant information.
  • Q. What is the free look period?

    Ans: While forwarding policy documents to the policyholder, the insurance company will inform the insured by issuing a letter that they have 15 days from the date of receipt of documents to review all terms and conditions of the policy. If the insured disagrees with conditions, he has the option to return the policy and the insurance company has to refund the premium paid, subject to deductions. These 15 days is also called the cooling-off period. It remains the same for all products/policies.
  • Q. Can I get a full refund of premium if I cancel my policy within the free-look period?

    Ans: Yes, if you bought a term insurance policy and later realized that you don’t want it then you can return it and get a refund. You can exercise this option within 15 days of receiving the policy document. Very nominal charges are deducted. For example, stamp duty charges, the premium on a pro-rata basis for the days covered along with medical charges, if applicable.
  • Q. Can I change the date of birth after the free look period?

    Ans: Yes, you can change the date of birth after the free look period of the policy. Just submit the proof of age with the correct date of birth, along with a covering letter. However, if the age changes premium or eligibility, it will involve additional premium payment or cancellation.
  • Q. What is a claim?

    Ans: A claim is a formal request to an insurance company asking for payment based on the terms of the policy. It is reviewed by the company and once approved the benefits are paid out to the insured or the beneficiary.
  • Q. What parameters are considered by the company while asking the claimant to submit particular records/document?

    Ans: The term insurance company checks the sum at risk, circumstances of the claim, cause, and duration of the policy before asking the claimant to submit the documents. For example, in case of accidental death, the company requires a police report, post mortem report etc. while in case of death due to illness, the company calls for medical records.
  • Q. Once all the requirements are submitted, how much time does the company take to settle the Claim?

    Ans: It generally takes 8 – 10 working days after all the documents, records, necessary forms are submitted, and documentation is completed. In case, the claim warrants further verification, the insurance company keeps the applicant informed of the same.
  • Q. What will happen if death occurs within a year of policy purchase?

    Ans: If death occurs within a year of term insurance policy purchase, the insurance company will do a thorough investigation on the matter to strike out any chance of fraudulency or criminal intent. The nominee will get the entire amount of the assured money and the claim will settle within 180 days of submitting all the relevant and necessary documents of the early death claim to the insurance company.
  • Q. Who is entitled to receive claim benefit?

    Ans: The nominee last recorded under the policy is entitled to receive the claim benefits in case of death of the policyholder.
  • Q. What will happen if my claim is rejected and my nominees wish to re-apply for it?

    Ans: If your term insurance claim gets rejected your nominee can re-apply for it. For that, he will have to submit a written application to challenge the insurer’s decision of repudiation of your claim. If the nominee is not entertained by the insurance company he can approach the local insurance ombudsman (for claims up to Rs 20 lakh). He can even move to consumer court and claim for above Rs 20 lakh. Both the ombudsman and the consumer court have the power to compel the insurer to reconsider his decision.
  • Q. What is IRDA?

    Ans: Insurance Regulatory Development Authority or IRDA, in short, is the apex body that oversees the insurance industry in India. Apart from protecting the interests of the policyholders, it promotes, regulates and makes sure that the development of the insurance industry in India is in order.
  • Q. What are the IRDA guidelines about claim processing?

    Ans: According to IRDA guidelines, the company has to process a claim within 30 days. If the claim needs further verification, it should not take more than 6 months to settle. In case the company fails the whole procedure within 6 months the company will have to pay interest on the claim amount.
  • Q. Should I pay my premiums through the agent?

    Ans: You can pay through the agent only if you are sure that he is IRDA authorized and provides you with the receipt after you pay the premium. But it is always better and reliable to pay your premiums directly to the insurance company itself.
  • Q. Why should you split your desired sum assured between multiple policies?

    Ans: There are numerous benefits of splitting your money among multiple policies instead of sticking to only one policy. For example, instead of buying a 20/25years long plan, you can buy multiple policies with different maturity dates. This will help you manage your finances better through different stages of your life. Moreover, when you have multiple policies, the rejection of claim from one insurer will not matter most as long as you have other back up policies to file your claim. On the other hand, if you have only one policy and your claim gets rejected, the entire money would be lost. So it is always better to buy multiple policies instead of one.
  • Q. How much premium will be raised in case there are issues with my medical condition?

    Ans: In case there are issues with your medical condition, your term insurance premium will increase. However, there is no fixed percentage of increase in premium. It is completely depended on the insurer’s decision as well as on the policy holder’s actual medical condition. Even you can reject the offer if you do not want the raise in your premium.
  • Q. What is the nomination?

    Ans: Nomination is the act of authorizing another person the right to receive the policy money in case of death of the policyholder. The nominee is the person who, chosen by the policyholder, will receive the term insurance policy money in case of the policyholder’s death.
  • Q. Can I change my nominee?

    Ans: Yes you can change your nominee just by filling up the nomination form and submitting it to the term insurance company anytime before the maturity date of your policy.
  • Q. What details am I to provide about the nominees?

    Ans: While appointing a nominee you have to provide the details including his/her full name, address, age, and your relationship with your nominee. Make sure that the information you provide is correct to avoid any future complications.
  • Q. What is the difference between a nomination and an assignment?

    Ans: Nomination means the right of the policyholder to appoint another person who will receive the policy money in case of death or unavailability of the policyholder. On the other hand, an Assignment is an act of legally transferring the rights of the policyholder (assignor) to another person (assignee).
  • Q. What is the benefit of opting for riders/add-ons?

    Ans: The main benefit of riders/add-ons is that it provides additional insurance coverage on your existing term insurance policy. You can get riders/ add-ons by paying some extra amount on your basic policy premium.
  • Q. In case I lose my policy document, how do I obtain a duplicate policy?

    Ans: You have to apply for a duplicate copy of your policy from the insurance company. You will also have to pay the necessary fees and execute the indemnity bond to get the duplicate policy.
  • Q. How can I change my term insurance policy details?

    Ans: To change your policy detail you have to submit a written request either online or by visiting the insurance company office in person.
  • Q. Can I change the frequency of payment for my term insurance policy?

    Ans: Yes, you can, but only in case of your term insurance policy renewals. If you were paying your term insurance premium annually (low frequency) you can change your frequency to pay half-yearly or quarterly (high frequency) or vice versa.
  • Q. What do I need to do to surrender my term insurance policy?

    Ans: Either visit the Insurance Company office in person or submit the request online. You can also surrender your term insurance policy simply by not paying your term insurance premiums.
  • Q. How does health condition affect premium rates?

    Ans: Term insurance premium rates are hugely affected by health conditions. The chances of a healthy person to be hospitalized are very low. In the same manner, a person having some pre-existing condition may have to be hospitalized more than once for, which he would have to pay higher premium rates or the disease may also be excluded from the policy coverage.
  • Q. Is term life insurance worth buying?

    Ans: Term life insurance is the most basic form of life insurance and is worth your money as a term policy offers a death benefit to the family of the deceased in case of the sudden demise of the insured. The compensation amount is taxed-free.
  • Q. What happens to term life insurance if you don't die?

    Ans: If you outlive your term life insurance, the term insurance policy ends as per the policy due date and no policy benefit will be offered.
  • Q. What kinds of deaths are not covered in term insurance?

    Ans: No term insurance plan covers suicidal death, self-inflicted death; death due to sexually transmitted diseases, death due to involvement of criminal activities, death due to involvement of life-threatening activities, consumption of alcohol etc. are not covered.
  • Q. What are the disadvantages of term insurance?

    Ans: The major disadvantages of term insurance are in case the policyholder outlives the policy tenure, no policy benefit is offered.
  • Q. Do I get my money back at the end of term insurance?

    Ans: If you survive the policy tenure, you won’t get the money back. However, some term plans offer ‘return of premium’ benefit’, where the policyholder gets the premium amount returned.
  • Q. Can you get cash in term insurance?

    Ans: No
  • Q. Do you get life insurance if you are murdered?

    Ans: No
  • Q. What is 1 crore term insurance?

    Ans: In such a policy, you will get 1 crore insurance coverage as a death benefit.
  • Q. What happens to the money in a term life insurance when it expires?

    Ans: If a claim arises during the policy tenure, the insured’s family gets monetary assistance. If the policyholder survives to the term life insurance policy expiry date, no benefit is offered or the funds are forfeit
  • Q. Do you need life insurance after 65?

    Ans: You need life insurance if your family is entirely dependent on you. When you retire you stop earning and thus no family dependency on you. Moreover, if there is sufficient retirement income, you probably don’t need life insurance.
  • Q. Is natural death covered in term insurance?

    Ans: Life term insurance offers death benefit in case of death due to natural causes and accidental death.
  • Q. What is the difference between life insurance and term insurance?

    Ans: The only difference between life and term insurance is- Term insurance only offers death benefits while a life insurance policy comes with dual benefits of death coverage and survival benefit. If the policyholder outlives the policy tenure, survival and maturity benefit are offered under a life insurance policy.
  • Q. Should I buy a term plan or a traditional life insurance plan?

    Ans: Buying a term plan over a traditional life insurance policy is a smart move. Even though both these insurance plans provide financial help in case of the untimely death of the policyholder, the difference lies over their maturity benefits. In a traditional life insurance plan, the maturity benefits are ten times the premium amount. While with term insurance plans there are no maturity benefits, the net gains are higher than life insurance plans with maturity benefits. However, the choice should be based on your life goals.
  • Q. Are deaths due to Coronavirus covered by Term Plan?

    Ans: Yes, deaths due to coronavirus are treated as general deaths by term insurance providers. The claims for such deaths are admissible if the Coronavirus was diagnosed post-issuance of the policy.
  • Q. What is the policy term that I should select?

    Ans: If you are looking for online term insurance policy, you should choose a term plan that at least covers you up to the age of retirement or after a few years after your retirement. However, make sure the term insurance premium will not be a burden on you.
  • Q. Is there any advantage of limited pay option in term insurance?

    Ans: The major benefit of a limited pay option is you’re free from paying a term insurance premium for a long policy period. If your policy premiums continue beyond retirement, the term insurance premium probably will be a burden on you. Term policy with limited pay options reduces the chances of policy lapse.
  • Q. What is the solvency ratio in term insurance?

    Ans: The solvency ratio defines how financially strong an insurance provider is. If we consider private firms Sahara Life, DHFL Pramerica, Bajaj Allianz Life, Canara HSBC OBC etc. have a higher solvency ratio in the market. On the other hand, LIC and Future Generali are amongst the lowest solvency ratio. (Data culled from economictimes.com, the year 2017)
  • Q. Is term insurance premium fixed?

    Ans: Term insurance premiums depend on various factors such as age, income, coverage and basis on these it is decided at the time of buying insurance. So, there is no fixed premium.
  • Q. Does life insurance pay if you die of cancer?

    Ans: IIt entirely depends on the life insurance provider. If the policy offers coverage for cancer, then term insurance policy benefits will be provided in case of death due to cancer. If you already own life insurance, you can always have an option to opt for critical illness rider to get coverage for such critical illnesses that could cost a bomb.
  • Q. What is the accidental cover in term insurance?

    Ans: An accidental term insurance policy covers the insured for death due to accident. It can be bought as add-on or rider cover with the basic life insurance cover. A lump sum amount is provided to the family in case of death or disability caused by an accident.
  • Q. Do life insurance companies check your medical records?

    Ans: Yes. This clause is mandatory if the term insurance company doesn’t cover you for pre-existing illnesses.
  • Q. What medical conditions affect life insurance?

    Ans: Below is some of the common health conditions that might affect your life insurance premium:
    • High cholesterol
    • High blood pressure
    • Heart-related diseases
    • Obesity
    • Diabetes
    • Cancer

News Around Term Life Insurance

HDFC Life to Buy Exide's Life Insurance Unit

Published on 6th September 2021

In a big announcement, HDFC Life Insurance stated that its board has granted a full acquisition of Exide Life Insurance Company's shares. The total acquisition amount is Rupees 6,687 crore.

Here are the key details:
  • All aspects of the process, including acquisition and subsequent HDFC life Exide life insurance merger, are subject to regulatory approvals.
  • HDFC Life stated that customers will be able to benefit from a stronger product range, a wider distribution network, and more service touchpoints.
  • It anticipates that synergies will enhance shareholder value and the potential to increase new business margins through operating leverage and product mix optimization.
Deepak Parekh (Chairman, HDFC Life) commented on the proposed transaction & said that it was a landmark transaction and the first of its kind in the Indian insurance industry. He also added that the acquisition will increase insurance penetration and strengthen the purpose of providing financial protection for a larger customer base.
The hdfc life share price is expected to increase after this acquisition.

Read more

eShield Next: A new age protection plan by SBI

Published on 24th August 2021

State Bank of India has recently announced their new age protection plan that levels up the insurance coverage with the milestones of life of the policyholder. SBI Life eShield Next is a non-linked, non-participating, life insurance pure risk premium plan that offers a wide range of benefits by raising the required insurance protection.

SBI Life eShield Next gives a choice of a premium payment term, such as,
  • Single payment
  • Regular payment
  • Payment for a limited period
SBI Life eShield Next with its “level-up” features, offers 3 plan options as per the requirement of the policyholder. The options are as follows:
  • Life cover benefit
  • Increasing cover benefit
  • Level cover with the future-proofing benefit
A policyholder can choose any of the above-mentioned options at the time of policy purchase.
This unique and flexible plan launched by the State Bank of India offers distinctive features that cater to the needs of the customers.

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HDFC Life adopts calibrated approach on term policy sales, CEO says

Published on 9th August 2021

HDFC Life Insurance has adopted a calibrated approach for issuing term insurance policies to monitor costs and price risk in a better way. The company has started writing businesses in customer profiles in which they are comfortable. However, in some cases, they are taking proper cautions where medical examinations are not possible or comorbidities are there. Private Insurers perform rigorous underwriting i.e., the financial one which involves the scrutiny of records and data from the Insurance Information Bureau of India and looking for income proof that is required for buying the supplementary term insurance plan. For term plans, medical examinations are performed amid COVID -19 to make a judgment of the general health of customers.

We all know, risk recompense was a lot higher in these unprecedented times but HDFC Life Insurance was taking calibrated approach. In COVID-19-2020, insurers increased the premium rates of term insurance, but no increase is observed in 2021. After the rise in COVID cases in April and May 2021, the decision was taken by the insurer to increase the provisions. They created an additional mortality reserve of Rs. 700 Crore and in Quarter 1, 70,000 claims related to COVID -19 are paid by the HDFC Life Insurance, amounting to approx. Rs. 950 Crores. Currently, the company is monitoring the pandemic situation and if the third wave results in more destruction than the second wave, the insurer would have to reinforce their reserves. Statistical models are developed to check the deaths and claims related to COVID-19. This time insurer is prepared already to face COVID -19 as they have hired and trained 6,500 new agents in Quarter 1 because people are more comfortable these days in buying policies via digital mode. HDFC Life Insurance is planning to go to Phygital where the applicant just has to blink few times and a facial recognition approach determines whether it is the same individual or not in just 2 minutes. This is quite convenient for Senior Citizens as they can get their annuity payments without stepping out of their houses.

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Major Shifts In Term And Health Insurance Scheme Prices: Q2 Report

Published on 4th August 2021

As per reports, term and health insurance schemes have undergone a drastic shift from Q1 to Q2 when it comes to premium price, age, category, etc.

On one hand, where health insurance witnessed a 4.79% rise to ?25,197, term insurance premium prices rose 2.79% to ?22,524 from Q1. According to sources, there has been a radical increase in the premium prices of health insurance due to the ongoing Covid-19 situation. The overall insurance sector is experiencing an escalation in recent times.

Read more

Rates Of Term And Accident Insurance Remains Unchanged: Says FinMin

Published on 29th June 2021

For the financial year 2021-2022, Finance Ministry has kept the annual premium for policies that fall under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) unchanged.

Even though insurers expected a hike of up to 20%, the annual premium of 330 rupees for a life insurance policy under PMJJBY and 12 rupees for disability accidental death policy under PMSBY continues to remain the same. Hikes in rate were not considered because of income losses due to the ongoing pandemic, said the Finance Ministry.

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Covid-19 Has Turned Term And Health Insurance People’s Top Priority: Study Says…

Published on 29th June 2021

As per the survey conducted by PolicyBazaar.com to celebrate National Insurance Awareness Day, 2021, over 90% of Indians have agreed that term and

health insurance are important for their financial stability and mental wellbeing.

The survey was conducted between 18 June and 21 June to understand the impact of Covid-19 on people and how much awareness they have inculcated when it comes to insurance purchases. It has turned out that Term and Health Insurance are the top priorities while buying any policy.
Read more

Vaccination Certificate Is Now An Entry Token To Buy a Term Insurance Plan In India

Based on the update, Max Life Insurance will issue term covers to people who are 45 years old and above, with an added condition to provide final vaccination certificates with other necessary documents. Read more

Short term insurance market 2021:

Published on 11th May 2021

New research reports on short term insurance market 2021 suggests a thorough analysis of this particularbusiness sphere and is inclusive of all the key parameters of the industry such

as the profit estimations, periodic deliverables, market remuneration, industry share, and prevailing market trends.The report offers a comprehensive study of the present scenario of the market coupled with major market dynamic. Also, it highlights the in-depth market analysis with the latest trends, drivers and its segments with respect to regional and country.
Read more

Fresh re-pricing might be seen in term insurance premiums

Published on 11th May 2021

Talks are making the surface that term insurance premiums could see a further increase this year. Due to high impact of the second COVID-19 wave, death claims have seen a big hike recently
leading to talks of a fresh review in reinsurance rates this fiscal year. It could possibly be in the range of 15 percent to 20 percent. If the move goes through, this would be the second round of increase in premium for term life products in recent years.
Read more

Life Insurance Company Likely To Hike the Term Insurance Premium

The term insurance premiums are expected to increase as the insurers have revised the premiums upward. This is going to be the premiums that life insurers would have to pay to

re-insure the risk. The reinsures increased the premium rates as over the last year the number of claims has been rising. The increase in re-insurers premium rate is because of a rise in the mortality rate amid COVID-19. With an increase in the re-insurer premium rates, the insurers likely would take up the premium of the term insurance policy for the buyers.

As per previous reports, the term insurance premiums were expected to increase up to 40 percent in 2021 as the insurers will take into account the risk emerging. The insurance is one pure risk cover that is payable in case of the life assured is no more. Presently, the cover is economically priced given that the prime influencing aspect is the mortality risk expected on the portfolio or simply, the incidence of loss because of death.

Read more

Bharti AXA Life Flexi Term Pro- A Term Plan With Cover-Up to 99 Years

The Bharti AXA Life Insurance has announced Bharti AXA Life Flexi Term Pro, which is a comprehensive protection solution and offers the alternative to cover life until 99 years
of age. The Bharti AXA Life Flexi Term Pro offers a customized shield that has multiple flexibilities that help to financially safeguard the insured and the family.

This plan also offers a one-year term and an underwriting option of telemedical to individuals that are a prime differentiator in the insurance market domestically. The company has also launched quit smoking as well as fitness benefits for all the customers, which can let them save an additional 5% on the renewal premium subsequently. The customers are likely to get rewarded for a lifestyle that is healthy upon quitting smoking and also improving health status that would lead to reducing the premium within the ‘Stay Fit’ benefits before the second anniversary of the policy and ‘Quit Smoking’ before the third anniversary of the policy.

The Bharti AXA Life Flexi Term Pro has been designed with multiple options and features as per the needs and preferences. The ‘Stay Fit’ benefits and ‘Quit Smoking’ are surely going to be game-changing characteristics and will redefine the protection within the Indian insurance market. The plan is accessible in options namely ‘With Return of Premium’ and the other one being ‘Without Return of Premium’.

When it comes to the option of return of premium, towards the maturity end, 100% premium is given back to a policyholder. When the life insured survives and the due premiums have been paid until the maturity date the maturity sum assured will be payable without GST. On the other hand, with the variant of without return of premium, the customer has the alternative to avail the benefit of joint-life in the equivalent policy that permits the assured to cover the spouse. When the primary life assured is no more, the spouse life cover will continue.

The life cover is accessible until 85 years of age; however, there is also an option of the whole life term coverage until 99 years of age. The Bharti AXA Life Flexi Term Pro also offers the option to choose from the premium payment terms, multiple policy terms and also customize the plan. The plan can also be enhanced by opting for the rider benefit options at an additional premium. The Bharti AXA Life Flexi Term Pro customers will be entitled to tax benefits on the paid premiums and the received benefits as per the existing tax laws. This plan will help in penetrating deep and explore any new segments and expand the term insurance market in India.

Read more

How Covid-19 has Impacted Term Insurance in India?

Similar to the other industries, the Covid-19 outbreak has severely impacted the insurance industry including, health, general, and life insurance. According to market experts, the insurance
industry will be further impacted more as the crisis intensifies.

As far as the life insurance industry is concerned, it normally includes insurance products like pure term insurance policies, savings policies, and investment-linked policies. As per the recent report by PWC India, all these categories of life insurance will be impacted on a broad, however, the reasons will be different for each category.

With the impact of Covid-19, there is an urgency to increase coverage of the term insurance policy. As a result of this, insurance companies are experiencing a boost in demand. However, with people’s cash positioning being unstable, they may be reluctant to take higher coverage. Also, if the buyers will choose higher insurance coverage then they will have to undergo medical tests, which people these days are reluctant to do. Thus, a temporary fall in sales activity is anticipated.

Read more
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Term Insurance Reviews & Ratings
4.6 / 5 (Based on 586 Reviews)
(Showing Newest 15 reviews)
Varanasi, September 16, 2021
Compare plans for free
I have bought a term insurance policy from the poicybazaar and the website has so many plans. I selected the plans according to my needs and requirements and found it much feasible. Thank you policybazaar.
Hariyana, September 16, 2021
Calculator is good
When I bought the term insurance plan online from the website of the Policybazaar. I checked the premium price on the premium calculator page. It is important and useful and I got that plan so easily. Thank you policybazaar.
Punjab, September 16, 2021
View the best plans
I have viewed the best term insurance plans online when I visited the policybazaar site. It is so precious and I have checked few of the plans under my budget. The plan is much effective in nature and I really like it. All thanks to team of Policybazaar.
Amritsar, September 16, 2021
Bought online
I recently bought my term insurance plan online from the website of the POlicybazaar. I really love the services and the team has suggested me the best plan. I am happy that I bought the plan from them as I got the suitable plan for me and my familys security. Great work team.
Delhi, September 16, 2021
Low premiums
With the good plans that are available in the website of the Policybazaar I have got the budgeted one too. I visited the site of policybazaar and searched great number of plans and stick to the one. The premium rate of my plan is super good and easy to buy. Also, it is less as compared to other plans. Kudos team.
Patna, September 14, 2021
Good term policy
SBI life eshield Term insurance policy which i buy from policy bazaar. Insurance gave me more security and more benefits. Service is fast which is given by the company members. Renewal of the plan can be done through online portal service. Thank you team policy bazaar.
Bihar, September 14, 2021
I have taken my term insurance plan from Aviva. The services are very good. They send me reminders for my payments. The tenure is for 30 years. The payments are convenient. I pay it on a yearly basis. I can pay it online. Everything is convenient.
Varanasi, September 14, 2021
Better plan
I do have term life insurance policy with policy bazaar company and the premium is around 9,000 Rupees per annum. The total policy coverage value is around 1 crore Rupees. I can say the response is fine one, also I been with them from the last four to five years of time. I am an old customers.
Delhi, September 14, 2021
Good customer service
I am having the Reliance term life insurance policy and I have purchase this plan from policy bazaar. I been with them from the last three years of time. I would like to say that the customer service pretty good like I would like to say everything is online services as of now. Happy to be policy bazaar customer.
Gaya, September 14, 2021
Best policy
My term insurance is with AEGON Life which i purchased from policy bazaar. It is an individual policy with the coverage value of 75L. This policy will be active till 80 years of mine , it covers all type of death like air accident and road accidents. My friend suggested me this policy. The claiming process was good and anything happens to me then amount will be given to my nominee. Happy to be thier customer.
Patna, September 14, 2021
Satisfied coverage amount
I have taken the term insurance from AVIVA. It covers upto 65 years of my age. It was a cheapest policy on the premium side. I purchased the policy through online from policy bazaar website.They are sending the reminder at the time of renewal. I'm satisfied with the coverage amount.
Bihar, September 14, 2021
Payment method
I had started this Term Insurance a long time back from policy bazaar and the premium had been paying on an annual basis. The premium amount has been nominal and the payment method has been simple. I used to pay the premium through their mobile application which as convenient and their customer support has also been helpful.
Varanasi, September 14, 2021
I bought term plan for Rs. 50 lakhs from policy bazaar, the premium is around Rs.7,200 on yearly basis. I took it before 8 years, policy bazaar customer executives are very professional even I have added one nominee. This plan is really good and the service is nice in terms of the reminder call before the due date. I do have log in access. I am really happy to be their customer.
Varanasi, September 14, 2021
Best insurance
I have bought online Term Insurance Bajaj Allianz Life eTouch Online Term form policy bazaar. It is a shield against financial distress caused due to critical illness, accidental disability and death which ensures that one's family realizes dreams even in the absence of yours. I am highly impressed by policy bazaar services.
Delhi, September 14, 2021
Economical premium
I have taken a term insurance from policy bazaar. I have taken bharti axa term insurance. Policy bazaar has excellent in their services. I purchased this policy online. It has good benefits. It also has a good coverage. The tenure is till the age of 65 year. The payments are done on a yearly basis. It can be done online. And the best of all is the premiums are very economical.
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