Term Insurance

Term insurance is a life insurance plan offered by an insurance company that provides comprehensive financial coverage against premiums paid for a limited period to the beneficiary of the policy; this coverage, provided under term insurance plans, is paid as death benefit upon the demise of the insured during the policy term.

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

What Is Term Insurance?

Term insurance is a life insurance policy that provides financial coverage to the beneficiary of the policy if the life insured dies during the active term of the policy. A term insurance plan provides life insurance cover against the fixed premium paid for specified "term" of the year. As a pure protection plan, the term insurance policies offer higher insurance coverage at a lower premium rates. For example: an individual can purchase 1 crore life cover at a lowest premium rate of Rs 490 per month.

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. Some Insurance Companies also cover permanent or partial disability wherein the policyholder’s regular income is disrupted.

Note: In 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 Insurance?

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 fulfils vital life goals such as education and 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 Plan 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.

Best Term Insurance Plans in India

InsurersTerm PlanClaim Settlement RatioMax Maturity AgePremium (for a cover of 1 crore)
ICICI PrudentialiProtect Smart Lumpsum97.8%85 yearsRs. 704/month
HDFC LifeC2PL Life Protect99.07%85 yearsRs. 767/month
Max LifeSmart Term Plan Life Cover99.22%75 yearsRs. 654/month
Tata AiaTATA Maha Raksha Supreme Lumpsum99.1%100 yearsRs. 927/month
Bajaj AllianzLife Cover98%85 yearsRs. 638/month
PNB MetlifeMera Term Plan-Full Lumpsum payout97.16%99 yearsRs. 585/month
Aditya Birla Sun Life InsuranceABSLI LifeShield Plan97.5%80 yearsRs. 623/month
India Firste-Term Plan96.65%65 yearsRs. 463/month
Aegon LifeiTerm98%100 yearsRs. 479/month
SBI LifeeShield94.52%80 yearsRs. 589/month

Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

Term insurance offers flexible plan options to suit the needs of every individual. You can choose:

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


Benefits of Term Insurance Plan

Benefits of Term Insurance Plan

A term insurance policy is a must for every person and one cannot articulate its importance completely. Term insurance plans are the only life insurance products that are especially designed to solve a 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

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

  • Tax Benefits

    Term insurance plan comes loaded with tax benefits on the term policy premiums paid. New-age term 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 Plan, 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 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.

  • Maturity Benefits

    Term insurance plans 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 plans 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. Policy holders 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.

Best term Insurance Plans in India

Key Features of Term Insurance Plan

Term Insurance plans 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.

Let’s take a look at the salient features of the term insurance Plan.

  • 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 products.

  • Easy to Buy

    Buying a term insurance 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 conduct thorough research in regards to the same and only then make an informed decision of buying an online term insurance policy.

  • Long-term Protection

    Choosing the right term life insurance plan for 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 cover through individual Plan. Choose the additional optional benefits for your term insurance plan 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 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 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 term plan, also qualify for a deduction within Section 80D.

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

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

Types of Term Insurance Plans in India

There are a number of term insurance 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 insurance 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 insurance plan is easily available PAN India and is offered by various insurance companies. The rule is simple the younger you are when buying this type of term insurance plan the premiums will be that pocket-friendly.

  • Standard Term Insurance Plan

    A standard term 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 insurance 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 term insurance plans that are specially designed for businesses, companies, societies, associations or large families and provide 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 Insurance 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 plans 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 Insurance 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 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 Insurance 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 the alternative to convert the plan into some other plan in the coming times and accordingly select a date. For instance, if you had taken a term insurance plan let’s just assume for 25 years, however, after 5 years, you intend to convert this into any other plan like an endowment plan or any other plan, you can go ahead.

  • Single Life and Joint Life Term Insurance Plan

    A joint term insurance plan works out to be cheaper than buying two individual term insurance plans. Moreover, the features and benefits remain the same, ensuring both the members get the same advantages of the plan.
    These policies are ideal for a couple with children as 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 Insurance 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. For instance:
    No commission to be given to agents in online term life insurance. Well-informed decision, since the online term plan space gives a lot of scope to compare the choices. There are quite a few online life insurance plans that may suit your requirements. A smart way to look at online life insurance plans is to compare term insurance plans side by side and pick the term plan that makes sense. Choose your online term insurance plan using our term plan comparison options.
    Your hunt for the best online term insurance Plan ends at PolicyBazaar. We go extra miles to serve you with the best term insurance quotes that suit your budget and requirements. Just provide us with the minimum basic details such as name, age, income and here you go. We not only suggest the quotes but also calculate the premiums for you. On the basis of our suggestions, all you need to do is to compare term insurance plans and opt for the best deal. Do you compare on the basis of certain parameters like premium offered, claim settlement ratio of the insurer, tenure, coverage etc. This way we help you make an informed decision while suggesting the best available options in a hassle-free manner.

Why is It Important to Compare Term Insurance Plans?

can always be a daunting task for insurance buyers. Different insurance providers offer a different type of term insurance plan and each plan varies from another based on various factors. Thus, in order to choose the best plan as per one’s own requirement and suitability, it is very important to compare term insurance plans online before zeroing in on one.

While comparing term insurance plans, it is very important to check the various aspects of policy such as Insurance Coverage, Maturity Age, Claim Settlement Ratio etc. By comparing the quotes of various term insurance plans, the policy buyers can choose the plan which fulfils their requirement at an affordable premium rate.


Term Insurance Comparison

For the 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 Smart Term Plan 18 years/60 years, 65 years 10-30 years, 12-30 years Regular Pay N/A 97.03%
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- No upper limit 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


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.

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 life insurance 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 insurance 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.

What are the Factors that Affect Term Insurance Premium?

Listed below are some of the major factors that affect term insurance premium:

  • Age: It is a general belief that when a person is young, then they are less prone to life-threatening diseases. This means that a young person will be paying more number of term plan premiums as the policy term would be long when compared to someone who is old and most likely will make term insurance claims soon.
  • Gender: As per some studies, it is believed that women tend to survive for a longer span in comparison to men. This implies that women will end up paying more term insurance premiums, which means that the premium amount will be low comparatively.
  • Policy Term: The longer is the policy-term, the more will be the term insurance premium as the insurance provider will have to provide cover for a long time that means higher risk. Therefore, small-term insurance will have a low premium when compared to the long-term plans.
  • Profession: In case an individual is involved into a job profile with a probability of high risk of accidents such as transport, mining oil, shipping, and much more the term insurance premium for such profiles will be high when compared to the job profile of someone who has a desk job.
  • Individual Health: In case an individual has a common disease or illness such as obesity the underwriters will scale the person on a high risk. For instance, in the case of an obese person chance are of high blood pressure and heart-related ailments that could even lead to stroke. Under such circumstances, the term insurance premium will be on a higher side when compared to the person who is physically sound and fit.
  • Medical History of the Family: Another important factor that affects the term insurance premium is the health condition of the family members. In case, the insured’s family members have a history of diseases, for instance, cancer, heart-problems then there are high chances that the insured might also get ill, which ultimately increases the term plan premium amount.
  • Smoking/ Drinking Habits: This is one key factor, which affects the term insurance premium. There are high chances of health concerns due to the regular consumption of alcohol or smoking as it might affect the individual adversely.
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Term Insurance Buying Guide

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 for 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 insurance policy. 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 company 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 plans 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.

Pros and Cons of Term Insurance Plan

If an individual wants to invest in term insurance policy, then it is important for them to consider the pros and cons of term plan before purchasing it.

Pros Cons
Offers lower premium at younger age With the increase of age the premium also increases
Beneficiary can avail larger death payouts  No maturity benefit is offered under the policy.
Can be converted to whole life insurance Application can be rejected is there is a significant health issue.
Offers tax benefit U/S 80C of the IT Act. If the policyholder outlives the policy tenure, no policy benefit is offered.

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: 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 discounts on the term insurance premiums. Therefore, use term insurance premium calculators online, grab the best deal, and save on money.

Reasons to Buy Term Insurance 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 offline term insurance plans, because the overall cost of purchase is low. Moreover, while purchasing the term plan online, most of the insurance companies do not ask for any medical test. Medical test of the insurance buyer is 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 plans 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 policy, 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.

Who Should Buy a Term Insurance Policy?

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 benefit as term insurance plan provides tax benefit 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 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: Purchasing a term insurance policy at a young age is more beneficial as compared to buying a policy at an old age. This is because the term policy offers a very low premium rate to the young individual as compared to the old policy buyers. Moreover, one can also secure the financial future in the long-term by buying a term insurance plan while being young.
  • 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.

How Does a Term 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, 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 sum assured amount is paid as monthly income from the first month of 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.

Why buy from Policybazaar?
Lowest Price Guaranteed
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.

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.

Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

Term Insurance Claim Process in the Event of Death

The steps to process a claim for a term insurance plan is mentioned below:

  • Filing the Term Insurance Claim

    • The very first step is to file a claim. One can follow any of the below steps to file the claim:
    • Go to the claims section available on the official website of the insurance provider for intimating the claim.
    • Or call the toll-free number of insurance providers for intimating.
    • Or Go to the nearest branch office of the insurance company.
    • E-mail the insurance provider for claim intimation email id provided.


    A claim is formally registered and accepted only after receiving a written request for claim settlement with a duly signed and filled claim settlement form with other relevant documents. An individual should file a term claim via phone call or by visiting the nearest branch of the insurance company for the quick claim process.

  • Claim Process in case of Death

    The process of claim settlement starts when the nominee of the policyholder submits a duly filled and signed claim form with all the supportive and valid claim documents. The list of all the required documents is given below:

  • Document required in case of natural death

    • Documents of term insurance policy
    • Copy or original death certificate of the life insured.
    • Duly filled and signed the claim form.
    • Statement of the claimant
    • Any other documents as required by the insurance company.
  • Document required in case of accidental death

    • Police investigation report, police FIR report
    • Medical reports and hospital certificates including the discharge and admission summary of the policyholder, test reports, death summary, etc.
    • Statement of attending doctor/s, certificate released from the medical attendant.
    • Report of post mortem
    • Statement of the claimant
    • Any other relevant documents as asked by the insurance provider.
  • Filed Term Insurance Payouts and Claim Approval

    As soon as the insurance provider verifies all the required documents and then accepts the claim, the payouts will be made according to the payment options present in the term plan. The payouts are usually given via ECS, for which the nominee should submit the details of the bank, photocopy of the passbook of the bank account, and canceled cheque. Some insurance providers may need these details attested by the concerned bank, so do check the same.

  • Some Important Aspects Related to the Claim Process of Term Policy

    • If the nominee dies with the insured, then the payouts of the policy are given to the next legal heir.
    • If the nominee dies before the policyholder, then the policyholder should appoint some other person as his/her beneficiary before the expiration of the term plan.

What is not covered in term insurance?

Before purchasing any term plan, it is very important for policy buyers to go through the terms and conditions of the policy and check all the exclusions mentioned in the policy documents. However, term insurance Plan come with only one exclusion i.e.

Suicide Exclusion: In case, the life insured (sane or insane) commits suicide within 12 months (1 years) from the date of policy inception or from date of revival of policy, the policy terminates immediately. In such cases, the beneficiary of the term insurance policy receives only the total term life insurance premium amount paid by the insured from the insurance company (inclusive of extra premium, if any, but exclusive of applicable charges and taxes imposed by the government).

Apart from the above, there are other exclusions as well, which come under critical illness riders. If any of these exclusions are found at the underwriting stage of the term insurance policy, then no benefit will be offered. Let’s take a look at the exclusions, which come under critical illness riders.

  • Any health condition or ailment that has been suffered by the life insured/ were diagnosed/or receiving treatment within 48 months before the policy initiation date, the insurance provider will not provide insurance protection under critical illness rider of term plan.
  • The critical illness rider offered by term plan does not provide coverage in case of intentional self-inflicted injuries, self-abuse, attempted suicide, psychological disorder, etc.
  • The external congenital anomaly, which is in the accessible and visible part of the body, is not covered under the critical illness rider offered by the term insurance plan.
  • The critical illness rider offered by the term insurance plan, does not provide any benefit in case the life insured delays the medical treatment in order to avoid the waiting period.
  • No critical illness rider benefit is offered by the term plan in case of invasion, war, act of foreign enemy, civil war, revolution, rebellion, strike, mutiny, etc.
  • The life insured will not be entitled to avail the benefit of a critical illness rider offered by term plan, in case the insured is an alcoholic or addicted to drugs and narcotics.
  • Any man-made disasters such as wars or rights which result in the loss of life are not covered under the critical illness rider of an online term plan. Any suffering or damage resulting due to the carelessness of the people is not counted by the insurance company.
  • Thus, no coverage is offered to the insurance holder in such cases.
  • Term Plan does not offer any critical illness rider coverage in case of involvement of the life insured in extreme and risky sports activity such as scuba diving, bungee jumping, trekking, rock climbing, paragliding, skydiving, water sports activity, etc.
  • Term Plans do not offer any critical illness rider in case of sexually transmitted diseases such as AIDS/HIV, the claim made by the beneficiary of the policy is rejected by the insurance company.
  • The term insurance company does not provide any critical illness rider in case of any casualty resulting from the involvement of law violation or unlawful activities. The beneficiary of the policy will be eligible for the claim only in case it is a sudden and unintentional act.
Best term Insurance Plans in India

Term Insurance Riders

Riders are the add-on coverage which can be purchased by the policyholder along with the basic term Plan in order to enhance the coverage of the policy. There are various online term insurance plans which offer riders as an in-built feature of the policy. Before zeroing in on an online term plan it is very important to check what are the in-built riders and add-on riders offered under term insurance policy. The rider benefit can be availed by paying an extra premium to the insurer along with the basic premium of the term policy. Some of the riders offered by the term Plan are:

  • Critical Illness Rider

    With this term insurance rider benefit, the insurance holder receives a lump-sum amount in case of valid diagnosis of any critical illnesses as pre-specified in the policy. The illnesses which are covered under critical illness cover are heart attack, cancer, paralysis, stroke, kidney failure, coronary artery bypass surgery, major organ transplant, etc.

  • Waiver of Premium

    This is one of the most beneficial rider benefits offered under term insurance policy. Under this rider benefit, in case the life insured fails to pay the future premium of the term policy due to a disability or income loss, then all the future premiums of the term plan are waived off and the policy continues to remain active.

  • Accidental Death Benefit Rider

    Accidental death benefit riders can be bought in order to enhance the coverage of the term insurance policy. Under this rider benefit, an extra sum assured amount is paid to the beneficiary of the policy along with the basic sum assured amount in case of accidental demise of the insured person. This rider benefit works as a saviour by offering an add-on payment to the family at the time of financial hardship.

  • Accidental Total and Permanent Disability Rider

    This is an add-on rider benefit offered by the term insurance wherein, an extra sum assured amount is paid to the policyholder in case; he/she suffers from an accidental permanent or partial disability which leads to unemployment. Generally, the insurance companies offer 10% or more sum assured amount per year in order to compensate for the regular income that may happen due to total and permanent disability of the policyholder.

  • Income Benefit Rider

    This rider offered by term plan is specifically designed to generate income after the demise of the life insured. Under this rider benefit, the insured’s family receives additional income every year for the tenure of 5-10 years, along with the regular sum assured amount.

How Much Term Insurance Cover Do You Need?

There are various factors which determine how much term insurance coverage 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 much term 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. 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 cover amount for you, please use the human life value calculator here.

Three Steps to Find the Right Online Term Plan

The best thing about the online term plan is the freedom of the policyholder 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 for 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 it 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 a 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.

  • Different 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 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.

Why buy from Policybazaar?
Lowest Price Guaranteed
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.

Government Term Insurance Schemes in India 2021

Investing in a term insurance plan, which should be included by everyone in their investment portfolio and secure the future of their dependents. In any case, if you are the bread earner or you have a family to take care of then it is prudent that you buy the best term insurance plan and provide stability and security to the family. Likewise, the government of India also offers different term insurance schemes for its citizens to safeguard the future of the dependents of the policyholder.

  • Pradhan Mantri Jeevan Jyoti Bima Yojana

    The Pradhan Mantri Jeevan Jyoti Bima Yojana is accessible for anyone who is aged between 18 years till 50 years and has a bank account giving their permission either to auto-debit or join. Aadhaar will be the essential KYC for the account holder. The life cover of Rs. 2 lakh will be for the one year extending from June 1st to May 31st and can be renewed. The risk cover under this plan is for Rs 2 Lakh if there should be an occurrence of the death of the policyholder. The term insurance premium is Rs 330 for each annum, which is to be auto-charged in one portion from the bank account of the subscriber according to the alternative given by him at the latest 31st May of every yearly inclusion period under the plan. The Life Insurance Corporation and other life insurance providers who are offering it on comparable standing with essential assent and other link-ups with banks are for this reason.

  • Pradhan Mantri Suraksha Bima Yojana

    The Pradhan Mantri Suraksha Bima Yojana is accessible for people who fall between the age of 18 years to 70 years with an account in the bank giving their agreement upon the auto-debit or join at the May 31st for the period of coverage frame June 1st to May 31st on the premise of yearly renewal. Aadhaar to be the essential KYC for the account in the bank. The cover for risk within the plan is for an amount of 2 lakh unplanned demise and full inability and Rs 1 lakh for halfway handicap. The term insurance premium of Rs 12 for each annum is to be deducted from the account holder of the bank through the 'auto-charge' office in one portion.

  • Aam Aadmi Bima Yojana

    The Aam Aadmi Bima Yojana came into existence in the year 2007. It essentially provides financial aid to those people who fall within the low-income category in India. This plan is specifically designed for those individuals who are not on a regular payroll such as auto-drivers, fishermen, etc. This scheme can be availed by anyone aged between 18 years to 59 years. At the initiation of this scheme an amount of Rs 200 is charged as the term insurance premium amount, however, half of the premium amount will be subsidized from the Social Security Fund. In the case wherein the policyholder passes away, as the death benefit the beneficiary will receive an amount of Rs 30,000.

Related Terms

  • 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. Read More

  • Death Benefits

    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.

  • 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. Read More

  • Claim Settlement Ratio

    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. Read More

  • 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. Read More

  • 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. Read More

Term Insurance - FAQs

  • 👉What is term insurance?

    Ans: Term insurance is the purest and simplest form of the life insurance policy, which offers comprehensive financial coverage to the 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.
  • 👉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 plans come 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 are term insurance plans that also give 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 plans also offer 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.
  • 👉Who should buy a term insurance plan?

    Ans: We all know that uncertainty does not come with prior notice. Therefore, it is of utmost importance to secure the financial future of the family. A term insurance plan should be bought by every individual who has financial dependents. The loss of life can never be compensated; however, the term insurance plan enables to tide over the financial necessities of a family. A term insurance plan is important at every stage of life. The earlier an individual buys the term plan; the lower will be the premium. Buy the term insurance plan online at a cost-effective premium.
  • 👉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.
  • 👉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 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.
  • 👉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 fulfil the insurance requirements of the NRI.
  • 👉What are the benefits of buying term insurance online at PolicyBazaar?

    Ans: Buying term insurance online at PolicyBazaar is always advised. You can find a most effective plan by comparing all available options on a click of the mouse. When you buy term plan at PolicyBazaar, you make substantial savings because the policy is directly sold to the person without the involvement of the agent. You can also upload all documents online and submit them to the insurer. There are various insurance policies, which can only be bought online like SBI eShield, HDFC Click2Protect, ICICI Prudential iProtect etc. When a company specifically designs a product for an online market, distribution cost is saved and the benefits of a term plan are transferred to the policyholder. It is a general observation that the claim experience has been better for online customers. Moreover, you can even compare different insurance policies online to see, which plan suits you most. By entering basic details like name, age and type of policy intending to buy, you can get free insurance quotes on a click of the mouse.
  • 👉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 for help.
  • 👉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 dos o but within the free-look period offered within the plan.
  • 👉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 current plan will lapse without any return and the new policy, which you will buy come 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 the plans. For the term plans bought offline, one can consider closing them down after analysing cost difference. Generally, online term plans will be way cheaper with the age factor as well.
  • 👉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 in your existing term insurance policy by paying a nominal charge.
  • 👉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.
  • 👉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 high premium of term plan 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.
  • 👉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.
  • 👉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.
  • 👉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:
  • 👉What documents will I need to buy term insurance plans?

    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.
  • 👉For how long should I buy a term plan?

    Ans: Term insurance plans 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.
  • 👉Can I avail loan on term insurance plans?

    Ans: No, you can’t avail loan on term insurance plans because these policies do not have maturity benefits.
  • 👉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 branch is not easily accessible. Few insurers allow the change through the customer portal.
  • 👉Will the term plan cover me if I am travelling abroad for business/leisure purpose?

    Ans: Yes, a term plan covers an insured even if he/she travels abroad for business/leisure purpose. 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.
  • 👉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 death of the policyholder. Sum assured plays a major role in deciding 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.
  • 👉Can I increase or decrease the value of sum assured in future?

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

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

    Ans: The amount received by nominees at the time of death of a policyholder is called the death benefit.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉Do term plans cover death due to natural disaster?

    Ans: Yes, term insurance plans cover death due to natural disaster, like flood, earthquake, storm, etc.
  • 👉Does the insurance company cover death due to 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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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 product 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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉Are policy conditions different for all term insurance plans?

    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.
  • 👉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!
  • 👉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.
  • 👉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.
  • 👉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
  • 👉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 instalments 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.
  • 👉What if my insurance policy has lapsed?

    Ans: For a regular premium paying policy, the premium has to be paid within 30 days of the due date. It will be 15 days in case selected mode is monthly. The insurance company provides a grace period during, which you can pay the premium and keep the term insurance policy in force.

    However, if the premium is not paid within the grace period, your policy is considered lapsed. Insurance companies offer different ways to revive lapsed policies. Some of them are mentioned below- By paying all the arrears of the term along with interest, you can revive your term plan.

    In some situation, the company offers instalment revival process. It means you can pay arrears and interest in instalment along with regular premium. The balance revival amount is paid in instalments spread over a year.

    You can revive your money back policy by using survival benefits (amount received from the insurance company at regular intervals) to pay the premium and extra charges. If the survival benefit is lower than the revival value, you have to pay the shortfall. If it is higher, you receive excess funds from the company.

  • 👉What is the income replacement plan?

    Ans: Known as a protection plan, an income replacement plan is a non-linked and non-participating term plan. It gives death benefits in the form of the lump-sum amount and ensures an uninterrupted annual income for a family for a specified number of years in case a policyholder dies within the tenure.
  • 👉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.
  • 👉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.
  • 👉What is underwriting?

    Ans: Underwriting is a term used by the 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.
  • 👉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.
  • 👉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 pro-rata basis for the days covered along with medical charges, if applicable.
  • 👉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.
  • 👉What is a claim?

    Ans: A claim is a formal request to an insurance company asking for the 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.
  • 👉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.
  • 👉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.
  • 👉What documents are required for claim settlement?

    Ans: Following are the documents required for claim settlement:

    Mandatory documents: In case of death claims the mandatory documents include Original Policy bond

    Copy of death certificate and self-attested by the nominee.

    Copy of photo identity proof

    Copy of residential proof

    Copy of bank passbook of the nominee along with the cancelled cheque.

    Additional documents: In case the policyholder is murdered or killed in an accident, the following documents are required along with the mandatory ones:

    Copy of FIR

    Copy of Post Mortem report In case of non-accidental death of the policyholder,

    The following documents are required along with the mandatory ones:

    1.Copy of medical and legal cause of death

    2.Copy of medical reports

    3.The certificate issued by the attending physician

    4.certificate issued by a family doctor (optional)

  • 👉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.
  • 👉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.
  • 👉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.
  • 👉What are the reasons for the rejection of a Term Insurance claim?

    Ans: Here are a few main reasons for, which a term insurance claim may get rejected:

    Lapsed policy: Once your policy has lapsed there is no chance that your claim will be paid any more.

    Avoiding Compulsory medical tests: Some insurance plan asks for some mandatory medical tests. If you avoid those tests your claim may get rejected.

    Mandatory exclusion: Some policies are preconditioned to exclude some particular events or loss. If you ask for coverage on such events your claim may get rejected.

    Inadequate or untrue information: If you have not provided some important information (e.g. some pre-existing condition) in the proposal form, your claim may get rejected. Similarly, if you have provided some false information, your claim will be rejected.

  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉What is the difference between a nomination and 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).
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉Can you get cash in term insurance?

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

    Ans: No
  • 👉What is 1 crore term insurance?

    Ans: In such a policy, you will get 1 crore insurance coverage as a death benefit.
  • 👉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 the monetary assistance. If the policyholder survives to the term life insurance policy expiry date, no benefit is offered or the funds are forfeit
  • 👉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.
  • 👉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.
  • 👉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 benefit while a life insurance policy comes with dual benefit of death coverage and survival benefit. If the policyholder outlives the policy tenure, survival and maturity benefit are offered under a life insurance policy.
  • 👉Should I buy a term plan or a traditional life insurance plan?

    Ans: If we compare traditional life insurance plans like term insurance and new-age life insurance, you should go for a life insurance policy that offers both death and maturity benefit. Certain types of life insurance also offer the dual benefit of insurance and investment under a single policy. However, online term insurance comes with additional benefits such as a discount on premium and so on.
  • 👉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.
  • 👉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 option reduces the chances of policy lapse.
  • 👉Which is better term insurance or whole life insurance?

    Ans: Whole life insurance is better as it covers you for the entire life-span with the death benefit to the family in case of the sudden demise of the insured. However, these policies come at a higher premium than term insurance.
  • 👉What is the solvency ratio in term insurance?

    Ans: 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)
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉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.
  • 👉What medical conditions affect life insurance?

    Ans: Below is some of the common health conditions that might affect your life insurance premium: 1. High cholesterol 2. High blood pressure 3. Heart-related diseases 4. Obesity 5. Diabetes 6. Cancer


  • 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 per cent 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.

  • 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 preference. 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.

  • Want to Purchase Term Insurance? Buy Now or Pay up to 40% more

    If you are thinking about purchasing a term insurance plan, then you might need to hurry up a bit. Recently, in April 2020 the term insurance policies experienced a price hike. As per the sources, the premium rate of term insurance plans is most likely to experience another significant increase in the coming months.

    Pure protection term plans offered by the prominent insurance providers like ICICI Prudent Life, HDFC Life, Tata AIA and Max Life observed a hike in the premium rates from 20%-35% in April 2020. The insurance companies that already have revised their premium by a certain percentage will further increase the premium rate by the remaining values. Also, the insurance providers who have not yet increased the prices of the term insurance will increase it in the coming months.

    To determine the premium rate of term insurance policy by the reinsurers, it has been assumed that for every 10,000 lives covered by the term plan, only 3 deaths occur in each policy year. While the expected death number is 3 the actual death issued in the policy year per 10,000 policies is between 4-4.5. Moreover, the claim amount offered under a term plan is massive with an average policy sum assured is around Rs.1 crore. In India, the actual Vs expected ratio is more than expected, which leads to a negative experience in mortality. Thus, as demanded by the reinsurers, to improve this situation the term insurance premium will be revised by 40%.

  • 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.

  • Aegon Life to Launch 1-Year Term Insurance with COVID-19 Cover

    The popular Aegon Life has recently introduced a term life insurance cover along with a novel coronavirus (COVID-19) cover for the expenses incurred in case of 24 hours continuous hospitalization for a sum of Rs 1 lakh in the initial diagnosis of COVID-19. This can be easily bought by using the application of Flipkart. This term insurance policy will remain active for a year, which implies that the bought term insurance and COVID-19 cover will expire immediately after a year from the date of buying the policy. Moreover, neither survival nor maturity benefit will be payable to anyone when the policy expires as this is a term insurance cover. Anyone who is between the age group of 18 years to 50 years can buy this policy and excluding the senior citizens as well. The idea is to offer financial assistance at pocket-friendly life term insurance premium along with life benefits. In case of demise, a life benefit can be availed via the base plan likewise supporting the family of the policyholder. There are certain exclusions to this policy as well, which can be checked on the website of Aegon Life.
  • Term Insurance May Rise in the Coming 03-06 Months

    The premiums for term insurance is expected to increase in the coming months, which means that the complete hike in the term life insurance premiums for 2020 would be 20-40 per cent. According to financial experts, the rise in the premiums is expected in the coming 06 months. In April, some of the prominent life insurance companies had increased up to 20 per cent of the life term insurance premium. The reason for the increase in the life term insurance premium is that the premiums have been revised upwards by the re-insurers. Besides, there has also been a rise in the claim numbers because of, which the re-insurers had to increase the premium rate. There are term insurance companies, which have not yet increased the premium as they are still considering that the hike should be passed on to the buyers of the policy.
Updated: 11 April 2021
Written by Santosh Agarwal
Author | 2 Posts

With an overwhelming experience of almost a decade Santosh has transformed Life Insurance vertical at Policybazaar, both in terms of market share and also bringing in product innovation. She’s our Chief Business Officer for Life Insurance vertical. Her sheer hardwork & perseverance has helped the Company acquire over 50% share in the online term insurance market. If wisdom and simple values need to have a face then that is Santosh.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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Term Insurance Reviews & Ratings
4.6 / 5 (Based on 280 Reviews)
(Showing Newest 15 reviews)
Malpur, April 16, 2021
Compare plans
It is easy to compare the plans into the website of the policybazaar. I visited to the website of policybazaar and searched for various term plans. Compared it and found the best plan. Thanks team.
Mansur, April 14, 2021
Safety shield
I am happy that I found my type of term insurance plan into the website of policybazaar. I really like the features of the plan as it will take care of me and my family after me. All thanks to policybazaar.
Alandur, April 13, 2021
Query resolved
I was facing some issue related to my term insurance policy and it was related to hard copy which I didn’t got. I contacted the customer care of policybazaar for the same and it was resolved in next few hours. I got my hard copy in next 24 hours.
Handia, April 09, 2021
View best quotes
I have found the best term insurance plan at the website of policybazaar and have view the best quotes into the website. The website is good and easy to understand. I like the process of finding the best term plan.
Phoolpur, April 08, 2021
Get the best plan
I had bought a term insurance policy from the website of the policybazaar. I got it for myself and I really like the plan. The customer care team of policybazaar is superb and they suggested me the best plan.
Rairangpur, April 07, 2021
Claim assistance team
The team of claim is quite well and know what to do at any situation. I claimed for my father’s term plan and they released the sum assured amount in few days without any problem. Great team.
Ratlam, April 07, 2021
Affordable plans
It is good to know that policybazaar is providing with great plans of term insurance with less premium rates. It is affordable in nature and I bought one without any hassle. Thanks team.
Mayurbhanj, April 06, 2021
Calculate the premium
My life has become easy and sorted when I bought the term insurance plan from policybazaar. Before buying the term plan I have calculated the premium amount via the term insurance calculator page. Best thing I got to know.
Kotma, April 06, 2021
Bought it online
One of my friend recommended me to buy the term insurance plan online and it is easy to buy without any interference. I searched for various plans at one website and bought as per my convenience.
Roorkee, April 05, 2021
Great offers:
I have availed a huge amount of offers from policybazaar when I bought the term insurance plan from policybazaar. I am happy that team understood my needs and wants related to term insurance plan. I really like it.
Kuthiathode, April 05, 2021
Tax benefits
In my term insurance plan I got the tax benefits which has been a best thing for me and my plan. I pay tax every year and I get the tax rebate for having a term insurance plan. That’s a nice thing.
Satoli, April 01, 2021
Rider benefits
In my term insurance plan I have got to know about rider benefits. It is important to have the rider benefits as it will enhance my term plan in best way possible. I am happy that policybazaar team supported me to get the best plan.
Berhampur City, April 01, 2021
Best insurers
I recently had a term insurance plan from the policybazaar. The policybazaar team has got various best insurers into their list and I liked it. I got a good choice to select the best insurer. Great work team.
Sabang, March 31, 2021
Online paying of premium
I always prefer to pay the premium amount online for my term insurance plan. I really like my plan and have been using the term insurance plan from last 3 years. Definitely I will recommend this plan to everyone in my known. Thanks policybazaar.
Ashok Nagar, March 31, 2021
Online discounts
I recently bought a term insurance plan online from the website of the policybazaar. It is easy to buy and also I got the huge amount by buying a health insurance plan online. I am happy and feel safer after buying this plan. Thanks policybazaar.
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