Term Life Insurance
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Term insurance premiums are economical with respect to the higher coverage amount it offers. Secure your family's future take the most important decision of tomorrow, TODAY. Make Term Insurance your best friend and protect your family. Calculate the right amount of term insurance at PolicyBazaar and buy instantly.

Term Insurance - Buying Guide Infographic

What is Term Insurance?

Term Insurance is the cheapest form of life insurance that provides death benefits to the beneficiaries of the insured person for a defined period of time. In the event of any unforeseen situation the policyholder’s family is taken care of and financial stability is ensured. The death benefit is payable to the nominee who is usually a family member. You can choose to get a lump-sum amount or a combination of lump-sum and monthly amount as per your requirement. Some Insurance Companies also cover permanent or partial disability wherein the policyholder’s regular income is disrupted. 

Note: In case of survival of the policyholder the coverage at the earlier rate of premiums is not guaranteed after the expiry of the policy. The buyer has to either obtain extended coverage with different payment condition or forgo the coverage entirely. 

Why term insurance plan

Why You Should Buy Term Insurance?

Don’t be short-sighted. Get Term Insurance and secure your family’s future. Save their harassment by financially securing them through a term plan.

In the event of an unforeseen situation who will take care of your liabilities and responsibilities? It is here that the importance of term insurance is felt. The lumpsum that your family will get as death benefit can bring financial stability and pay off the liabilities.

It is the real support that your family can have if something happens to you. Term insurance is important for everyone and especially more for the bread earner of the family.

“Family is not an important thing, it’s everything."– Michael J. Fox

Benefits of Term Insurance Plan

  • Get lumpsum amount in the event sudden death

  • See off all your loans and liabilities

  • Provide money so that your family continues to live with pride

  • Term Insurance also takes care of family in case of your disability or critical illness:

  • Provides supplementary income in case of loss of income due to accidental disability or illness

  • Get lumpsum amount if diagnosed with critical illness

  • Additional sum insured in case of accidental death

Term Insurance Eligibility

Term Insurance Plans in India


Term Plans

Entry Age (min/max)

Maximum Maturity

Sum Assured(minimum)

Claim Settlement Ratio

Aegon Life iTerm

18/65 years

75 years

10 lacs


Bajaj Allianz iSecure Term Insurance Plan

18/60 years

70 years

2.5 lacs


Canara HSBC OBC eSmart Term Insurance Plan

18/70 years

75 years

25 lacs


ICICI iProtect Smart Term Insurance Plan

20/65 years

75 years

25 lacs


Kotak Life Preferred

18/65 years

75 years

25 lacs


LIC eTerm Insurance Plan

18/60 years

75 years

25 lacs


Max Life Online Term Insurance Plan

18/60 years

70 years

25 lacs


PNB MetLife Mera Term Insurance Plan

18/65 years

75 years

10 lacs


SBI Life eShield Term Insurance Plan

18/65 years

70 years

20 lacs



Premium Payment Mode: Single | Regular - Yearly, half-yearly, quarterly, and monthly.

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

  • The amount of preferred sum assured

  • Premium payment option which can be either one-time or regular.

  • Term of the policy

  • Add on protection

Term Insurance Key Features

Key Features of Term Life Insurance Plans

Term Insurance Plans are specifically designed to secure your family's core 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 and during the term of the policy. Such an insurance plan can help your family to have sound financial independence, even if you are not around.

  • Tax Benefits:Term life insurance plans come with excellent tax benefits. You can avail lucrative tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the Critical Illness Benefit also qualifies for a deduction under Section 80D.

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

  • Policy Term : The minimum policy term is 5 years, with the maximum varying from 25 years to whole life span for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years. People can opt for the term plan period they think works for them. Experts suggest going for a longer period term plan as the premium amount generally gets locked and the insured party gets to pay the same premium over the tenure of the term plan for the same amount of cover. 

  • Plan Choice : Term insurance provides flexibility in terms of choosing the plan on single life basis or joint life basis. Single life means that the term plan will only provide cover for the life of the insured party who is generally the breadwinner of the family. A joint life term plan, on the other hand, covers the life of both the husband and the wife through a single term plan. Most term insurance plans offer the term plan on a first claim basis. This means that the term plan pays the sum insured on the expiry of either of the two insured people. There are also other term plans that pay on the death of both the insured persons. 

  • Entry Age : To be eligible for term insurance plans, the minimum age of entry is 18 years, with a maximum age limit of 65 years with optional add on benefits. The premium of the term plan increases with age and people who are looking for a term policy for a longer period should opt for the best term insurance plan when they are relatively young. This will ensure they have a locked-in premium amount that does not change much most of these term plans.

  • Maturity Age : The best term insurance plans are those that offer cover well into the lifetime of the insured. Most term plans offer cover the insured to up to 65-70 years of age. Term plans that have a higher maturity age may also charge a higher premium rate as they offer a term insurance cover against life risks for a longer tenure. Also, the risks increase with age and this is reflected in the premium amount. 

  • 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) plans, 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. This term life 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. Investors 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 plan that meets your needs with our term plan comparison.

  • Death Benefits : On death of life assured during the term of the plan, the nominee or assignee, in case where the policy has been assigned to someone else, will receive the total/ assigned death benefit chosen at the time of commencement. Depending on the type of plan, the death benefit may stay the same over the whole tenure of the plan (standard term plans), decrease (decreasing term plans) or increase (increasing term plans). The insurers provide various options of payment for the termplan. 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.Read more about TROP Plan here.

  • Additional Rider Benefits : Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured are also available. 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 plans. 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
  • Total and Permanent Disability Benefit Rider
  • Accidental Death Benefit Rider
  • Hospital Cash Rider
  • Waiver of Premium Rider


How to Choose the Best Term Insurance Plan:

  • Company reliability : The company’s reputation and stability are very important in any sector of business especially life insurance for the customers to trust. The reputation in the household sector, the FICO score on their funds accumulated.

  • Expenses : We realize that costs have a vital role to play in term protection plans. Hence, search for plans with the least costs which leads to lower premiums in the same cover. Additionally, choose a company that provides discounted premiums to no smokers.

  • Convenience : Over the range of life coverage plans, one discovers the term plans online seeing the most extreme advancement. For one, price and by additional premium rates have been decreased significantly and this procedure is on.

  • Enhanced Cover : It is a special option provided by the online terms plans of specific insurers the chance to enhance their life cover at their critical situations of the life of the policyholder.

  • Claim settlement ratio : The proportion explains what numbers of settlements have been done per 100 claims. Hence, claim settlement proportion of 100% (exceptionally uncommon) implies the organization has settled each claim

  • Solvency ratio: The steadiness and financial goodwill of the insurance agency are dictated by its solvency ratio. It gives a clear picture whether it can make satisfactory pending claims and develop the business without becoming bankrupt.

  • Riders : The one that gives you all secured edges is the best term insurance plan for you. One approach to accomplish this is through riders. An insurance rider is an extra to the essential plan that offers advantages far beyond the subject of the policy some contingencies.

Term Insurance India - Types of Plans

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 2016. To understand these plans we need to look at them a bit more in depth.


  • Standard Term Life Insurance Plans

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


  • Term Return of Premium (TROP) Plans

    A term 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 plans are increasingly becoming popular as the policyholder gets the money they have invested in the term insurance plan at the end of the policy period.

    These termplans 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 life insurance term policy.

  • Group Term Insurance Plans

    Group term insurance policies 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 policies are offline as each policy is generally customised to suit the needs of the group taking the policy.

  • Term Insurance Plans by Number of Years

    Insurance companies also provide term insurance plans for a specific number of years. These term plans are called level term plans in industry parlance as the nominees receive the same level of death benefit if the worst comes to pass during the tenure of the term policy. However, some companies also provide decreasing term options.

    The amount of premium to be paid each year in these term plans generally remains the same throughout the whole tenure of the policy. In some instances, term insurance companies may increase the premium every few years for some longer term insurance plans. These term life insurance plans can range from 5 years to 30 years . The policyholder can further renew the plan for an additional period of the same tenure, subject to him or her meeting the conditions laid down under the plan for renewing the term policy. The level term insurance plans do not generically provide a maturity benefit as the focus is to keep the premium low.


    5 Year Term Insurance Plans: In a 5 year term insurance plan the premium remains the same throughout the period of five years and the term insurance buyers have the option to pay the premium monthly, quarterly, half-yearly or annually. Some term insurance plans may provide a higher death benefit for annual premium payment than for say the other periods, say a month. 

    The half yearly premium payments together are lesser than the quarterly ones, which are in turn lesser than the total of the monthly payment amounts for the term insurance plans.


    The 5 year term plan is suitable for:

    • Individuals who have short-term financial goals.

    • People who are retired and want an additional cover for five more years. 

    • Citizens with lower premium potential.


    10 Year Term Insurance Plans: A 10 year term insurance plan is a standard term policy that can be taken for a decade. The reason is the longer period of insurance cover.


    As with other such types of term plans, the premium for the policy generally remains the same throughout the period of the plan. The term plan insurance companies offer different premium payment options from single premiums to annual, half-yearly, quarterly and monthly premium amounts. Generally the single premium amount is lower than the total of the annual premiums, which in turn is lower than the total of the premiums paid through the other modes of payment. 


    A 10 year term plan is ideal for:

    • Long term coverage and future financial stability for family. 

    • Future financial responsibilities.

    • Planning for the retirement years till 60 years of age. 

    20 Year Term Insurance Plans: The 20 years term insurance plans provide a life cover for a period of one score years. The premium for these plans is generally higher than that for say 10, 15 or 18 years.The premium stays stable throughout the policy period and may have only marginal increases, if at all. In practical terms it means that the total premium that the person pays for the entire 20 years is actually less than what they would pay if they take a 10 year policy and then renew it again for another decade.


    The 20 year term plans are ideal for:

    • People looking for for long term coverage.

    • Post retirement planning to meet living expenses.

    • Lower premium rates with higher coverage.


  • Decreasing and Increasing Term Insurance Plans

    Decreasing Term Insurance Plans

    The decreasing term insurance plans are renewable term plans where the cover and the premium decrease over the tenure of the term policy. These plans are mostly used by banks and financial institutions who cover their risks against the mortgage or home loan given to their customer by bundling the term plan along with the loan. The term plan ensures the bank or financial institution will get its money back in case the worst comes to pass. Since the loan amount due decreases each year with payment of the EMIs, 


    Increasing Term Insurance Plans

    The cover and the premium increase over the overall tenure of the renewable 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 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.

  • Convertible Term Insurance Plans

    A convertible term plan a saving cum insurance plan which allows the insured to switch later to an endowment policy or a whole life assurance plan. Some companies may offer this plan as a rider to a term plan which means that the individual pays for the term cover as well the rider to be given the option to be able to convert the term policy later to an endowment or any other such plan.

  • Single Life and Joint Life Term Insurance Plans

    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 plan is the best option to go with as it also provides insurance cover for the surviving spouse. 

  • Offline and Online Term Insurance Plans

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


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

    • No commission to be given to agents in online life insurance. 

    • Well-informed decision, since the online term 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 search for the best online term life insurance plans ends at PolicyBazaar. We help you compare term insurance plans available in India by offering lowest term insurance quotes. We also let you compare plans based on features, coverage, etc. Just fill in your basic details like age and annual income earned. Thereafter, we will not only calculate the amount of term insurance you need but also choose the best plans from top insurers. All you have to do is to compare them side by side on parameters of premium, amount of coverage and additional benefits. Thus, you will make an informed choice and buy the policy hassle-free. Get started right away!!  

How does health condition affect premium rates?


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.

What do I need to do to surrender my policy?


Either visit the Insurance Company office in person or submit the request online. You can also surrender your policy simply by not paying your premiums.

Can I change the frequency of payment for my policy?


Yes, you can, but only in case of your policy renewals.  If you were paying your premium annually (low frequency) you can change your frequency to pay half-yearly or quarterly (high frequency) or vice versa.

How can I change my policy details?


In order to change your policy detail you have to submit a written request either online or by visiting the insurance company office in person.

In case I lose my policy document, how do I obtain a duplicate policy?


ou 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 in order to get the duplicate policy.

What is the benefit of opting for riders / add-ons?


The main benefit of riders/add-ons is that it provides additional insurance coverage on your existing insurance policy.  You can get riders/ add-ons by paying some extra amount on your basic policy premium.

What is the difference between nomination and assignment?


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 policy holder.   On the other hand, Assignment is an act of legally transferring the rights of the policy holder (assignor) to another person (assignee).

What details am I to provide about the nominee/s?


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 are correct to avoid any future complications.

Can I change my nominee?


Yes you can change your nominee just by filling up the nomination form and submitting it to the insurance company anytime before the maturity date of your policy.

What is nomination? Who is a nominee?


Nomination is the act of authorizing another person the right to receive the policy money in case of death of the policy holder.
Nominee is the person who, chosen by the policy holder, will receive the policy money in case of the policy holder’s death.

How much premium will be raised in case there are issues with my medical condition?


In case there are issues with your medical condition, your 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.

Why should you split your desired sum assured between multiple policies?


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.

Should I pay my premiums through the agent?


You can pay through the agent only if you are sure that he is IRDA authorized and provides you the receipt after your payment of the premium.  But it is always better and reliable to pay your premiums directly to the insurance company itself.

What are IRDA guidelines pertaining to claim processing?


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 complete the whole procedure within 6 months the company will have to pay interest on the claim amount. 

What is IRDA?


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 policy holders, it promotes  , regulates and makes sure that the development of the insurance industry in India is in order.

What are reasons for the rejection of a claim?


Here are a few main reasons for which a claim may get rejected:
• Lapsed policy: Once your policy is lapsed there is no chance that your claim will be paid any more.
• Avoiding Compulsory medical tests: Some insurance plan ask for some mandatory medical tests. If you avoid those tests your claim may get rejected.
• Mandatory exclusion plans: Some policies are pre conditioned 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 will happen if my claim is rejected and my nominees wishes to re-apply for it?


If your 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. 20lakhs). He can even move to consumer court and claim for above Rs. 20lakhs.  Both the ombudsman and the consumer court have the power to compel the insurer to reconsider his decision.

Who is entitled to receive claim benefit?


The nominee last recorded under the policy is entitled to receive the claim benefits in case of death of the policy holder.

What will happen if death occurs within a year of policy purchase? Will claims be settled?


If death occurs within a year of 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. 

What documents are required for claim settlement?


Following are the documents required for claim settlement:
• Mandatory documents: In case of death claims the mandatory documents include
Original Policy bond
1.Copy of death certificate and self attested by the nominee.
2. Copy of photo identity proof
3.Copy of residential proof
4.Copy of bank passbook of the nominee along with cancelled cheque.
• Additional documents:
In case the policy holder is murdered or killed in an accident, the following documents are required along with the mandatory ones:
1.Copy of FIR
2.Copy of Post Mortem report
In case of non-accidental death of the policy holder, 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 family doctor (optional)

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