Term Life Insurance is like buying a safety net for your family. You pay a small amount of money (premium) every month or year for a certain number of years (policy term) to keep this safety net active. If something happens to you, the insurance company pays your family a significant sum of money (Sum Assured). This money can help them pay bills and manage household expenses. But if nothing happens to you during the policy term, you get nothing back. It's a way to ensure your family is safe if the unexpected happens.
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Table of Content
Term insurance is a pure life insurance plan that provides financial protection to the policyholder’s family members. In case of the unfortunate death of the policyholder during the policy term, the nominee/beneficiary receives a death benefit as stated under the chosen term plan.
Example: An 18-year-old healthy and non-smoking male can buy a cover of Rs. 1 Crore for his family for the coming 12 years. If he buys a term insurance plan, then he will only have to pay Rs. 525/pm, excluding all the taxes.
Get term life insurance plans starting at Rs.17 per day. Compare and buy best term insurance plan in India online from the top 15+ insurance companies at PolicyBazaar and choose the plan that fits your needs.
Here is a list of the best term insurance plans in India 2023 for you. These term plans are listed on the basis of various factors, including affordable term premiums rates, flexible payout options, coverage, and reliability of insurance providers.
|Insurance Company||Term Insurance plans||Entry Age||Max Maturity Age|
|ICICI Prudential Life Insurance||iProtect Smart||18-65 years||99 years|
|HDFC Life Insurance||Click 2 Protect Super||18-65 years||85 years|
|Max Life Insurance||Smart Secure Plus||18-60 years||85 years|
|Tata AIA Life Insurance||Tata AIA Sampoorna Raksha Supreme||18-60 years||100 years|
|PNB Metlife Life Insurance||Mera Term Plan Plus||18-50 years||80 years|
|Canara HSBC Life Insurance||iSelect Smart360 Term Plan||18-60 years||99 years|
|Aditya Birla Sun Life Insurance||ABSLI DigiShield Plan||18-60 years||85 years|
|Kotak Life Insurance||Kotak e-Term||18-65 years||85 years|
|SBI Life Insurance||SBI eShield Next||18-65 years||100 years|
|Aegon Life Insurance||iTerm Comfort||18-65 years||70 years|
|IndiaFirst Life Insurance||e-Term Plus Plan||18-65 years||65 years|
|LIC Term Insurance Policy||LIC New Tech Term Plan||18-65 years||80 years|
*You can easily use a term insurance calculator to calculate the premium amount of your chosen term plan.
Here is a list of 3 reasons why buying term life insurance is important:
To Protect your family’s future: Being a sole earning member of your family, you are responsible for the well-being of your parents, spouse, and children. Buying a pure term life insurance plan is important to make sure that your family is able to meet their financial obligations even when you are not around.
To Protect your assets: You might have built different assets, such as an office, vehicle, or home, through loans. This plan ensures that the weight of these borrowings will not cause any financial difficulty to your family after you.
Stay Prepared for uncertainties: Just like life insurance plans, in case of your unforeseen death, the benefits from a term insurance plan can help your family pay for their regular expenses and also accomplish their long-time objective.
This means your family is in safe hands when you are not around.
Anyone having financial dependents should buy a term plan which includes parents, married couples, self-employed, businessmen, young individuals with parents (dependents), and retirees, in some cases. Let’s understand in detail why these individuals should buy term plan
|Types of Individuals||Term Insurance Plan Benefits|
|Non-resident Indians (NRIs)||
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Financial Protection for the Family
In case of the unforeseen event of demise during the tenure of the policy, the nominee/ beneficiary of the term plan receives the total death benefit chosen at the time of commencement. He/she can also select to receive a regular income along with a lump sum payment in case of your absence.
Long term coverage
You can choose long term coverage till 99 years to leave a legacy for your loved ones at a premium you can afford. This long term cover benefit is one of the important factors that you need to check when looking for the best term insurance plan.
Higher Sum Assured at Affordable Rates
Term life insurance plans offer a large amount of life coverage at an affordable premium rate. This life cover can pay for several years of lost income.
Protection from Critical Illnesses
Various term plans also provide critical illness benefits to help you get good treatment for different life-threatening diseases/ailments without worrying about the expenses or bills. Policyholders can easily avail of critical illness cover for diseases mentioned under the plan by buying a critical illness rider with a term plan.
Coverage against Disability
Accidents can occur anytime, anywhere and may lead to permanent or temporary disability. Disability coverage with a term policy will provide financial support to your family in case of accidental disability. This can be availed by paying additional premiums.
A standard term policy does not provide any survival benefits if you outlive the policy term. However, a term plan with a return of premium plan (TROP) also provides you with a lump-sum payment or regular income in the form of guaranteed benefits to help you achieve varied financial objectives. This plan pays back the sum that is almost equivalent to the total amount of premium paid. You get these guaranteed payouts at the end of the term insurance plan tenure.
Multiple Premium Payment Options
Term plans offer you the flexibility to choose the premium payment term. You can either choose regular payment through the policy term or the limited pay option.
A term insurance plan offers tax savings benefits up to Rs. 1.5 Lacs on the premium amount paid under section 80C of the Income Tax Act, 1961. The death benefit paid under this plan is exempted from taxes under section 10(10D).
However, the maturity benefits of term policy will be tax exempted under the new budget only if the annual premiums of the policy are less than 5 Lacs. For term plans bought after 1st April 23, the maturity proceeds will be taxed if the overall premiums exceed 5 Lacs. Maturity proceeds from policies purchased before 30th March 23 will remain tax exempted as they will follow the previous budget rules.
A lump sum payment is paid to your dependents in case of the policyholder’s death under the selected term plan.
You can get the option to get benefits under a term plan in the form of regular monthly income, with a lump sum payout based on the variant chosen.
Term riders can be added to the base term plan for enhanced benefits in case of accidental disability, accidental death or critical illnesses at an affordable premium rate.
Let’s discuss the different features of a term life insurance plan:
Low entry age: Term insurance plans offer a low entry age, and people as young as 18 years old can buy term policy.
Long-term protection: The term plan offers long-term protection, i.e., you can stay covered under a term insurance plan till 99/100 years of age.
Flexible Cover: Term policy offers the customer the flexibility to increase their life cover as per their needs. For example, you can increase your sum assured to fit your changing needs on getting married, having children, or getting loans.
Easy to buy: You can compare and buy term plans easily in just a few clicks from the comfort of your home. The documents submission, premium payment, and all other customer concerns can be submitted online.
Flexible Premium Payment Options: You can select from a wide variety of easy premium payment options when buying the most suitable term plan online.
Protection Against Liabilities: The term insurance plan also helps in providing safety for the dependents from your fiscal liabilities such as loans or any other debts that you have. They can easily pay all the debt amount from the benefits received.
Death Benefits in Installments: While buying a term life insurance plan, you can select for the death benefits to be paid in regular installments.
When it comes to looking for the best term insurance policy, there is no one plan that fits all your needs. You should align your requirements with the available plans to find what suits your needs the best. Here is a list of term plans offered by various insurers, along with their benefits:
|Type of Term Plan||Benefits|
|Basic term plan||Death benefit is offered in a lump sum amount at low premium rates|
|Convertible Term Insurance Plan||Convert limited period term insurance plan into whole life insurance|
|Term Insurance with Return of Premium(TROP)||Upon maturity, receive a return of the paid premiums, along with death benefit payable on death during the policy term|
|100% Refund of Premium at No Cost term insurance||This term insurance plan variant allows you to exit at a specific stage and receive all the premiums paid at the end of the policy|
|Term insurance for Housewife||You can purchase term policy using your husband’s annual income for the additional financial security of your family|
|Term Insurance for Self-employed and Business Owners||People with unsteady flow on income can secure their family against business loans and liabilities in their absence|
|Term Insurance for NRI||NRIs can buy term insurance plan in India via tele/video medicals and get GST waiver of 18% with additional 5% discount on annual premium payment mode|
|Coronavirus Term Insurance||Secure your family in case of an eventuality caused due to COVID-19 with coronavirus term insurance plan|
|Term Insurance for Diabetics||Now, you can buy term insurance plan even if you have pre-diabetic or have type 2 diabetes at affordable premium rates|
|Saral Jeevan Bima||People with low income and educational qualifications can buy term plan to financially secure their loved ones|
A term life insurance rider is an additional benefit or add-on cover that increases the coverage of the base term plan. These term riders are added at an extra rate over and above the rates of premium and can be selected as per your requirements. In simple words, the rider aims to strengthen term insurance with numerous benefits apart from its base benefits.
Let us take a look at some of the important term riders that you can add to your base term insurance plan:
|Rider Name||Key Benefits|
|Accidental Death Rider||This term rider provides the rider sum assured in addition to the base sum assured, to the nominee of the term life insurance policy in case the policyholder suffers an unfortunate death due to an accident within the policy tenure.|
|Accelerated Death Benefit Rider||The entire/part of the sum assured is paid to the policyholder in advance if the policyholder is diagnosed with a terminal illness.|
|Critical Illness Rider||The rider sum assured is paid to the policyholder in a lump sum, on the diagnosis of any of the critical illnesses specified under the term life insurance.|
|HospiCare Benefit Rider||Under this term rider, the life assured receives a fixed amount for every day spent at the hospital. If the policyholder is admitted to the general ward or the ICU of the hospital, the insurer pays a fixed percentage of the sum assured.|
|Accidental Total and Permanent Disability Rider||The rider sum assured is paid to the policyholder in case of a total and permanent disability due to an accident during the policy tenure.|
|Waiver of Premium Rider||This rider waives off future term life insurance premiums if the policyholder is unable to pay the premiums due to a job loss caused by a critical illness or permanent total disability.|
You can buy the best term insurance plan in India online by following the below steps:
Step 1: Visit PolicyBazaar and go to Term Insurance
Step 2: Enter basic details like Name, DOB, and Phone no. and click on ‘view plans' button
Step 3: Submit details about your occupation type, annual income, educational qualifications, and smoking habits
Step 4: Compare the policy details of the different term plans available
Step 5: Select the term life insurance plan that fits your requirements the best
Step 6: Proceed to pay via net banking, debit or credit card
While buying a term policy, we always have questions like which term insurance plan is best and how to compare the best term life insurance plan. Here are steps that may help you choose the best term plan for yourself:
Step 1: Consider your dependents and life stage, and assess your current lifestyle
When you secure a life cover, your age and financial condition set the groundwork for choosing the right plan. Also, it is important to understand how to select a term policy on the basis of your lifestyle requirements. Your lifestyle involves spending habits and a basic living standard. When you have a clear idea about your lifestyle requirements, you can protect your family more efficiently.
Step 2: Check for current liabilities
Liabilities and debt are other important parameters when choosing the right term life insurance plan. Sometimes, people have loans to repay over a long period. In case the policy term does not cover the time of repayment or if the amount falls, it can be financially difficult for your dependents.
Step 3: Add term policy riders to the Base Plan
In this option, the policyholders can enhance the coverage of the term policy under particular circumstances or critical situations by the use of riders. They can be attached to a base term life insurance at the time of purchasing a rider by paying an additional premium
Step 4: Check the claim settlement ratio (CSR) of the insurer
Term insurance claim settlement is the % of claims paid successfully by an insurer compared to the total number of claims received in a fiscal year. The ratio of claim settlement is released by the IRDAI every year. A claim settlement ratio that is consistently good indicates that the insurance provider has been quick and robust in its claim settlement process.
Step 5: Solvency Ratio
The solvency ratio of a term plan provider tells us if the chosen insurer is financially capable of settling the claims if the requirement arises. As per IRDAI, every insurance company should maintain a solvency ratio of at least 1.5.
Step 6: Go through the Customer Reviews and Experience
Go through real customers’ reviews and see their experience with the insurer. You should opt for an insurance company that prioritizes its customers and strives to resolve their issues at the earliest. You can also take a look at the company’s Persistency Ratio (declared by the IRDAI) to understand how many customers decide to stick with the insurance provider.
Step 7: Look at the Term Policy Details
Take a good look at the policy documents to get a better understanding of the policy details. Ensure that the term life insurance policy benefits fit your requirements. You can also consult your financial advisor to make sure you are clear about all the terms and conditions of the term policy.
Step 8: Select the most suitable Benefit Payout Option
Most term insurance plans offer the policyholder the option of choosing their most suitable benefit payout option. You can select the benefit amount to be paid to your nominee in a lump sum, regular/monthly income, a combination of lump sum + regular income, or increasing monthly income. If you are the main income earner of the family, you might want to consider opting for the regular income options as they can act as the new monthly source of income in case of your unfortunate demise.
Step 9: Pay the Term Life Insurance Premium
After choosing the best term policy that suits your needs, you can proceed to pay. You can buy a pure term insurance plan online easily in minutes by entering a few details and making a secure payment to buy term plan online.
++All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply.
One of the main factors in selecting the best term life insurance plan for the financial protection of your family is deciding on the right sum assured option. Below are the options available for sum assured amounts that are best for you:
|Types of Documents||Description of Documents|
|Income Proof||For Salaried Individuals
For Self Employed
Audited balance sheet and profit loss document certified by CA for last 2 years
|Address Proof||Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt|
|Medical Proof||Latest medical reports allocated by the insurer|
Ans. Term life insurance is a pure risk cover that the insurer provides in exchange for regularly paid premiums. These plans offer financial protection for the nominees by providing them with the death benefit in case of the policyholder’s death during the policy tenure.
Ans. Term life insurance ensures that the death benefit selected is paid to the nominee in case of the policyholder’s untimely death during the policy term. The term insurance premiums depend on the age, health, and mortality of the person.
Ans. At the end of the term life insurance, the policy will simply expire. In case of regular term plans, no benefit will be paid on survival, whereas, in case of TROP plans, the premiums paid will be returned.
Yes, Term insurance can be considered the best option. This plan can be a cost-effective choice for pure life coverage without investment components, suited for those seeking affordable protection.
A term plan is called term life insurance because it provides pure risk protection to the life of the policyholder for a pre-specified policy term. At the end of the policy tenure, the policy will expire, and the insurer will end its coverage benefits.
Anyone between the ages of 18 to 65 years is eligible to buy term plan in India. However, the eligibility conditions for each plan may differ. Therefore, it is advised to always go through the policy’s documents to ensure you are eligible to buy the specific term life insurance.
Whether a term policy is better or a whole life insurance, the answer depends on your individual needs, as for a person looking to secure their loved ones for a limited period, a term policy might be a better option. Whereas, for people looking to secure their loved ones for their whole life and leave a legacy for their family, whole life insurance might be a better option.
Term insurance is often considered the most affordable life insurance option because it offers pure risk protection, and there is no investment aspect to it. These plans offer long-term protection, and you can even choose to receive all the premiums paid throughout the policy at the maturity of the policy term.
Term insurance offers budget-friendly life coverage, ensuring financial security for your loved ones in case of your untimely demise. It is an ideal choice for providing a safety net.
The age limit to buy term plan varies on the basis of term plan you choose. The minimum age is 18 years, and the maximum age is 65 years.
Yes, you can have 2 term insurance policies as long as the total cover amount for both policies is within your human life value.
Yes, accidental death is covered in term insurance, and in case of the policyholder’s accidental death, the base sum assured will be paid to the nominee. However, there is also an accidental death benefit rider that you can add to the base plan at nominal premiums and ensure your loved ones receive an additional rider sum assured on top of the base sum assured for a financially secure future.
You can buy term plan online by following the below-mentioned steps:
Yes, you can get money back in the term plan by opting for the term return of premium (TROP) variant or the 100% refund of premium at no cost. The term return of premium plan will return the premiums paid throughout the policy at the maturity of the policy term, whereas the no cost term plans will return the premiums only if the policyholder exits the plan early during a specified period of the policy tenure.
The 4 types of term life insurance plans available in India are as follows:
The best insurance company for term plans depends on the individual financial needs and preferences. It is advisable to choose a company that offers competitive premiums, extensive coverage options, and a strong track record of claim settlements. Always compare multiple plans and choose one that aligns with your specific requirements and budget.
The biggest advantage of term plan is that it provides financial coverage to your loved ones in your absence at affordable premiums. You can also get comprehensive coverage in exchange for nominal premiums by adding riders to the base plan.
The difference between term and life insurance is as follows:
Both term life insurance and life insurance plans offer tax benefits as per the prevailing tax laws under the IT Act of 1961.
Before purchasing term insurance, you need to assess your annual income, your monthly expenses, your remaining loans, and potential inflation. Ideally, the life cover of your term life insurance plan should be at least 10-15 times your current annual income.
The best age to buy term insurance plans is as soon as possible because the premiums for term life insurance increase with age. Thus, it is suggested that you purchase a term plan as early as possible to ensure a large sum assured for your family at the most affordable premium rates.
Yes, term insurance is tax free and you can avail of tax benefits as per the prevailing tax laws under sections 80C and 80D on the premiums paid and under section 10(10D) for the returns received as per the Income Tax Act of 1961.
Yes, the term insurance will payout the base sum assured on the natural death of the policyholder during the policy term.
At the end of the policy term, the insurer will stop covering the policyholder as per the term life insurance benefits and on survival, there will be no benefit payable for regular plans, and the premiums paid will be returned to the policyholder in case of a term return of premium plan.
A 1 crore term insurance is a term life insurance that offers the base sum assured to the nominee of 1 crore on the death of the policyholder. These plans are available at low premiums, as low as Rs. 446, payable monthly and can offer coverage up to 99/100 years of age.
The best term insurance plan for a 1 crore policy depends on various factors like age, health conditions, annual income, and more. You can get the best term policy for yourself by comparing the available plans online on the basis of the plan’s features, benefits, CSR, customer reviews, and solvency ratio.
Yes, women of all backgrounds can take term insurance plans. Whether a woman is a housewife, a salaried woman, or a self-employed woman, they can now easily buy term plans to secure the lives of their loved ones in the event of their unfortunate absence. The term insurance plans for women are available at Policybazaar, which are up to 30% more affordable premiums than premiums for males.
The best term insurance for women depends on a person’s individual needs. You can check out and compare the available term life insurance from different insurers on the basis of their CSR, solvency ratio, customer reviews, premium rates, policy term, and sum assured offered.
Here is a list of 4 best term insurance plans for women in 2023:
Yes, now housewives can also buy term plan by presenting their husband’s annual income proof while buying term policy.
Yes, you should buy Term Insurance for housewife to secure the life of her dependents. Even though housewives do not contribute financially, they still help in stabilizing the family’s finances. The payouts from these plans can help you deal with the financial implication of losing a loved one.
Yes, you can purchase Term Insurance plans without income proofs with PolicyBazaar from the following insurers.
You can visit PolicyBazaar for more information about these plans.
Term Insurance is necessary for self-employed individuals as the income of these individuals may be unstable, and the term plans may provide the required security that the family of the policyholder will be financially protected in the event of the policyholder’s unfortunate demise.
Yes, NRI is eligible to buy term plans from India. The term insurance for NRIs can be purchased from India by scheduling medicals online via tele or video channels. These plans also provide an 18% GST waiver on the premiums paid.
You can calculate Term Insurance premium rates by using the term insurance calculator from PolicyBazaar. All you need to do is fill in your age, required sum assured, suitable policy term, and gender in the calculator and the lowest applicable premiums for your profile will be displayed at the bottom.
The lowest premiums for a 50 Lakh Term Insurance plan start from Rs. 446/ month.
Saral Jeevan Bima is a pure risk protection plan that offers death benefits on the death of the policyholder to the nominee and does not offer any survival benefits. The limit of the sum assured is much lower for these plans, i.e., starting from 5 Lacs, and thus the plans are available for low-income individuals at low premium rates.
Yes, PolicyBazaar helps in settling claims as they provide 100% Dedicated Claim Assistance for free.
The difference between Term Insurance and health insurance is that term plans offer a sum assured on the death of the policyholder, whereas health insurance offers a sum insured on the diagnosis of a health issue during the policy coverage. The term plans offer a guaranteed benefit amount, whereas health policies offer a variable benefit amount based on the expenses incurred by the policyholder.