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Many customers have various term insurance-related questions while looking for a term insurance plan. These questions and answers on life insurance can help customers understand term insurance and buy the best term insurance plan in India. Let us take a look at some of the most frequently asked term insurance questions by customers.
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Here is a list of the most common term insurance questions frequently asked by the customers:
Personal habits like smoking and drinking or consuming tobacco can increase your term insurance premiums. This is because the premiums are determined by the insurer based on your life expectancy and consuming tobacco products can increase your risk to life. Thus, most insurers offer a lower premium for non-smoking customers than for smoking customers. However, if you are a smoker, it is suggested that you buy a term insurance for smokers to ensure the financial protection of your loved ones.
Term Plans
Term insurance is very different from an accidental insurance plan, as an accidental insurance plan provides the benefit amount only if the policyholder suffers an accidental death. No benefit amount is paid in accidental insurance in case of death due to other causes. Whereas a term life insurance pays the death benefit amount in case of death due to accidental and natural causes. You should always refer to the policy documents to better understand the deaths covered and not covered in term insurance plans.
The term insurance premiums, once selected at the time of policy purchas,e may change during the underwriting process to include loading as per your medical conditions, family history, and other such factors. Once the policy has been issued and the premiums have been finalised by the insurance company, the premiums usually remain the same throughout the policy term.
However, if you have opted for an increasing term plan or a plan wherein the documents state that the premiums will increase, the premiums may increase. Therefore, it is recommended that you carefully check the things to consider before buying term insurance, the policy documents, and the terms and conditions of your policy to understand how the premiums may change during the tenure.
Yes, we can get money back in term insurance with maturity benefit if the customer has opted for term insurance with return of premium plan. While regular term plans do not make any payouts on surviving the policy term, the term insurance with return of premium plans pay the entire premium paid (excluding GST, loading amount, rider premiums, and other nominal charges) during the policy tenure, at the termination of the policy. With these plans, you can receive your money back in term insurance after the maturity of the policy.
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The difference between term insurance vs life insurance can be understood via the following table:
| Parameters | Term Insurance | Life Insurance |
| Premiums | Premiums are much lower | Premiums are comparatively higher |
| Death Benefit | Payable on Death | Payable on Death |
| Maturity Benefit | Only payable as a return of premiums | Payable on Maturity of the policy |
| Survival Benefit | Can receive survival benefits in the form of smart exit benefit | Survival benefits as per policy documents will be paid |
| Wealth Creation | No wealth creation benefits | Can create wealth or help save for the future |
| Policy Term | Flexible cover till 99/100 years | Flexible cover till 99/100 years |
| Sum Assured | Large sum assured up to 20 Crores | Comparatively, smaller sum assured |
A term insurance plan mainly provides pure risk protection and can offer a return of the premiums paid based on the type of term insurance you choose. Whereas, a life insurance plan usually offers death benefits on the death, as well as maturity benefits, in case the policyholder outlives the policy term.
Yes, term insurance in most cases does offer the death benefit to your nominee in case the policyholder suffers an unfortunate death outside India. However, it is suggested that you check with your insurer and the policy exclusions of your term plan for a more accurate understanding of the term insurance exclusions for the specific policy.
Yes, NRI customers can buy term insurance for NRI from Indian insurers at premiums up to 20% to 50% lower than international term plans. These plans not only provide flexible benefits like smart exit benefit and return of premium option, but also offer benefits like tele/video medicals and global coverage designed keeping NRI customers in mind. You can also get 5% discount on premiums in annual mode and a GST waiver of 18% on the premiums paid via NRE account that support freely convertible currency.
Yes, term insurance does cover deaths due to ‘Acts of God’ unless stated otherwise in the policy documents. Acts of god in term insurance refers death due to natural disasters or calamities, that are out of human control. It is better to check with your insurance advisor to see the types of deaths covered in term insurance and the reasons for term insurance claim rejection in India.
Term insurance offers tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act, 1961. You should always consult your tax advisor to check the applicable term insurance tax benefits you can claim for your profile.
Yes, you can claim multiple term insurance plans, considering the policy covers the cause of death and other conditions are satisfied. However, it is suggested that you check with your financial advisor how you can secure your family with multiple term life insurance policies.
Now that we have understood what is term insurance and what questions to ask when buying term life insurance, here is how you can buy term insurance online from Policybazaar:
Step 1: Visit the term insurance page of Policybazaar
Step 2: Fill out the name, gender, and other contact information in the form
Step 3: Select the right occupation type, annual income, smoking habits, and educational qualifications
Step 4: Choose the best term insurance plan for yourself and proceed to pay
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
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