34+ Plans | 16+ Insurers | Save upto 50%
  • Rs. 1 Crore
    Term Cover @Rs 16/Day
  • Tax Benefits
    Under Section 80C & 10(D)
  • Extra Benefits
    Accidental, Terminal & Critical Illness
  • 12 Lac+
    Families Secured
*Please note that the quotes shown will be from our partners
*savings provided by insurer

What is Term Insurance?

A term insurance plan is described as a pure life insurance protection plan that can be bought for a particular time period and to provide utmost financial protection to the insured’s family in case of any contingency. As term insurance does not offer maturity benefit, it offers a lower premium rate as compared to the different life insurance policies. In a term insurance plan, a death benefit is offered to the nominee of the policy in the event of the demise of the insurance holder during the policy tenure.

In order to cater to the requirements of the insurance seekers, the insurance companies offer an array of term insurance policies to choose from. As a simplest and comprehensive form of insurance policy, it provides the customers with an excellent opportunity to financially secure the future of their family and their loved ones in the most economical way. To know more about what is term insurance let’s consider the below pointers.

What are the Types of Term Insurance Plans?

The insurance companies offer an extensive range of term insurance policies in order to fulfill the requirement of the insurance buyers. As per one’s own requirements and suitability, the customers can compare various plans online and zero in on a plan. Let’s take a look at the different types of term insurance plans available in the market.

Standard Term Insurance Plans

These are the most common and simplest form of term insurance plan which offers life protection to the policyholder’s family in form of the death benefit in the event of untimely death of the insurance holder during the policy term.  

Group Term Insurance Plans

Group term insurance plan is specifically designed for businesses, companies, societies, and associations.  Group insurance provides life coverage to all the members of the specific group or company. The benefits offered by group life insurance policies are the same as individual term insurance plan. However, group term insurance plans provide high coverage as compared to the individual term plan.

Term Return of Premium (TROP)

Term Return of Premium (TROP) is a type of term insurance plan which offers survival benefit as the return of premium. In case, the policyholder lives the entire term of the policy then the whole premium amount paid by the insurance holder excluding tax is paid back to the policyholder. This plan is a great investment option for individuals who want to create a corpus for a long run along with the benefit of life protection. 

Increasing and Decreasing Term Plans

  • Increasing Term Plan- Under this option of term insurance policy, the coverage provided by the plan increases at a particular duration during the tenure of the plan. The policy calculates the risk according to the rising cost during the term of the policy and compensates  The policy coverage keeps on increasing until the time the policy acquires a value, which is 1.5 times higher than the actual policy coverage.
  • Decreasing Term Plan- Under this option of term insurance plan, the rate of premium payment, as well as life coverage offered by the policy, keep on decreasing at a specific rate during the entire policy tenure. Banks or financial institutions use in order to cover the mortgage or home loan risk offered to their customers. Decreasing term insurance plans are generally used by financial institutions and banks that covers the risks of the home loan or mortgage provided to their customers. 

Online Term insurance Plans

For the convenience of the insurance buyers, most of the insurance providers provide online term insurance policies.  The policy buyers can purchase the term insurance plans online in a very easy and simple way. Along with an easy option of premium payment, the insurance buyers can also compare various term insurance plans online and zero in on the most beneficial plans according to their own requirement and suitability. Moreover, online term insurance plans also offer reliability and transparency to the customers.

Why Term Insurance is better?

Many insurance buyers do not consider investing is term insurance plans as it only provides a death benefit in event of the demise of the insured and does not offer any add-on benefit or profitable returns. However, on the other hand, there are many benefits to purchasing a term insurance policy. Some of these benefits offered by term insurance plan are:

  1. Financial Protection-Term Insurance plans are the simplest and best way to create a financial protection net. As the term plans financially secures the dependents of the life assured in case of his/her unfortunate demise.
  2. Offers Affordability-Along with the death benefit, there are various other additional benefits offers by term plan at an economical premium rate.
  3. Adequate Coverage- the insurance buyers can choose the coverage of a term insurance plans by comparing a wide range of term insurance plans online.
  4. Survival Benefits- A traditional term insurance plans do not offer any survival benefit. However, there are many insurance companies which offer Term return of Premium Plan (TROP) under which maturity benefit is provided to the policyholder in case he/she survives the entire tenure of the policy.
  5. Low Claim Rejection- As the policy tenure of term insurance plan is more than 10 years; the ratio claim rejections are observed to be lower.  Therefore, purchasing a term insurance plan is ideal if the individual wants to make sure that their claim is honored. 
  6. Riders- Along with the basic life coverage the term insurance plans provide add-on rider benefit to enhance the coverage of the policy. The insurance buyers can buy rider benefit by paying an extra premium along with the basic premium of the policy.  Some of the riders offered by term insurance plans are accidental death benefit, critical illness, partial and permanent disability and waiver of premium.
  7. Tax Benefit- Term insurance plan also offers the benefit of tax exemption to the insured on the on the premium amount paid U/ S 80C of Income Tax Act 1961. Moreover, the death benefit offers by term plans are also applicable for tax exemption under section 10(10D) Income Tax Act 1961.

What are the Best Term Insurance Plans

Since every term insurance buyer takes different insurance prospects, the term insurance providers offer multiple range of best term insurance plans to cater the requirement of the insurance buyers.

Insurers 

Term Plan

Entry Age

Maturity Age

Sum Assured

Claim Settlement

Premium( For coverage amount of 1Cr)

Max

Online term Plan Plus

Min-18 years

Max-60 years

70 years

Min-Rs.25lakhs

 Max-No upper limit

97%

Rs.893 per month

PNB Metlife

Mera Term Plan

Min-18 years

Max-65 years

75 years

Min-Rs.10 lakhs

Max-no upper limit

91%

Rs1401\ per month

Aegon Religare

I Term

Min-18 years

Max-65 years

75 years

Min-25 lakhs

Max- No upper limit

97%

Rs1286 per month

Bharti Axa

Life eProtect

Min- 18 years

Max- 65 years

75 years

Min-Rs.25lakh

Max-No upper limit

92%

Rs992 per month

IDBI

iSurance Flexi Lumpsum Plan

Min- 18 years

Max-

50years

80 years

Min- Rs.50lakh

Max- no upper limit

90%

Rs1509 per month

Bajaj Allianz

iSecure

Minimum-18 years

Maximum-60 years

70 years

Min-Rs.20 Lakh

Max- No upper Limit

91%

Rs.1266 per month

Edelweiss Tokio

My Life

Min-18 years

Max-60 years

80 years

Min-Rs.25 lakh

Max- No upper limit

93.2%

Rs1046 per month

 What are the Benefits of Buying Term Insurance

As we have already talked about what is term insurance plan, let’s take a look at the benefits offered by term insurance plans.

  1. Offers death benefit as lump sum amount to the nominee of the policy in the event of the decease of the policyholder.
  2. Term insurance plan takes care of loans and liabilities.
  3. Offers financial security to the family of the policyholder so that they can continue to maintain a good lifestyle.
  4. The term insurance policy also offers supplementary income to the policyholder in case he/she is suffering from income loss due to accidental disability or critical illness.
  5. In case of accidental demise of the insured an extra sum assured amount is paid to the beneficiary of the policy if the policyholder has opted for accidental rider benefit.

What are the Features of Term Insurance

The major aim of a term insurance policy is to offer financial stability to the policyholder’s family in case of an unfortunate event or decease of the insurance holder. Besides this, there are many other features of term insurance plan.  Let’s take a look at some of the features offered by the term insurance plan.

  1. Entry Age- The term insurance plans offers minimum age eligibility of 18 years, whereas, the maximum age eligibility to purchase a term plan is 65 years. Along with the increase in age of the policyholder the premium rate of the policy also increases. Therefore, it is recommended to buy a term insurance plan at a young age so that one can secure their family’s future at an affordable premium rate.
  2. Maturity Age- The most advantageous term insurance plans are those which offer coverage to the policyholder within the lifetime. Most of the term insurance plans offer a maturity age of 65-70 years. The plan which offers a higher maturity age also has a higher rate of premium as it provides insurance coverage for a period of long-term. Besides this, the age of an individual plays as an important factor to determine the premium amount of the policy as the risk factor also increases simultaneously.
  3. Death Benefit- In case the insurance holder expires during the tenure of the policy then the insurer pays a total sum assured amount to the nominee of the policy as a death According to the type of policy chosen by the policyholder the amount of sum assured remains the same during the entire term of the policy. According to the type pf policy chosen by the insurance holder, the death benefit is paid as lump-sum or at particular intervals of time. 
  4. Maturity Benefit- A traditional term insurance policy doesn’t offer any maturity benefits. However, if one wants to avail survival benefit then he/she can choose to invest in term return of premium plan (TROP).
  5. Tax Benefit- Term Insurance plan also offers the benefit of tax exemption. The insurance holder can save on taxes U/S 80C and 10(10D) of Income Tax Act 1961. Additionally, the premium paid by the policyholder towards critical illness benefit is also qualified for tax benefit under section 80D of Income Tax Act.
  6. Survival Benefit- A traditional term insurance plan does not provide any maturity benefit. However, in order to provide a comprehensive policy to the insurance buyers, many insurance companies offer Term return of Premium Plan (TROP). Under the TROP plan, the entire premium of the policy is returned to the policyholder as maturity benefit in case of his/her survival at the end of the policy tenure. As compared to the pure term insurance plan, the premium rate of TROP is higher and is a remunerative option of investment for individuals who want to gain the combined benefit of insurance cum savings.
  7. Policy Tenure- A term insurance plan offers a minimum tenure of 5 years whereas; the maximum term period of the policy can differ from 25 years to entire life. For single premium payment policy, the tenure of the policy ranges from 5 years-15 years.
  8. Additional Rider Benefit- An extra coverage is offered under term insurance policy accompanied by basic policy coverage as add-on rider benefit. In order to avail the rider benefit, the policyholder will have to pay an extra premium along with the basic policy premium. let’s take a look at the rider benefits offered under term insurance plans. 
  • Critical Illness Rider
  • Accidental death benefit rider
  • Hospital cash rider
  • Premium waiver rider
  • Total and permanent disability benefit rider

What are the Important Things to Consider before Buying Term Insurance

As there are inclusive ranges of term insurance plans offered by the insurance companies, it is very important to consider the various important aspects before purchasing a term plan. Before we get into the details of what is term insurance, here are the important thinks that should be kept mind while purchasing a term insurance plan.

  • Determine the amount of coverage.
  • Assess the budget and needs.
  • Choose the right insurer.
  • Determine the period of the policy.
  • Choose a suitable payout option.

Smokers/Drinkers Criteria in the Term Insurance

The insurance companies verify the smoking habit of individuals in different ways. Some of the common questions asked by the insurer are:

  • Do you consume nicotine/tobacco products?
  • Have you consumed a nicotine/tobacco product in the past 4 years?

Moreover, apart from these questions the insurance companies also do not differentiate between frequent smokers and occasional smokers. Even if an individual is an occasional smoker then he/she will fall into the category of smokers. 

The premium charges of term insurance plans for smokers are higher as compared to non-smokers because the life expectancy ratio of smokers is low and they are more prone to chronic diseases like lungs cancer, heart problems, and bronchitis.  The higher premium to be paid by the insured varies from insurer to insurer. Apart from the smoking habit, there are various other factors considered by the insurance company while determining the premium rate of the policy.

Types of Death that are Not Covered under Term Insurance

The term insurance provides death coverage to the family of the insured in case of natural death of the insured, accidental demise of the insured or death caused due to a health issue. Besides this, there are certain cases which are excluded under the term insurance plan.

  • Suicidal death is not covered under the policy.
  • The policy does not provide any death coverage in case of self-inflicted injuries.
  • Death due to HIV/Aids is not covered under this plan.
  • Death due to overdoes of drugs or intoxication is also not covered under the plan.

Does Term Insurance Covers Death Outside India?

Yes, the death occurred outside India is covered under the term insurance plan, provided the insurance holder has updated this information with the insurance company. In case if the policyholder lives outside India then he/she will require to mention this fact while purchasing the term plan. However, if the if the insured lives in a country which is marked as unsafe by the insurance companies like Myanmar, Pakistan, Somalia, etc. then the policy company declines this facility.  Death coverage outside India is valid in countries like UK, USA, Australia, etc.

Can NRI’s Buy Term Insurance?

Yes, NRI’s can buy a term insurance plan in India. The process of availing term insurance plan for NRI’s are very simple and hassle-free. The person living abroad can apply for a term insurance plan in 2 ways.

  1. The individual can purchase the term plan while visiting India. Once the individual completes all the formalities related to the underwriting of the policy, the policy will be considered the same as other policies purchased by an Indian citizen.
  2. By the process of mail order business, the NRI can purchase the plan from the country he/she is presently residing in. The policy will be verified by an Indian diplomat, notary, and official of the Indian The NRI students applying for term insurance plan can also approach supervisor or dean for verification.

Why you should Consider Purchasing 1 Crore Term Plan?

With the rise in inflation, a term insurance policy with high coverage amount has become a necessity more than a choice. Nowadays, an individual earning an average salary can also secure his/her family with a higher sum assured amount of Rs. 1 crore after his/her demise.

1 crore term insurance plan can be purchased by individuals falling between the age group of 30-35 years. If an individual is a single breadwinner of the family or having a more earning years should consider purchasing 1 crore term insurance plan. However, while considering purchasing a 1 crore term insurance plan, it is very important to consider the important aspects of the policy like:

  • Premium rate offered by the policy.
  • Claim settlement ratio of the company.
  • Features and benefits offered by the policy.
  • The riders benefit offered by the policy.
  • Inclusion and exclusion mentioned in the policy documents.