Term insurance policies are a type of life insurance plan offered by insurance companies to guarantee a safeguard for one’s family and dependents in the event of one’s death or disability by providing financial coverage against the premiums paid by the policyholder if the policy is active. The coverage amount, known as the sum assured, is paid as a “death benefit” in the event of the insured's passing during the policy term.
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Term insurance plans are comparatively the most affordable life insurance policy as they provide large amounts of coverage against relatively low premiums. This is because term plans are purely risk-based – meaning the entire sum paid by policyholders as a premium is kept in reserve for payouts if the policy is claimed. If the policy matures or expires while the policyholder is still alive, there is no monetary benefit. In case of survival of the insured beyond the policy maturity date, the policy buyer has to renew his coverage, presumably under different payment conditions, or forgo their insurance entirely.
Most term insurance policies also offer some payout in the event of permanent or partial disability through critical illness or accident, such that the policyholder’s regular means of livelihood is disrupted.
There are several options for purchasing term insurances, as various insurance companies offer different types of insurance packages targeting different types of individuals. Readers should be aware of the following details with regards to term insurance:
The below table lists some well-reputed and popular term insurance plans.
Popular providers of Rs. 50 Lakh term insurance policies:
Insurer | Life cover | Max Limit | Claims settled | Rider policies* | Montrly premium* | |
ICICI Prudential iProtect smart | 50.1 Lakh | 85 years | 97.8% | Waiver of premium cover | Free | Rs. 972 |
100% payout on terminal illness | Free | |||||
Extra payout on accidental deatr | Rs. 58 | |||||
Cover against 34 critical illnesses | Rs. 142 | |||||
Max Life insurance Smart Secure Plus | 50 Lakh | 85 years | 99.2% | Get your premium back at age 55 | Free | Rs. 972 |
Early payout on terminal illness | Free | |||||
Option to skip premiums | Rs. 49 | |||||
Extra payout on accidental death | Rs. 62 | |||||
Waiver of premium | Rs. 15 | |||||
Cover against 64 critical illnesses | Rs. 416 | |||||
PnB MetLife Mera Term Plan Plus | 50 Lakh | 99 years | 97.2% | Child education support benefit | Rs. 40 | Rs. 627 |
Cover for spouse | Rs. 418 | |||||
Waiver of premium and 100% payout in case of terminal illness | Rs. 141 | |||||
Extra payout on accidental disability | Rs. 16 | |||||
Extra payout on accidental death | Rs. 82 | |||||
Extra payout on cancer and heart attack | Rs. 53 | |||||
Extra payout on 10 serious illnesses | Rs. 186 | |||||
Aegon life iterm | 50 Lakh | 100 years | 98.0% | 100% payout on terminal illness | Free | Rs. 615 |
Extra payout on accidental death | Rs. 48 | |||||
Canara HSBC OBC iSelect Star | 50 Lakh | 99 years | 97.8% | 100% payout on terminal illness | Free | Rs. 736 |
Cover for child | Rs. 368 | |||||
Edelweiss Tokio life Zindagi+ | 50 Lakh | 80 years | 97.8% | Extra 50% cover for spouse | Available | Rs. 563 |
Cover for spouse | Rs. 19 | |||||
Waiver of premium | Rs. 26 | |||||
Enhanced critical illness | Rs. 180 | |||||
Death due to accident | Rs. 52 | |||||
Disability due to accident | Rs. 42 | |||||
Hospicare benefit | Rs. 169 | |||||
Aditya Birla Capital Digishield Plan | 50 Lakh | 80 years | 97.5% | Early payout on terminal illness | Free | Rs. 680 |
Extra payout on accidental death | Rs. 74 | |||||
Cover against accidental disability and death | Rs. 159 | |||||
Cover against 4 critical illnesses | Rs. 170 | |||||
Cash for hospitalization | Rs. 1051 | |||||
Waiver of premium | Rs. 35 | |||||
SBI life insurance eShield | 50 Lakh | 80 years | 94.5% | 100% payout on terminal illness | Free | Rs. 812 |
Extra payout on accidental death | Rs. 53 | |||||
Additional benefit on accidental disability | Rs. 42 | |||||
Bharti AXA Premier protect | 50 Lakh | 75 years | 97.3% | Extra payout on accidental death | Rs. 51 | Rs. 435 |
Cash for hospitalization | Rs. 138 | |||||
Kotak life Kotak e-term plan | 50 Lakh | 75 years | 96.3% | Cover against 37 critical illness | Rs. 294 | Rs. 514 |
Cash for hospitalization | Rs. 138 | |||||
ICICI prudential POS – iprotect Smart | 50 Lakh | 65 years | 97.8% | Extra payout on accidental death | Rs. 239 | Rs. 640 |
India first e-term plan | 50 Lakh | 65 years | 96.7% | Death due to accident | Rs. 144 | Rs. 344 |
Disability due to accident | Rs. 129 | |||||
Critical illness | Rs. 1340 | |||||
Exide life insurance Elite term plan | 50 Lakh | 65 years | 98.1% | No riders available | Rs. 420 | |
Exide life insurance Smart term edge comprehensive | 50 Lakh | 55 years | 98.1% | No riders available | Rs. 681 | |
Aditya Birla Capital Lifeshield plan | 50 Lakh | 80 years | 97.5% | Early payout on terminal illness | Free | Rs. 695 |
Cover against accidental disability and death | Rs. 159 | |||||
Cover against accidental death | Rs. 74 | |||||
Cover against 4 critical illnesses | Rs. 170 | |||||
Cash for hospitalization | Rs. 1081 | |||||
Surgical care | Rs. 842 |
*The premiums and rider costs mentioned in the above table are values calculated for Rs. 50 lakh term insurance for a 25-year-old, non-smoking male, and only meant to act as a guide for comparison purposes. Policy premiums are subject to change with market conditions and will vary based on the health and income of the policy seeker. Readers are therefore encouraged to conduct their own due diligence before applying to a life insurance policy.
There are several reasons why one might opt for a Rs50 Lakh term insurance policy at various stages of their life –
The advent of online term plans has allowed consumers to easily compare various options and choose the one most appropriate to their needs, as well as calculate the premium required as per their requirements for coverage. Online term plans often provide significant discounts compared to the alternative, as the insurance agencies make savings on the expenditures associated with physical insurance policy sales through agents. Consumers can now leverage the increased convenience and superior savings from the comfort and safety of their homes.
It should, however, be noted that most of the policy plans mentioned in the above table will compulsorily require an official medical health check-up before the buyer can be enrolled in the policy. This is because insurance providers will take the policyholder's health into account while assessing their risk profile to determine a suitable premium.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
**Tax benefit is subject to changes in tax laws.