Is Term Insurance Worth it in 2025?

The short answer is yes. Term life insurance is one of the most affordable and effective ways to protect your family's financial future. It offers a high coverage amount at a relatively low premium, ensuring that your loved ones are financially secure in case of your untimely demise. However, choosing a term plan is a long-term commitment, so evaluating your needs, comparing available options, and understanding how it fits into your financial planning is essential. In 2025's changing economic and lifestyle landscape, reviewing whether term insurance still meets your goals is more important than ever. But is term insurance good? Let's learn to find out: Is it worth buying term insurance?

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What is Term Insurance?

Term insurance is a life insurance plan specifically designed to provide financial protection to your family members in case of an unforeseen event. It offers a high sum assured (life cover) at affordable premiums and ensures that your family remains secure financially even in your absence. Term plans provide life cover without an investment component.

Many people often wonder, "Is term insurance a good choice?" The answer depends on your financial objectives. If your main goal is to protect your family's future from life's uncertainties, term insurance can be a smart option. It ensures that your loved ones receive a lump sum payout in the event of your untimely demise, helping them cover expenses, repay loans, and manage daily living costs.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

Is it Good to Buy Term Insurance?

The answer to buying term insurance is good is Yes. Buying a term life insurance plan is an important financial decision. It helps you secure a stable future for yourself and your family. In the unfortunate event of the life assured's death, the plan offers financial protection to the nominee or beneficiary, ensuring they receive the payout. This payout, also known as the 'mortality benefit,' helps your loved ones manage expenses and maintain financial stability.

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5 Reasons Why Term Insurance is Worth It?

Purchasing a term insurance plan is one of the most reliable ways to ensure that you and your family have adequate financial protection to face the challenges of life.

Here is a list of reasons why buying term insurance is good:

High Life Cover at Low Cost:
A term insurance plan is the most reliable type of life insurance known for being highly affordable. One of the main benefits is that it offers extensive coverage at a much lower premium than other life insurance policies. Buying a term plan at a young age is even better because premiums are lower, and you can get higher coverage for the same price.
Cover for Illness:
A serious illness can happen to anyone at any time, and the medical costs can quickly drain your savings. That's why it's wise to be financially prepared. If you have a family history of critical diseases or simply want to be safe, adding terminal illness cover to your term plan is a good idea. This option is usually available at a small extra cost and can provide essential financial support during difficult times.
Tax Benefits:
Term insurance also offers tax savings under the Income Tax Act, 1961. You can claim deductions on the premiums you pay under Section 80C. Also, benefits from Term Return of Premium (TROP) and maturity payouts are exempt under Section 10(10D). With term insurance you can enjoy term insurance tax benefits.
Add-on Benefits:
You can enhance your term plan by adding riders for extra protection, such as accidental death cover, critical illness cover, or disability benefits. These term riders come at a small additional cost, but the options and features may vary between insurers. Always check the details before making a choice.
Peace of Mind:
Finally, term insurance offers peace of mind. Knowing that your family members will be financially protected in case of an unfortunate event allows you to concentrate on the present without worrying about their financial future.

How to Increase the Value of your Term Insurance Plan?

To make the best use of your term insurance, you need to plan ahead and keep track of your changing needs. Here are some simple tips to ensure your policy gives you the proper protection at every stage of life:

Buy Early for Lower Premiums
The younger you are when you buy term insurance, the cheaper your premiums will be. Locking in a low rate early means you save money in the long run while getting a high coverage amount.
Choose the Right Coverage Amount
Check how much coverage you need. Consider your loans, income, and family's future expenses, like education and daily living costs. This ensures your loved ones will have enough financial support without you being under- or over-insured.
Choose the Right Policy Term
Choose a policy term that matches your life goals such as like paying off loans, funding your children's education, or reaching retirement. Ensure the coverage lasts as long as needed, or even a little longer, to cover unexpected situations.
Add Riders for Extra Protection
You can enhance your policy coverage by adding riders such as critical illness cover, disability cover, or a premium waiver. It is always suggested to choose riders that suit your health risks and lifestyle to prepare you for unforeseen events.
Review and Update Your Plan
Life changes, such as marriage, children, new loans, or job shifts, can affect your financial needs. Review your policy regularly and update it when necessary. You can adjust your existing plan or even buy an extra policy if your current one lacks coverage.

How to Buy Term Insurance From Policybazaar in 2025?

You can buy term plan insurance online by following the steps below:

Step 1: Visit Policybazaar and go to ‘term insurance’ plan
Step 2: Enter your name, gender, contact number, and date of birth
Step 3: Fill in your smoking habits, educational qualifications, occupation type, and annual income
Step 4: Select the most suitable plan and proceed to pay

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month 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 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/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 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/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 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/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 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 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.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.