Term insurance is a life insurance policy that pays a fixed lump sum called the ‘sum assured’ to your family if you die during the policy term. If you survive the policy term, the policy simply ends with no payout (unless you choose a return of premium option). Term insurance is simply a pure financial product, nothing more. A healthy 30-year-old non-smoker can get ₹1 crore term insurance cover for Rs. 635/month. No investment component. No hidden complexity. Just a financial safety net for the people who depend on you.
Varun Agarwal as the Head of the Term Insurance business, is transforming the way people understand and adopt term insurance. His work centres on demystifying insurance and positioning it as a smart, essential step in financial planning that brings real peace of mind. Watch his recent webinar for simple, practical insights to help you make informed decisions for your family’s future.
Reviewed By:Vivek Jain
Vivek JainChief Business Officer
Mr. Vivek Jain, Chief Business Officer – Life Insurance at Policybazaar, is reshaping the way Indians understand term insurance. With a focus on innovation and impact, he’s driving initiatives that make protection plans more transparent, relatable, and aligned with today’s financial realities. His leadership is helping term insurance evolve from a passive product to an active pillar in every family’s financial roadmap.
Term Insurance: Meaning and Definition
Term insurance is a pure life insurance product that provides financial protection for a specific "term", usually 10 to 40 years. If the policyholder dies within that term, the insurer pays the full sum assured to the nominee. If the policyholder outlives the term, the policy expires with no payout (unless a Return of Premium option was chosen).
No investment component: your premium pays purely for coverage
No maturity benefit: you don't get money back at the end (in the standard version)
Maximum cover at minimum cost: the highest life cover for the lowest premium of any insurance type
Let’s understand term insurance with a simple example:
Suppose Ravi, a 30-year-old salaried professional, buys a ₹1 crore term insurance plan for 30 years by paying just ₹635 per month. If Ravi passes away during the policy term, say in the 14th year, his family receives the full ₹1 crore death benefit to manage household expenses, loans, and future financial needs.
However, if Ravi survives the entire 30-year policy term, no payout is made, and the policy simply expires. This does not mean the money was wasted. Throughout those 30 years, Ravi and his family stayed financially protected against life's biggest uncertainty.
Understand Why, What, and How of Term Insurance…
‘Why’ buy term insurance?
Term insurance helps protect your family's financial future. It can help your loved ones manage household expenses, loans, children’s education, and other financial responsibilities if something happens to you.
‘What’ does it offer?
It provides a large life cover at an affordable premium for a fixed period. Unlike savings or investment plans, term insurance focuses solely on financial protection.
‘How’ does it work?
You pay a fixed premium regularly for the chosen policy term. If the policyholder dies during the term, the insurer pays the sum assured to the nominee. If the policyholder survives the term, the policy ends without a payout in a standard term plan.
Key Features of Term Insurance
Learning about what is term insurance helps you understand how it ensures your family’s future expenses are covered with a low premium. It is the best way to get peace of mind.
Affordability: Term insurance offers high life cover at an affordable premium, making it ideal for individuals who want strong financial protection without putting pressure on their monthly finances.
Pure protection: To understand what is term insurance, it is a pure life cover plan focused only on providing a death benefit, ensuring your family gets financial support in your absence.
Flexibility: You can choose the policy tenure based on your life stage, such as till retirement, till your home loan ends, or until your children become financially independent.
High coverage amounts: Term plans allow you to secure a large sum assured, helping your family manage daily expenses, future goals, and large liabilities with ease.
Supplementary coverage: It works well alongside your savings, investments, and health insurance to build a more complete financial safety net.
Lifestyle-related risks: In 2026, rising lifestyle diseases make riders like critical illness cover increasingly important, helping protect your finances against major health conditions during your lifetime.
Protect your assets: A term plan helps your family repay outstanding loans on your home, car, or business, reducing the risk of losing hard-earned assets during difficult times.
No Maturity Benefits: Unlike other life insurance products, such as endowment or ULIP policies, term insurance does not provide any maturity or survival benefits if the policyholder outlives the term. This is why term insurance is more affordable: the premiums cover only the death benefit.
You can also search What is Term Insurance as:
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Term insurance kya hota hai
टर्म इंश्योरेंस क्या होता है
Term insurance kya hai
Term plan kya hota hai
Insurance kya hota hai
टर्म प्लान क्या होता है
Term life insurance kya hota hai
Term life insurance kya hai
What is term insurance in Hindi
टर्म लाइफ इंश्योरेंस क्या होता है
Term insurance plan in Hindi
Term insurance in Hindi
How Does a Term Insurance Plan Work?
Now that we have understood the term insurance meaning, let us take a look at how term insurance works in India. You choose three things when you buy a term insurance plan:
How much cover amount do you need? - the sum assured, for (e.g., ₹1 crore, ₹2 crore ₹5 crore)
How long do you want to be covered? - the policy term - generally 20-40 years, or up to a chosen age like 65 or 70 years.
How do you want to pay? (monthly, quarterly, half-yearly, or annually).
In exchange, the insurance company promises: if you die during the policy term, your nominee gets the full amount of sum assured as a lump sum, monthly income, or a mix of both, depending on what you chose.
That payout can cover your family's rent or EMIs, your children’s education, outstanding home or car loans, and everyday living expenses without your family having to sell assets or borrow money.
What happens if the Policyholder survives the Policy Term?
In such a scenario, where the policyholder survives the policy term under a standard term insurance plan:
No maturity amount is paid
The policy coverage ends
This is because term insurance is a pure protection plan and not an investment product. However, some insurers offer Term Insurance with Return of Premium (TROP). Under TROP plans, the insurer returns the premiums paid if the policyholder survives the policy term. These plans usually have higher premiums than regular term insurance.
If anyone depends on your income, a spouse, children, or parents, you need term insurance. Here's why 2026 makes it even more urgent:
Lifestyle diseases are rising. Heart attack deaths in India increased by 12.5% between 2021 and 2022. Road accidents claimed 474 lives daily in 2023.
Premiums only go up with age. A 25-year-old non-smoker pays ₹616/month for ₹1 crore cover. By 45, that rises to ₹1,199/month. Buying early locks at low rates forever.
Most Indians are underinsured. According to IRDAI's Annual Report 2024–25, life insurance penetration declined from 2.8% to 2.7%. This highlights the country's large financial protection gap among families.
0% GST on term insurance makes 2026 one of the most affordable times to buy.
Education inflation is real. School fees have risen 50–80% between 2022 and 2025. Your family needs a financial backup in your absence.
Benefits of Term Insurance
After understanding the term life insurance meaning, let us take a look at the term insurance benefits you can avail in India 2026:
High Coverage at Affordable Premiums Term insurance allows you to get a large life cover amount at a relatively low premium. This makes it easier to secure your family’s financial future without putting too much strain on your budget.
Financial Protection for Your Family In case of the policyholder’s unfortunate demise during the policy term, the nominee receives the sum assured. This amount can help the family manage daily expenses, repay loans, or support long term financial goals.
Take Care of Debts/Loans A term insurance plan with a large cover, such as a 2 Crore sum assured, helps the family pay off their outstanding debts, such as home loans, credit card bills, and more. It relieves your family of the burden of home loan repayments.
Protection Against Uncertainties Life can be unpredictable, and term insurance acts as a financial safety net. It ensures that your dependents are supported even if something unexpected happens to you.
Critical Illness Coverage Option Many term plans offer the option to add a critical illness rider. This provides a payout if the policyholder is diagnosed with a listed serious illness, helping cover treatment costs and recovery expenses.
Accidental Death and Disability Benefits With additional riders, policyholders can enhance their coverage to include protection against accidental death or permanent disability.
Flexible Policy Terms Term insurance plans usually offer multiple policy term options, allowing you to choose coverage that aligns with your age, responsibilities, and future plans.
Multiple Payout Options for Nominees Some plans allow the nominee to receive the claim amount in different ways, such as a lump sum, regular monthly income, or a combination of both.
Tax Benefits Premiums paid qualify for tax benefits under sections 80C (up to ₹1.5 lakh), and the death benefit received by the nominee is tax-free under Section 10(10D) of the Income Tax Act.
Provide Peace of Mind With a term insurance in place, you can lead a stress-free life knowing that your family will be financially secure in your absence.
Term Insurance vs Other Life Insurance Plans
Let us now take a look at what is the difference between term insurance and life insurance:
Feature
Term Insurance
Other Life Insurance Plans
Premium
Lower premiums for higher coverage
Higher premiums due to savings component
Investment
No investment component
Includes savings or investment element
Purpose
Pure financial protection
Protection along with savings or wealth creation
Payout
Death benefit paid if the insured passes away during the term
Death benefit or maturity benefit depending on the plan
Policy Term
Fixed coverage period such as 10, 20, or 30 years
Often long term or whole life coverage
Maturity Benefit
Usually not available
Available in many traditional plans
Flexibility
Focused on life cover with optional riders
May include bonuses, savings, or guaranteed returns
Understanding what is term life insurance and how it is different from other types of life insurance is important to make an informed decision about the right insurance for you.
Why Is Sum Assured Important in Term Insurance?
The sum assured is the amount your nominee receives if the policyholder passes away during the policy term. It is the core financial protection offered by a term insurance plan. Choosing the right sum assured is important because it helps ensure that your family can manage essential expenses such as daily living costs, loan repayments, children’s education, and other long term financial needs even in your absence. A well chosen sum assured can help maintain your family’s financial stability and support their future goals
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+
AI Prompts user's are searching for
Created with AI. Errors are possible
Why term insurance is important?
Term insurance is important as it provides a large life cover at affordable premiums, which provides financial security for the family in case of the policyholder’s unexpected death. It helps the family maintain their current standard of living, pay off debts like loan, and other monthly expenses.
Key Reasons Why Term Insurance is Important:
High Financial Protection at Low Cost: It provides large life cover which can be around 10-20 times the annual income, for a relatively low premium compared to other insurance products
Income Replacement: It helps replace the policyholder’s income in his/her absence for the family.
Debt Repayment: The payout can help the family pay off outstanding debts, such as home, business, or car loans, preventing the loss of assets.
Tax Benefits: Premiums paid can be used to claim tax deductions under Section 80C, and the death benefits received by the nominee are tax-free under Section 10(10D) as per the prevailing tax laws.
Peace of Mind: Knowing that your loved ones will be financially secure in your absence provides you with the peace of mind and allows you to live a stress-free life.
Customizable Riders: You can enhance our base policy with riders for accidental death, critical illness, or disability, providing comprehensive coverage.
Term Life Insurance Meaning
Term life insurance is a straightforward type of life insurance that offers financial protection for a fixed term or specific tenure, like 10, 20, 30 years. It pays the death benefit to the nominee if the policyholder suffers an untimely death during the policy term, but if they outlive it, no benefit is paid.
Key Features of Term Life Insurance
Pure Protection: The policyholder gets pure risk protection cover against death due to any reason during the policy term.
Affordable Premiums: Since the premiums do not accumulate any cash value benefit, the premiums are much more affordable.
Fixed Cover Period: The policy will provide for a fixed period, set at the time of buying the policy.
Death Benefit: In case of the policyholder’s death during the policy term, the death benefit will be paid to the nominee.
Benefits of Term Insurance
Income Replacement: The policy offers financial security to dependents, helping them cover their daily living expenses, debt, and future goals like education.
Flexibility: The term insurance plans can be tailored to match the duration of financial obligations, such as a 20-year mortgage.
Tax Benefits: Premiums paid and death benefits received may be eligible for tax deductions or exemptions depending on local regulations.
What Happens When the Term Ends?
If the policyholder outlives the policy term, the insurance expires, and no payout is made. Some policies offer a "Return of Premium" option that refunds the premiums paid if the life assured survives.
Term insurance is good or bad
Term insurance is generally considered very good as it offers large coverage at low premiums, to help protect the family from facing financial debts and loss of income. This pure protection plan, does not have any savings component and thus is designed to provide financial protection to your family and not any return of premiums in case the insured survives the policy term
Why Term Insurance is Good:
High Coverage, Low Cost: The policyholders can get a large sum assured for a very low premium, making it affordable compared to other insurance types.
Financial Protection: These plans make sure that the dependents can manage daily expenses, pay off debts (home/car loans), and maintain their lifestyle if the policyholder passes away
Flexibility and Riders: The term plan coverage can be enhanced via riders for accidental death, critical illness, and disability, providing extra security.
Tax Benefits: The premiums are tax-deductible under Section 80C, and death benefits are tax-free under Section 10(10D), as per the prevailing tax laws.
Why it can be considered ‘Bad’ or Suboptimal:
No Cash Value/Maturity Benefit: In most term life insurance plans, there is no survival benefit; if you outlive the policy term, you receive nothing back (no return on investment).
Temporary Coverage: The cover is offered only for a set period, after which the policy expires.
Increasing Premiums: In case of renewable yearly policy, premiums can become very expensive as you grow older.
What is the difference between term insurance and life insurance?
Term insurance is simply life insurance with a pure protection feature available for a fixed period. The insurance covers the eventuality of death occurring within a specified term by paying a sum to your family members. On the other hand, life insurance comprises policies that not only provide risk protection but also investment components.
Which is the best term insurance plan?
Choosing the best term insurance plan depends heavily on your obligations, needs, and budget considerations. It requires comparing many factors such as claim settlement ratio, premium, and advantages before selecting an appropriate one for oneself.
Can I get term insurance without a medical test?
Yes, some insurers offer term plans without medical tests, for varying individuals with lower coverage amounts. However, these plans might have slightly higher premiums or specific eligibility conditions.
How does term insurance work?
Term insurance functions under the simple principle of payment made for a fixed period at a fixed premium. In case of your death during this period, the nominee will receive the lump sum money.
AI Overview-Summing up
Term insurance is a crucial tool for financial stability if you have dependents or liabilities. It is generally advised to keep term insurance and investments like SIPs separate for better financial management. For those looking for survival benefits, "Term Plan with Return of Premium" (TROP) options are available, though they have higher premiums.
How To Calculate Term Insurance Premium?
To estimate how much you may need to pay for a policy, you can use a term insurance calculator. By entering basic details such as your age, income, coverage amount, policy term, and lifestyle habits, the calculator provides an approximate premium amount within seconds. This helps you compare options and choose a plan that fits your financial needs.
Who Should Buy Term Insurance?
The following individuals should consider buying a term insurance plan:
Young Professionals in their 20s and 30s This is the best time to buy term insurance because the premiums are lowest, and you lock in those rates for the chosen policy terms. Even if you don’t have dependents yet, buying now is far more affordable than waiting until you do.
Married Couples Term insurance ensures the financial protection of your spouse and family members in case of unpredictable events. A term policy offers a lump sum payment to the nominee that can free your family from financial burdens in difficult times.
Parents Parents often have long term financial commitments related to their children’s education and upbringing. A term insurance plan can help ensure that these needs are taken care of even if the primary earning member is not around.
Self Employed Individuals and Business Owners People who run businesses or work independently may not have employer provided financial protection. Term insurance can help protect their family from financial strain while also covering existing liabilities.
Non-Resident Indians (NRIs) NRIs can buy term insurance plans in India to secure their dear ones. Term plans can provide NRIs with additional protection and protect their family members financially. NRIs can also claim tax benefits in India, which increases their overall financial security.
Anyone with a home loan or major liability Anyone with significant liabilities such as home loans, personal loans, or other long term commitments may benefit from term insurance so that their family is not burdened with repayments. You can also consider a home loan insurance to protect your family from home loan repayment burden.
What are the Different Types of Term Insurance Plans Available in India 2026?
Level term insurance: This is the most common type where the sum assured stays fixed throughout the policy term. Premiums do not change, making costs predictable and easy to plan.
Increasing term insurance: The sum assured increases gradually over the policy term to help beat inflation and rising living costs, though premiums can be slightly higher.This is good for younger buyers with growing financial responsibilities.
Decreasing term insurance: The sum assured reduces over time, typically in line with a loan balance. Designed for home loan or business loan protection.
Term insurance with return of premium (TROP): If the policyholder survives the term, the total premiums paid are returned, combining life cover with a savings element, though at a higher premium.
Convertible term insurance: Allows the policyholder to convert the term plan into an endowment or whole life policy later, offering flexibility as financial needs change over time.
NRI Term Insurance: These plans are designed especially for the NRI customers and allow them to buy a term insurance for NRI, which helps them financially secure their loved ones residing in India.
Group Term Life Insurance: This type of term insurance is usually provided by employers and covers multiple individuals under the same plan with lower premiums.
How Much Term Insurance Coverage Do I Need?
You can easily determine how much life cover you need by calculating your Human Life Value (HLV). HLV is a simple numerical method that helps estimate the ideal amount of life insurance coverage based on your income and age. A commonly used thumb rule is as follows:
Age (in years)
Multiple of Income
18 -35 years
25 times of your annual income
36-45 years
20 times of your annual income
46-50 years
15 times of your annual income
50-60 years
10 times of your annual income
For instance, if a 32-year-old individual earns ₹5 lakh annually, the recommended life cover would be 25 times the income, i.e., ₹5 lakh × 25 = ₹1.25 crore
A more precise approach accounts for: Outstanding loans, your family’s monthly expenses, inflation, and the number of years until your youngest dependent becomes financially independent. Policybazaar online HLV calculators will walk you through this in under 2 minutes.
One rule of thumb to remember- ‘Your cover should be at least 10X-20X your annual income’
Factors Affecting Term Insurance Premiums
Before buying a term insurance plan, it is important to compare different factors to ensure you choose the right coverage for your family’s financial needs.
Coverage Amount
Choose a sum assured that can adequately support your family in your absence. The coverage should be enough to replace your income, repay loans, and meet future expenses such as children’s education and household costs. Many experts recommend choosing a cover of at least 10–15 times your annual income.
Policy Term
Select a policy term that covers your major financial responsibilities. Ideally, the plan should continue until your retirement age or until your dependents become financially independent.
Premium Amount
Term insurance premiums depend on factors such as age, health, lifestyle, policy tenure, and coverage amount. Choose a premium that fits comfortably within your budget while still providing sufficient life cover.
Claim Settlement Ratio
The claim settlement ratio (CSR) reflects an insurer's efficiency in settling claims. Choosing an insurer with a strong CSR can provide greater confidence that your nominee will receive the claim amount smoothly.
Pro tip: Avoid buying term insurance from an insurer with a CSR below 95%. A high CSR indicates reliability and reduced risk of claim rejection.
Riders and Add-On Benefits
You can enhance your term plan with optional riders such as:
Always check the policy exclusions and terms carefully before purchase. Understanding what is not covered under the policy helps avoid confusion during claim settlement.
How to Buy Term Insurance Online on Policybazaar?
Here is how you can buy term insurance online on Policybazaar:
Step 1: Visit the term insurance page of Policybazaar
Step 2: Fill in your name, gender, and contact information
Step 3: Select the right annual income, occupation type, educational qualifications, and smoking habits
Step 4: Choose the best term insurance for your needs and proceed to pay the premiums
You should always first understand what is term life insurance, and then buy the best term insurance for your needs.
What are Term Insurance Exclusions?
Knowing what a plan doesn't cover is as important as knowing what it does.
Suicide within the first 12 months of the policy (most insurers follow IRDAI guidelines here)
Death due to intoxication (alcohol or drugs)
Death due to HIV/AIDS
Self-inflicted injuries
Certain high-risk activities or undisclosed pre-existing conditions, depending on the policy terms
Always read the policy document before signing. If something is unclear, ask your insurer or broker directly.
Summary- What You Need to Remember
Term insurance is the simplest, most affordable way to ensure your family's financial future is protected if you die prematurely. It pays a lump sum to your nominee, no investment component, no maturity benefit in the standard version, just protection. Buy it young. Buy enough cover. Choose an insurer with a high CSR. And review your cover every 5–7 years as your income, loans, and family responsibilities change.
FAQs
What is term insurance meaning?
Ans: To understand what is term insurance meaning, we need to understand what is term plan. Term insurance is a financial product that ensures your family’s financial security in your absence. In case of your untimely death, the insurer pays the life cover to the nominee, which helps them meet their financial obligations.
What is term insurance with an example?
Ans. Let us understand the term insurance meaning with the help of an example: Suppose Karan’s friend told him about what is term insurance and encouraged him to buy a plan suitable for him. Karan bought a 1 crore term plan at a premium of just Rs. 400 per month. If Karan suffers an unforeseen death during the policy term, then the insurer will pay the sum assured to the nominee of the policy. This payout can help Karan’s family take care of their monthly expenses and live a financially stable life.
What are the Advantages and Disadvantages of Term Life Insurance?
Ans. The advantages and disadvantages of term insurance are as follows:
Advantages of Term Life Insurance
Disadvantages of Term Insurance
Affordability: The premiums are much lower than those of other types of life insurance.
No Cash Value: Term insurance plans generally do not offer any cash value benefits.
High Coverage: You can get large life cover that ensures your family’s financial security.
Limited Cover Tenure: The policy pays benefits only on death during the cover term.
Tax Benefits: You can claim term insurance tax benefits as per the prevailing tax laws u/s 80C and 10(10D) of the IT Act, 1961.
Premiums Increase with Age: The premiums will increase based on your health and age on renewal.
Available Riders: You can enhance cover with riders like critical illness, accidental death, or a premium waiver.
No Maturity Benefit*: No maturity benefit is payable with standard term insurance plans.
Customisable: Term plans allow you to choose a policy term and coverage amount that fits your financial needs.
Exclusions: Most term insurance plans do not cover deaths due to suicide within the first year of policy purchase/revival.
Which is better term or life insurance?
Ans. Between term or life insurance, the better option depends on a person’s individual needs. To make the right decision, you first need to understand what is the difference between term insurance and life insurance. Now, if you need a large life cover at low premiums, you can opt for a term insurance plan, but if you need a savings plan that offers wealth creation benefits, you can look at the different types of life insurance plans available in India.
Is it good to take term insurance?
Ans. Yes, it is always considered a good idea to have a term insurance plan. This is because a term insurance plan provides a large life cover at affordable premiums to your family in your absence. Not only that, but you can also enhance the base cover using add-on riders to make it more comprehensive at nominal premiums.
What is the difference between term insurance and life insurance?
Ans. The answer to what is the difference between term insurance and life insurance is that a term insurance plan provides a death benefit in case of a policyholder’s death within the policy term, whereas a life insurance plan offers both a death benefit and maturity benefit to the life assured. You should always try to understand what is term insurance and life insurance before making a suitable choice.
Why should you buy term insurance in India?
Ans. Term insurance in India is available at affordable rates than the leading insurance companies in foreign countries. Indian term insurance for NRI is around 50% more affordable than abroad. So, if you are planning to relocate to a foreign country or have settled in a foreign country and are planning to purchase a term insurance plan, you should think about purchasing it from India.
What are the minimum and maximum age limits to buy a term insurance plan?
Ans. Generally, term insurance eligibility can vary for each insurance company and plan. All insurers offer plans with unique T&Cs. However, as per the usual term insurance terms and conditions, the minimum entry age to buy a term plan is 18 years and the maximum age differs as different insurers have different criteria.
What are the factors that affect the term insurance premium rates?
Ans. Anyone who knows what is term insurance, also knows that there are a number of factors that affect the term insurance premium rates. The premium of a term plan varies depending on several factors like age, yearly income, term and amount of insurance coverage, health conditions, and lifestyle habits (smoker/non-smoker).
What is Term Insurance Rider?
Ans. To answer what is term insurance riders, you need to understand term insurance meaning. Term riders are add-on benefits that are attached to your regular term plan. They can be purchased at low rates. They also allow the policyholder to personalize the plan according to their requirements. Different insurers offer these riders- Critical illness, waiver of premium, accidental death, and permanent or partial disability.
How much Term insurance do I need?
Ans. As per the insurance experts, the life cover in term insurance should be at least 10X of your yearly income, while 15-20X is always a good option to go for. You can get a clear answer to this question by computing HLV (Human Life Value) using Human life value calculator. HLV is an easy numeric process of calculating the term cover amount that you may require.
What documents are needed to buy term insurance plan?
Ans. To buy a term plan, you will require the below-listed documents:
Identification Proof: PAN Card, Voter ID, or Aadhar card
Address Proof: Driving License, Voter’s ID card, Aadhaar ID, passport, and other identification documents
Income Proof: Income Tax Returns, Salary Slips, bank statements
Age Proof: Aadhaar card, passport voter ID card, driving license.
What are the Tax Benefits of Term Insurance?
Ans. Let us take a look at what is term insurance tax benefits. With a term plan, you can avail of exemptions on tax to reduce your tax liabilities. You can receive a tax deduction on your premium up to Rs. 1.5 Lakh u/s 80C of the ITA, 1961. Also, you can understand what is critical illness in term insurance and claim tax savings benefit up to Rs. 25,000 u/s 80D.
Can I buy a Term insurance plan for a spouse?
Ans. Yes, you can buy a term plan for your partner. But before you buy these plans, you need to understand what is term life insurance and how does it work for joint customers. These Joint term insurance plans cover you and your partner under a single plan. Purchasing a joint-term insurance plan for yourself and your spouse can be hassle-free, simple, and effective to buy term insurance.
Is it possible to add a term rider to a current term plan?
Ans. Yes, you are allowed to add a rider at the time of renewing your current term plan. However, different insurers may have different term insurance terms and conditions. Thus, you should always check with the insurer and understand what is term insurance rider benefits and features are.
What are the Exclusions Under a Term Insurance Plan?
Ans. Here is a list of all the exclusions of a term insurance plan:
Suicidal death is not covered under the policy for the 1st year.
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 an overdose of drugs or intoxication is also not covered under the plan.
What is terminal illness in term insurance?
Ans. To answer what is term insurance terminal illness, it is an add-on rider that provides a financial benefit to the policyholder in case they have a terminal illness and their life expectancy is expected to be less than a year (12 months).
Does the term plan offer terminal illness benefits?
Ans. Yes, most term plans offer an option to opt for term riders like critical illness riders that provide extra cover against terminal illnesses. However, it is suggested that you confirm with the insurer about what is terminal illness in term insurance and its terms and conditions before adding the rider to your base plan.
Do we get money back in term insurance?
A standard term insurance plan does not offer any money back if the policyholder survives the policy term. It is designed purely for life cover. However, some insurers offer a Return of Premium (TROP) option, where the premiums paid are returned at maturity if no claim is made during the policy term.
What is the difference between LIC and term insurance?
Life Insurance Corporation of India (LIC) is a life insurance company that offers different types of insurance plans, including term insurance. Term insurance, on the other hand, is a type of life insurance policy that provides financial protection for a fixed period. In simple terms, LIC is an insurer, while term insurance is one category of insurance product offered by LIC and other insurers.
What is term insurance vs health insurance?
Term insurance provides financial support to the nominee if the policyholder passes away during the policy term. Health insurance covers medical and hospitalisation expenses caused by illness, accidents, or treatments. Term insurance protects your family’s future income needs, while health insurance helps manage healthcare costs during your lifetime.
