Term Insurance Features

What are the Features of Term Life Insurance in India 2025?

Here are the most common features of term insurance in India 2025:

Affordable Premiums: Term life insurance plans are available at premiums much more affordable than any other type of life insurance plan. These plans allow you to ensure the required financial protection for your family without straining your budget. You can use the term insurance calculator to get an estimate of the premium for your required life cover.

Fixed Policy Tenure: With term insurance plans, you can get the financial stability for your family for a fixed tenure. For example, if you want a financial cover only until your retirement, then you can buy term plan that covers you until you turn 60 years of age.

Multiple Premium Pay Options: You can choose the most suitable term insurance premium payment terms like paying the premiums for a regular, limited, or single term, or choosing to pay the premiums in a monthly, quarterly, annually, or bi-annual modes.

Various Payout Options: Term plans allow you to select the most suitable benefit payout option for your family in the event of your unfortunate demise. You can choose for the benefit amount to be paid in monthly instalments, lump sum amount, monthly + lump sum payments, or increasing monthly income.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 16/day⁺

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₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

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₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

VIEW PLAN

Customisations Available: With term life insurance plans, you can easily customise the term insurance features to fit your needs. You can alter the different features of term life insurance like policy term, sum assured, premium pay terms, and more to fit your individual needs.

Easy to Understand and Buy: Term life assurance plans are much easier to understand as they are designed to provide pure risk protection to your family in the form of death benefits and can be bought online from the comfort of your homes in just a few steps.

Rebates on Large Cover: Various life insurance companies in India offer rebates on large life cover options, which allows you to secure a large sum assured for your family while saving more on premiums.

What are Some Unique Features of Term Insurance Plans?

Now that we have learnt about the most common features of term life insurance plans, let us take a look at some of the unique term insurance features offered by selected plans: 

Premium Holiday Feature: The premium holiday features of term insurance allows you to delay the premium payments for your term insurance by 12 months. This benefit can be claimed a few times within the policy term, given that there is a break of 10 years between two subsequent premium breaks, or as per the specific policy’s T&Cs.

Voluntary Top-up Feature: The voluntary top-up feature offered by several term insurance companies in India is the feature of term plan that allows customers to enhance the sum assured by paying an additional premium during the policy term.

Health Management Services: The Health Management Services of term insurance plans provides customers with health services like regular health check-ups, medical teleconsultations, cancer screenings, mental health support, discounts on medicines, and more.

Financial Surrogate Feature: The financial surrogates in term insurance features allows individuals within the low income bracket to buy term insurance plans by presenting the income proof in the form of credit card bill payments, car registration documents, or bike documents.

Claim Intimation Benefits: Claim intimation features of term life insurance pays out an immediate amount on claim initiation by the nominee of the policy. This allows the nominee to take care of any urgent financial requirements in the absence of the policyholder, like funeral costs or medical bills. 

Family Protect Benefits: The Family Income Protect features of term life insurance allows you to protect your family in your absence. These term insurance features pay a specific monthly income to the surviving parent in the absence of the other parent.

What are Some Important Term Life Insurance Benefits?

After taking a look at the most common and unique term insurance features, let us now understand the various term insurance benefits as well: 

Financial Benefits for Family

In the event of your untimely demise during the policy term, your nominee receives the full sum assured as a lump sum or in monthly/annual instalments, as chosen. This amount can be used to cover major expenses such as home loan repayment, children’s education, and daily household costs, ensuring your family’s financial stability.

Return of Premium Benefits

The Term Insurance with Return of Premium (ROP) returns all the premiums paid under this policy. Under these features of term life insurance, if you outlive the policy term, all the premiums paid (excluding taxes and rider charges) are returned to you. 

Smart Exit Benefits

Certain insurers offer Smart Exit features of term life insurance under the no cost term insurance option, allowing you to exit the plan after a specific duration with a guaranteed refund of premiums paid. This term plan feature is useful if you reach a financially independent stage before the policy matures and no longer need the full cover.

Riders for Enhanced Cover

Various term insurance riders allow you to enhance the base cover of your term insurance plan at nominal premiums. These features of term insurance help you enhance the base policy to cover benefits like terminal illness, critical illness, accidental death and disability as well.

Life Stage Benefits

Some term plan allows you to increase your sum assured at key milestones, such as marriage, childbirth, adoption, or home purchase, without undergoing fresh medical underwriting. This term insurance features ensure that your insurance coverage evolves with your changing needs.

Lowest Price Guaranteed

With Policybazaar you get the lowest premium guarantees when you purchase online. This ensures that you receive competitive pricing without compromising on features of term insurance or claim service.

Tax Benefits

You can claim term insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act, 1961. This makes term insurance an efficient tool for tax planning as well as protection.

Final Thoughts!

Term insurance offers a focused and cost-effective way to secure your family’s financial future. With term insurance features like high sum assured at affordable premiums, customisable policy terms, return of premium options, rider add-ons, and flexible payout choices, term plans provide comprehensive risk coverage tailored to your life stage and responsibilities.

FAQs on Features of Term Insurance