Term Insuranceplan is the purest and simplest form of life insurance that helps you financially protect your family for a set time period in return for fixed premiums.With term insurance plan, if you pass away during the policy term, your nominee will receive a lump sum death benefit to provide financial security for your family. This payout can help cover essential living expenses like food, clothing, healthcare, education, loans and more, providing financial support for your loved ones during a difficult time.Read more
15 lakh Families Secured
₹13,50,000 Cr of Life Cover Provided
Customer Rating
4.841,895 reviews
Life is Unpredictable! “Protect your family’s
future”₹1 Crore Life cover starting from ₹478/month+
Term insurance is a simple type of life insurance designed to provide financial protection for a specific period. Term plan insurance is one of the most affordable ways to ensure your family's financial security. It provides life coverage for a specific period, known as the "term." In the unfortunate event of the policyholder’s passing during this period, the plan offers a lump-sum death benefit to the nominee or beneficiary, helping them maintain their standard of living. For example, a 30-year-old healthy non-smoker can buy a ₹1 Crore term insurance policy for as low as ₹597 per month, securing his family's financial stability for the next 20 years. This plan ensures that even in his absence, his family won't face any financial strain and can continue their lifestyle without worrying about day-to-day expenses or future goals. With such affordable premiums, term insurance stands out as a thoughtful and effective way to protect your loved ones' future.
Note: The premium differs based on the type of premium payment option opted by the policy buyer.
Video
information
What is Term Insurance?
How Term Insurance Works?
Let us understand how term insurance works with the help of an example:
Meet Sameer
Sameer, a Healthy and non smoking male.
Bought Policy
Sameer bought a ₹1 crore Term Insurance for a 25 yrs policy term to secure his wife financially.
Unfortunate Death
In the 9th Policy year, Sameer suffered an unfortunate death.
Claim
His wife received a ₹1 Crore death benefit from the insurer.
After Claim
His wife can use the benefit & maintain her current quality of life.
Directly from Experts
Policybazaar’s Dedicated Claim Assistance Program (DCAP) assigns every customer a dedicated relationship manager to guide them through their policy and assist even during claim settlement. In tough times, we’re here to support you. We handle everything for you - from filling out the forms to ensuring your claims are settled. We’re here for your complete help at every step, so you never have to worry.
Buying term insurance online from Policybazaar is quick and simple, with just a few clicks. Now protect your family’s future while you bid adieu to all your stress.
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Rhishabh Garg
Business Head - Term Insurance
Written By:Rhishabh Garg
Rhishabh GargTerm Insurance Head
Rhishabh Garg is the Business Unit Head of Term Insurance at Policybazaar.com. He has over 10 years of experience and currently plays a crucial role in shaping the future of term insurance in the company. Rhishabh also has experience in customer services and crafts new strategies for organizational success, one of which is Policybazaar’s claim assistance program.
Reviewed By:Santosh Agrawal
Santosh AgrawalChief Business Officer
Santosh Agarwal is the Chief Business Officer- Life Insurance, Policybazaar.com and has over a decade of experience in the domain of insurance. She has helped shape the life insurance vertical of Policybazaar and ensures the effective execution of the company's overall strategy. Santosh is also responsible for the Term Insurance for Women domain in Policybazaar.com and educates the mass about its importance and benefits.
What is the best term insurance plan for 1 crore in India?
The best term insurance plan for 1 crore in India is a plan that protects your family’s financial future, is affordable, and fits all your individual needs. 1 crore term insurance will offer a death benefit of Rs. 1 Crore to your family in the event of your unfortunate demise, which in turn will help your family take care of their financial needs in your absence. They can use the benefit amount received from the term life insurance plan to pay off their loans, take care of their child’s fees, and other monthly expenses.
Discover the most Suitable Term Plan for you!
One of the main factors in selecting the term life insurance plan for the financial protection of your family is deciding on the right sum assured option. Below are the options available for sum assured amounts that are for you:
Term insurance plan provides financial protection to your family and replaces your income in case you are not around. You pay a small fee every month/year to protect your family, and in case something happens to you, the term insurance company pays a large sum of money (life cover) to your family. It costs as little as Rs 485/Month to buy a 1 crore life cover.
What are the key features of term plan?
Isha : Lucknow
"Life Cover: Amount that the family receives on the demise of the policyholder (should be 10 times your annual income). Cover till age: The age till which a term life insurance plan protects your family (generally opted till 70). Payment Frequency: Premium can be paid monthly or annually. Annual premiums have a 10% discount.
How do I decide the amount of Life Cover (sum assured)?
Shubham : Kanpur
Life cover or sum assured is to take care of your family's expenses in your absence. Expenses include household expenses, which will increase with time due to inflation and any existing loans.
The thumb rule is to take a cover of 10 times your annual income. Why? Let me explain with an example:
Annual Income = 10L Monthly expense = 35,000/month i.e. 4.2L/year Loan = 20L As per trends, your expenses double in 10 years due to inflation. Net expenses for the next 20 years would be 1.3 Cr. Adding 20L to pay off your loan, your family would need approx 1.5 Cr as your Life cover
What should be the Duration of your Term Insurance Plan (Policy Duration)?
Shiva : Delhi
Term insurance plans should cover you until your financial responsibilities are over. 1. Do you want cover till you retire? (since your financial obligations will be over). We recommend 65 in this case. 2. Do you want to leave a legacy amount for your family? We recommend 75 in this case as life expectancy is 70 in India
How do you wish to pay? (pay for limited years, pay till policy term)
Sakshi : Mumbai
You can choose the number of years you wish to pay premiums till the age of 60 or the entire policy term, i.e., regular pay, or in 5/10/15 years, i.e., limited pay. Choosing Limited Pay has an added benefit. You can save up to 54% on your overall term plan insurance premiums if you select limited pay for your Term Plan. 58% of the customers select a payment term of 10 years.
How can we help your family in getting the claim?
Sejal : Pune
We provide a dedicated claim handler who can also come to your doorstep in 85+ cities. Our claim handler will get in touch and assist for free. He/she would be the one point of contact for all claim queries work with your nominee on documentation, and coordinate with your insurance provider. We would actively provide status updates, and your nominee would have no hassle of multiple follow-ups.
What are the different riders (add-ons) available? Why should you choose them?
Lakhan : Indore
Commonly used riders and reasons to add them:
Waiver of Premium on critical illness/ disability - In case of permanent disability due to an accident or any critical illness, no future premiums have to be paid, and the life cover stays intact. This is available as a free add-on in most of the plans and is otherwise available at a minimal amount. Highly recommended to add this to your pure term insurance plan.
Accidental Death Benefit - In case the death happens due to an accident, an additional payout (amounting to the value of the base Sum assured) will be given over and above the base sum assured at a very nominal price. This is highly recommended to people who travel a lot or ride a two-wheeler frequently.
Critical Illness Benefit - On diagnosis of any critical illness (listed by the Insurer), you will get a lump sum payout (as decided while buying this rider) immediately. Once the benefit for critical illness benefit has been paid out, the life cover minus the critical illness cover continues with a reduced term plan insurance premium. This might not sound very useful when you're young, but the relevance of this rider increases with your age.
Early Pay out on Terminal Illness - Get 100% payout in case you are diagnosed with any terminal illness (as listed by the Insurer). Some insurance providers may give a proportion of the sum assured as well. This is available as a free rider in most of the top plans we have.
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Why Should You Buy Term Insurance Plan
Financial Protection for the Family
As the sole breadwinner of your family, it falls on your shoulders to look after the well-being of your spouse, parents, and children. Buying a pure term insurance plan is important to make sure that you fulfil your responsibilities to your loved ones, even in your absence.
Long Term Coverage
You can choose long term coverage till 99/100 years to leave a legacy for your loved ones at a term plan premium you can afford. This long term cover benefit is one of the important factors that you need to check when looking for the best term insurance plan.
1 crore term plan @485/month
Term life insurance plan is the most budget-friendly type of life insurance and offers a large amount of life coverage at an affordable premium rate. This life cover can help take care of financial obligations and liabilities.
Income Replacement for Family
In case, you are the main breadwinner of your family, or if your loved ones mainly depend on your income, your family may be left financially vulnerable in your absence. In such cases, an income replacement term insurance plan like the ABSLI Income Suraksha plan can help replace your income and provide monthly income for your family.
Protection from Critical Illnesses
Various term life insurance plans provide critical illness benefits to help you get good treatment for life-threatening diseases/ailments without worrying about the hospital bills. You can easily avail of critical illness cover for diseases mentioned under the plan by buying a critical illness rider with a term life policy.
Coverage against Disability
Accidents can occur anytime, anywhere, and may lead to permanent or temporary disability. Disability coverage with a term life policy will provide financial support to your family in case of accidental disability. This can be availed by paying additional term life insurance premiums.
Survival Benefits
A pure term insurance plan does not provide any survival benefits if you outlive the policy term. However, a TROP plan provides you with a lump-sum payment after the policy ends to help you achieve varied financial objectives. The returned amount is almost equivalent to the total amount of premium paid.
Multiple Premium Payment Options
Term life insurance plans offer you the flexibility to choose the premium payment term. You can either choose regular payment through the policy term or the limited pay option.
Tax Benefits
With term insurance plans, you can claim tax saving benefits up to Rs 1.5 Lacs on the term life insurance premiums paid under Section 80C of the Income Tax Act, 1961. The death benefits paid under this term life policy are also tax exempted.
What are the Factors to Consider Before Buying Term Insurance Plan?
While buying a term policy, it may be confusing to understand what term insurance online is better and how to find the best term life insurance plan. Here are steps that may help you choose the best term plan insurance for yourself:
Step 1: Consider your Dependents, Life Stage, and Your Current Lifestyle
It is important to understand and assess your and your family’s financial needs before selecting a term plan insurance. Your lifestyle involves spending habits and a basic living standard. When you have a clear idea about your lifestyle requirements, you can protect your family more efficiently.
Step 2: Check Your Existing Liabilities
Liabilities and debts are other important parameters to keep in mind when choosing the right term life insurance. In case the policy term does not cover the time of repayment of an existing loan or if the amount falls short, it can put a financial burden on your dependents.
Step 3: Add Term Policy Riders to the Base Plan
By adding life insurance term insurance riders, policyholders can enhance the coverage of the term policy to cover life’s eventualities. These can be attached to the base term life insurance plans at the time of purchasing a rider by paying a nominal premium.
Step 4: Check the Claim Settlement Ratio (CSR) of the Insurer
Term insurance claim settlement is the % of claims settled by an insurance company compared to the total number of claims received in a fiscal year. The IRDAI releases the claim settlement ratio every year. A good claim settlement ratio indicates that the insurance provider has been quick and robust in its claim settlement process.
Step 5: Solvency Ratio
The solvency ratio of a life term insurance plan provider tells us if the chosen insurance provider is financially capable of settling the claims if the requirement arises. As per IRDAI, every insurance company should maintain a solvency ratio of at least 1.5.
Step 6: Go through the Customer Reviews and Experience
Go through real customers’ reviews and see their experience with the insurance company. You should opt for an insurance company that prioritizes its customers and strives to resolve their issues at the earliest. You can also take a look at the company’s Persistency Ratio (declared by the IRDAI), to understand how many customers decide to stick with the insurance provider.
Step 7: Look at the Term Insurance Plan Details
Take a good look at the policy documents to get a better understanding of the policy details. Ensure that the term life insurance plan benefits fit your requirements. You can also consult your financial advisor to make sure you are clear about all the terms and conditions of the term life policy.
Step 8: Select the most suitable Benefit Payout Option
Most life term insurance plans offer the policyholder the option of choosing their most suitable benefit payout option. You can select the benefit amount to be paid to your nominee in a lump sum, regular/monthly income, a combination of lump sum + regular income, or increasing monthly income. If you are the main income earner of the family, you might want to consider opting for the regular income options as they can act as the new monthly source of income in case of your unfortunate demise.
Step 9: Pay the Term Life Insurance Premium
After selecting a life term life policy and customizing your plan, you basically need to finalize the plan. You can buy a pure term plan insurance online easily in minutes by entering a few details and making a secure payment to buy term plan online.
++All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply
Anyone who has financial dependents should buy a term plan insurance, including parents, couples, self employed, businessmen, young individuals with dependents, SIP investors, housewives and in some cases, even retired individuals. Since these plans have lower premiums than most types of life insurance, you can secure your loved ones and claim term insurance tax benefits as per the prevailing tax laws with the best term insurance plan in India.
Types of Individuals
Term Insurance Benefits
Young Professionals
Young professionals often start their careers without financial dependents, like a spouse or parents they support. However, it's a smart decision to buy life term insurance plan early because the premiums stay the same for life.
Waiting until later could mean higher term life policy premiums due to increasing costs with age. This means the younger the policyholder's age, the lower the term life insurance premium.
Newly Married
Jewellery, dinner dates and chocolates are nice, but here's a gift that keeps on giving to your spouse - term life insurance. It won't just bring temporary happiness; it'll protect your spouse's future.
Term plans ensure that your spouse will have financial help if something happens to you. So, if you're married, it's a good idea for couples to get term life insurance soon.
Working Women
Today, women are equal to men in managing finances and contributing to their families. Families now rely on both partners' income, emphasizing the need for financial security in case of any unfortunate event.
Term insurance for women ensures that your loved ones, like parents, spouses, and children, remain financially secure even if you're not around. It helps them maintain their lifestyle and achieve their goals, covering outstanding loans, such as home and education loans.
These term life insurance plans also include a critical illness rider, offering an additional payout if you are diagnosed with a serious condition like cervical or breast cancer.
Housewives
With term insurance for housewife, homemakers can now secure the financial future of their spouse, children, and parents in the event of their unfortunate death.
Housewives can buy the most suitable term life policy online using their husband’s annual income proof and ensure that the family can maintain their current quality of life in their absence.
Taxpayers
Term life insurance plan offers term insurance tax benefit under sections 80C and 80D on the premiums paid, which helps taxpayers to lower their tax liabilities.
With section 10(10D), you can receive tax exemption on the death and maturity benefit proceeds as per the new Budget rules.
Hence, taxpayers can use term life insurance plan to reduce their tax burden significantly.
Parents
Parents are often the primary financial support for their children, covering everything from school fees to university costs. To safeguard their children's future in case of an unfortunate event, they can purchase life term insurance for parents, which provides a payout (death benefit) to meet their children's expenses.
With the financial safety net of a pure term insurance plan, they never have to worry about their children’s dreams.
If you're a new parent, you might want to think about protecting your family. You spend a lot of time thinking about unique name of baby girl or unique name for your baby boy. But have you ever given a thought 35% of new parents buy term plans to protect their new born baby boy and baby girl.
Retirees
Retired individuals with spouses or families depending on them should think about getting term plan insurance. It can work as a way to pass on some money to their loved ones when they're not around anymore.
If something happens to the person with the pure term insurance plan, the family gets a tax-free payout, as long as they meet the rules in Section 10(10D) of the Income Tax Act, 1961.
Senior Citizens
Term insurance for senior citizens offers a greater chance of financial security to their family members like spouse, thus providing them with a kind of lifestyle they should get in their absence.
Self-Employed People
Being self-employed means dealing with various challenges. Unlike those with regular jobs, your income isn't stable; it goes up and down with the market. Also, you might have loans from banks, creditors, or even friends and family.
That's why you must consider getting life term insurance for self-employed. It helps ensure your family stays financially protected even if something happens to you.
Non-resident Indians (NRIs) and Expatriates*
NRIs (Non-Residential Indians) and expatriates can now easily opt for term life insurance plans in India, which offer financial protection for families back home. These term insurance plans are the best option for NRIs and expatriates who want to secure their family in India while living abroad.
Term insurance for NRI allow you to schedule a video or televideo check-up from your residential country when you are in Saudi Arabia, Bahrain or any other country.
SIP Investors
Investors in SIPs (Systematic investment plans) invest a fixed sum of money every month in a mutual fund. In SIP, the steady stream of regular instalments compounds over time to generate wealth.
In case of the investor’s unforeseen death, the nominee can use the payout from a term plan to help maintain the flow of regular instalments.
*Expatriate meaning: An expatriate is a person who lives outside their native country, usually for work or long term residence.
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Can NRIs Buy Term Insurance in India?
Yes, Indian citizens living outside India can buy Policybazaar term insurance for NRI from an Indian insurance provider. Following is the list of benefits of buying NRI term insurance in India:
Get large life cover up to Rs. 20 Crores at affordable premium rates.
Buy term plan insurance in India by scheduling medicals via video or call.
Receive an additional 5% discount on premiums in annual mode.
Get an 18% GST waiver as per the prevailing tax laws.
With the special exit option, you can exit the term life insurance policy at a specific stage and receive all the premiums paid.
How Does a Term Insurance Plan Work?
Here is how term insurance works in India:
Step 1: Assess Financial Needs The first step is to assess your and your family’s financial needs and find the right cover amount, policy term, and other such features.
Step 2: Calculate Term Insurance Premiums Next, you need to figure out the applicable term life insurance premiums for your profile and choose the right term insurance plan for yourself.
Step 3: Fill out the Proposal Form Now, you need to fill out the proposal form and ensure that all the details and information provided are accurate to the best of your knowledge to avoid a policy rejection or claim rejection in the future.
Step 4: Sign the Agreement Once you have submitted your proposal form, you need to sign the agreement by making the first premium payment. After this, the insurer will review and issue the term policy.
Step 5: Assign the Nominee Nominate the person you want to cover under the term policy and receive the payout amount in your absence.
What are the Features of Term Insurance Plans in India?
Term life insurance plan is one of the preferred types of life insurance because of its affordable premiums, low entry age, and easy-to-buy features. Long-term protection, the flexibility of choosing policy and premium payment terms, customisable cover, and liability protection are some other benefits of term insurance plans.
Parameters
Details
Low Entry Age
Term insurance plans have a minimum entry age of 18 years. This term life policy allows young individuals to secure their family from an early age at low premiums.
Long Term Protection
With term life insurance plans, you can get long-term protection against life's eventualities. Various term policies also provide cover until 99/100 years of age.
Easy to Buy
Term plans are easy to purchase online in just a few steps. Policybazaar helps you with Term Insurance Comparison from 20+ top insurers, choose and buy the best term life insurance policy that suits your needs.
Premium Pay Options
Term life insurance plans offers several term plan premium pay options. You can choose to pay the premiums monthly, quarterly, bi-annually, or annually, or in limited, regular, or single installments.
Customisable Cover
A term insurance plan allows flexibility, and you can increase the sum assured if you have opted for any life-stage option at the time of purchasing the term life policy.
Pay Off Loans/Debts
Your family can use the term life insurance plan benefit payout to pay off the remaining loans and debts you might have left behind in your absence, like home or education loans.
9 Types of Term Insurance Plans in India
When it comes to looking for the best term insurance policy, there is no one plan that fits all your needs. You should align the most suitable plan as per your requirements and customise the best to fit your individual needs. Here is a list of types of term plans offered by various insurance providers, along with their benefits:
Type of Term Plan Insurance
Benefits
Basic Term Life Insurance Plan
This term life policy offers a large life cover at low premiums and pays the death benefit in lump sum on the policyholder’s unfortunate death during the policy term.
Financial protection to your financial dependents at low premium rates in case of your death. You are eligible to receive a return of all the premium amounts paid in case of outliving the policy term.
NRIs and expatriates can buy term insurance plan in India via tele/video medicals and get GST waiver of 18% with additional 5% discount on annual term plan premium payment mode
People with low income and educational qualifications can buy SJB plan to financially secure their loved ones, irrespective of their educational, resident background and occupation.
See More Plans
How to Buy Term Insurance from Policybazaar?
You can buy term plan insurance online by following the below-mentioned steps:
Step 1: Visit Policybazaar and visit 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
How Can a Term Life Insurance Plan Protect Your Family’s Future?
A term plan insurance can secure your family’s financial future in the following ways:
Income Replacement: The term life insurance plans offer the option of selecting the suitable payout option, through which you can ensure your family receives the benefit amount in installments over a span of a few years which serves as income replacement in the event of the main income earner’s absence.
Cover Funeral Costs: In case of the policyholder’s death, the family might struggle to take care of the funeral costs and other miscellaneous expenses that come with dealing with the death of a loved one. The lump sum payout from a term policy might help them cover these costs.
Pay Off Loans and Debts: The financial burden of any pre-existing loans or debts like home loans or car loans might fall on the shoulders of your family members and burden them. The term life insurance payout can help them pay off these remaining loans and live a stress-free life.
Cover Against Critical Illnesses: Critical illness treatments at any point in life can drain your savings and leave you with hefty medical bills. With a critical illness rider in a term plan, you can take care of the medical costs and treatment bills with the payout amount received on the diagnosis of a critical illness listed under the term life insurance plan.
Tax Saving Benefits: Term life insurance plans provide tax benefits u/s 80C, 80D, and 10(10D) of the IT Act of 1961 as per the prevailing tax laws. The policyholder's family can benefit from the term policy as the death benefit payout is completely tax exempted.
What is a Term Insurance Rider?
A term life insurance rider is an additional benefit or add-on cover that can be purchased over the base term plan.
Riders are added at extra price i.e., over and above the premium and can be selected as per your requirements and budget. There are different types of term rider like a permanent disability rider, an accidental death benefit and a critical illness.
What are the Types of Term Life Insurance Riders?
Let us take a look at some of the important term riders that you can add to your base pure term insurance plan:
1
Accidental Death Rider
This term rider provides the rider sum assured in addition to the base sum assured, to the nominee of the term life insurance policy in case the policyholder suffers an unfortunate death due to an accident within the policy tenure.
2
Parent Income Protect Rider Benefit
Some term life insurance providers offer a Family Protect or the Parent Income Protect Rider that allows you to cover single or both of your parents. Under this, in case of the policyholder’s untimely death/ATPD, the insurer will payout a lump sum + monthly income to your surviving parent/(s).
3
Critical Illness Benefit Rider
The rider sum assured is paid to the policyholder in a lump sum, on the diagnosis of any of the critical illnesses specified under the term life insurance.
4
Accidental Total And Permanent Disability Rider (ATPD)
The rider sum assured is paid to the policyholder in case of a total and permanent disability due to an accident during the policy tenure.
5
Accelerated Death Benefit Rider
The entire/part of the term life insurance sum assured is paid to the policyholder in advance if the policyholder is diagnosed with a terminal illness.
6
Waiver of Premium Rider Benefit
This rider waives off future term life insurance premiums if the policyholder is unable to pay the premiums due to a job loss caused by a critical illness or permanent total disability.
7
Hospicare Benefit Rider
Under this term insurance plan rider, the life assured receives a fixed amount for every day spent at the hospital. If the policyholder is admitted to the general ward or the ICU of the hospital, the insurance provider pays a fixed percentage of the sum assured.
8
Children Benefit Rider
With this term insurance plan rider, you can ensure that your child is able to lead a financially stable life by fulfilling their educational needs even in your absence by providing them with an additional sum assured.
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Term Life Insurance Buying Guide
Here is a detailed guide that you can follow while buying your pure term insurance plan:
The Importance of Comparing Term Plans
Different people have different financial needs and goals. Therefore, it is essential to compare term life insurance plans before buying the ideal one. This comparison will help you find a term life policy that offers the best features, benefits and riders so that you are covered against all life uncertainties. You can easily do term insurance comparison from over 15+ best Indian insurers using Policybazaar’s comparison engine and buy term plan insurance.
Higher the Claims Settlement Ratio (CSR), The Better
Every insurance provider maintains a claim settlement ratio each financial year. It is important for customers to understand the insurance company’s claim clearance track record. It indicates how easily your nominees will receive the claim benefit after you unfortunately die. Therefore, you should always opt for a term life insurance provider that has a minimum CSR of 95% for 5 consecutive years. Policybazaar offers detailed information on the Claim Settlement Ratios of various insurance companies to help you make an informed decision.
Always Check the Solvency Ratio
The solvency ratio of an insurance company represents their financial situation in accordance with the solvency norms. It indicates the size of their capital with respect to the risks taken. By checking this ratio, you know if the insurance company has sufficient funds to settle claims in the short or long run. Usually, a solvency ratio of 150% is acceptable and is the ideal ratio for customers to rely on.
Understand the Specific Benefits of the Policy
You might make the wrong buying decisions if you do not understand the T&Cs of your term life policy's benefits. It can also leave the beneficiaries needing clarification while filing a claim. Ensure that the benefits offered under the term life policy are a good match for your financial requirements. This careful analysis will help you select a term life insurance plan best suited to you. Policybazaar’s comparison tools can help clarify these benefits.
Choose The Necessary Riders While Buying Term Insurance
As a policyholder, understand that you need coverage not only for death but also for critical illness, disability, and accidents. These situations can severely impact your family's financial health, so it is wise to add suitable riders to your term life policy for enhanced financial backup. Policybazaar offers a variety of riders that you can choose and add to your term life insurance plan.
Choose Your Payout Option Wisely – Whether Lump Sum or Regular Income Payout
Your life term insurance online offers a choice in the payout method. You can opt for a total lump sum payout or a combination where a part payment is made in a lump sum, and the remaining is distributed as regular monthly income. Or you can choose the One-time Lump Sum Payment + Increasing Monthly Payout option, where nominee will be paid monthly payouts that increase with each passing year for a definite period. This helps the nominees meet their immediate needs and sustains them for months. Choosing one of the right types of term insurance payouts ensures that your family’s needs are met with due course of time.
Check Online Availability
Policybazaar Insurance Advisors are available online 24x7 to solve all your doubts and queries regarding new or existing term insurance plans. The Dedicated Claims Assistance Program of Policybazaar also makes sure that you receive assistance for quick claim settlement any time of the day. You can try reaching out to see how fast your query is resolved and whether the support team is equipped to handle online queries satisfactorily. Policybazaar’s robust online presence ensures prompt and efficient customer support.
How Can I Determine the Right Term Plan Insurance Cover Amount for Myself?
Here is how you can determine the right term life insurance cover amount to get enough cover for your family:
General Thumbs Rule: As a general thumbs rule, you should ideally look for a term insurance plan sum assured around 10-15 times your current annual income. It is the easiest and simplest way to roughly calculate the ideal life cover amount.
Human Life Value: The human life value calculator allows you to accurately calculate the suitable term life insurance cover amount. This tool is available free of cost and only requires you to put in your age, annual income, and existing policy cover amount.
D.I.M.E.: The D.I.M.E. or the Debt, Income, Mortgage, and Education formula is a unique approach to calculating the right cover amount for your profile. All you need to do is add up the debt, mortgage, and estimated educational expenses of your children, and add that with the product of your current annual income and the number of years you want the coverage for.
How Long Should Be My Term Insurance Policy Tenure?
Your ideal policy term should be in accordance with your family’s financial needs in your absence. So if, for example, you are retiring in the next ten years and have a financially dependent spouse, a term insurance plan with whole life cover might be a better option for you. Whereas, if you have dependent kids and are looking for a term plan to cover you only until your kids are no more financially dependent on you, then you can look for a term life insurance plan with a shorter tenure.
How to Choose The Best Term Insurance Plan in India 2024?
Here are some pointers that can help you choose the Best Term Insurance Plan in India:
Assess your needs: Look at your financial situation, what your family needs, and the costs you'll have in the future to decide how much term life insurance coverage you should get and how long it should last.
Term Insurance Comparison: Research to check out the life term insurance online from different companies. Carefully check your term insurance plan premiums, what's covered, and any extra features.
Know about the customer experience: Good customer experience is important in choosing the best term insurance plan. Always look for an insurer that offers a fast turnaround time and is quick in solving all your term life insurance plan related questions.
Check if the company is reliable: Before you buy term life insurance plan, it's smart to ensure it is trustworthy. You can do this by looking at how often they pay out claims, how many people they cover, how many claims they've settled, how financially secure they are i.e., the solvency ratio, and how long they've been around. This helps you choose the best term insurance plan from the right insurance company that suits your needs.
Check the claim settlement ratio(CSR): The CSR helps you determine the credibility and ability of an insurer to settle claims on time. Look for an insurer with a high ratio to make sure your death claim is paid on time without any delays.
Choose a plan with different term riders: Riders or add-ons like accidental death benefit, critical illness benefit, and other that provide financial security against various adverse situations. It is important to assess your needs, budget and then add riders to your term insurance plan to increase your policy’s coverage.
What are the Factors That Can Affect Term Plan Insurance Premiums?
Various factors can affect your life term insurance premiums. These factors include your age, gender, health, family medical history, current health conditions, and lifestyle. Here's a simple list:
Factors
Details
Age
Younger people usually pay lower term plan insurance premiums because they're less likely to get sick.
Gender
Women are required to pay lower term plan premiums because they tend to live longer.
Health
Your past and current health and your family's health can impact the cost. The term life insurance premiums may be higher if you or your family have had serious illnesses.
Lifestyle Habits
Smoking, drinking, or risky activities can lead to higher term plan premiums because they increase health risks.
Occupation
If your job is risky, you might have to pay larger term plan insurance premiums because a risky job can affect your health.
Policy Duration
The term insurance plan premiums also change with the duration and amount for which you want coverage.
Lifestyle
If you do risky sports like mountain climbing, your term plan premiums might increase due to the added danger.
What are the Payout Options in Term Life Insurance?
Various pure term insurance plans in India offer the option of choosing the most suitable payout options. For example, in the absence of the main breadwinner of the family, the family might suffer from meeting their monthly expenses in case of loss of regular income. In such cases, a term life insurance with a monthly payout option will help payout in instalments over a span of 5 to 10 years. The available death benefit payout options in term life insurance are as follows:
Payout Options
Details
Lump sum Payout
This option provides the entire life term insurance online life cover amount in a lump sum at the time of claim settlement to the nominee of the term policy. The nominee can use the payout to meet their financial obligations as per their suitability.
Monthly Payout
This term life insurance payout option provides the sum assured in regular instalments over a period of 5 to 10 years, as per the policy details. This option helps replace the loss of regular income in the absence of the main income earner.
Lump sum with Monthly Income
Under this term insurance payout option, the insurer pays a fraction of the sum assured as a lump sum payout on the death of the policyholder, while the remaining amount is paid as monthly income for a specific period. The immediate lump sum payout can help take care of the funeral costs and pay off any remaining loans, whereas the regular income can help maintain the family’s financial stability.
Increasing Income
This insurance payout option provides the life cover amount as monthly installments where the income amount will increase by a fixed % every year until the entire sum assured is paid off. This option can help the nominee beat inflation as the income amount will increase with time.
It's important to select the death benefit payout option that best fits your insurance needs and the requirements of your beneficiaries. You need to consider factors like the sum assured on death, the financial goals of your nominees, and any ongoing financial obligations like loans that may need to be covered. You can consult with an insurance advisor to help you make an informed decision about the best term insurance plan for you.
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Documents Required To Buy Term Insurance Plan
Types of Documents
Description of Documents
Identity Proof
Passport, Voter ID, Adhaar Card, PAN Card
Income Proof
For Salaried Individuals
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
For Self Employed
Last 2 years Income tax returns which are not filed in the same year, along with income computation
If income calculation is not available, submit the last 3 years income tax returns (not filed in the same year)
Form 26 AS
Audited balance sheet and profit loss document certified by CA for last 2 years
Address Proof
Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
Medical Proof
Latest medical reports allocated by the insurance provider
Why Compare Term Insurance Plans Online?
Comparing term insurance plans online can have the following benefits:
Check the availability of all term life insurance plans from different insurance companies.
Access accurate information directly from the insurer itself.
Receive additional 5% discount on premiums in annual mode.
Purchase a pure term insurance plan that fits your budget and is suitable for your needs.
Easy term insurance comparison with different insurers.
Online comparison of term life insurance will help you determine the right term plan as per your financial capacity and budget. It is important to compare the best term insurance plans online before buying any policy.
Note: The following information has been sourced from the official websites of insurance companies.
Comparison Of Term Life Insurance Plans
To help you make an informed decision, here is a term insurance comaprison in 2024. Refer to this table and find out the right pure term insurance plan for you.
Term Policy
Entry Age
Maximum Maturity Age
Policy Term
Sum Assured
Max Life Insurance Smart Total Elite Protection
18 - 65 years
85 years
10 - 67 years
1 Crore - no limit
Bajaj Life Insurance Allianz e-Touch
18 - 55 years
99 years
10 - 81 years
50 Lacs - 10 Crores
Tata AIA Life Insurance Sampoorna Raksha Promise
18 - 65 years
100 years
10 - 67 years
25 Lacs - no limit
ICICI Prudential Life Insurance iProtect Smart
18 - 65 years
99 years
5 - 69 years
50 Lacs - 20 Crores
HDFC Life Insurance Click 2 Protect Super
18 - 65 years
85 years
5 - (85 - entry age) years
50 Lacs - 20 Crores
ABSLI Income Suraksha Plan
21 - 55 years
70 years
5 - 49 years
25 Lacs - 25 Crores
When Should I Buy Term Life Insurance Plans?
Term insurance premiums increase with age, and thus insurance advisors suggest that you should buy term plans as early as possible. This allows you to secure a large cover at a lower premium amount. Let us take a look at how the monthly premiums of a 1 Crore term insurance plan vary for healthy males in different age groups:
Age Groups
Premiums for Non-smokers
Premiums for Smokers
People in 20s
Rs. 728
Rs. 1,158
People in 30s
Rs. 760
Rs. 1,369
People in 40s
Rs. 1,109
Rs. 1,997
People in 50s
Rs. 1,787
Rs. 3,364
People in 60s
Rs. 5,795
Rs. 9,059
* The premiums listed above are subject to change and are applicable for a salaried, healthy male covering till 65 years.
What are the 3 Easy Steps to Buy Term Insurance Plan in India?
The 3 easy steps to buy term insurance plans in India are as follows:
Step 1: Choose the most suitable sum assured and policy term as per your individual needs
Step 2: Compare the available term life insurance plans on the basis of their term plan premiums, premium payment options, and benefits offered
Step 3: Buy the best term insurance plan in India and proceed to pay
What is the Importance of Term Insurance Plans During COVID-19?
Term insurance plan is important during COVID-19 for several reasons:
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Financial protection: COVID-19 has highlighted the importance of having financial protection in place for unexpected events. Term life insurance plans can provide financial protection for your loved ones in the event of your untimely death, helping to cover expenses like funeral costs, debts, and living expenses.
Affordability: During COVID-19, everyone was struggling to meet their financial obligations. Term life policy ensures that you are able to meet those needs and still secure your loved ones, as it is one of the most affordable types of life insurance policies, making it a good option for many people during these uncertain times.
Health considerations: COVID-19 has brought health considerations to the forefront, and many people are looking to secure term coverage while they are healthy. Pure term insurance plans typically require a medical exam, but the application process can be completed online or over the phone as per the policy details, making it a convenient option during the pandemic.
Peace of mind: The COVID-19 pandemic has caused a lot of stress and anxiety for many people. Knowing that you have pure term insurance plan coverage in place can provide peace of mind and help ease financial worries for both you and your loved ones.
Term Insurance Premiums: Premium is the amount of money the policyholder has to pay in return to receive the pure term insurance plan benefits and coverage for the entirety of the policy term.
Sum Assured: Sum Assured is the amount that the nominee/beneficiary will receive in case of an unforeseen event.
Claim Settlement Ratio: CSR in life term insurance plans is the ratio that represents the total number of claims registered in a year and the number of death claims settled in a year by an insurance company. The higher the CSR, the good the reliability of the company, and the chances of claim rejection is low.
Death Benefit: Death benefit is the same as SA and is provided to the nominee in case of uncertainty. The insurance provider will payout the death benefit to the nominee if the policyholder suffers an untimely death during the policy term.
Maturity Claim: At the end of the policy term, with regular term plans, the insurance policy just terminates, and no benefit is payable. But, with Term insurance return of premium plans, you can claim all the premiums paid towards the policy at the maturity of the policy.
Nominee/Beneficiary: The nominee or the beneficiary is the person chosen by the policyholder as the rightful claimant of the death benefit in the absence of the policyholder.
Policy Term: The policy term is the duration for which the insurer will provide the policyholder with the life cover and the policy’s benefits in exchange for the life term insurance premiums paid regularly.
Premium Payment Term: It is the duration for which the policyholder has to pay the term plan premiums. Most term life insurance plans offer single, limited, and regular premium payment terms for you to pay at your convenience.
Riders (Add-on benefits): Riders are the additional benefits you can include in your base term plan to increase its coverage. The available riders are different for each insurance plan and can be added at an extra amount to the base term plan premium.
Grace Period: Grace period is the additional period provided by the insurance provider after the term plan premium due date to pay the premiums without worrying about policy lapsing.
FAQs About Term Insurance Plans
Term Insurance
Rider
Critical illness
Premium Amount
What does term life insurance do?
Ans. What term life insurance plans do is that they protect the financial future of your loved ones. Term plans are a type of life insurance plan which offers financial protection to the policyholder for a specified time. In case of unforeseen death of the insured during the policy term, the insurance provider pays the death benefit to the beneficiary.
What are the 3 benefits of term insurance plans?
Ans. A pure term insurance plan offers financial protection for the family in case of the untimely policyholders death. And you can also get optional coverage for accidental death or critical illnesses. Term plans also cover you for long term at low premium rates.
What is term insurance plan Quora?
Ans. Term insurance plan according to Quora, users are a type of life insurance that offer financial aid to the family of the policyholder, in the event of the policyholder’s unfortunate demise.
What is the 3-year rule in term insurance plans, Reddit?
Ans. The 3-year rule in term insurance plans Reddit refers to the Section 45 of the Income Tax Act, 1961, under which any active term life insurance that has been issued or revived for 3 years consecutively, cannot be denied claims on any grounds other than fraud.
What is term insurance for 2 lakh?
Ans. Pradhan Mantri Suraksha Yojana is a 1-year term life insurance yojana for a 2 lakh life cover. It offers death coverage because of any cause. This scheme comes with a risk cover of Rs. 2 Lakhs in case of the insured's demise for any reason.
What is the meaning of LIC term insurance?
Ans. LIC term insurance plans are the term plans offered by the Life Insurance Corporation of India. These plans allow customers of all backgrounds to get life insurance coverage of high cover at affordable premiums. You can take a look at the available term life insurance plans to choose the one that best suits your needs.
What are the disadvantages of term life insurance?
Ans. The disadvantages of term life insurance are:
No-investment factor
Premium differ based on age factor
Surrender value
When should I buy term life policy?
Ans. There are no specific criteria but it is always recommended to buy a term life insurance as early as possible. The term plan premiums tend to be higher for people in their 30s than for those in their 20s and so on. Buying insurance is always a good idea whether you are in your 20s, 30s, or above.
How much life term insurance coverage do you need?
Ans. You can find a quick answer to this question by computing your Human Life Value or HLV. HLV is a simple number that helps you calculate your required life insurance.
Can I take 2 term life insurance plan?
Ans. Yes, there is no limit on buying multiple-term insurance plans to fulfill your life objectives. Buying more than one term life insurance plan is certainly beneficial in terms of a number of death benefit payout options, cost-effective term plan premiums, riders, coverage, hassle-free claim settlement, and tax exemption u/s 10(10D) of ITA.
Why are more women in India opting for term insurance plans?
Ans. Over the past two years, there has been an 80% increase in women purchasing term insurance in India, reflecting a growing trend of women taking charge of their financial planning. Women are not only securing their families' futures but also choosing high-cover plans, with a 120% rise in purchases of policies with higher coverage amounts.
Do both working women and housewives buy term insurance plans?
Ans. Yes, both working women and housewives are increasingly buying term insurance plans. Working women, including salaried and self-employed, account for 55-60% of the purchases, with many opting for high coverage amounts of ₹2 crore or more. Housewives, making up around 40% of term life insurance plan buyers, are also prioritizing financial security, with growing awareness of the benefits.
What are riders in term life insurance?
Life term insurance riders are additional attachments made to an existing term plan at affordable premium rates, giving the policyholder additional coverage, thus enhancing the utility of the policy. Different types of term insurance plan riders that you can avail of are:
Accidental death Benefits
Accelerated Death Rider Benefit
Waiver of Premium Benefits
Accidental Disability Rider Benefits
Critical Illness Benefits
Income Replacement Benefits
Should we take riders with term life insurance?
Ans: Yes, it is a good idea to opt for riders with term life insurance plan, as it enhances the effectiveness of a pure term insurance plan. Choosing which riders to attach to your plan shall depend on your risks, requirements, and preferences. Upon assessing the various types of risks to your life, you should supplement your life cover with a suitable rider to enjoy comprehensive coverage.
Which rider I can buy with term life insurance?
Ans: Although the selection of a term life insurance rider depends on risks, your needs, and preferences, one of the best options is the waiver of premium rider. The rider protects policyholders against policy lapses in case of non-payment of term plan premiums due to an illness or under critical circumstances.
What is the term insurance rider?
Ans: A term life insurance rider is the extra or additional cover a life assured can opt for along with their base term insurance plan to increase their coverage benefits. A life assured can easily purchase a life term insurance rider by paying an additional premium amount.
What is the cost of riders?
Ans: Most of the riders are comparatively inexpensive. A term life insurance rider usually costs around 5 to 10% of the total term insurance plan premium you pay for your base cover. There is no limit to the number of riders that you can add to your base term life insurance cover, but the premium amount on all the riders should not be more than 30% of your base term plan premium.
What are the benefits of adding a term life insurance rider?
Additional Coverage
Cost-effective
Choose as per your needs
Tax-saving Benefit
Multiple benefits in a single policy
What are critical illness riders, and why are they important for women?
Critical illness riders provide additional coverage for specific health conditions, including cancers common to women, such as breast, ovarian, and cervical cancer. These riders ensure financial support from the early stages of the disease, beginning at diagnosis. Many insurers also offer comprehensive health management services for women, which include annual benefits like tele-OPD consultations and lab tests.
Should I take critical illness cover with pure term insurance plan if I have health insurance?
Yes, you can take critical illness cover with a term life insurance plan, if you already have a health insurance plan, the critical illness cover would pay a claim if you got sick. During any critical illness, this cover can be helpful to enhance an existing term life insurance plan.
What is covered against critical illness in term insurance plan?
The critical illness cover provides you financial protection and security against several life-threatening medical conditions such as stroke, cancer, cardiovascular diseases, and kidney failures. This term life insurance cover includes a lump sum payment if you are diagnosed with stated illnesses in the policy.
What is the term plan with critical illness cover?
Ans: Term life insurance plan with critical illness cover is a plan that meets the following criteria:
Illnesses covered: Determine the number of critical illnesses covered. If you have a family history of any cardiac disease or any other major ailment, ensure these are covered within the term plan.
Adequate sum assured: Always consider the average cost of managing major ailments while determining the size of a term life insurance cover. Always take inflation into account.=
What is a term plan with a critical illness?
Ans: Term insurance plans with Critical illness cover provide a lump sum payment if you are diagnosed with any of the illnesses in the pre-specified list of the policies. This typically includes paralysis, heart attack, lung diseases, cancer, and others.
How much life term insurance should I take?
Ans: The coverage amount depends on various factors such as the number of, dependents in the family, affordability, and the lifestyle you would like your family to sustain in the future. For calculating the minimum term life policy cover you need, you can follow the rule to have a sum assured that is 10X your yearly income. Further, you should factor in your existing debt obligations and liabilities when you are deciding your coverage amount.
Who dictates what the term plan premium amount should be?
The insurance company decides the term plan premium payable based on several factors such as age, gender, smoking habit, medical history, etc.
How important is the gender of the life assured?
Ans. As per the experts, the average Indian woman lives longer than their male counterparts. Thus, term life insurance premiums are lower for women than that of men belonging to the same age bracket. Some plans also offer discounts to women on their term insurance plan premiums.
Why is the use of tobacco/nicotine a determining factor for life term insurance premiums?
Ans. Tobacco/nicotine use directly affects the life expectancy of a person. Considering that non-smoker is expected to live longer, their term plan premiums are consequently lower.
What happens if I do not pay the term insurance premium?
Ans. If term life insurance premiums remain unpaid even after the grace period, the term insurance plan shall lapse along with its benefits. Some insurance companies provide a revival period within which one can revive their lapsed term life policy.
What is the consequence of the life assured dying before the premiums have been duly paid?
Ans. If the death of the life assured occurs before the payment of due term insurance plan premium, the term life policy will still be considered valid. In such a case, the death benefit reduces by the amount of due premiums that remain unpaid. The due amount is basically deducted from the sum assured on death.
What am I entitled to if the term life insurance plan premiums are duly paid off and I survive the term period?
Ans. Term life insurance policies do not offer paybacks unless you have opted for the return of premium term insurance plan variant. Therefore, if you were to outlive the policy term, you do not receive any benefits. This is why pure term insurance plan are rendered as a pure risk policy. It is the chance that you take to ensure a strong financial safety net for your loved ones in case you are not around for them.
What is HDFC Life Insurance Company current stock performance?
Ans. As of 19-09-2024, 15:19 IST, HDFC Life Insurance Company’s stock is trading at ₹701.7 with a market capitalization of ₹1,50,299.68 crore. The current volume is 2,043,771 shares, with a price-to-earnings ratio of 92.05 and earnings per share (EPS) of 7.61. Stay updated with real-time data through our liveblog for further market insights.
Do we get return in term insurance plans?
Ans. In a regular term plan, there is no return, maturity, or money back at the end of the pure term insurance plan. However, a term insurance return of premium plans returns the premiums paid back at the end of the policy term as a maturity benefit. This returned amount is subject to some deductions like GST, Admin charges, and other nominal charges. However, it is better to understand what is term insurance first, before learning more about returns in term life policy.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 478/month (Rs.16/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 38 years of age.
Prices offered by the insurer are as per the IRDAI 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.
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