Choosing the right term insurance policy is essential for ensuring your family's financial security in case something unexpected happens to you. With so many options available, finding the one that best fits your needs can be confusing. The right policy should offer enough coverage to protect your family and be affordable and flexible enough to adjust to your changing life circumstances. Let us understand how to choose the perfect term insurance policy by simplifying the key factors, so you can confidently make a smart decision.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
The Policybazaar Advantage
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.
How to Choose the Best Term Insurance Plan in India 2025?
Assess Your Financial Needs
Before choosing the best term insurance plan, you should evaluate your financial goals and your family's needs.
Current liabilities: You should assess outstanding debts and loans like home loans or car loans.
Future expenses: Consider future goals like education, marriage, and other future expenses for your children.
Income replacement: Keep family's needs in mind, as it would replace your income in your absence, especially if you are the breadwinner.
Lifestyle needs: You can adjust the sum assured according to your family’s lifestyle expectations.
Term Plans
₹1 Crore
Life Cover
@ Starting from ₹ 16/day+
₹50 LAKH
Life Cover
@ Starting from ₹ 8/day+
₹75 LAKH
Life Cover
@ Starting from ₹ 12/day+
Choose the Right Coverage Amount
The coverage, or sum assured, is the amount your family will receive in the event of your unfortunate death. To calculate the right coverage, you should use the human life value calculator, as it can provide you with the most accurate cover amount that you should opt for with your term insurance plan. You should ensure the total coverage amount is enough to cover all these aspects for your family’s long-term financial security.
Policy Term: How Long Do You Need Coverage?
The policy term is the number of years your term insurance will last. Ensure that the term length covers the entire period of your financial obligations. Choose the term based on your financial responsibilities and goals:
Until your children are independent
Until your loans and debts are paid off
Until you plan to retire
Compare Premiums
While term insurance premiums are affordable, premiums can vary depending on factors such as age, health, and coverage amount. You should always compare premiums on the basis of:
Compare term insurance premiums from different insurers
Ensure that the premiums are affordable throughout the policy term
Avoid compromising necessary coverage for a lower premium
Compare different insurers based on their CSR and solvency ratio
Add Riders for Enhanced Protection
Term insurance riders are add-ons that enhance your term insurance coverage. Choose riders based on your specific needs for added protection. Some useful riders include:
Critical Illness Rider: The critical illness rider pays the additional rider sum assured on the diagnosis of covered critical illnesses.
Accidental Death Rider: The accidental death rider pays the additional amount on the policyholder’s death due to an accident.
Waiver of Premium Rider: The premium rider waiver waives all future premiums in case of job loss due to critical illness or accidental total permanent disability.
Terminal Illness Benefit: Terminal illness benefit pays either the entire sum assured or a part of the sum assured as an accelerated benefit payout.
Accidental Disability Rider: Accidental Total and Permanent Disability rider provides an additional benefit in case of an accidental total and permanent disability.
Secure Your Family Future Today
₹1 CRORE
Term Plan Starting @
Get an online discount of upto 15%#
Compare 40+ plans from 15 Insurers
+Standard T&C Applied
Check Insurer Reliability
The claim settlement ratio (CSR) reflects the percentage of claims an insurer settles. A higher CSR indicates a reliable insurer and ensures that your family will not face any hassles when making a claim. When comparing insurers:
Check and go for an insurer with CSR of over 95%
Opt for a Solvency Ratio of 1.5 or 150% or above
Look at customer reviews for customer satisfaction
Flexibility and Policy Features
Term insurance plans provide you flexibility in the form of customisation of the policy. You should ensure the life insurance policy you choose has features that align with your needs:
Life Stage Benefits: The life stage benefits allow customers to enhance their base sum assured at different life stages like marriage, childbirth, or home loans.
Return of Premium Option: This type of term insurance returns the premiums paid throughout the policy term at the end of the policy tenure.
Smart Exit Benefits: With the smart exit benefits, you can exit the plan early and receive up to double the total premiums paid until the termination of the policy.
Premium Pay Options: Choose to pay the premiums in a convenient premium pay term and mode like regular, limited, or single pay, in monthly, quarterly, annual, or bi-annual.
Look for Online Plans for Better Deals
Many life insurance companies offer exclusive discounts and lower premiums for online term insurance plans. Benefits of buying online include:
How to Choose Term Insurance: Checklist for Choosing the Right Term Insurance Policy?
Factors to Consider
Key Points
Coverage Amount
Should cover liabilities, future expenses, and lifestyle needs
Policy Term
Should last until financial responsibilities are over
Premium
Compare rates; ensure affordability
Riders
Add-ons like critical illness and accidental death benefits
Claim Settlement Ratio (CSR)
Look for a CSR above 95%
Features
Options like increasing coverage, return of premium
Online Plans
Often more affordable with exclusive offers
Why Buy Term Insurance Plans Online From Policybazaar?
Here is why you should consider buying term insurance plans online from Policybazaar:
Get up to 15% online discounts
100% recorded calls to ensure no mis-selling
Free Dedicated Claim Support for family
Available insurance advisors in your city
Get refunds at the click of a button
Final Thoughts
Choosing term insurance is essential to securing your family's financial future. The main steps of selecting term insurance are to assess your financial needs, choose the right coverage, and add riders for enhanced protection. You should compare different term insurance policies and ensure the insurer has a good claim settlement record. With these steps, you can confidently select a term insurance policy that offers the best protection for your loved ones.
How do I choose term insurance coverage ideal for me?
A: To answer how to choose term insurance ideal for me, you should assess your needs, check your family’s financial requirements, and check the right cover amount for yourself using the human life value calculator.
What is the right age to buy term insurance?
A: The earlier, the better. Buying term insurance in your 20s or 30s can lock in a lower premium for the entire policy term. For example, a 1 crore term insurance can start from ₹487 per month. Therefore, you should always compare based on choosing India's best term insurance plan.
Can I increase my term insurance coverage later?
A: Yes, some policies offer the life stage benefit option or voluntary top-up feature that allows customers to increase their sum assured later to fit their evolving financial needs.
How should I choose the right insurance plan, and how to identify the best insurance coverage?
A: When choosing the best term insurance plan, start by assessing your financial needs, current liabilities, and long-term goals like your family’s expenses, children's education, or home loans. Identify the best term insurance cover by ensuring it’s enough to replace your income and meet your family's future needs. Compare different plans, check claim settlement ratios, and opt for additional riders for protection. Always select a term plan with affordable premiums you can sustain over time.
Is it better to get 20 or 30-year term life insurance?
A: It depends on your financial goals and responsibilities. A 20-year term may be suitable if you have short-term needs, while a 30-year term offers longer coverage for extended obligations like mortgages or children's education.
What is the 3-year rule for term insurance?
A: The 3-year rule means that after three years of the policy, insurers typically cannot reject a claim due to non-disclosure or fraud, as per IRDAI guidelines, except in cases of proven fraud.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
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. 487/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 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.
+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.