Prices Increasing Soon
When it comes to securing the financial future of your family, a 5 year term insurance is an option that provides temporary protection for a short yet crucial period. In this guide, we'll walk you through everything you need to know about 5 year term insurance, what it is, its benefits, and how it works.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
A 5 year term insurance policy offers life coverage for a period of 5 years. If the life assured passes away during this period, the nominee receives a death benefit. This type of term insurance policy is designed for people who need short-term coverage to safeguard their family from financial risks. It is an affordable way to get protection for a specific need or time frame, such as paying off a loan, covering your child’s education expenses, or filling a temporary income gap.
Term Plans
Here is a list of ways in which buying a five year term insurance plan can benefit you:
Low Premiums: Five year term life insurance plans are highly affordable as these are the most affordable types of life insurance, and they cover for a short duration.
Death Benefits: The 5 year term plan pays the sum assured as death benefits to your family in case of the policyholder’s death during the policy term.
Financial Security: In the event of your unfortunate demise, the 5 year term insurance helps your family take care of their financial needs like the monthly rent or child’s fees.
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.
Rider Benefits: There are several term insurance riders that you can add to the term plan to enhance the base plan’s coverage.
The key features of a five year term life insurance plan are as follows:
Short-term Coverage: The policy lasts for only 5 years, providing financial protection during this period.
Customisability: The five year term life insurance can be customised to the person’s individual needs on the basis of sum assured, riders, premium pay term, and more.
Premium Pay Modes: The premiums for the 5 year term life insurance can be paid in a monthly, quarterly, annually, or bi-annual modes.
Premium Payment Options: You can pay premiums under this plan for regular, limited, or single premium pay term.
Quick Approval Process: Many insurance companies offer simplified underwriting for short-term plans, meaning the approval process is often faster.
Secure Your Family Future Today
₹1 CRORE
Term Plan Starting @
Get an online discount of upto 15%#
Compare 40+ plans from 15 Insurers
The table below displays the conditions that need to be fulfilled to avail of the 5 year term life insurance:
| Parameters | Details |
| Minimum age to avail the insurance | 18 Years |
| Maximum age to avail the insurance | 65 years 55 years in case one opts to pay premiums till 60 years of age |
| Maturity age | Depends upon the insurance company |
| Policy Tenure | 5 Years |
| Premium Payment Tenure | Regular Pay, Limited Pay, or Single Pay |
| Sum Assured | 50 Lacs - 20 Crores |
| Premium Payment Mode |
|
Now that the eligibility criteria have been discussed, it is time to look at some features that make 5 year level term life insurance a better option than other term life insurance policies in the market.
Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying the plan.
A 5 year term life insurance policy provides short-term financial security, ensuring your loved ones remain financially stable in case of an unfortunate event. Here’s how it benefits you and your family:
Immediate Financial Protection – Ensures your family has funds to manage daily expenses if something happens to you.
Loan Repayment Security – Your family can settle outstanding loans, such as a personal loan, car loan, or home loan, so your family isn’t burdened with debt.
Income Replacement for Spouse – The payout can provide a financial cushion to your spouse, ensuring they can maintain their lifestyle even in your absence.
Support for Children’s Education – You can ensure enough sum assured to cover tuition fees or other education-related costs in your absence.
Business Protection – Ideal for entrepreneurs or business owners who need financial security for a short duration.
| Feature | 5 Year Term Insurance | 10 Year Term Insurance | 20 Year Term Insurance |
| Policy Duration | 5 years | 10 years | 20 years |
| Premiums | Lower due to shorter term | Medium | Higher |
| Coverage Flexibility | Short-term needs | Medium-term needs | Long-term needs |
| Renewal Options | Must renew after 5 years | Must renew after 10 years | May last longer without renewal |
| Best for | Temporary financial needs | Medium-term goals like debt | Long-term goals like retirement planning |
Whether 5 year term insurance is the right choice depends on your personal and financial situation. If you’re looking for a quick, affordable solution to protect your family against immediate financial risks, this can be a suitable option. However, if you need long-term coverage, a longer-term policy may be more beneficial in the long run.
Compare Premiums: Get quotes from multiple insurers to ensure you're getting the best price.
Check for Riders: Add-ons like accidental death or critical illness riders can provide additional protection.
Consider Renewal Options: Check if the policy allows for easy renewal after 5 years.
Review Claim Settlement Ratio: Always choose a provider with a good claim settlement ratio to ensure your family can access benefits smoothly.
Here is a list of documents required by the insurance company before buying 5 year term life insurance plan:
| Category | Documents Required |
| Officially Valid Documents (Any one of the below) | - Passport - Voter’s ID - Duly signed Job card issued by NREGA - AADHAAR Card - National Population Register letter containing name, address, and AADHAAR number - Any other Central Government document |
| Additional Requirements | - PAN Card / Form 60 |
| If Officially Valid Documents do not have updated address | - 1-2 months old utility bill (telephone, electricity, post-paid mobile, water, piped gas) - Municipal or Property Tax Receipt - Pension orders issued to retired government or PSU employees (if containing address) - Letter of accommodation allotment from employer (State/Central Government, PSUs, regulatory bodies, scheduled commercial banks, financial institutions, listed companies) |
| Income Proof for Salaried Individuals (Any one of the below) | - Bank statement showing salary credit for the latest 3 months - Latest 2 years Income Tax Returns - Latest year Form 16 |
Note: Know what is term insurance first and then buy a term plan for your loved ones.
Note: Check out the best term insurance plan in India and choose one that suits your requirements.
˜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.
© Copyright 2008-2025 policybazaar.com. All Rights Reserved
+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.
HDFC Life Click 2 Protect Elite Plus is a comprehensive term
Read more
Buying a home is a major milestone, but it also comes with
Read more
Amit was a 38-year-old marketing professional with big dreams
Read more
Are you looking for an affordable way to protect your family's
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
