What are the Factors to Consider Before Buying Term Insurance?
Can NRIs Buy Term Insurance in India?
What are the Term Insurance Policy Features?
What are the Term Insurance Plans and Their Benefits in India 2025?
What is a Term Insurance Rider?
Term Insurance Buying Guide
Documents Required To Buy Term Life Insurance Plan
Why Compare Term Insurance Plans Online?
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Term Insurance
Term insurance is one of the most basic types of life insurance that offers financial cover for a specific tenure, called the policy term, in exchange for fixed premiums. A term insurance plan secures the financial future of your loved ones in your absence. This type of life insurance product can help your family cover monthly expenses like child’s fees, home loans, groceries, and more. Therefore, you must buy a good term life insurance policy to ensure your family's financial security. Read more
15 lakh Families Secured
₹13,50,000 Cr of Life Cover Provided
Customer Rating
4.8++85,767 reviews
Life is Unpredictable! “Protect your family’s
future”₹1 Crore Life cover starting from ₹478/month+
Term insurance is pure life insurance that protects your family financially if you pass away within the policy term. It's a simple and affordable way to ensure they receive a lump sum to cover expenses and achieve goals. You pay regular premiums; if you outlive the policy, there's no payout (unless you choose a term return of premium option). A healthy 25-year-old can get 1 crore term insurance coverage for just ₹616 per month until age 60.
Best Term Insurance Plans in India 2025~
Buy India’s term insurance plan starting at just ₹16/day with Rs. 1 Crore cover, 15% discount online and 100% dedicated claim assurance. With Policybazaar term insurance, you can easily compare and choose the term plan that fits your needs. Here is a list of the term insurance plans in India 2025 for you, which provides affordable term plan premium rates, flexible payout options, coverage, and reliability of term life insurance providers:
*Calculate and secure your financial goals with our SIP calculator with term insurance options.
*Disclaimer: ~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. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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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 ₹1 crore Term Insurance for a 25-year 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.
15 lakh Families Secured
₹13,50,000 Cr of Life Cover Provided
Customer Rating
4.8++85,767 reviews
The Policybazaar Advantages
Discount upto 15% # for buying online
Dedicated claim support for family FREE
Advisors available in your city
4.8 Rated
9.7 CroreRegistered Consumer
51 PartnersInsurance Partners
4.9 CrorePolicies Sold
440 Crore worth of claim assisted since Apr’22
Free Dedicated Claim Assistance
Policybazaar for your family Guarantees claim support
Delhi
Mr. Jangir
Claim Beneficiary
Mr. Ashish
Policybazaar Executive
Claim Helpline: 1800-258-5881
Know More
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:Vivek Jain
Vivek JainChief Business Officer
Mr. Vivek Jain, Chief Business Officer (CBO), Life Insurance at Policybazaar.com, has over a decade of experience in the life insurance field. As an IIM alumnus, he has been instrumental in transforming Policybazaar’s life insurance products to be more customer-focused and accessible. His leadership has enabled the company to offer a diverse range of insurance solutions, helping individuals confidently safeguard their family's financial future. His vision is to ensure every household is financially secure.
Term Insurance at a Glance
Categories
Specifications
Sum Assured
₹5 Lakhs to up to ₹20 Crores
Policy Term
From 5 years to 99/100 years
Premiums
Affordable
Death Benefit
Available
Critical Illness Cover
Available
Accidental Total Permanent Disability
Available
Terminal Illness Cover
Available
Accidental Death Benefit
Available
Tax Benefits
Save up to ₹46,800 on taxes with Section 80C Death Benefit is tax-free with Section 10(10D)
100% Dedicated Claim Assistance
Available
Get 100% Dedicated Claim Assistance from Policybazaar
Policybazaar offers 100% dedicated claim assistance to help policyholders in the claim process smoothly and efficiently. Rs 440 crore worth of claims have been assisted since April 22. With a team of experienced professionals, we ensure that policyholders receive the full benefits they are entitled to under their term insurance policies and provide end-to-end support to the policyholder.
How does Policybazaar’s Dedicated Claim Assistance Program work?
The Policybazaar claim assistance process is simple and works in two basic steps:
The nominee of the policyholder can contact Policybazaar's dedicated claim assistance team by calling 1800-258-5881, emailing, or texting and basically informing them of the policyholder’s unfortunate death. The team will collect information about the policyholder's claim and guide them through the necessary documentation and procedures.
Once the necessary information and documentation have been collected, Policybazaar will take over the claim process on behalf of the policyholder. This includes doing the ground work, communicating with the insurance company, following up on the claim status, and ensuring that the policyholder receives the claim amount promptly.
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Why Should You Buy Term Insurance Plan?
There are various term insurance benefits that are designed to cater your financial protection needs. Here is a list of few benefits:
To Secure your Family
Looking after your family is a top priority, especially when you're the main provider. Term insurance is like a safety net for them if something unexpected happens. It gives them money to help with important bills, education, and daily life, so they can keep their desired living standard even if you're not there.
To Protect the Assets
We all work hard to build a good life for our families, including things like a house or a car. But these things usually come with loans. Term insurance can help protect those assets for your family. If something happens to you, it can pay off those loans, so your loved ones don't have to worry about losing their home or car. It's a way to ensure your hard work benefits your family, even if you're not there.
To Reduce Lifestyle Risks
Losing a loved one is always tough, and it can be even harder when it also means losing a source of income. Nowadays, health problems like heart attacks are becoming more common in India. Term insurance can help by providing financial support to families if the worst happens. This means they can focus on healing and adjusting to their new situation without the added stress of money worries.
Be Prepared for Uncertainties
Life throws difficult situation sometimes, and unexpected events like the COVID-19 pandemic have shown us how quickly things can change. Term insurance is like having a backup plan for your finances. It's not just for things you can predict, like education costs or loans, but also for those unforeseen moments. It gives you and your family a financial safety net to fall back on, no matter what surprises life brings.
Low Premium with Attractively High Life Cover
Term insurance gives you a lot of protection without costing a lot. If something happens to you, it's a budget-friendly way to ensure your family has a significant financial safety net. So you can have peace of mind knowing they'll be taken care of without emptying your wallet.
Opting for a Term Rider
Term insurance isn't just a one-size-fits-all solution. It's like a superhero with customizable powers! You can add special features called "riders" to give you and your family even more protection in specific situations. For a little extra cost, you can add things like:
Accidental Death Benefit Rider: Additional payout for beneficiaries if the policyholder dies in an accident.
Critical Illness Rider: Receive a lump sum if you're diagnosed with a serious illness.
Waiver of premium due to permanent disability: Stop paying premiums if you become critically ill or disabled.
Terminal Illness Rider: Provides financial support if you're diagnosed with a terminal illness.
These riders boost your protection and give you greater peace of mind, knowing you're prepared for whatever life throws your way.
Tax Benefits
Term insurance comes with some tax benefits. You can reduce your taxes by claiming a deduction on the premiums you pay under section 80C of the Income Tax Act, 1961. And if your family receives the death benefit, that money is typically tax-free, too, u/s 10(10D) of the ITA, 1961.
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 life insurance provides financial protection to your family and basically 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 insurance company pays a large sum of money (life cover) to your family. It costs as little as ₹487/Month to buy a 1 crore life cover.
What are the key features of term plan?
Isha : Lucknow
"Life Cover: Amount that family receives on the demise of policyholder (should be 10 times of your annual income). Cover till age: Age till which the term plan provides protection to your family (generally opted till 70). Payment Frequency: Premiums can be paid monthly or annually. Annual premiums have 15% 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. Thumb rule is to take a cover of 10 times your annual income. Why? Let me explain with an example: Annual Income = 10LMonthly expense = 35,000/month i.e. 4.2L/year Loan = 20LAs 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 should cover you until your financial responsibilities are over. 1. Do you want cover till you retire? (since your financial obligations wil 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 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 upto 54% on your overall Premium if you select limited pay for your Term Plan. *58% of the customers select payment term of 10 years.*
How will policybazaar help my family in getting the claim?
Sejal : Pune
Policybazaar provides dedicated claim handler who can also come at 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 and work with your nominee on documentation and coordinating with your insurer. 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 adding 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.
Video
information
What is Term Insurance?
Term Insurance Buying Checklist
Claim Settlement Ratio (CSR): You should buy term insurance online from a company with a CSR of above 95%.
Solvency Ratio: You should check the company’s ability to take care of their future liabilities.
Grace Period: You should always check the grace period for different payment frequencies.
Free Look Period: Make sure that the free look period for the policy is per your liking.
Rider Benefits: Always check the additional riders, their benefits offered, and conditions.
Smart Exit Benefit: Some insurers offer the option to exit the plan early and receive all the premiums paid.
Type of Plan: Check the ideal type of term insurance for your needs before buying.
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Who Should Buy Term Insurance Plan?
Anyone who has financial dependents should buy term plans, as they offer financial protection at affordable premiums. This includes parents, married couples, self-employed or businessmen, new parents, and taxpayers. Let us discuss how each individual would benefit from a term life insurance plan.
Types of Individuals
Term Insurance Benefits
Term insurance plan for Young Professionals
As a young professional, you have limited financial liabilities. If you buy term plan today, your premiums will be low, and it will become more cost-effective with every increase in salary, providing financial security for family members. A term plan for all ages offers security and peace of mind for every stage of life.
Term insurance plan for Newly Married
Jewellery, dinner dates and chocolates are nice, but gift your spouse the protection of term life insurance, ensuring the peace of mind. Term insurance for spouse provides financial support to spouse in case of an unfortunate event with the life assured. Married couples should buy term insurance online as early as possible to secure large cover at low premiums.
Term Insurance Plan for Working Women
Term insurance for women provides financial security as these days, women are equal to men in managing finances and contributing to their families. Apart from income replacement benefits, working women buying term insurance for women can also receive additional benefits such as critical illness rider, offering an additional payout if you are diagnosed with a serious condition like cervical or breast cancer, along with applicable term insurance tax benefits as per ITA, 1961.
Also, women in India can opt for different types of discounts on term insurance premium amount that overall increases the term plan’s affordability.
Term insurance plan for Housewives
Term insurance for housewife is specifically designed for homemakers, as it provides financial security to her family in case of her unfortunate death. A payout from term life insurance helps cover the household expenses, such as childcare and other types of expenses.
Term insurance plan for Taxpayers
Term life insurance plans offer tax benefits that help save your taxes. The premium amount paid towards a term insurance plan is eligible for a tax deduction under section 80C of the Income Tax Act, 1961.
Term insurance plan for Parents
Becoming a parent is a celebration; however, this results in an increase in responsibilities. First is giving a unique baby girl name or modern baby boy name and then providing their future. You can buy term insurance online to provide financial support for your children, ensuring they are financially protected even in your absence.
Protect your children’s future with a term insurance plan, ensuring financial assistance for expenses in case of any mishap with parents. With term insurance for parents, the dreams of your children are secure
Term insurance plan for Retirees
Retired individuals with spouses or families, depending on them, should consider getting term plan insurance. It can help them pass some money on 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.
Term insurance plan for Senior Citizens
Senior citizens (60 years or above) can secure their family members, such as spouses, by buying a term insurance plan. This extra protection can help financial dependents maintain their desired lifestyle, even in the policyholder's absence. It is always suggested to buy term plan as soon as possible. Still, there are term insurance for senior citizens that can be purchased in your later years to ensure that your financial dependents can avail benefits offered by these plans.
Term insurance plan for Self-Employed People
Term insurance for self-employed provides financial security to the families of the self-employed in case of their death. The payout from term insurance plans may cover the expenses of business overheads and daily household expenses till the time someone else takes charge.
Term insurance plan for 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 in India. The death payout of the term insurance for NRI can help manage family’s financial needs and other liabilities.
NRIs in Singapore and UAE can avail term insurance cover of up to 20 crore in India for 20% to 50% lower premiums, along with facilities such as video-medical check-ups.
Term Insurance Plan for Equity Investors
Term insurance for equity investors provides financial protection to the policy's nominee in case of an investor's death. The benefits received from the plan help ensure that the SIPs continue for the nominee’s future.
Term Insurance for Diabetics
Diabetes can make your life difficult and this increases your risk of having other critical illnesses. Thus, to offer financial protection to your family, it is suggested that you should buy term insurance plan for diabetics.
Term insurance plan for Freelancers
Freelancers in India are usually majorly under-insured, or they have no health insurance or term insurance because of low salary, despite having commitments for long term to their current job. These type of individuals can buy term plan with a valid income proof documents.
Term insurance plan for Home Buyers
Term insurance for home buyers is considered as a great purchase as it protects the nominee’s future, even in the loan bearer’s absence. In case of the loan bearer’s untimely demise, the term insurance payout can help your family pay off all the EMIs.
*Expatriate meaning: An expatriate is a person who lives outside their native country, usually for work or long term residence.
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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: Term life insurance plans act as income replacement plans, as they allow your family to receive the death benefit in regular instalments in your absence.
Cover Funeral Costs: There are several costs like the hospital bills and funeral costs that may pile up right after your unfortunate demise. Your family can use the term insurance payout amount to take care of these financial obligations.
Pay Off Loans and Debts: The financial burden of any pre-existing loans or debts like home or car loans might fall on the shoulders of your family members. The term life insurance payout can help them pay off these remaining loans and live a peaceful life.
Secure Your Spouse: With a term insurance plan, you can secure your spouse’s retirement in your absence. The term plan payout can help them lead a financially independent life while maintaining their current lifestyle.
Fulfill Future Goals: The term insurance payout can help your family fulfill their future goals like paying for the child’s higher education, taking care of their wedding, or funding their business endeavours.
How Does a Term Insurance Plan Work?
Term insurance plans work for a limited term by providing a life cover for a specific time. To receive all the benefits, you should pay premiums at regular intervals. If something unfortunate happens to you during the policy term, your nominee/beneficiary receives the chosen life cover as the policy benefit. You can also buy term life insurance riders to increase your family’s financial security. There are 6 stages that show how a term insurance plan works:
Agreement
Term insurance is an agreement between you and the insurer, where the policyholder pays a premium to receive a life cover for family members. An individual covered by the plan is known as life assured.
Fill out the Proposal Form
Filling out the proposal form is an important step when buying a term insurance plan. This application requires details such as gender, age, income, lifestyle habits, medical history, and education. It is important to provide accurate information.
Assess Your and Your Family’s Financial Needs
To choose the term insurance, assessing your and your family’s needs is important. After assessing your financial needs properly, you can decide your life cover amount, premium payment term, policy term, term riders and more.
Calculating Term Insurance Premium Amount
Using the term insurance calculator, you can easily calculate the premium amount for your desired life cover.
Paying Premiums
Pay the premium amount by choosing the right mode of payment.
Appointing a Nominee
In term insurance, the policyholder must choose a nominee who will receive the payout (life cover) if the policyholder dies.
What are the Term Insurance Policy Features?
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. With the help of the online portal of Policybazaar, you can do a Term Insurance Comparison from top insurers and choose and buy term life insurance policy that suits your needs.
Premium Pay Options
Term life insurance plans offer several term plan premium pay options. You can pay the premiums monthly, quarterly, bi-annually, annually, or in limited, regular, or single installments.
Customisable Cover
With the life stage benefits of a term insurance plan, you can increase the sum assured of the policy at different life stages like marriage, childbirth, or taking out home loan.
Cover against Life-threatening Diseases
Some term plans provide term coverage for life-threatening diseases such as stroke, heart attack, kidney failure and cancer. This plan also protects your family members in case of a medical emergency.
Pay Off Loans/Debts
Your family can use the term life insurance plan benefit payout to pay off any remaining loans and debts you might have left behind in your absence, such as home, business, or education loans.
Return of Premium on Survival
Regular term insurance plans do not offer any maturity benefits, but with the term plan with return of premium plans, you can receive the total premiums paid at the end of the policy term.
Special Exit Benefits
Some term life insurance plans offer special exit benefits that allow customers to exit the plan at an early stage (specified by the insurer) and receive back all the premiums paid until that point.
What are the Factors That Can Affect Term Insurance Premiums?
Various factors like your age, gender, health, family medical history, current health conditions, and lifestyle can affect your term insurance premiums in the following ways:
Factors
Details
Age
Younger people usually pay lower term life 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
You and your family’s medical history can impact the premiums. The term life insurance premiums may be higher if you or your family have had serious illnesses.
Lifestyle Habits
Smoking, drinking, or participating in risky activities can lead to higher term plan premiums because they increase risk to life.
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.
What are the Payout Options in Term Life Insurance?
The payout options in term insurance can help your family take care of theiir financial needs in your absence. The most common term insurance payout options available are:
Payout Options
Details
Lump sum Payout
This option provides the entire death benefit amount in a one go at the time of claim settlement to the nominee of the term policy. The nominee can use the amount to take care of 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 part of the death benefit 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 in 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.
What are the Benefits of Buying Term Life Insurance
Term life insurance offers financial protection for your family in the event of your death. It can help replace your income and cover your loved ones' basic expenses. Top 8 Term insurance benefits are :
High life cover at low premium rates
Term life insurance plans offer extensive coverage at affordable premiums. The earlier you buy term insurance online, the lower the premium you will pay for your chosen life cover.
Protection from illnesses
Many term life insurance plans offer critical illness benefits, allowing you to receive treatment for life-threatening conditions without the stress of hospital bills. Adding a critical illness rider to your term life policy allows you to access coverage for the diseases listed in the plan.
Long term coverage
Choosing long term plan coverage up to 85 years of age to leave a legacy for your loved ones at affordable rates. Comprehensive coverage is important when choosing the term insurance plan.
Disability Benefits
Accidents can occur unexpectedly, leading to permanent or temporary disability. A disability benefit with a term insurance plan will offer financial support in case of accidental disability, available on additional premium payment.
Protection Against Financial Liabilities
The life cover (sum assured) provided under a term insurance plan will protect dependents from your financial liabilities such as loans and debts. This payout can easily pay off the debt, ensuring financial relieved from the stress.
Multiple Premium Payment Options
Term life insurance plans provide you the flexibility to choose the premium payment term. You can choose regular or limited pay options with your term insurance plan.
Tax Benefits
A term insurance plan offers savings on tax up to Rs 1.5 Lakhs on the premium amount paid under section 80C of the Income Tax Act. The lump sum benefit paid under a term insurance policy is tax-exempted under section 10(10D).
What are the Different Types of Term Insurance Plans and Their Benefits in India 2025?
There are various types of term plans that offer benefits as per the varying needs of the customers. You should always compare and select the most suitable plan, and then customise it to fit your needs perfectly. Here is a list of the most common types of term insurance policies available in India and how they can benefit you:
Type of Term Plan Insurance
Benefits
Basic Term Life Insurance Plan
This term life policy offers high life cover at low premiums and pays the death benefit in a lump sum if the policyholder dies unexpectedly during the policy term.
Term Insurance with Return of Premium (TROP)
Financial protection for your dependents is provided at low premium rates in case of death. You can receive a return of all the premium amounts paid if you outlive the policy term.
Term Insurance for Housewife
You can purchase a term policy using your husband’s annual income for the additional financial security of your family.
Term Insurance for Self-employed and Business Owners
People with an unsteady flow of income can secure their family against business loans and liabilities in their absence. You can buy a 30 year term insurance to secure your family in case of an eventuality.
Term Insurance for NRI
NRIs and expatriates can buy term insurance plans in India via tele/video medicals and get a GST waiver of 18% with an additional 5% discount on the annual term plan premium payment mode.
Term Insurance for Diabetics
Now, you can buy term life insurance plan even if you are pre-diabetic or have type 2 diabetes at affordable term plan premium rates
Saral Jeevan Bima (SJB)
People with low incomes and educational qualifications can buy an SJB plan to financially secure their loved ones, irrespective of their educational, resident, or occupation background.
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What is a Term Insurance Rider?
A term life insurance rider is an additional benefit or add-on cover that can be purchased along with the base term plan.
These riders can be selected as per your requirements and budget and are added at an extra price to be paid on top of the base premium. There are different types of term riders like a permanent disability rider, an accidental death benefit and a critical illness. Here’s how they work:
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 rider provides additional payout if the life assured dies because of an accident.
2
Disability Rider
This rider offers extra financial support in the event of a disability.
3
Critical Illness Rider
This rider pays a lump sum amount if you are diagnosed with a serious illness (mentioned in the policy documents).
4
Waiver of Premium due to Permanent Disability
The waiver of premiums due to permanent disability benefits ensures that if the policyholder suffers a permanent disability, all future premiums are waived while the policy remains active. This feature provides financial relief and ensures continued coverage without any additional burden.
5
Hospicare Benefit Rider
Under this term insurance plan rider, the life assured receives a fixed amount for everyday spent at the hospital.
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Why Buy Term Insurance Online?
Purchasing a term insurance plan online is a fast, secure, and convenient way to safeguard your loved ones. The online process is designed to help users select the right plan and complete the purchasing process with just a few clicks, eliminating the need for in-person visits or extensive paperwork. Here are the key benefits of buying your term insurance plan online:
Low premiums with high protection: Online term plans often come with lower premiums, meaning you can get more coverage for your family without spending more.
Comprehensive Add-ons: Easily opt for add-ons or add riders like accidental death benefits or critical illness coverage to create a plan that perfectly fits your needs.
Convenience at Your Fingertips: Buy and manage your policy anytime, anywhere, from your phone or computer. No more appointments or paperwork!
Comprehensive Features: Online term plans offer all the same great features as offline plans, including high coverage amounts, riders, and premium waivers.
How to Buy Term Insurance Online from Policybazaar?
You can buy term plan insurance online by following the below-mentioned steps:
Step 1: Visit Policybazaar and go to ‘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
What are the 5 Important Life Stages to Buy Term Life Insurance?
1
When you start to earn
At the start of your career, with a steady flow of income as salary or from your business, it is important to buy term life insurance plan to financially protect your loved ones. Starting at an early age gives you the benefit of paying lower premiums.
2
When you start your family
With marriage, financial responsibilities might increase for the breadwinner of the family. In case of your unforeseen death, your spouse might go under financial stress if not secured through a term insurance plan.
3
When you become a parent
Along with the happiness of being a parent, the responsibilities towards your child increase. Your little bundle of joy will be financially dependent on you, and you must protect the financial future of your child with term life insurance in case of an unforeseen event.
4
When you take a loan
A home loan can cause financial stress on your family in case of your demise, as they may not be financially able to pay the EMIs. The payout from a term plan will help your family pay off the loans in your absence.
5
When you move to a new country
Life changes rapidly when you move to a different country. Term insurance helps financially protect you abroad and your family back in India. Term insurance companies in India provide term insurance for NRIs at affordable rates.
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Know More About Term Insurance Plan
Here is a detailed guide that you can follow when you buy term life insurance plan in India:
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.
Select 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.
When Should I Buy Term Life Insurance Plan?
Buying term insurance at an early age can save a lot of money. Premium increases with age, and you can lock your premiums at a lower rate by buying today. This is beneficial for non-smokers. Look at the table to see how premiums increase as you age, and you should make an informed choice by buying term insurance today!
For a 1 crore term insurance plan, the premium increases as the age of the life assured increases, highlighting that buying term insurance earlier is more cost-effective. Additionally, smokers pay significantly higher premiums compared to non-smokers due to the increased health risks associated with smoking.
Age of the Life Assured with PPT 60 years
Rs. 1 Crore cover for healthy male non-smoker
Rs. 1 Crore cover for healthy male smoker
25 years
Rs 616/month
Rs 1013/month
35 years
Rs 788/month
Rs 1357/month
40 years
Rs 946/month
Rs 1677/month
45 years
Rs 1199/month
Rs 2179/month
This is for male, non-smoker salaried for a 1 crore sum assured with a cover till age 60 years.
For example, at age 25, a non-smoker pays ₹616/month, while a smoker pays ₹1013/month. By age 45, the premiums rise to ₹1199/month for non-smokers and ₹2179/month for smokers.
Information Sourced from Policybazaar.
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:
Simple Guideline: Ideally, you should buy a term insurance with sum assured that is approximately 10-15 times your current annual income. This approach offers an easy and straightforward way of estimating the right life cover amount for you.
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.
What are the Factors to Consider Before Buying Term Insurance Plan?
While buying a term policy, it may be confusing to understand what term life insurance is and how to buy term insurance online. Here are steps that may help you choose the term plan insurance for yourself:
Step 1: Consider your Dependents, Life Stage, and Your Current Lifestyle
Understanding and assessing your and your family’s financial needs is important 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 term life 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 term insurance online easily in minutes by entering a few details and making a secure payment to buy term plan online.
₹1 Crore
Life Cover
@Starting from ₹ 16/day+
View Plans
₹50 LAKH
Life Cover
@Starting from ₹ 8/day+
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₹75 LAKH
Life Cover
@Starting from ₹ 12/day+
View Plans
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 insurance online from 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.
Protect your family's financial future with a Term Insurance Plan
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What is Covered and Not Covered in Term Insurance?
Covered in Term Insurance ✅
Not Covered in Term Insurance ❌
✅Death due to natural calamities
❌Death due to suicide in not covered in the 1st year
✅Death due to medical issues
❌Death due to self-inflicted injuries or illegal activities/homicide
✅Death due to an accident such as road accidents, workplace accidents
❌Death due to accident under the influence of drugs/alcohol
✅Death due to Covid-19
❌Death due to undeclared pre-existing illnesses
✅Death due to terminal illness
❌Death due to pregnancy or childbirth
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How Long Should the Term Insurance Policy Period Be?
The term insurance policy term should be enough to cover your financial dependents in your absence. For example, if you have kids who will earn in the next 20 years, you can buy a term insurance plan with a 20 year policy term. Similarly, if you plan on retiring at 60, you can opt for a term policy with a premium pay term till 60 years, as then you won’t have to worry about premium payments in your non-earning years. However, if you want to ensure that your dependent spouse lives a financially independent life in your absence, you can opt for a term plan that covers till 99/100 years of age.
Documents Required To Buy Term Life Insurance Plan
S.No.
Types of Documents
Description of Documents
1.
Identity Proof
Passport, Voter ID, Aadhaar Card, PAN Card
2.
Address Proof
Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
3.
KYC Documents
Voter’s ID card, Passport, Aadhar card, Voter’s ID card
4.
Medical Proof
Latest medical reports allocated by the insurance provider
4.
Income Proof
Salaried Individuals
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
Self Employed
Last 2 years Income tax returns which are not filed in the same year, along with income computation
Last 2 years of balance sheet and loss/profit document validated by CA.
Form 26 AS
KYC Documents for Term Insurance
Below is a list of KYC documents which are required to verify a term insurance contract between the insurance company and the legal entity:
S. No.
Types of Legal Entities
KYC Documents
1
Hindu Undivided Family (HUF)
HUF Registration Certificate
PAN card of HUF
PAN card of HUF karta
KYC documentation of HUF Karta
2
Company
Beneficiary’s PAN
Incorporation Certificate
MOA
Company or Master Policyholder’s PAN
Copy of Power of Attorney
Declaration form of Beneficiary
KYC documents of Beneficiary
3
Partnership Firms, Trusts, and more
Registration Certificate
Partnership Firm’s PAN
Beneficiary’s PAN
Partnership Deed
Copy of power of attorney
Duly signed and stamped consent form by all partners regarding the premium amount to be paid
Declaration form of Beneficiary
Trust deed in foundations and trusts
KYC documentation of all the insurance plan’s participants
Common Mistakes People Make When Buying a Good Term Insurance
Many people make several mistakes when they buy term insurance online. Let us take a look at some of the most common mistakes people make when buying term insurance in India:
Buying at a Later Age: Many people put off buying term insurance, thinking the premiums are low enough to be bought whenever. But they often forget that the term insurance premiums increase with age. Not only that, but as you age your health might deteriorate which may end up increasing your term premiums.
Insufficient Life Cover: Insufficient life cover can lead your family still financially vulnerable even after the policy payout. This means, suppose you had a loan for 50 lakhs and a term policy for 50 lakhs as well. On your unfortunate death, the insurer will payout the 50 lakhs and your family can pay off the loan. But after the payout, your family might struggle financially in the absence of the main income earner.
Not Adding Riders: By not adding riders, you may be depriving yourself and your family of some added financial benefits at nominal costs. For example, adding a critical illness rider will pay an additional amount in case you are diagnosed with a critical illness. Similarly, there are several more riders like terminal illness, accidental death, accidental disability, and parent income riders that are available in India.
Sharing Incomplete Details: Sharing incomplete information at the time of filling out the application form can lead to your family’s claim being rejected in your absence. Not only that, but by providing not enough information, you could miss out on additional benefits like discounts for existing customers.
Buying Term Plans Offline: Buying term insurance from agents can lead to a higher premium because of agent commission being included in the premiums. Buy term insurance online to avail lower premiums, easy comparison, and unlocking special discounts that may only be available online.
Term Insurance Terminology
Here is a list of some important term plan terminologies that you should know:
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.
CSR in term life insurance is the ratio of claims registered to death claims settled by an insurance company each year. A higher CSR reflects better reliability and lower chances of claim rejection.
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.
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.
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.
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.
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 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 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
Coverage and Tenure
Premium Amount
Claims
What are term insurance plans?
Ans. Term insurance plans are types of life insurance plans that offer financial security to your family. These plans are highly affordable and offer large insurance cover, like 1 Crore or 2 Crores, to your family in the event of your unfortunate demise.
Is term insurance covered under 80C?
Ans. Yes, term insurance is covered under 80C. With term insurance tax benefits under 80C, you can claim tax benefits up to ₹46,800 per the prevailing tax laws. However, it is suggested that you consult with your financial advisor to check the applicable term insurance plan tax benefits for your profile.
What is the difference between term insurance and life insurance?
Ans.The difference between term insurance and life insurance is that term insurance offers pure risk protection, and no investment benefits in regular term plans, and life insurance plans offer both insurance and wealth creation benefits. To make the difference between term insurance and life insurance easier, here is a table listing the benefits of both types of plans:
Ans. Yes, term insurance is good if your main requirement from your insurance plan is your family's financial protection in your absence. These plans are good as they allow you to secure a large life cover like 50 Lakhs, 1 Crore, and 2 Crores, at highly affordable premiums starting at just ₹487 per month for a 1 Crore term insurance cover.
Is term life insurance worth it?
Ans. Yes, term life insurance is worth it as it ensures that your family can meet their financial needs in your absence, such as monthly rent, paying for child’s fees, and taking care of outstanding loans and debts. Not only that, it offers long term protection at low premiums and provides the peace of mind that your family will be financially stable in case of any eventuality.
What is the term insurance for?
Ans. Term insurance is for your family's financial protection in your absence at affordable premiums. These plans offer a large life cover to your family, which can help them take care of their financial needs in your absence.
Does term insurance depend on salary?
Ans. Yes, term insurance does depend on salary and annual income. Your current salary and annual income can impact the available term insurance, premiums, eligibility for rider additions, and more. It is better to consult with your insurance advisor to see the impact of your salary on term insurance plans.
What is the right age to buy term insurance?
Ans. There is no right age to buy term insurance. You can buy the plan whenever you want to. But it is suggested that you buy it as early as possible to keep your premium amount low. The sooner you buy term insurance, the lower the premium amount will be. This is because, as per the reports, you have a lower risk of getting health issues at a young age compared to people in their mid-50s or 60s.
Is medical test mandatory to buy term insurance plan?
Ans. Yes, most term insurance plans require you to undergo medical tests either physical, via tele, or video channels. However, there are certain term insurance without medical exams available that allow you to buy term plans online without undergoing medical tests.
What is the free look period in term insurance?
Ans. Free look period in term insurance refers to the review period provided after the purchase of term insurance plans. During this period, you can review the policy details, documents, terms and conditions to see if the plan meets your needs.
What is sum assured in term insurance?
Ans. Sum assured in term insurance refers to the amount selected at the time of policy purchase which is to be paid to your nominee in case of your death. The ideal sum assured for you depends on your needs, family’s expenses, and plans for the future like child’s wedding or spouse’s retirement.
What are the documents required to buy term insurance plan?
Ans. Here is a list of documents required to buy term life insurance plans:
Identity Proof: Passport, Voter ID, Aadhaar Card, PAN Card
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
Income Proof:
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
or
Last 2 years Income tax returns which are not filed in the same year, along with income computation
Last 2 years of balance sheet and loss/profit document validated by CA.
Form 26 AS
What does the term ‘rider’ mean in insurance?
Ans: The term ‘rider’ in insurance means the additional benefits that are available at low premiums that can enhance the term plan’s base coverage. These ‘riders’ include accidental death benefit, accidental total permanent disability, terminal illness, critical illness, waiver of premiums, and hospicare benefits.
What is rider benefit in term insurance?
Ans: Rider benefits in term insurance are the optional benefits you can add to your base term plan to increase its coverage. With these rider benefits, you can ensure cover against critical illnesses, terminal illnesses, accidental death, and accidental total and permanent disability.
What is the maximum age for term rider?
Ans: The maximum age for term riders can vary for different term insurance plans. Most term life insurance plans require you to opt for the term riders at the time of buying the policy and provide cover till the end of the policy term. But in case you have opted for whole life cover or cover till a later age, the rider cover term may end before the policy term. Therefore, it is suggested that you read the plan documents carefully to understand the maximum age for term riders.
What is terminal illness in term insurance?
Ans: Terminal illness in term insurance is defined as the diagnosis of an illness that reduces the policyholder’s life expectancy to the next 6 months. This diagnosis needs to be confirmed by two IMA doctors and can be availed after the potential waiting period required by the insurer. The exact terms and conditions to avail the terminal illness in term insurance can be different, and thus is preferred to check it with the insurer.
What are term plan with critical illness and disability rider?
Ans: A term plan with critical illness and disability rider provides additional coverage against certain critical illnesses covered under the policy and pays an additional amount on the diagnosis of any of these illnesses. Along with that, the disability benefits pay the additional amount on total and permanent disability caused due to an accident.
Is it good to add a rider with term insurance?
Ans: Yes, adding a rider with term insurance is good as they can enhance the base cover of your term life insurance plans. With these term riders, you can get coverage against terminal and critical illnesses, accidental death and disability, and more.
What is the 20 year term rider?
Ans: The 20 year term rider is the term insurance rider that offers coverage for 20 years. This can be because either the policy term is of 20 years, or the rider only offers coverage for 20 years.
What is the difference between rider and coverage?
Ans: The difference between rider and coverage is that the rider is available at additional cost paid along with the base premium and the coverage is provided with the base plan and can be enhanced by adding suitable riders to the plan.
Is increasing term a rider?
Ans: No, increasing term is not a rider but a plan option usually available with certain term plan options. You can choose for the increasing term option at the time of buying the policy, which can ultimately help you increase the sum assured of your term policy.
What is the term assurance rider?
Ans: Term assurance rider by LIC provides life cover in case of unfortunate death of the life assured during the cover period. It can be attached with a base policy to provide add-on benefit at a nominal cost.
What is a waiver of premium in term insurance?
Ans: Waiver of premium in term insurance refers to the add-on benefit available with term plans that waives off all the future premiums in case of diagnosis of a covered critical illness or accidental total and permanent disability.
How much term insurance do I need?
Here is how you can determine how much term insurance you need: Assess your annual income, monthly expenses, and family’s future expenses. Calculate the remaining loans and debts your family will have to pay in your absence. Analyse the potential inflation and future goals like planning for your child’s wedding.
What is 50 lakh term insurance?
50 lakh term insurance is a term plan that offers the sum assured on 50 lakh to the policyholder's nominee on the policyholder’s death. With this 50 lakh term policy payout, your family can take care of their financial needs, such as paying rent, child’s fees, the child’s future wedding, and other goals, like secure retirement for your spouse.
What does term insurance cover?
Term insurance covers the policyholder for the entire policy term and financially protects the policyholder's family by paying the death benefit in case of the policyholder’s death. Along with the base death benefit, the policy also covers terminal illnesses, critical illnesses, accidental death, and accidental disabilities, in addition to term insurance riders.
Does term insurance pay after maturity?
Ans: Yes, term insurance does pay after maturity, but only in term insurance with return of premium plans. These plans return the premiums paid during the policy tenure, excluding GST and other charges. You can use this amount on survival to care for your post-retirement years.
At what age does term life insurance end?
Ans: Term insurance ends at the end of the policy term selected when buying the policy. You can choose for the term insurance to end at retirement, so you are not burdened with premium payments when you are no longer earning. You can also choose to exit the plan early at a specific stage and receive all the premiums paid back with the special exit benefit.
What happens to term life insurance if you stop paying?
Ans: If you stop paying the premiums for your term insurance plans on your payment due date, the policy will go into the grace period. Once the grace period is complete, and you still have not paid the outstanding premium, the policy will lapse and will no longer provide coverage unless revived.
How many years do we need to pay term insurance?
Ans: We need to pay the premiums for a term insurance policy for the entire premium payment term selected at the time of policy purchase. At your convenience, you can choose the suitable premium pay tenure from limited pay, regular pay, and single pay terms.
Can you cash out a 20 year term life insurance policy?
Ans: No, you cannot cash out a 20 year term life insurance policy, as they do not have cash value accumulation benefits.
What is the cost of term insurance in India?
The cost of term insurance in India depends on your age, gender, and other such factors. It mainly depends on the type of term insurance, the sum assured and policy term of your choice. For example, the 1 crore term insurance starts at just ₹487 per month.
How does smoking affect term insurance premiums?
Ans. Smoking increases the term insurance premiums applicable for your profile as smoking can increase the mortality rates as they can lead to severe lung diseases and cancer. However, this means that term insurance is all the more important for smokers, as their life expectancy is decreased due to smoking.
Does term insurance premium increase every year?
Ans. No, term insurance premium do not increase every year for most types of term insurance plans. However, the premiums may increase if you have purchased a special variant of a term plan that has increasing cover, and the annual rise of premiums is mentioned in the plan details and policy documents. It is better to check the policy documents thoroughly to check the potential rise of premiums each year.
Is term insurance premium tax exempt?
Ans. No, the term insurance premiums are not tax exempt, but you can claim term insurance tax deductions on the premiums paid under section 80C of the Income Tax Act, 1961. You can claim the applicable tax benefits as per the prevailing tax laws.
What does term insurance premium calculator do?
Ans. The term insurance premium calculator allows you to calculate the estimated premiums you will need to pay for the desired life cover. You simply need to select your age, gender, and tobacco consumption habits, choose the right life cover and cover till age, and the lowest applicable premiums will be displayed on the screen.
Can I use term insurance premium calculator without personal information?
Ans. Yes, you can use the term insurance premium calculator without personal information like name, annual income, and other legal documents like your Aadhaar card or PAN card details. You can easily provide your required sum assured and policy term along with age, gender, and smoking habit details, as these can affect your term insurance premiums.
What is a term insurance with return of premium?
Ans. A term insurance with return of premium plan is a type of term insurance that offers a death benefit in case of the policyholder’s death during the policy term, and in case of survival, the plan returns all the premiums paid throughout the policy term. This plan takes care of your family in your absence with the death benefit and allows you fulfil your financial needs in case you outlive the policy term. Your family can use the death benefit to take care of rent, child’s fees, and other financial obligations like loans. You can receive all the premiums paid and use them to take care of your retirement or fulfill any other goals you may have for your future, like funding for your child’s wedding or paying for their higher education.
How to claim term insurance after death?
Your nominee can easily claim term insurance after death by following the below steps: Initiate the claim: If you purchased the term insurance policy from the insurance company, your nominee needs to initiate the claim with the insurer by submitting the claim form. However, if you have purchased the policy from policybazaar, you can simply contact your relationship manager to initiate the term insurance claim. Submit the Documents: After initiating the claim with the insurer, your nominee must submit the required documents like death certificate, policy documents, medical records, bank details, and KYC details. With policybazaar, your claim assistance person will handle all the on-ground support and document submissions for you. Verification and Disbursal: The insurance company will pay out the death benefit to your nominee’s bank account on successful verification of all the documents and details provided.
What are term insurance claim rejection reasons?
Ans. The most common term insurance claim rejection reasons are as follows: Suicidal deaths within the 1st policy year. Death due to pre-existing conditions undisclosed at the time of policy purchase. Policyholder’s death wherein the nominee is involved. Death due to adventure activities like racing, paragliding, and others. Death due to undisclosed childbirth or pregnancy. Death due to consumption of excessive drugs or alcohol.
Can we claim 2 term insurance from two companies?
Ans. Yes, we can claim 2 term insurance from two companies. Your nominee needs to inform both the insurance companies of your death, submit the required documents, and on successful verification the death benefit will be paid.
Can term insurance be claimed under 80d?
Ans. Yes, term insurance can be claimed under 80D of the Income Tax Act, 1961, as per the prevailing tax laws. However, term insurance under 80D can be claimed only if the policy has health riders like hospicare benefits, critical illness, and more.
Is term insurance claim amount taxable?
Ans. No, term insurance claim amount is not taxable. The death benefit is exempt from taxes under Section 10(10D) of the Income Tax Act, 1961. You should check with your financial advisor to see your policy's applicable term insurance tax exemptions.
˜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 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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