Term insurance or term life insurance is the simplest and purest type of life insurance that provides financial protection for a pre-decided policy term in exchange for a fixed premium amount. A term insurance plan is designed to secure your family's future in your absence. With a term plan, if you die, your nominee receives a death benefit that helps cover various expenses such as housing, education, grocery shopping, etc. Buying the right term life insurance is important for securing your well-being's financial future when they need it most. Read more
15 lakh Families Secured
₹13,50,000 Cr of Life Cover Provided
Customer Rating
4.859,250 reviews
Life is Unpredictable! “Protect your family’s
futureâ€₹1 Crore Life cover starting from ₹478/month+
Term insurance is the simplest type of life insurance that offers financial cover for a set period (number of years). This type of life insurance provides a death benefit to the nominee in case of the assured's unforeseen death during the policy term. A term life insurance plan provides high life cover at low premium rates. Additionally, it provides tax benefits under Section 80C of the Income Tax Act, 1961, on the premiums paid. For e.g., a healthy, non-smoker male of 30 years has to pay Rs 975 per month over 30 years for 1 crore term insurance. This fixed amount of premium can be paid at one time or at regular intervals for the whole policy term or for a limited time. The term insurance premium amount varies based on the type of premium payment method chosen by the customer.
You can easily calculate the premium rates of your desired life cover using Policybazaar term insurance calculator.
Video
information
What is Term Insurance?
How Term Insurance Works?
Let us understand how term insurance works with the help of an example:
Meet Sameer
Sameer, a Healthy and non smoking male.
Bought Policy
Sameer bought ₹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
4.859,250 reviews
The Policybazaar Advantages
Discount upto 10% # for buying online
Dedicated claim support for family FREE
Advisors available in your city
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7.7 CroreRegistered Consumer
50 PartnersInsurance Partners
4.2 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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Read Claim Testimonials
Rhishabh Garg
Business Head - Term Insurance
Written By:Rhishabh Garg
Rhishabh GargTerm Insurance Head
Rhishabh Garg is the Business Unit Head of Term Insurance at Policybazaar.com. He has over 10 years of experience and currently plays a crucial role in shaping the future of term insurance in the company. Rhishabh also has experience in customer services and crafts new strategies for organizational success, one of which is Policybazaar’s claim assistance program.
Reviewed By:Santosh Agrawal
Santosh AgrawalChief Business Officer
Santosh Agarwal is the Chief Business Officer of life Insurance at Policybazaar.com and has over a decade of experience in the insurance domain. She has helped shape Policybazaar's life insurance vertical and ensures the effective execution of the company's overall strategy. Santosh is also responsible for the Term Insurance for Women domain at Policybazaar.com and educates the masses about its importance and benefits.
What are the Best Term Insurance Plans in India in 2025?
Term Insurance: Buy India’sbest term insurance plan online in India with a life cover of ₹1 crore at just ₹487 per month and 10% discount. Compare top term insurance plans among 20+ insurance companies at PolicyBazaar and choose the plan that fits your needs. Here is a list of the best term insurance plans in India 2025 for you :
*You can easily use a term insurance calculator to estimate the premium amount of your chosen term plan.
*Calculate and secure your financial goals with our SIP calculator with term insurance options.
*Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. 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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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 Death Benefit
Available
Terminal Illness Cover
Available
Accidental Total Permanent Disability
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:
Reach out: The nominee can contact the Policybazaar’s claim assistance team by calling on 1800-258-5881, emailing, or texting to report the policyholder’s death. The team will guide them on required documents and procedures.
Claim Processing: After receiving the necessary details, Policybazaar manages the entire claim process, including communication with the insurance company, follow-ups, and ensuring prompt claim disbursal.
This hassle free process ensures support during difficult times.
*Standard T&C apply
Why Do I Need Term Insurance Plan?
People of every background know the importance of life insurance, and this motivates them to look for the best term insurance plan based on their needs. Because of fast-paced life and rising eventualities, every family needs protection under a term life insurance plan to face the financial impacts of losing a family member, specifically the family’s breadwinner. Term plans also help families pay off debts like home loans and car loans.
Here is a list of a few reasons why this simple term insurance is worth buying:
Family’s future security
As the primary earner in your family, you must ensure the well-being of your parents, spouse, and children. Buying term insurance is important to ensure you meet the obligations for your dear ones, even in your absence.
To Protect the Assets
You might have bought assets like a car, or home from loans. With a term insurance plan, you can make sure that the financial load of these loans will not cause any financial difficulties to your family members after you.
To Reduce Lifestyle Risks
The unforeseen death of the family’s breadwinner can bring a lot of financial stress to your family. However, even buying the best term insurance plan cannot compensate for losing a loved one, but it can help minimise the financial stress of losing the family’s sole earner.
Be Prepared for Uncertainties
Life's unpredictable moments can come anytime and from anywhere. This can be best understood during the coronavirus pandemic. The best term insurance plan helps us be financially prepared to deal with a wide range of life’s uncertainties.
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 Rs 485/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 10% discount.
How do I decide the amount of Life Cover (sum assured)?
Shubham : Kanpur
Life cover or sum assured is to take care of your family's expenses in your absence. Expenses include household expenses which will increase with time due to inflation and any existing loans. 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 to add this to your pure term insurance plan.
Accidental Death Benefit - In case the death happens due to an accident, an additional payout (amounting to the value of the base Sum assured) will be given over and above the base sum assured at a very nominal price. This is highly recommended to people who travel a lot or ride a two-wheeler frequently.
Critical Illness Benefit - On diagnosis of any critical illness (listed by the Insurer), you will get a lump sum payout (as decided while buying this rider) immediately. Once the benefit for critical illness benefit has been paid out, the life cover minus the critical illness cover continues with a reduced term plan insurance premium. This might not sound very useful when you're young, but the relevance of this rider increases with your age.
Early Pay out on Terminal Illness - Get 100% payout in case you are diagnosed with any terminal illness (as listed by the Insurer). Some insurance providers may give a proportion of the sum assured as well. This is available as a free rider in most of the top plans we have.
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Why Buy Term Life Insurance Plans Online?
Here is a list of some benefits of buying an online term insurance plan:
High Protection at low premiums
Term insurance plans are easy to buy and offer high coverage at low premium rates. Purchasing them early simply means lower costs, and they are available online or offline. This offers peace of mind and keeps your financial budget in check. You can opt for a 2 crore term insurance plan to protect your family’s future according to your financial needs.
Riders/ Add-ons
Term insurance plans allow riders to increase coverage. Some of them are accidental disability, critical illness, and hospice benefits, offering extra protection and financial security in unforeseen events.
Financial Security
A term plan is the purest type of life insurance plan designed to offer quick financial support to your family in case of your absence. It provides a lump sum of money to your family members, helping them manage instant expenses and stability in difficult times. It is a simple way to ensure that your family gets end-to-end support when it needs it most.
Convenience
Buying a term plan online is effortless and more convenient than buying it offline. The online process is easy, requires no repeated visits, and ensures quick coverage without any delays.
Affordability
Term insurance plans online are more affordable, resulting in competitive and affordable premiums for policyholders.
Simplicity
Buying term insurance is quick and hassle-free. Visit the insurance company’s website, fill in your details, select the right policy, pay, and activate the plan.
Comprehensive Features
Online term plans offer various features, including tax benefits, death benefits, flexible premium payment options, and maturity benefits. These features ensure comprehensive coverage, providing policyholders with financial security and peace of mind.
Multiple Premium Payment Options
Buying an online term insurance policy from Policybazaar allows you to choose multiple premium payment options, such as monthly, quarterly, half-yearly, or yearly, all at a single go.
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
Young Professionals
As a young professional, you have limited financial liabilities. If you buy a 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.
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 this plan as early as possible.
Working Women
Term insurance for women provides financial securityas 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.
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.
Taxpayers
Term life insurance plans offers tax benefits that helps 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.
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. Buying a term insurance plan provides financial support for their children, ensuring they are financially protected even in their 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
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.
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.
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.
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 maturity payout of the term insurance for NRI can help manage high medical care costs, or the travel expenses, etc.
NRIs in Singapore and UAE can avail term insurance cover of up to 20 crore in India for as low as 20% to 50%, along with facilities such as video-medical check-ups.
SIP Investors
Term insurance for SIP 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.
*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 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 riders to increase your family’s financial security. There are 6 stages that how a term insurance plan works:
Parameters
Details
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 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 best 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 20+ top insurers and choose and buy the best 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
A term insurance plan allows flexibility. If you have opted for any life-stage option at the time of purchasing the term life policy, you can increase the sum assured.
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 or education loans.
Return of Premium on Survival
Term insurance plans offer no maturity benefit. If the policyholder survives the policy term, you will get your premium amount returned (minus taxes).
What are the Benefits of Buying Term Life Insurance
Here is a list of some of the top benefits of term insurance:
High life cover at low premium rates
Term life insurance plans offer extensive coverage at affordable premiums. The earlier you buy a term plan, 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 best 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 Best Term Insurance Plans and Their Benefits in India 2025?
When looking for the best term insurance policy, no one plan fits all your needs. You should align your requirements with the available plans to find the best suits your needs. Here is a list of term plans offered by various insurers, along with their benefits:
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.
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.
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.
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.
See More Plans
How is Term Insurance Different From Whole Life Insurance?
Let us take a look at how term life insurance is different from whole life insurance:
Term Life Insurance
Whole Life Insurance
Term insurance, as the name suggests, offers coverage for a specific ‘term’ and thus is good for short term insurance needs.
Whole life covers the life assured for their whole life. This means that the life assured can get coverage under the plan until they turn 99/100.
Term life insurance plans offer pure risk protection, which means, they usually only provide death benefits in the event of the policyholder’s death.
A whole life insurance policy provides death benefits in the event of death and cash value accumulation.
The premiums for a term life insurance plan are much lower than any other type of life insurance, and thus, can easily fit into your budget.
The premiums for a whole life policy can be slightly more expensive than a term plan since they offer dual benefits of insurance and cash value accumulation.
These term plans offer no maturity benefits with regular plans but with return of premium plans, you can get all the premiums paid back at the end of the policy tenure.
The whole life insurance plans payout the applicable maturity benefits as per the accumulated cash on outliving the policy term.
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 money if you die because of an accident.
2
Disability Rider
This rider offers extra support in case you become disabled.
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
Premium Waiver Rider
This rider covers future amount of premiums if you are diagnosed with a critical illness or deal with other specific conditions.
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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How to Buy Term Insurance Online from Policybazaar?
YYou 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 a 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 a term 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 while buying your pure term insurance plan:
The Importance of Comparing Term Plans
Different people have different financial needs and goals. Therefore, it is essential to compare term life insurance plans before buying the ideal one. This comparison will help you find a term life policy that offers the best features, benefits and riders so that you are covered against all life uncertainties. You can easily do term insurance comparison from over 15+ best Indian insurers using Policybazaar’s comparison engine and buy term plan insurance.
Higher the Claims Settlement Ratio (CSR), The Better
Every insurance provider maintains a claim settlement ratio each financial year. It is important for customers to understand the insurance company’s claim clearance track record. It indicates how easily your nominees will receive the claim benefit after you unfortunately die. Therefore, you should always opt for a term life insurance provider that has a minimum CSR of 95% for 5 consecutive years. Policybazaar offers detailed information on the Claim Settlement Ratios of various insurance companies to help you make an informed decision.
Always Check the Solvency Ratio
The solvency ratio of an insurance company represents their financial situation in accordance with the solvency norms. It indicates the size of their capital with respect to the risks taken. By checking this ratio, you know if the insurance company has sufficient funds to settle claims in the short or long run. Usually, a solvency ratio of 150% is acceptable and is the ideal ratio for customers to rely on.
Understand the Specific Benefits of the Policy
You might make the wrong buying decisions if you do not understand the T&Cs of your term life policy's benefits. It can also leave the beneficiaries needing clarification while filing a claim. Ensure that the benefits offered under the term life policy are a good match for your financial requirements. This careful analysis will help you select a term life insurance plan best suited to you. Policybazaar’s comparison tools can help clarify these benefits.
Choose The Necessary Riders While Buying Term Insurance
As a policyholder, understand that you need coverage not only for death but also for critical illness, disability, and accidents. These situations can severely impact your family's financial health, so it is wise to add suitable riders to your term life policy for enhanced financial backup. Policybazaar offers a variety of riders that you can choose and add to your term life insurance plan.
Choose Your Payout Option Wisely – Whether Lump Sum or Regular Income Payout
Your life term insurance online offers a choice in the payout method. You can opt for a total lump sum payout or a combination where a part payment is made in a lump sum, and the remaining is distributed as regular monthly income. Or you can choose the One-time Lump Sum Payment + Increasing Monthly Payout option, where nominee will be paid monthly payouts that increase with each passing year for a definite period. This helps the nominees meet their immediate needs and sustains them for months. Choosing one of the right types of term insurance payouts ensures that your family’s needs are met with due course of time.
Check Online Availability
Policybazaar Insurance Advisors are available online 24x7 to solve all your doubts and queries regarding new or existing term insurance plans. The Dedicated Claims Assistance Program of Policybazaar also makes sure that you receive assistance for quick claim settlement any time of the day. You can try reaching out to see how fast your query is resolved and whether the support team is equipped to handle online queries satisfactorily. Policybazaar’s robust online presence ensures prompt and efficient customer support.
How Can I Determine the Right Term Plan Insurance Cover Amount for Myself?
Here is how you can determine the right term life insurance cover amount to get enough cover for your family:
General Thumbs Rule: As a general thumbs rule, you should ideally look for a term insurance plan sum assured around 10-15 times your current annual income. It is the easiest and simplest way to roughly calculate the ideal life cover amount.
Human Life Value: The human life value calculator allows you to accurately calculate the suitable term life insurance cover amount. This tool is available free of cost and only requires you to put in your age, annual income, and existing policy cover amount.
D.I.M.E.: The D.I.M.E. or the Debt, Income, Mortgage, and Education formula is a unique approach to calculating the right cover amount for your profile. All you need to do is add up the debt, mortgage, and estimated educational expenses of your children, and add that with the product of your current annual income and the number of years you want the coverage for.
When Should I Buy Term Life Insurance Plans?
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!
Age
Premiums
20 years
Rs. 741
30 years
Rs. 975
40 years
Rs. 1,679
This is for male, non-smoker salaried for a 1 crore sum assured with a cover till age 60 years.
Information Sourced from Policybazaar.
How Long Should Be My Term Insurance Policy Tenure?
Your ideal policy term should be for your family's financial needs in your absence. So if, for example, you are retiring in the next ten years and have a financially dependent spouse, a term insurance plan with whole life cover might be a better option for you. Whereas, if you have dependent kids and are looking for a term plan to cover you only until your kids are no more financially dependent, then you can look for a term life insurance plan with a shorter tenure. Another aspect to consider when choosing the ideal policy tenure is your country's approximate life expectancy at birth. According to WHO (World Health Organisation), the life expectancy at birth in India remained at 65.8 years for males, 69 years for females, and 67.3 years in total. This data emphasises the importance of buying term insurance, as, in case of your unfortunate death, your family will be left grief-stricken and financially vulnerable.
How to Choose the Best Term Insurance Plan in India 2025?
Here are the steps to choose the best term insurance plan in India 2025 online:
Assess your needs and goals by checking your current annual income and your family’s potential financial needs in your absence.
Check remaining loans, such as outstanding home and car loans or credit card debts, and choose a sum assured large enough to cover them.
Compare premium rates online from top life insurance companies and select the best term insurance plan that fits your budget.
Go through the list of available riders, like critical illness or accidental death, and add the relevant add-ons for enhanced protection.
Check the insurer's claim settlement ratio and ensure it is above 95% to ensure an easy claim process for your family.
Review the customer's feedback and satisfaction with the insurance provider to ensure that the company is trustworthy and reliable.
What are the Factors to Consider Before Buying Term Insurance Plan?
While buying a term policy, it may be confusing to understand what term insurance online is better and how to find the best term life insurance plan. Here are steps that may help you choose the best term plan insurance for yourself:
Step 1: Consider your Dependents, Life Stage, and Your Current Lifestyle
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 a pure term plan insurance online easily in minutes by entering a few details and making a secure payment to buy term plan online.
++All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply
Yes, Indian citizens living outside India can buy Policybazaar term insurance for NRI from an Indian insurance provider. Following is the list of benefits of buying NRI term insurance in India:
Get large life cover up to Rs. 20 Crores at affordable premium rates.
Buy term plan insurance in India by scheduling medicals via video or call.
Receive an additional 5% discount on premiums in annual mode.
Get an 18% GST waiver as per the prevailing tax laws.
With the special exit option, you can exit the term life insurance policy at a specific stage and receive all the premiums paid.
Protect your family's financial future with a Term Insurance Plan
Why Choose Policybazaar to Buy Term Insurance Plans?
1
Dedicated claim support for family
We will help and support your family at the time of claim. A persobal claim handler from our team of experts will get in touch with your family when the nominee applues for a claim on our website
2
Discounts up to 10% for buying online
The discounts are valid for the entire policy payment term and are not available if you choose to buy the insurance through offline agents.
3
100% calls recorded to ensure no mis-selling
We will ensure you get what the advisors promise. We monitor our calls regularly to give you the best experience.
4
Advisors available in your city
Our advisors are available in more than 110+ cities across India and can help you at your doorstep in understanding the plan and in documentation.
5
Refund at the click of a button
If you are unhappy 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
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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: The term life insurance plans offer the option of selecting the suitable payout option, through which you can ensure your family receives the benefit amount in installments over a span of a few years which serves as income replacement in the event of the main income earner’s absence.
Cover Funeral Costs: In case of the policyholder’s death, the family might struggle to take care of the funeral costs and other miscellaneous expenses that come with dealing with the death of a loved one. The lump sum payout from a term policy might help them cover these costs.
Pay Off Loans and Debts: The financial burden of any pre-existing loans or debts like home loans or car loans might fall on the shoulders of your family members and burden them. The term life insurance payout can help them pay off these remaining loans and live a stress-free life.
Cover Against Critical Illnesses: Critical illness treatments at any point in life can drain your savings and leave you with hefty medical bills. With a critical illness rider in a term plan, you can take care of the medical costs and treatment bills with the payout amount received on the diagnosis of a critical illness listed under the term life insurance plan.
Tax Saving Benefits: Term life insurance plans provide tax benefits u/s 80C, 80D, and 10(10D) of the IT Act of 1961 as per the prevailing tax laws. The policyholder's family can benefit from the term policy, as the death benefit payout is completely tax exempted.
Common Customer Queries Asked on Quora/Reddit
Question
Answer
Which is better and why: term or whole life insurance? - Quora
Term insurance is affordable and provides pure life cover for a specific period, while whole life insurance offers lifelong cover (till 99/100 years of age) and a cash value element, but is slightly more expensive than regular term plans. It depends on your needs; if you want pure protection for your family at a low cost, term insurance is a better choice. But, if you want long-term protection for your family, a whole life policy might be a better fit for you.
Is it really worth it to buy term insurance? - Quora
Yes, term insurance is worth it because it offers high coverage at a low premium, providing financial protection for your family in case of an untimely event like death or disability.
What is the difference between life insurance and term insurance? - Quora
Term insurance is a type of life insurance focused solely on providing life cover for a set period, while life insurance, in general, can include plans like endowment or whole life, which combine life cover with savings or investment components.
Why term insurance is better than endowment plan? - QuoraÂ
Term insurance offers high coverage at a lower cost, while endowment plans mix life cover with savings, making them slightly more expensive. If you are looking to secure your loved ones at highly affordable premiums, you may want to buy a term life insurance plan.
Which term insurance plan to take? I am 28 years old. Earning 25L in a decent corporate job. - Reddit
At 28 with a good income, a term plan offering high coverage (ideally 15-20 times your income) with options for add-ons like critical illness cover would be a smart move. Therefore, as per financial experts, you should look for a plan that fits your budget and future financial goals.
Why, what, and how’s of buying a term insurance? - Reddit
Why: To secure your family’s financial future at an affordable premium. What: Choose a term life insurance plan that offers coverage 10-15 times your annual income. How: Compare different term insurance plans, look for rider options, and ensure the sum assured meets your family’s future needs.
How do Indian insurance companies know whether a person is a smoker or non-smoker during claims? - Reddit
Life insurance companies usually check smoking status during underwriting through medical tests or declarations. During claims, they may verify through medical records, past health reports, or additional investigations if needed.
Which term insurance with critical illness did you purchase and why? - Quora
While we can’t recommend a specific plan, insurance advisors suggest opting for a term plan that offers a critical illness rider. It pays out an additional amount on the diagnosis of covered major and minor illnesses, which can save you from hefty medical bills.
What are the Factors That Can Affect Term Insurance Premiums?
Many things can affect how much you pay for term insurance. These factors include your age, gender, health, family medical history, current health conditions, and lifestyle. Here's a simple list:
Factors
Details
Age
Younger people usually pay lower term plan insurance premiums because they're less likely to get sick.
Gender
Women are required to pay lower term plan premiums because they tend to live longer.
Health
Your past and current health and your family's health can impact the cost. The term life insurance premiums may be higher if you or your family have had serious illnesses.
Lifestyle Habits
Smoking, drinking, or risky activities can lead to higher term plan premiums because they increase health risks.
Occupation
If your job is risky, you might have to pay larger term plan insurance premiums because a risky job can affect your health.
Policy Duration
The term insurance plan premiums also change with the duration and amount for which you want coverage.
What are the Payout Options in Term Life Insurance?
Various pure term insurance plans in India offer the option of choosing the most suitable payout options. For example, in the absence of the main breadwinner of the family, the family might suffer from meeting their monthly expenses in case of loss of regular income. In such cases, a term life insurance with a monthly payout option will help payout in instalments over a span of 5 to 10 years. The available death benefit payout options in term life insurance are as follows:
Payout Options
Details
Lump sum Payout
This option provides the entire life term insurance online life cover amount in a lump sum at the time of claim settlement to the nominee of the term policy. The nominee can use the payout to meet their financial obligations as per their suitability.
Monthly Payout
This term life insurance payout option provides the sum assured in regular instalments over a period of 5 to 10 years, as per the policy details. This option helps replace the loss of regular income in the absence of the main income earner.
Lump sum with Monthly Income
Under this term insurance payout option, the insurer pays a fraction of the sum assured as a lump sum payout on the death of the policyholder, while the remaining amount is paid as monthly income for a specific period. The immediate lump sum payout can help take care of the funeral costs and pay off any remaining loans, whereas the regular income can help maintain the family’s financial stability.
Increasing Income
This insurance payout option provides the life cover amount 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 is Covered and Not Covered in Term Insurance?
Covered in Term Insurance ✅
Not Covered in Term Insurance âŒ
✅Death due to natural calamities
âŒDeath due to suicide in not covered in the 1st year
✅Death due to medical issues
âŒDeath due to self-inflicted injuries or illegal activities/homicide
✅Death due to an accident such as road accidents, workplace accidents
âŒDeath due to accident under the influence of drugs/alcohol
✅Death due to Covid-19
âŒDeath due to undeclared pre-existing illnesses
✅Death due to terminal illness
âŒDeath due to pregnancy or childbirth
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Documents Required To Buy Term Insurance Plan
Types of Documents
Description of Documents
Identity Proof
Passport, Voter ID, Aadhaar Card, PAN Card
Income Proof
For Salaried Individuals
Statement of the bank showing credit of salary for last 3 months
Last 2 years Income Tax Returns
Recent year Form 16
For Self Employed
Last 2 years Income tax returns which are not filed in the same year, along with income computation
If income calculation is not available, submit the last 3 years income tax returns (not filed in the same year)
Form 26 AS
Audited balance sheet and profit loss document certified by CA for last 2 years
Address Proof
Electricity, telephone, gas, or water bills not more than 2 months old, property tax receipt
Medical Proof
Latest medical reports allocated by the insurance provider
Why Compare Term Insurance Plans Online?
Comparing term insurance plans online can have the following benefits:
Check the availability of all term life insurance plans from different insurance companies.
Access accurate information directly from the insurer itself.
Receive additional 5% discount on premiums in annual mode.
Purchase a pure term insurance plan that fits your budget and is suitable for your needs.
Easy term insurance comparison with different insurers.
Online comparison of term life insurance will help you determine the right term plan as per your financial capacity and budget. It is important to compare the best term insurance plans online before buying any policy.
Note: The following information has been sourced from the official websites of insurance companies.
Comparison Of Term Life Insurance Plans
To help you make an informed decision, here is a term insurance comaprison in 2025. Refer to this table and find out the right pure term insurance plan for you.
Term Policy
Entry Age
Maximum Maturity Age
Policy Term
Sum Assured
Axis Max Life Insurance Smart Total Elite Protection
What are the 3 Easy Steps to Buy Term Insurance Plan in India?
The 3 easy steps to buy term insurance plans in India are as follows:
Step 1: Choose the most suitable sum assured and policy term as per your individual needs
Step 2: Compare the available term life insurance plans on the basis of their term plan premiums, premium payment options, and benefits offered
Step 3: Buy the best term insurance plan in India and proceed to pay
Common Mistakes People Make When Buying a Good Term Insurance
Many people make several mistakes when buying term insurance. 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 lean 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.Â
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. Buying term plans online can provide you with lower premiums, easy comparison, and unlocking special discounts that may only be available online.
What is the Importance of Term Insurance Plans During COVID-19?
Term insurance plan is important during COVID-19 for several reasons:
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Financial protection: COVID-19 has highlighted the importance of having financial protection in place for unexpected events. Term life insurance plans can provide financial protection for your loved ones in the event of your untimely death, helping to cover expenses like funeral costs, debts, and living expenses.
Affordability: During COVID-19, everyone was struggling to meet their financial obligations. Term life policy ensures that you are able to meet those needs and still secure your loved ones, as it is one of the most affordable types of life insurance policies, making it a good option for many people during these uncertain times.
Health considerations: COVID-19 has brought health considerations to the forefront, and many people are looking to secure term coverage while they are healthy. Pure term insurance plans typically require a medical exam, but the application process can be completed online or over the phone as per the policy details, making it a convenient option during the pandemic.
Peace of mind: The COVID-19 pandemic has caused a lot of stress and anxiety for many people. Knowing that you have pure term insurance plan coverage in place can provide peace of mind and help ease financial worries for both you and your loved ones.
Term Insurance Premiums: Premium is the amount of money the policyholder has to pay in return to receive the pure term insurance plan benefits and coverage for the entirety of the policy term.
Sum Assured: Sum Assured is the amount that the nominee/beneficiary will receive in case of an unforeseen event.
Claim Settlement Ratio: CSR in term life insurance plans is the ratio that represents the total number of claims registered in a year and the number of death claims settled in a year by an insurance company. The higher the CSR, the good the reliability of the company, and the chances of claim rejection is low.
Death Benefit: Death benefit is the same as SA and is provided to the nominee in case of uncertainty. The insurance provider will payout the death benefit to the nominee if the policyholder suffers an untimely death during the policy term.
Maturity Claim: At the end of the policy term, with regular term plans, the insurance policy just terminates, and no benefit is payable. But, with Term insurance return of premium plans, you can claim all the premiums paid towards the policy at the maturity of the policy.
Nominee/Beneficiary: The nominee or the beneficiary is the person chosen by the policyholder as the rightful claimant of the death benefit in the absence of the policyholder.
Policy Term: The policy term is the duration for which the insurer will provide the policyholder with the life cover and the policy’s benefits in exchange for the life term insurance premiums paid regularly.
Premium Payment Term: It is the duration for which the policyholder has to pay the term plan premiums. Most term life insurance plans offer single, limited, and regular premium payment terms for you to pay at your convenience.
Riders (Add-on benefits): Riders are the additional benefits you can include in your base term plan to increase its coverage. The available riders are different for each insurance plan and can be added at an extra amount to the base term plan premium.
Grace Period: Grace period is the additional period provided by the insurance provider after the term plan premium due date to pay the premiums without worrying about policy lapsing.
FAQs About Term Insurance Plans
Term Insurance
Rider
Critical illness
Premium Amount
What are the 3 benefits of term insurance plans?
Ans. A pure term insurance plan offers financial protection for the family in case of the untimely death of the policyholder. And you can also get optional coverage for accidental death or critical illnesses. Term plans also cover you for long term at low premium rates.
Which is better, life or term insurance?
Ans. The choice between term and whole life insurance depends on your desired coverage duration and budget. Term insurance is more affordable but provides coverage for a specific period. In contrast, whole life insurance has higher premiums but offers lifetime coverage.
What does term insurance do?
Ans. Term insurance provides financial coverage for a fixed time period in return for a specific premium amount. In case of an unforeseen event during the policy term, the insurance company provides a death benefit that helps compensate for the loss of your income.
Is term insurance good or not?
Ans. Yes, Term Insurance is good. However, it depends on your financial needs. The 3 main benefits of term insurance are high life cover at low premium rates, income tax benefits, and the option of adding term insurance riders.
What is term insurance plan Quora?
Ans. Term insurance plan according to Quora, users are a type of life insurance that offer financial aid to the family of the policyholder, in the event of the policyholder’s unfortunate demise.
Is it good to invest in term insurance?
Ans. Yes, term insurance is one of the beneficial purchases if you want peace of mind that your family members will be financially secure if you are not around. This income replacement term plan also ensures they are not left financially vulnerable in your absence.
Is it worth taking term insurance?
Ans. Yes, it is worth taking a term insurance plan as a good term insurance plan offers a financial shield to your family members in case of your unfortunate death. It is the best way to ensure that you are with your family at every stage.
What is the 3-year rule in term insurance plans, Reddit?
Ans. The 3-year rule in term insurance plans Reddit refers to the Section 45 of the Income Tax Act, 1961, under which any active term life insurance that has been issued or revived for 3 years consecutively, cannot be denied claims on any grounds other than fraud.
What is term insurance for 2 lakh?
Ans. Pradhan Mantri Suraksha Yojana is a 1-year term life insurance yojana for a 2 lakh life cover. It offers death coverage because of any cause. This scheme comes with a risk cover of Rs. 2 Lakhs in case of the insured's demise for any reason.
Is term insurance taxable?
Ans. No, the death benefit received from a term insurance policy is tax-free under Section 10(10D) of the Income Tax Act, 1961. However, the premiums paid may be eligible for tax deductions under Section 80C.
Do i have to pay taxes on the term insurance claim amount?
Ans. No. Under section 10(10D) of the Income Tax Act, 1961, a policyholder can get a tax exemption on the payouts. This simply means that the death benefit payout is also covered under this section.
What is the meaning of LIC term insurance?
Ans. LIC term insurance plans are the term plans offered by the Life Insurance Corporation of India. These plans allow customers of all backgrounds to get life insurance coverage of high cover at affordable premiums. You can take a look at the available term life insurance plans to choose the one that best suits your needs.
When should I buy term life policy?
Ans. There are no specific criteria but it is always recommended to buy a term life insurance as early as possible. The term plan premiums tend to be higher for people in their 30s than for those in their 20s and so on. Buying insurance is always a good idea whether you are in your 20s, 30s, or above.
How much life term insurance coverage do you need?
Ans. You can find a quick answer to this question by computing your Human Life Value or HLV. HLV is a simple number that helps you calculate your required life insurance.
Can I take 2 term life insurance plan?
Ans. Yes, there is no limit on buying multiple-term insurance plans to fulfill your life objectives. Buying more than one term life insurance plan is certainly beneficial in terms of a number of death benefit payout options, cost-effective term plan premiums, riders, coverage, hassle-free claim settlement, and tax exemption u/s 10(10D) of ITA.
Why are more women in India opting for term insurance plans?
Ans. Over the past two years, there has been an 80% increase in women purchasing term insurance in India, reflecting a growing trend of women taking charge of their financial planning. Women are not only securing their families' futures but also choosing high-cover plans, with a 120% rise in purchases of policies with higher coverage amounts.
Do both working women and housewives buy term insurance plans?
Ans. Yes, both working women and housewives are increasingly buying term insurance plans. Working women, including salaried and self-employed, account for 55-60% of the purchases, with many opting for high coverage amounts of ₹2 crore or more. Housewives, making up around 40% of term life insurance plan buyers, are also prioritizing financial security, with growing awareness of the benefits.
What are riders in term life insurance?
Life term insurance riders are additional attachments made to an existing term plan at affordable premium rates, giving the policyholder additional coverage, thus enhancing the utility of the policy. Different types of good term insurance plan riders that you can avail of are:
Accidental death Benefits
Accelerated Death Rider Benefit
Waiver of Premium Benefits
Accidental Disability Rider Benefits
Critical Illness Benefits
Income Replacement Benefits
Should we take riders with term life insurance?
Ans: Yes, it is a good idea to opt for riders with term life insurance plan, as it enhances the effectiveness of a pure term insurance plan. Choosing which riders to attach to your plan shall depend on your risks, requirements, and preferences. Upon assessing the various types of risks to your life, you should supplement your life cover with a suitable rider to enjoy comprehensive coverage.
Which rider I can buy with term life insurance?
Ans: Although the selection of a term life insurance rider depends on risks, your needs, and preferences, one of the best options is the waiver of premium rider. The rider protects policyholders against policy lapses in case of non-payment of term plan premiums due to an illness or under critical circumstances.
What is the term insurance rider?
Ans: A term life insurance rider is the extra or additional cover a life assured can opt for along with their base term insurance plan to increase their coverage benefits. A life assured can easily purchase a life term insurance rider by paying an additional premium amount.
What is the cost of riders?
Ans: Most of the riders are comparatively inexpensive. A term life insurance rider usually costs around 5 to 10% of the total term insurance plan premium you pay for your base cover. There is no limit to the number of riders that you can add to your base term life insurance cover, but the premium amount on all the riders should not be more than 30% of your base term plan premium.
What are the benefits of adding a term life insurance rider?
Additional Coverage
Cost-effective
Choose as per your needs
Tax-saving Benefit
Multiple benefits in a single policy
What are critical illness riders, and why are they important for women?
Critical illness riders provide additional coverage for specific health conditions, including cancers common to women, such as breast, ovarian, and cervical cancer. These riders ensure financial support from the early stages of the disease, beginning at diagnosis. Many insurers also offer comprehensive health management services for women, which include annual benefits like tele-OPD consultations and lab tests.
Should I take critical illness cover with pure term insurance plan if I have health insurance?
Yes, you can take critical illness cover with a term life insurance plan, if you already have a health insurance plan, the critical illness cover would pay a claim if you got sick. During any critical illness, this cover can be helpful to enhance an existing term life insurance plan.
What is covered against critical illness in term insurance plan?
The critical illness cover provides you financial protection and security against several life-threatening medical conditions such as stroke, cancer, cardiovascular diseases, and kidney failures. This term life insurance cover includes a lump sum payment if you are diagnosed with stated illnesses in the policy.
What is the term plan with critical illness cover?
Ans: Term life insurance plan with critical illness cover is a plan that meets the following criteria:
Illnesses covered: Determine the number of critical illnesses covered. If you have a family history of any cardiac disease or any other major ailment, ensure these are covered within the term plan.
Adequate sum assured: Always consider the average cost of managing major ailments while determining the size of a term life insurance cover. Always take inflation into account.=
What is a term plan with a critical illness?
Ans: Term insurance plans with Critical illness cover provide a lump sum payment if you are diagnosed with any of the illnesses in the pre-specified list of the policies. This typically includes paralysis, heart attack, lung diseases, cancer, and others.
How much life term insurance should I take?
Ans: The coverage amount depends on various factors such as the number of, dependents in the family, affordability, and the lifestyle you would like your family to sustain in the future. For calculating the minimum term life policy cover you need, you can follow the rule to have a sum assured that is 10X your yearly income. Further, you should factor in your existing debt obligations and liabilities when you are deciding your coverage amount.
Who dictates what the term plan premium amount should be?
The insurance company decides the term plan premium payable based on several factors such as age, gender, smoking habit, medical history, etc.
How important is the gender of the life assured?
Ans. As per the experts, the average Indian woman lives longer than their male counterparts. Thus, term life insurance premiums are lower for women than that of men belonging to the same age bracket. Some plans also offer discounts to women on their term insurance plan premiums.
Why is the use of tobacco/nicotine a determining factor for life term insurance premiums?
Ans. Tobacco/nicotine use directly affects the life expectancy of a person. Considering that non-smoker is expected to live longer, their term plan premiums are consequently lower.
What happens if I do not pay the term insurance premium?
Ans. If term life insurance premiums remain unpaid even after the grace period, the term insurance plan shall lapse along with its benefits. Some insurance companies provide a revival period within which one can revive their lapsed term life policy.
What is the consequence of the life assured dying before the premiums have been duly paid?
Ans. If the death of the life assured occurs before the payment of due term insurance plan premium, the term life policy will still be considered valid. In such a case, the death benefit reduces by the amount of due premiums that remain unpaid. The due amount is basically deducted from the sum assured on death.
What am I entitled to if the term life insurance plan premiums are duly paid off and I survive the term period?
Ans. Term life insurance policies do not offer paybacks unless you have opted for the return of premium term insurance plan variant. Therefore, if you were to outlive the policy term, you do not receive any benefits. This is why pure term insurance plan are rendered as a pure risk policy. It is the chance that you take to ensure a strong financial safety net for your loved ones in case you are not around for them.
What is HDFC Life Insurance Company current stock performance?
Ans. As of 19-09-2024, 15:19 IST, HDFC Life Insurance Company’s stock is trading at ₹701.7 with a market capitalization of ₹1,50,299.68 crore. The current volume is 2,043,771 shares, with a price-to-earnings ratio of 92.05 and earnings per share (EPS) of 7.61. Stay updated with real-time data through our liveblog for further market insights.
Do we get return in term insurance plans?
Ans. In a regular term plan, there is no return, maturity, or money back at the end of the pure term insurance plan. However, a term insurance return of premium plans returns the premiums paid back at the end of the policy term as a maturity benefit. This returned amount is subject to some deductions like GST, Admin charges, and other nominal charges. However, it is better to understand what is term insurance first, before learning more about returns in term life policy.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 478/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the IRDAI approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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