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Term Insurance Plans
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Term Insurance

Term insurance is a form of life insurance plan which provides required financial cover to the family of insured in case he/she passed away during the policy term. It will provide the required support to your family and allows them to live their life independently. Term Insurance helps your family in maintaining their living standards. The plan covers the risk of death, disease, and disability.

Importance of Term Insurance

Term insurance is not a need these days, it has already become a necessity to have a secured future of your loved ones. We have to secure our family and loved ones today so that they will be strong enough to deal with any financial crisis in case of the demise of the breadwinner. Investing in the same at an early age can make you feel happy and relaxed. That's why investment experts in the industry suggest investing in a term insurance plan and that too at a young age. Adequate term insurance will help your family to live a stable life even after your demise. It will provide much needed financial support to meet their daily expenses and long term goals as well.

Financial Security: The term insurance plan provides the required financial security to your family to deal with daily expenses and liabilities as well. It is a pure protection plan so the protection of your family in case of your demise is its job. Term insurance plan refers to be the best tool when it comes to securing the future of your loved ones.

To Attain Goals: You might have goals, it can be your home, your child's education, their marriage and much more. But how will they manage to do all things in case of any unexpected situation like your demise. Term insurance will be there to do all such things on your behalf and help your family in fulfilling all their dreams.

Safety At An Affordable Price: Unlike other investment options, term insurance does not ask for a huge premium. It offers the required cover at a really nominal cost which makes it one of the best insurance plans for complete protection.

Life Insurance Required

Key Features of Term Insurance

Term insurance is one of the strongest financial tools that you can buy to keep your family secured after you. The plans do carry several features that you should know before taking the final decision, let's have a look at them.

Customized Riders

Customized Riders

These kinds of Term Insurance plans cover basic risk related to life i.e. death. You will get the entire amount of sum insured in case of any tragedy with the policyholder. The amount of premium in pure term plans are usually least.

Minimum Investment

Minimum Investment

It starts at just Rs 10/day or less in some insurance plans. With such a low price this is one of the cheapest investments. You have to invest only 3 to 5% of your earnings an the returns that you will get will be around 25 to 30%.

Fixed Return

Fixed Return

Even with less than 10% of investment through your salary, you can get the best returns. The plan will provide the required returns to your family for sure in case of your absence. It will be there to assist them with all their financial needs.

Tax Benefits

Tax Benefits

Tax benefits are provided as per Section 80C etc. This can also help you in choosing the amount of the sum insured. To get the maximum tax benefits, you can also choose more amount of sum insured.

Flexible Payouts

Flexible Payouts

Term plans usually have the option to get a lump sum or monthly income, or even get both. It is totally up to you what you choose. It can also vary from plan to plan and insurer to insurer. So you must check the features thoroughly.

Claim Benefit

Claim Benefit

You can choose to take the claim amount in a lump sum or in monthly installments as suitable. In some plans, the monthly income increases at a rate of 4% every year. Most of the Insurance companies have the flexibility of taking the claims

Choice of Plans

Choice of Plans

All leading life insurance companies in the country offer term plans to policy buyers. Thus, based on your requirements you can opt for a suitable term insurance policy. There are multiple plans that you can compare online and choose the best out of all.

Sum Insured

Sum Insured

Term plans can easily provide coverage up to Rs. 25 crores and more. They also offer a customized plan as per your financial needs. Sum insured is the amount that the person gets upon maturity. You can always choose the amount as per your requirements.

Lifetime Cover

Lifetime Cover

Many Insurance players provide life cover till 100 years of age. Mostly, insurers covers up to 75 years of age. Since an average lifespan of the person is 75 years so you can expect to get the complete coverage. In some of the term plans, the entire amount is refunded upon maturity.

Types of Riders in Term Insurance

If an individual is working in the private sector, investing in a term insurance policy is a must for them as it plays a very crucial role in their life. However, adding a few riders can help in enhancing the coverage and prepared your loved ones to deal with many different scenarios easily.

Naval Goel (CEO - PolicyX)

"Term Insurance riders can help you in getting wider coverage and additional privileges. With the same, you will be liable to avail additional benefits in case of need. And in case of your demise, your family would be able to get complete cover"- Naval Goel - CEO - PolicyX

Critical illness

Critical illness riders cover many illnesses that are deadly in nature. You can buy this rider anytime if you are prone to any such illness. Before taking the rider, you can always check the additional cost and decide accordingly.

Benefits of Critical Illness Rider:

  • Covers more than 100 deadly diseases
  • Entire Hospitalization expenses are covered
  • Comes at a very nominal cost
  • Guaranteed return of fixed percentage on the sum insured.

Permanent Disability

As per this rider, you are given the benefit of the sum insured if the policyholder becomes disabled for any reason. Not only he gets complete coverage of the sum insured but all the future premium are also waived off.

Benefits of Permanent Disability Rider:

  • Waiving of all future premium
  • 100 sum insured granted
  • Available as top up with the least cost
  • Some Insurance Policies provide this as an inbuilt feature.

Cashless Treatment Rider

As per this rider complete cashless treatment is provided at the time of any illness. Before taking such riders you must inquire about the rate of premium that you need to pay.

Benefits of Cashless Treatment Rider:

  • Access to the chain of cashless hospitals
  • Can use it as per a certain percentage of the sum insured
  • Great Benefit with not much Investment
  • Convenience and offer great offers.

Accidental Death

If this rider is taken, then accidental death is covered as well. This can be clubbed with any kind of insurance plan.

Benefits of Accidental Death Rider:

  • Waiving of all future premium
  • 100 sum insured granted
  • Available as top up with the low cost
  • Some Insurance Policies provide this as an inbuilt feature.

Premium Waiver

As per this rider, all the future premiums are waived off. This is more suitable if you wish to discontinue premium payments after some time.

Benefits of Premium Waiver Rider:

  • You can choose the time when you wish to wave off your premium
  • No effect on the sum insured.
  • Reduce the burden of paying the premium.
  • Just need to Invest on this rider to avail this benefit.

Eligibility For Term Insurance

General requirements need to be met in order to be approved for a term plan by the insurance company. The amount of the sum insured is directly proportional to your monthly income or revenues. All these factors can always be customized as per the Term Insurance company.

Eligibility Criteria in Detail

CRITERIADETAILS
AGE18 years - 70 years
Minimum IncomeRs. 2 lakhs
Term of Policy5 years - 40 years
Amount of the Sum InsuredRs. 25 crores (can be customized in special cases)
Maturity Age80 years

*Subject to guidelines by IRDAI.

After checking eligibility, there are many other choices. These options can vary between the types of policies to the amount of sum insured that you wish to secure. The actuaries decide the price of the premium. Eligibility is mutually decided by IRDA and Insurance companies that might be subject to periodic alternations.

Best Term Insurance Plans in India 2019

Here are the best term insurance plans in India for the year 2019

PlansFeaturesEligibilityPremium
ICICI Prudential iProtect Smart PlanMaturity Age - 23 years to 85 years
Policy Term - As per policy brochure
Min. Sum Assured - Rs. 50 lakhs
Payout Type - Lump sum or monthly income
Claim Ratio - 97.88%
Min - 18 years
Max - 65 years
Rs. 1068/m*
HDFC Life click2Protect PlusMaturity Age - 28 years to 85 years
Policy Term - 10 years to 40 years
Min. Sum Assured - Rs. 25 lakh
Payout Type - Lump sum + Optional monthly income
Claim Ratio - 97.80%
Min - 18 years
Max - 65 years
Rs. 887/m*
Max Life Online Term Plan PlusMaturity Age - 85 years
Policy Term - 50 years
Min. Sum Assured - Rs. 25 lakhs
Payout Type - Lump sum + Optional monthly income/increasing monthly income
Claim Ratio - 98.26%
Min - 18 years
Max - 60 years
Rs. 748/m*
Aegon Life iTerm PlanMaturity Age - 23 years to 100 years
Policy Term - 100 year
Min. Sum Assured - Rs. 25 lakhs
Payout Type - Lump sum + optional monthly income
Claim Ratio - 95.67%
Min - 18 years
Max - 65 years
Rs. 725/m*
LIC e-term PlanMaturity Age - 75 years
Policy Term - 10 years to 35 years
Min. Sum Assured - Rs. 25 lakhs / Rs. 50 lakhs,non-smoker
Payout Type - Lump sum
Claim Ratio - 98.04%
Min - 18 years
Max - 60 years
Rs. 18672/y*
SBI Life eShield PlanMaturity Age - 80 years
Policy Term - 5 years to 30 years
Min. Sum Assured - Rs. 35 lakhs
Payout Type - Lump sum
Claim Ratio - 96.76%
Min - 18 years
Max - 65 years
Rs. 2058/m*

Why Compare Term Insurance Online?

Comparison of Leading Term Insurance Plans & Players: By using our free quotes section-present at the top of this page, you will get asses of various term Insurance plans and companies. Before buying the Term Insurance plan you can use our online term insurance premium calculator. As soon as you enter the required details you get an immediate amount from various Insurance companies. This can assist in making the right decision. You can analyze your needs and buy the plan accordingly.

The Lesser Amount of Premium: Since there are no middlemen involved in the entire process the cost of online term plans are less. There are many other overheads cost saved as well such as the cost of office, commission to the middlemen and distribution channels, etc. All these savings assist in facilitation Term Insurance plans at a lesser price. Furthermore, you can use the online premium calculator to do a quick comparison. It can help in choosing a suitable Term Insurance plan as per your need

Faster Delivery: Online process of buying an Insurance Plan is quite automated. As soon as you enter the required details and make the payments, you can get the Insurance documents in your Inbox. As soon as you submit the documents and make the payments policy documents comes in your Inbox. Payments can be easily done through online bank transfers or wallet payments. These online payments are secure as well.

Quick Resolution of Queries: All the information related to Term Insurance plans is available freely on the Online Comparison websites. The data published in thoroughly researched and accurate. It's designed to resolve all the possible query of the users planning to buy Term Insurance plan online.

All Data Available Online: Whatever documents you submit and any other further details related to your policy is available online. You can access it anywhere anytime. Once you buy the policy unique online access is provided. You can check all your details there.

Automated Process: From the calculation of the premium to making payment of premium everything is automated and made convenient for the users. The entire online process is quite systematic and automated in all sense.

How to Choose the Best Term Insurance?

When it comes to choosing the best term insurance plan, it is very important to look at all the associated features. Below are a few things that you should always keep in mind when choosing the best term insurance plan:

Premium

Premium plays an important role in the selection of the term plan. You can select the same as per your financial goals. The rate of premium is based on a couple of factors. You can easily get the idea of the amount of Premium cost by checking it online.

Claim Settlement Ratio

Claim Settlement process also plays an important role when it comes to investing the Term plan. You can always check the term Insurance claim settlement ratio of different Insurance players. This is one of the Important parameters for selecting the term Insurance Plan. Most of the Insurance companies settle 95% of the claims. However, some may have better ratios as well.

Type of Plans

There are various plans to choose from. All these kinds of plans are made as per your requirements only. Before finalising the plan, you can check all there features, benefits, exclusions thoroughly. Most of the Insurance companies have designed their products based on various types of needs. You can select the required one as per your convenience.

Availability of the Riders

Riders play an equally important role in all forms of the Term Plan. They cover additional Life risks other than death. By paying a little more amount of premium you are getting much more value. Before selecting the Term Insurance plan you must check their rider options as well.

Flexibility of Payments

Many Insurance companies offer flexible options for making payments. You can consider that factor as well before choosing the insurance plan. Payment can be made either monthly, quarterly, bi-annually or yearly. Whatever period you may choose you must ensure to pay before the due date. Because if you miss that time then your policy may lapse.

Customer Care Services

PolicyX.com is providing excellent customer care service to the customers cater to each and every information for any query. We at PolicyX.com, come out with solutions of every problem related to your insurance plan. The kind and the generous team will be there to support you at each and every essential stage. Your personal information will be secure with us and we can assure you with that.

The Swiftness of the Process

You must check the speed of process in resolving your queries and sharing policy's document. It will be a matter of a few seconds and you will get it on your E-mail. From payment to delivery, all can happen within a fraction of seconds.

Free Lookup Period

You can always make your decision after checking the free lookup period of the companies. Lookup period may vary between 15 to 30 days. You can always check the tenure and take your Insurance plan accordingly. Free Lookup period is important, especially if you feel you have taken the term plan that is not suitable.

How Can PolicyX Help You in Choosing the Best Plan?

PolicyX is an IRDAI approved online insurance web aggregator that assist you with the best Term Life insurance plans. It's an online comparison site that ensures to provide all the details related to term insurance companies on a single platform. It covers almost all the parameters of the Insurance.

We provide a customized portfolio as per your needs and requirements. We have a dedicated team to assist you with all your queries. From documentation to any other further assistance, they are always on their toes to serve you in the best possible way.

PolicyX believes in the transparency of all the information. They ensure to provide all sorts of data related to insurance. These details are freely available on our website. Our motto is to assist you with term insurance comparison for choosing the best term plan. The algorithm is designed in a way that can enable quick quotes from leading insurance companies.

Testimonials

  • I was in a need of good term plan from the purpose of investment. I called policyx represntative and was offered all the information I required and they also hepled in buying the plan

    - Bhawna Prasad, Pune

  • I found many options while going through the website of Policyx.com. Great site, uncluttered and easy to use. Do visit if you are looking to buy insurance. I bought a term plan from the site

    - sarvanistha, Guwahati

  • Based on my experience i would suggest you to come to this website and do comparison atleast once before you select your next policy. I found this very helpful while selecting my term plan.

    - Bhanu, Patna

Term Insurance Plans with Rs. 1 Crore Coverage

Term Plan Types Age Criteria(Min-Max) Term of Policy Maturity age in years Minimum Sum Insured* Monthly amount of Premium years - Life Cover - Rs. 1 crore*Approx. Percentage of Claims Settlement
Tata Sampoorna i Raksha18-70 years10 to 40 years80 yearsRs. 50 LakhsRs. 86596%
Kotak e-term18-65 years10 to 40 years75 yearsRs. 25 LakhsRs. 87291%
Max Online Term Plan18-60 years10 to 35 years70 yearsRs. 25 LakhsRs. 89398%
Bharti Axa Life - Online Protect18-65 years10 to 30 years85 yearsRs. 25 LakhsRs. 99292%
HDFC Click2 Protect Plan18-65 years10 to 40 years75 yearsRs. 25 LakhsRs. 107398%
Aviva i Life total protect18-55 years10 to 35 years75 yearsRs. 50 LakhsRs. 111491%
ICICI Prudential iProtect Smart Plan18-65 years5 to 40 years75 yearsSubject to Minimum PremiumRs. 123897%
Aegon Religare iTerm18-65 years5 to 40 years100 yearsRs. 25 LakhsRs. 128697%
Aegon Religare iTerm18-65 years10 to 40 years99 yearsRs. 10 LakhsRs. 140191%
LIC eterm Plan18-60 years10 to 35 years75 yearsRs. 25 LakhsRs. 157198%

Why Term Insurance is Best Investment?

Term Insurance is a plan that offers more comprehensive coverage at an affordable price. It's recommended because one can invest a small amount as well.

There are lots of benefits that Term Insurance plans can offer. It will not be wrong to say that Term Insurance is not a luxury. Coming years as lifespan will reduce, Life risk will increase, then people will understand its relevance even more. Smart people always decide before the storm. Before it's too late, you must buy the appropriate Term Insurance Plan.

Some of the important benefits it offers are as follows:-

Family Security

"The Family is the center of life, and it is the key to eternal happiness" - Tom Pery.

Family is one of the most important part of your life. Have you ever thought what will happen to them if you no longer exist? Best way to exhibit your love towards them is buying them the gift of security. Term Insurance plan is a tool to ensure the security of your family. The cost of Term Insurance is negligible, but the benefits are unparallel. First of all, it provides the needful financial assistance to your family in case of need. In case something happens to you, your beneficiary gets all the sum insured through which it will be easier for them to maintain their standard of living. You can decide the amount of sum insured as per your needs and savings. A Term Insurance plan doesn't cost high; it is affordable as a cup of coffee.

Achieving Financial Milestone

We all have many goals that we aspire to achieve. These plans apply to various thresholds of life. The goals that we also set subtly involves our family. Have you ever thought what will happen to these goals if you no longer exist to fulfill them? Good news is that you can still achieve your dreams set for your family in your absence. This can be possible with the help of Term plans.

Most of the goals need money to get fulfill; we can earn money to achieve only till we are alive. Term Insurance is the only option to secure funds for our family after our demise.

You can always select the plan as per our financial aspirations. The sum insured should be set based on our financial goals and monthly earnings.

Tax savings as per Section 80C and 80D

Yes, this is an additional benefit of investing in a term insurance plan. On buying a Term Insurance policy, you will be liable to get tax benefits under Section 80C. It is a combination of wider coverage and tax benefits. So, as it comes out with dual benefits, it is always a win-win situation to invest in a Term Insurance policy.

Rider Benefits

Riders are add-on benefits that you get with these policies. They are the top-ups that provide add-on coverage. Presence of various additional riders such as personal accident, waiver of premium, critical illness, etc. will help at different stages of life. It is always advisable to add riders in your Term Insurance policy to get more comprehensive coverage and assistance against many unwanted contingencies.

There is no doubt in saying that hazards often come uninformed, with an effective Term Insurance and riders, you will be able to cover almost all possible risk and can also offer financial assistance to your family to live a stable life after you.

Maximum Gain with Small Investment

Term Insurance plans are available at a very nominal amount. It may be as low as some hundreds or thousands per month. As compared to that the sum insured can be in lakhs and crores, it is generally 25 to 30 times more than our salary. In case of any eventuality that leads you towards death, the nominee and beneficiary will be liable to get death benefits. He/she have to inform the insurer, and the rest will be taken care by the company itself. It is always advisable for everyone that before buying any policy, go through terms and conditions of plans so that you will be aware that in which situation the claim will get approval or face rejections.

Lesser Claim Rejection Ratio

Claim Settlement of Term Insurance is usually more than 90%. It is always better to read the policy documents before buying any plan to avoid rejections. Often people are unaware of some clauses. At the same time, one thing more that you should take care of is that at the time of purchase, you should not hide anything from the insurer. This can become another reason for the rejection of the claim. By staying aware and honest, there is a lesser chance of claim rejection.

Buying Flexibility

There are many channels from where you can buy Term Insurance plans. PolicyX.com is the right platform to buy Term Insurance plan. It will help you with free insurance quotes through which it will become quite easier for you to get the best one out of all at an affordable price. The helpful customer care service will assist you at every stage.

A few reasons which make PolicyX- the right platform is affordable cost, easy buying process, less confusion, no spams, etc. Moreover, at PolicyX.com you will get detailed information about all available Term Insurance plans, which makes it easier to buy the best.

Ease of Payments

When it comes to payment, you can always choose the premium payment mode on your own according to your convenience. You can pay monthly, quarterly, half-yearly or annually.

Many people prefer to pay the amount of Term Insurance monthly as it comes at a very nominal price. Payments can be easily made online. You can do it either through NEFT, Net banking, IMPS, or wallet banking. Timely payment of a policy is must to enjoy their benefits. For timely payment, we share reminders to all of our customers, so they would not face any problem in getting timely benefits.

Survival Benefits

Well, there must be a few policies only that will be able to offer returns or refunds of your premium. Not all Term Insurance plans are liable for this, and those plans who offer such benefits will cost high as compared to basic Term Insurance plans. However, these plans reimburse the entire premium that you have paid. You can avail benefits even if you survive after the policy term. Some Term Plans not only covers the risk of death but other life risks as well. The deadly disease, accidents, disability are other risks that need coverage as well. You can go for riders to get coverage against the same.

Variations of Term Plans as per our suitability

There are various kinds of Term plans that offer many different types of benefits. You must choose the plan as your current need. Many customized plans are easily available. Every person may have different requirements. You can always choose the plan that is most suitable for us. Variations come in two different ways. People often get confused about these differentials. You have a choice between Insurance companies and Term plans. Before buying and Term Insurance, you can always compare them from online comparison websites.

Claim Benefits

The beneficiary can take the claim either in a lump sum or in monthly installment. The best thing about the Term Insurance plan is no matters what is the inflation rate; your premium will remain the same. When it comes to claiming settlement, it is very easy and simple. You have to inform the insurer about the demise and submit a few essential documents. After verification of documents given by beneficiary, the claim is processed.

Maturity benefits can only be taken after policy tenure. In other cases, it will be applicable as and when an event occurs. Here also it is based on what kind of coverage you have taken. If it's only for life than claim will be applicable if the policyholder expires. But if other additional benefits are chosen than claim will arise in a different situation as well. These situations can be either at the time of any critical illness or any disability as well. You must understand the policy document carefully before taking the claim. In this way, not only you will get the claims faster, but you will be aware of how much amount you should be getting.

Free Lookup Period

Free Lookup period is the time when you have an option of canceling our policy. At times you may not be sure about the policy. It happens when you buy Term Insurance in a hurry. As a result, many people take wrong decisions. All Insurance companies allow a grace period of 15 to 30 days to change our your decision. You need to raise the request through the proper channel. You need to surrender original policy papers along with a few additional documents. 100% After a few nominal refunds can be expected within a short period.

Expert's advice: If both parents are bread earners, it is crucial for both to have Term Insurance policies, which would build a bigger corpus for their child.

Term Life Insurance Plans By The Government Of India

The Central Government of India sponsors various social security schemes, including pension covers, health schemes, crop insurance schemes, etc., for the benefit of the economically underprivileged sections of society. These schemes were launched to provide financial security to the masses at a nominal cost.

The government also offers certain term insurance schemes, by way of which policy buyers can safeguard their dependents financially. Listed below are the various term plans offered by the Government of India, along with their key features and benefits.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a non-participating, non-linked term insurance policy that can be renewed on an annual basis by policyholders.

Key features of the Pradhan Mantri Jeevan Jyoti Bima Yojana

  • This policy offers a life cover of Rs. 2 lakh.
  • The premium charged for this plan is Rs. 330 per annum.
  • Policy buyers are not required to undergo a medical examination to purchase this policy.
  • Individuals between 18 years and 50 years can purchase this policy.
  • Tax benefits can be availed as per the prevailing tax laws.

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

The Pradhan Mantri Jan-Dhan Yojana scheme aims to provide access to certain key financial services to policy buyers in a convenient and affordable manner. Further, this scheme also provides a life cover of Rs. 30,000 and accidental insurance cover for Rs. 1 lakh.

Key features of the Pradhan Mantri Jan-Dhan Yojana

  • Savings bank accounts opened under the PMJDY scheme can be opened with zero balance.
  • Members will receive interest on their deposit.
  • Members will be provided an overdraft facility six months after opening and successfully operating their account.
  • Upon the death of the policyholder, a sum of Rs. 30,000 will be provided to the nominee.

Aam Aadmi Bima Yojana

The Aam Aadmi Bima Yojana was formed as a merger of two social security schemes, namely the Aam Aadmi Bima Yojana and the Janashree Bima Yojana, which previously existed. This scheme provides a life cover of Rs. 30,000 per life to enrolled members.

Key Features of the Aam Aadmi Bima Yojana

  • To subscribe to this scheme, members need to be between 18 years and 59 years.
  • The initial premium that will be charged for this scheme is Rs. 200, out of which 50% of the premium amount will be subsidized from the Social Security Fund.
  • In case of the untimely death of the policyholder, the nominee will receive Rs. 30,00 as the death benefit.
  • This scheme also provides accidental death/disability benefits and a scholarship benefit.

Government-backed schemes offer a range of benefits at an affordable price to policy buyers. Make sure to walk into the nearest insurance office or research online for more details about the various term insurance schemes offered by the government.

Types of Term Insurance Plans

Pure Term plan

Pure Term Plan cover basic risk related to life i.e., death. The nominee gets the entire amount of sum insured in case of any tragedy with the policyholder. The amount of premium in pure term plans are usually least. It covers the insured as soon as you buy a Term Plan.

TROP (Term Return of Premium)

The best part of TROP plan is it assures maturity benefits. Even the policyholder can get the benefits. It's paid after the end of the policy period only. This policy turns out to be beneficial if the Insured survives after the term of the policy. In some plans, additional returns can also be expected. The premium may be a little higher if you plan to take it with returns.

Convertible Term Insurance Plan

Convertible plans enable many add-ons on the existing Term Insurance plan that you may have. You can choose any plan as suitable. It can be any market linked plan as well. This is a good way of covering life risks along with returns.

Single Life Term Insurance Plan

This is a normal plan where only a single person is covered. Claimant gets the entire amount of sum insured if the policyholder is expired. However, there are many risks that can be clubbed as per this plan. But all of them will be related to the Insured who has been covered in the plan.

Joint Life Term Insurance Plan

A Joint Life Insurance plan can be either an endowment policy or a basic term plan, wherein two lives are covered instead of one. Joint Term Plan: In this type of joint life insurance, both individuals pay a single premium for a fixed period.

Increasing Term Insurance Plan

As per increasing Term Insurance plan, the premium and cover increase every year. This plan is launched keeping in mind the growing rate of inflation. Usually, It keeps on increasing until it becomes 1.5 times the original sum insured.

Decreasing Term Insurance Plan

In decreasing plan, both the premium and the sum insured decreases with time. This kind of plan is usually issued by the banks to recover the loan. With decreasing interest amount, the risk of non-payment of loan can be managed.

Group Insurance

Group Insurance is suitable for companies or institutes having more than 50 people. Large communities can also avail this kind of insurance. The rate of premium in such kind of Insurance may vary every year. These kinds of plans are usually taken by the corporates or large institutes.

Online Term Insurance Plan

Online Term Insurance plans are plans that can be bought online easily. Usually, the cost of the premium is less in these plans. They are also delivered faster than any other plans. Because of the Swiftness of this platform, it's preferred by many. It can be easily taken from any online comparison marketplaces. You will get multiple plans to choose from.

Offline Term Insurance Plan

Offline plans may be a little different from the online Insurance plans. Besides the rate of the premium, there may be many features that may vary completely in case of offline plans. Also, there may be few plans that might be available only offline. At times it might be a little tedious to take plans through them that's why people prefer online platforms.

How Much Term Insurance Does One Need?

Ideally, your term insurance cover should be 10 times of your annual income. Anything below this might not be sufficient to take care of your nominee in your absence. Any amount above this is a good option, however, it's not advisable to take a higher sum, as the extra premium paid towards the plan can be diverted to better investment avenues that are profitable. Certain factors that you need to check before selecting a sum assured amount are listed below:

  • Annual Income: In the event of the policyholder's death, the nominee will be provided the death benefit payout. This payout can act as income replacement for your family until they are able to get back on their feet. Thus, it is essential to consider your annual income and opt for a sum assured that amounts to at least 10 times your annual income, if not more.
  • Current Expenses: Before you opt for the sum assured, it is necessary to calculate your monthly expenses to determine how much you can pay as the premium. Since the premium payable is linked to the sum assured, you will need to first determine your premium payment ability.
  • Liabilities: If you have several loans and debts to clear, it is advisable to opt for a large sum assured since it will ensure that your nominee can pay off your debts without any hassle in the event of your death. However, if you are relatively debt-free, you can get away with opting for a lower sum assured.
  • Investments and Savings: Since the point of opting for a life insurance policy is to provide financial security to your dependents, it is essential to first assess the value of your assets, investments, and savings. This will, in turn, help you to determine how much you need to opt for the sum assured in order to provide sufficient financial security to your loved ones.

As a parent one must buy term insurance at the earliest to pay lower premiums

It is advisable to buy at an early age. With the increase in age, the annual premium of term insurance increases. As you will see in the below example, how term insurance premium increases with the increase in age.

For example, Rahul, a 30 year old and breadwinner of the family, if decides to buy a term insurance with the coverage of Rs. 1 crore till the age of his retirement, 65 years.

You will notice that the delay in buying a term insurance will do no good, in fact, it will only increase the annual premium to be paid.

AgeMaturity AgePolicy TermAnnual Premium (INR)
30 years65 years35 yearsRs. 8,000 - Rs. 12,500
35 years60 years30 yearsRs. 10,000 - Rs. 15,500
40 years65 years25 yearsRs. 13,500 - Rs. 18,50

*Note: The prices are indicative and subject to change based on various factors.

Documents Required for Term Insurance Plan

Proof of Income: Latest salary slips for 3 months or Income tax returns for the last 3 years. These documents are mandatory as you have certain criteria for Income of the person. After you submit the same, they will be verified and policy is issued immediately after that.

Forms for the Income Tax: Form 16 in case of salaried professionals and Form 16 A for self-employed or freelancers. This is an alternative if you are not able to submit the salary proofs.

Identity Proof: Aadhar Card is one of the mandatory document that needs to be submitted. It is one of the most valid Identity proof in India.

Income Tax Proof: Pan Card is must to show the proof for Income tax.

Birth Certificate: Birth Certificate is applicable if there is any mismatch in the date of birth in Aadhar or Pan card.

Image Proof: In order to authenticate the identity, one passport size pic is mandatory.

Parameters That Affect The Amount of Premium

There are many factors that affects the calculation of the premium. Age, income, gender, habits like smoking, and many others, all affect the rate of premium drastically. You can take an example of 4 friends who want to take Term Insurance. Each of them differs in age. They plan to take the coverage of around Rs. 75 lakhs. Term Plan that they selected will continue till 60 years.

Since all of them are of different age groups so the tenure of policy will also be different. Out of them 2 of them smokes others are non-smokers. Therefore the amount of premium will differ in all the cases. Based on all these parameters the rate of premium for all will vary. Same has been tabulated below. Also demonstrated with the graph.

AgeGenderSum InsuredSmokerPolicy TermAmount of Premium
22 yearsMaleRs. 75 LakhsYes38 yearsRs. 6,767
28 yearsFemaleRs. 75 LakhsNo32 yearsRs. 4,684
37 yearsFemaleRs. 75 LakhsYes23 yearsRs. 10,239
42 yearsMaleRs. 75 LakhsNo18 yearsRs. 11,537

How to Get Successful Claim in Term Insurance?

In case of the demise of the policyholder nominee should share certain documents with the Insurance company. Documents will vary in different scenarios. Based on the situation, various cases have been bifurcated below.

Case 1: Natural Death

In case of such deaths documents that need to be submitted are as follows:

  • Policy document in original
  • Claim form as issued by the Insurance company
  • Application from the claimant
  • Any other documents required by the Insurance company

Case 2: Accidental Death

In the case of accidental death, the process is completely different. Documents that you need to submit are:

  • Post Morterm report of the accident
  • FIR report of the police
  • Investigation report from the police
  • Statement of attending doctor or certificate of Medical attendance

Case 3: Death Due to Sickness

If the patient is sick since long and dies because of some illness than documentation process might be slightly different. They can take the claim only if they have taken a critical illness rider. Documents that you need to submit in such cases are as follows.

  • Discharge Summary from the hospital in the original
  • Supporting Medical reports
  • Claim form as issued by the Insurance company
  • Application from the claimant
  • Any other documents required by the Insurance company

Case 4: Death Due to Any Other Reason

If the Insured dies because of any other reason such as natural calamity or terrorist attacks than also he will be covered. Documents that he needs to submit in such cases will be

  • Proof of reason of death, Incase of natural calamity the evidence of his name in the death list should be included
  • Claim form from the Insurance Company
  • Detailed application from the claimant

Case 5: If Claimant Also Dies Along with Insured

In such cases, the legal heir of the claimant becomes the beneficiary. The legal heir can get the benefits only after attaining the age of 18. But his guardian must inform the Insurance companies immediately. It may be possible the amount may be transferred with the locking until he becomes an adult. However, age criteria may depend completely on the provisions of the Insurance companies or IRDA.

Case 6: If the Nominee Dies Before the Policyholder

When nominee dies before the policyholder than it's the responsibility of Insured to nominate other beneficiaries. If you have taken any plan and your beneficiary passed away, then you must change the details at the earliest. This can be done either online or by informing the customer care.

FAQs

In order to calculate the correct amount of premium, you may need some additional Information. These details can be the gender of the person, their age, smoking habits, etc. The term of the policy and sum insured also affects the rate of premium. All these details help in calculating the amount of premium online. Below is the quote from one of the Insurance companies. Policy Term is 30 years in the example below. The amount may vary periodically and differ across companies.

AgeSmokerGenderSum InsuredAmount of Premium Annually
25 yearsNoMaleRs. 1 croreRs. 6,521
25 yearsNoFemaleRs. 1 croreRs. 5,529
25 yearsYesMaleRs. 1 croreRs. 9223

The minimum rate of premium can go to as low as Rs. 10 per day. However, the exact amount depends on the kind of plan that you have chosen. There are a lot of factors that determine the rate of premium.

Yes, there are many Insurance Companies that cover age upto 100 years. You can always check the coverage of various Insurance companies and take the Term plan accordingly. All you need to do is pay the premium until the policy tenure. Many Insurance companies provide coverage for the lifetime.

You can apply for the claim after the submission of required documents. you must be clear what documents need to be submitted and in what situation. There is a time limit to the same which you must adhere to as well. Within that time you need to submit all the documents to the concerned address. These documents may differ from one Term Insurance plan to another.

Even after submitting all the document and adhering to the policy document if the claim gets rejected then it's a matter of great concern. You can get in touch with the Insurance Manager in such situations. If he can't assist then you can escalate to the Ombudsman. Usually, they announce the decision as per the guidelines of IRDA.

Usually, most of the Insurance companies cover people who are at least 12th pass. There are a few companies that even covers people who are 10th pass. However, many Term Insurance companies are quite stringent on education criteria. They have fixed minimum qualification as a graduate only.

This is done to assure the person who is taking the policy should be educated enough, to read terms and conditions properly. If the person is not educated enough they are anticipated to have a comprehension issue. There may be chances that they overlook important details related to the policy. As a result claim rejection ration may increase. Hence, for the benefit of Insured and insuree education criteria has been decided

Usually, the minimum monthly Income that you need to have in order to buy the policy is Rs 2 lakhs. This amount is decided as per the discretion of the IRDA. It might be subject to time changes. As of now, a person needs to have a minimum salary of at least Rs. 2 lakh to buy any policy.

In such cases, you need to submit the birth certificate as a proof of document. you can also submit 10th class mark sheet as a substitute, many companies accept it with ease. The best thing to do is submit the actual birth certificate that is easily accepted by all the Insurance companies.

If you provide incorrect information to the Insurer that there are higher chances that your claim may get rejected. Such cases are common with the people who smoke but don't declare in the policy document.

If you are buying Term Insurance through an online channel than you may receive it immediately. However, if the plan is taken through another channel then it may be delivered within a week's time. Delivery is also subject to the submission of your documents. As soon you submit the required details the process of delivery is initiated.

you can select the best plan by visiting various online comparison sites. you can compare the features of various policies and chose the suitable plan accordingly. It is also advisable to check each and every detail carefully. If you miss any information then chances of your claim rejection might be higher.

There are many riders available in the market. However, it's not necessary to choose all the riders. You can always buy the one that is most suitable for your needs. you can take critical illness rider if you are vulnerable to any of the deadly disease. Likewise, you can take accidental rider if you are more prone to the same.

The Claims for the riders can be taken in more or less the same way you take against the policy. The required documents need to be submitted as and when required.

While selecting a Term Insurance plan you must check all the important factors that are important in choosing the policy. Best way to select suitable Term Insurance plan is to do a quick online comparison on the web aggregator. Best way to buy Term Plan is through the insurance e-commerce websites.

The cost of premium plays an important role in choosing insurance. However, this is not the only factor that impacts the decision of buying Term Insurance. you need to consider the factors like features, claim settlement ratio, etc. before buying suitable Term Plan.

Free Look period is a grace period that is provided to cancel your policy. Usually, it's tenure varies between 15 to 30 days. If you decide to surrender your policy within this time frame than the entire premium amount is refunded.

Yes, the amount of the premium is usually correct. However, if you plan to take additional add-ons than it will differ.

As soon as there are any changes in the personal details like phone number or email you must inform the Insurance companies immediately. It can also be conveniently done online. All you have to do is log in to the portal.

There are many channels available to buy the Insurance plan. It is usually recommended to buy online because the delivery is faster. Online Insurance is also cheaper as compared to other platforms.

you may choose to surrender or cancel the policy anytime. But it's not recommended as you may not get any refund. Besides money, it will also be waste of time.

Usually, all the Insurance companies give the reminders 15 to 30 days before the due date of premium. But if you still miss it then further grace period of 30 days is provided. If you still miss than also than your policy might get terminated altogether.

Whenever you buy something you will always choose the things after comparing and doing the required analysis. Same is applicable for the Term Insurance products. Evolution of E-Commerce firms has made life quite easy. Online Comparison websites bring all the Insurance players on one platform. This can help in quick comparative analysis and hence choosing the best plan.

All these comparison sites are IRDA approved. Their payments channels are quite secure. It's as good as making any other online payments. So it's completely safe to make the payments online. Rather it got lots of advantages. The process becomes quite fast and smooth as compared to other channels.

Find Out What PolicyX Customers Says

November 16, 2019

Sudin
Goa

Trust

October 17, 2019

Mythili k
Bengaluru

When health parameters are normal, to enhance premium amount to paid is unethical.

October 5, 2019

RADHEY SHYAM
Jaipur

April 22, 2018

Mukesh
Ahmedabad

Good

February 8, 2018

mahendra
Rudrapur

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Last updated on 25-10-2019