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If you are wondering whether it makes sense to buy a term insurance plan, ask yourself this question: Would my demise leave anyone in a financial bind? If your answer is 'yes' then, you should consider researching, comparing, and shopping for a term insurance plan that will financially aid your family in case of any unfortunate turn of events.
Unfortunate accidents and mishaps can occur anytime, which is why it is essential to buy term insurance and secure the future of your loved ones in case of your untimely demise. Term Insurance is a pure protection plan that guarantees financial protection to your family at an affordable premium price. Individuals with dependent children, parents, and in-laws must invest in the best term insurance plan to secure their future. Term Insurance premiums paid are eligible for tax exemptions under section 80D of The Income Tax Act carrying a dual benefit for protection and savings for the insurance holders.
Before investing in a term insurance plan, it is critical that insurance holders compare term plans in the market and make a decision based on their needs. Riders, policy duration, payment term, policy term, and other access options are all crucial factors to consider when choosing a term policy. A company's claim settlement ratio is also among the most important factors to consider before purchasing a term insurance policy. Provided below are the standard eligibility criteria for term insurance plans.
Minimum: 18 Years
Maximum: 65 | 70 | 85 Years
Individual / Family Floater
Critical Illness Rider | Accidental Death Cover | Limited Pay | Return on Premium
30 Days*
Before you make a decision of purchasing a Term insurance plan let us understand the concept of Term Insurance.
It is pure insurance protection that pays a predetermined sum if the insured dies during a specific period of time. On the demise of the insured individual term insurance pays the face value of the policy to the named beneficiary. All premiums paid are used to cover the cost of insurance protection. The term may be 1, 5, 10, 20 years, or longer.
If you are the sole breadwinner of your family, you can help secure the future of your family against any financial setbacks with Term insurance.
A term insurance policy provides a corpus of funds to your dependents on your demise. So, dependents such as married couples, parents, young professionals with dependent parents, retirees, someone with a history of critical illnesses, and the self-employed must buy term insurance for financial coverage of their families. Term insurance is known to provide life protection, low premium coverage, and tax benefits.
If we compare term insurance with other policies it provides more financial security and high protection coverage at low cost, better survival benefits, and death benefits as well. Even in the case of permanent disability, future premiums are also given by some companies in term insurance
10 Best Term Insurance Plans
All you need to know about Term Insurance
Term Insurance Guide 101
6 Best Term Insurance Plans in India
Check and compare plans from 24 IRDAI-approved term insurance providers before purchasing a term plan.
There are various term insurance plans out in the market to select from and it can be a little confusing. PolicyX has compiled a list of term insurance plans that you can take a look at:
Specifically covers you and protects your spouse, children, or other nominees financially in case of your sudden death. Also, covers 34 critical illnesses at a very reasonable premium amount.
Unique Features
Offers financial security and a support system to the policyholder in an emergency. Provides a 5% (up to 200% of the base SA) increment in sum assured after every anniversary of the policy.
Unique Features
A plan offering spouse benefits, premium waivers, premium refunds, and death benefits. It is a flexible protection plan that adapts to your changing needs.
Unique Features
One of the top-selling plans from the company. Offers life cover to your family and a return of premium in case of maturity of the plan to fulfill your future needs.
Unique Features
The plan offers various life coverage options, including Whole Life coverage up to age 100, and the added benefit of the Credit Protect option.
Unique Features
Offers 8 different plan options to provide comprehensive financial protection for you and your family.
Unique Features
Following are some of the top term insurance plans in India in 2024. These are classified on the basis of CSR of their respective companies, their specifications, and some amazing features that they offer.
Insurance Providers |
Best Term Plans |
Claim Settlement Ratio (CSR) |
Entry Age |
Maturity Age | Check Plans |
ICICI Prudential Life Insurance | ICICI Pru iProtect Smart | 95.28% | 18 to 65 years | 99 years | |
HDFC Life Insurance | HDFC Life Click 2 Protect Super | 99.39% | 18 to 65 years | 85 years | |
PNB Metlife India Insurance | Mera Term Plan Plus | 97.33% | 18 to 60 years | 99 years | |
TATA AIA Life Insurance | TATA AIA Sampoorna Raksha Supreme | 99.01% | 18 to 65 years | 100 years | |
Bajaj Allianz Life Insurance | Bajaj Allianz Life eTouch Plan | 99.04% | 18 to 65 years | 99 years | |
Max Life Insurance | Max Life Smart Secure Plus Plan | 99.51% | 18 to 65 years | 85 years | |
Canara HSBC OBC Life Insurance | iSelect Smart 360 Term Plan | 98.44% | 18 to 65 years | 99 years | |
Kotak Mahindra Life Insurance | Kotak e-Term Plan | 98.82% | 18 to 65 years | 75 years | |
Edelweiss Tokio Life Insurance | Zindagi Protect Plan | 98.09% | 18 to 65 years | 100 years | |
Aegon Life Insurance | Aegon Life iTerm Prime | 99.03% | 18 to 65 years | 65 years |
Any company that sells an insurance policy is the insurance provider. A good insurance provider has a high CSR, solvency ratio, good customer reviews, a vast product portfolio, and transparency towards its customers.
A good term plan consists of various coverage options, flexibility to choose death payout, flexibility in premium payment terms, offers premium discounts, lets you add riders, comes with loaded inbuilt benefits, and is easy on your pocket.
Claim Settlement Ratio is the percentage of claims settled by an insurer compared to the total claims received in a financial year. A good CSR lies somewhere between 95 to 99 percent.
The age (last birthday) at which you buy an insurance policy is your entry age to that policy. Insurance policies usually come with a minimum and maximum age at entry which means that you must attain a specific age or should be less than the maximum age to buy a policy.
It is the most basic type of term life insurance. These provide coverage for a specified period ranging from 10 to 30 years. Both the death benefit and premium are fixed.
It is the simplest type of term life insurance in which the sum assured remains constant and the death benefits are offered to the nominee of the policy in the unfortunate instance of the policyholder's demise.
Unlike Level Term Plans TROP plans come with maturity benefits, where the total premium paid will be returned to the insured individual if he/she survives the policy tenure.
In an increasing term plan, the policyholder has the option to increase the sum assured on annual basis during the tenure of the policy while maintaining the premium amount at the same value.
It is a renewable term insurance plan. Under this, the sum assured is decreased every year by a pre-specified percentage. This plan is usually issued by banks to recover the loan and clear all the debts.
Convertible term insurance is a plan that can be converted into another type of insurance plan later. An example would be a whole life plan converted into an endowment plan. If you expect your financial priorities to change in the coming years, you can opt for this type of term plan.
Retirement Term Insurance plans are the plans that support individuals in the golden years of their life. These particular term plans are like pension plans but include health insurance benefits as well. Policyholders can pay flexible premiums to their insurance providers as a regular pay or one-time pay.
Basic Term insurance ensures the financial security of your family in your absence. However, you may enhance the coverage by including riders in insurance policies. Such riders may be availed when you purchase the insurance policy. In most cases, these additional riders are available at a slightly higher premium.
However, it is important to remember that these riders can maximize your benefits. Here are the different riders that may be included in your insurance policy.
1
When including a critical illness rider, the policy pays a lump sum amount in case you are diagnosed with any of the illnesses covered under the plan.
2
With the help of this rider, your beneficiaries receive the additional benefits, in case of an unfortunate incident due to an accident.
3
Provides the full amount of sum assured to the policyholder in case of permanent disability arising due to an accident.
4
Allows early access to the policyholder to get some or full sum assured amount in case (s)he is diagnosed with an incurable illness.
5
Waives off all the future premiums in case the policyholder dies or gets critically ill or disabled.
It is easy to get confused when understanding term insurance and life insurance as both of them essentially serve the purpose of safeguarding you and your family against any unforeseen circumstances.
A term plan gives you coverage for certain years which usually comes with a fixed premium. An individual can avail of greater coverage like cover against accidental death or critical illnesses by leveraging riders along with the term plan. A major plus point of term insurances is their affordable prices and a lot of plans provide a savings component.
A life insurance policy is broader when compared to a term policy. They give you the benefit by combining death with a savings component.
Term insurance plans are considered by many as a basic financial necessity of life. Term Insurance plans have multiple features and benefits right from affordable prices to riders for additional covers.
To protect your family's future needs | To provide coverage for terminal illnesses | To avail tax benefits |
Who should buy term insurance and when?
Term insurance plans are for everybody however people with certain roles and responsibilities should invest in a term insurance plan. You should plan to buy term insurance if:
Understand if you are in immediate need to buy a term plan with the examples below:
Must Buy
Age: 35 or above | Married
Planning or having a child
Has debt of INR 45 Lacs
Financially dependent parents
May not Buy
Age: 35 | Single
No loans or debts
No financial dependents
Own savings of INR 20 Lacs
When to Buy Term Insurance?
The earlier you buy a term plan the more you save. The term insurance premium amount of a young and healthy individual is comparatively less than a middle-aged individual. Let us understand the difference with examples below:
Age: 25 | Healthy Male
Term insurance policy
Policy duration: 35 years
Monthly premium: INR 900
Age: 35 | Healthy Male
Term insurance policy
Policy duration: 35 years
Monthly premium: INR 1,790
Term insurance policies help you get rid of the stress related to your family's financial protection when you will not be around. Term insurance benefits help you in multiple ways, making them worth an investment.
Get all the necessary information about Term Insurance by clicking on the links below.
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Calculation of Sum Assured in a Term Insurance policy is: Minimum Sum Assured=Annual Income x 20 times + Loans/Liabilities.
We propose that you buy term insurance which is 20 times your annual income. Buy term insurance as soon as you start working as the premiums are quite low when you're young, and they stay the same throughout the policy term.
20 times your annual income
A simple and the most recommended calculation to decide the coverage amount of a term plan. For example, if you earn INR 5 lakhs annually then your minimum coverage amount should be INR 75 Lakhs to 1 Crore. However, several factors are involved in this calculation like:
The calculated sum assured should be your pick. Understand the premium slab for various slabs of sum assured with the help of sample premiums given below:
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
18/Male | 30 | 50 lacs | 319 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
18/Male | 30 | 1 Crore | 498 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 3 Crore | 2,131 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 5 Crore | 3,502 |
Check Your Premium
Death of the policyholder due to:
Various factors should be considered to select a best term plan tailor-made for your needs. These are:
Keep in mind the future financial needs of your family members such as money for the higher education of children, loan repayment, regular expenses, etc.
The amount you select today will be received by your family in the future if you were to die. Therefore, it is crucial to consider every present and future financial aspect to choose coverage close to the real needs of your family. Coverage amount depends on annual income, lifestyle, responsibilities, and liabilities.
Decide the age up to which you want the term insurance cover and pick the policy term relevant to your choice.
Check and compare various term insurance companies and buy a term plan from the one with good financial background and market reputation. Ensure to choose an insurance company with a high claim settlement ratio and easy claim process.
Explore available options of riders to add in a term policy and choose the most suitable rider benefit as per your needs.
Usually, three premium paying options are available in term insurance plans. These are:
The payout option that you select while purchasing a policy decides how the death benefit will be paid to your nominee. Four types of death benefit payout options are available:
Multiple term insurance companies offer plenty of term plans, you can compare various plans online conveniently to choose the best policy. PolicyX's Term Insurance Calculator can help you compare term insurance plans within a few minutes.
Major factors that have a direct impact on term insurance premiums are the following:
Term insurance premium increases with the increasing age. Premium calculated for a customer in his 20s will be less as compared to a customer in his late 30s. Therefore, we recommend buying a term plan at a younger age.
One of the national surveys revealed that women (70.4 years life expectancy) live longer than men (67.8 years life expectancy). As insurance companies work on risk-based pricing, they offer lower premium rates to women as compared to men.
The higher the coverage you choose, the higher premiums need to be paid. This is applicable to a longer policy period as well.
Policyholders suffering from chronic diseases like diabetes or high blood pressure or having a family health history of critical illness pay high premiums. However, a healthy policyholder without a medical family health history pays lower premiums.
Your work profile is also one of the significant factors that determine your premium amount. For example, policyholders employed in a high-risk work profile will pay a high premium due to a greater risk of injuries and illness.
Your lifestyle habits like alcoholism, smoking affect the term insurance premium. As per PolicyX.com Term Insurance Price Index, the average male smoker pays a 57% higher premium than a non-smoker.
Now you can compare term insurance plans on PolicyX.com. We have
Step 1
Go to 'Customise term insurance plans' at the top of the page.
Step 2
Enter the required details and click on 'Continue'.
Step 3
Submit your income, city, and click on the 'Proceed' tab.
Step 4
Check plans and select a plan.
Step 5
Buy the desired plan by clicking the 'Buy' tab.
Step 6
Make the payment and receive the policy on your registered email ID.
You can buy term Insurance online or offline mode as per your convenience. Most companies offer an online buying facility as it offers various benefits such as:
Certified by IRDAI, PolicyX.com is a one-stop-shop for all your insurance-related needs.
Most of the term insurance companies offer a simple and easy-to-follow claim process. Below mention are the steps to file a claim for your term insurance policy.
In case of the demise of the policyholder, the nominee should inform the insurance company and share the required documents with them. Documents will vary in different death scenarios:
Case 1: Natural Death
Case 2: Accidental Death
10 Apr
TATA AIA Life Insurance emphasizes financial planning through a new campaign
TATA AIA Life Insurance has launched a new campaign, ‘Karlo Shadi Ki Poori Taiyaari’. The campaign highlights that marriage is a new chapter of one’s life and it also means that we need to future-proof ourselves financially before embarking on this new journey with our partners. The CMO of the company said that with their term insurance products, guaranteed income products, wealth creation plans, and retirement plans the customers can effectively plan their futures and remain worry-free for life.
10 Apr
The IRDAI directs non-life and life insurance policies to be issued digitally
The insurance regulator of India, for the policyholder’s interest, has directed all the non-life, term insurance, and life insurance policies to be digitalized and held in an electronic form on their electronic insurance accounts (eIA). These e-insurance accounts will be offered by insurance repositories selected by the regulator. The IRDAI has granted the Certificate of Registration to four entities to act as ‘Insurance Repositories’ to open eIAs. Through these eIAs, the policyholder will be able to access and keep track of his/her non-life and life insurance policies online in one place.
10 Apr
Now pay your Bajaj Allianz premiums via WhatsApp
Bajaj Allianz Life Company has collaborated with Meta to offer their customers the option of paying their life and term insurance premiums via WhatsApp. The service will let the customers make the payments via net banking, credit cards, or UPI utilizing WhatsApp as an interface. The company plans to offer 25 services via WhatsApp.
28 Mar
SBI users can now digitally enroll for PMJJBY and PMSBY
SBI has recently said that its users can now self-subscribe themselves online to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) schemes. The SBI customers do not need to visit the branch to enroll themselves for these two schemes. They can input their account number and date of birth on the Jan Suraksha portal, selecting the State Bank of India as their preferred bank. Upon completion of these steps, the Certificate of Insurance will be generated instantly upon payment of the premium.
PMJJBY is a term insurance plan which offers life cover of 2 Lakhs. Whereas, PMSBY is an accident insurance plan offering accidental death and disability cover on the occurrence of an accident.
28 Mar
Are you a NRI? Buy term insurance in India for lower premiums.
If you are a NRI, a term insurance plan is as crucial for you as for people living in their home country. You can buy a term plan in India or in the country you reside in. But, it is advised that being a native of India, you should buy a term plan from here only. The term insurance plans in India are designed keeping in mind the Indian population. Not only the premiums are 50-60% lower, the GST waiver option is a boon for saving 18% taxes. Best term plans in India are available online to buy, making it easier for you to purchase them from anywhere you want. Riders too in India are added at a very nominal cost. Keeping all of this in mind, it would be a good choice to buy the term insurance plan in India as these are more aligned with the needs of NRI.
To invest in a term insurance plan, the minimum age should be 18 years and the minimum income should be 2 Lakhs.
No. Deaths under 'Act Of God' are not covered by term insurance policies.
Under Section 80C of the Income Tax Act, 1961, you can avail deductions up to Rs. 1.5 lakhs.
If you have smoked in the past 12 months, you have to disclose it to your insurance provider. If you don't disclose it right away and reveal it later, you may be charged with a high premium or your provider may cancel your policy (denying any benefits).
If your diabetes is in control (with regular treatment and a healthy lifestyle), you will be eligible to buy term insurance. However, if you have additional risks like hypertension, heart illness etc, your application can be rejected.
You must declare yourself as a tobacco user if you have smoked in the last 12 months. The premium of your policy will be decided accordingly.
Smokers are at a higher risk of getting ill as compared to non-smokers. That's why insurance companies charge higher premiums from them.
Yes, insurance companies offer term insurance plans, which are specially designed to fulfil the needs of NRIs.
Yes. Once the policy is in effect, death of the policyholder (irrespective of the place) will be taken into consideration and the coverage amount will be given.
No, the duration of life cover cannot be changed once the policy is issued. It is set at the inception of the policy.
Yes, some term plans allow you to increase the sum assured during different life stages. However, this depends on the plan's TnCs.
No, under the current guidelines issued by IRDAI, one can't port his/her term policy.
Some insurance companies allow riders to be added only at the inception of the policy. However, few insurance companies may allow them to be added only at the policy anniversary.
If you aren't able to pay the due premiums within the grace period, the policy will lapse and all benefits will be ceased. If you want to revive your policy, you need to pay all the arrears to the insurance company.
Note: Some insurance companies may even ask for medical reports for the revival of the policy.
Under the free-look period, you get 15 days to cancel the policy if you aren't satisfied with it. And you will get a refund of the premium paid (after deducting the necessary charges).
In case you discontinue paying premiums of your policy, then the policy will lapse automatically. However, as per the IRDAI, every insurance company offers a grace period of 15/30 days. A policyholder has the option to pay his/her due premiums within that period.
The procedure of settling claims varies from insurer to insurer. Once all the documentation is completed as per the company's norms, the company may settle the claim within 30 days (may vary as per your chosen insurer).
In case the term insurance claim is rejected, the nominee can re-apply for it. A written application needs to be submitted for the same. The nominee can even go to the consumer court if the company doesn't respond to the application.
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/her guardian must immediately inform the insurance company. The age criteria may depend completely on the provisions of the insurance companies or IRDA.
When a nominee dies before the policyholder, it's the responsibility of the policyholder to nominate other beneficiaries. This can be done either online or by informing the customer care.
Term insurance or term policy is a life insurance policy, offering financial support to the beneficiary in the unfortunate event of the demise of the insured. This financial support is termed as a death benefit that is provided to the family of a policyholder if he/she dies during the active years of the policy.
The most common difference between term insurance and traditional life insurance plan is that a term insurance plan only provides a death benefit in case of demise of the insured within the term period, whereas a life insurance policy offers both death and maturity benefit to the insured.
Term life insurance has no cash value, so if you outlive or cancel your policy, there's no refund or surrender value.
Yes, The claimant must submit the written intimation as soon as possible to enable the insurance company to initiate the claim processing. The claim intimation should consist of basic information such as policy number, name of the insured, date of death, cause of death, place of death, and name of the claimant.
Buying Term Insurance online will allow you to save time, compare and view plans at the click of a button and offer various payment options like net banking, credit/debit card, UPI, etc.
As per the time limits set by the Insurance Regulatory and Development Authority (IRDA) of India, insurers should settle death claims within 30 days. This condition applies to all claims where the insurer does not see the need to investigate the cause of death.
A term life insurance policy offers financial security to your loved ones after the sudden demise of the policyholder while a health insurance policy covers your hospitalization expenses.
If the policyholder commits suicide within the first year of the policy term, then the nominee will not get the death benefit. However, most insurers provide suicide coverage from the second year onwards from the date of purchase of the policy, subject to terms and conditions.
There are two different cases of such a situation.
There are certain types of deaths that insurers do not cover like
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Shreya Chaudhary
Allahabad
April 8, 2024
I am very grateful to the insurance experts of PolicyX and Mr. Ankur, who kindly helped me settle the claim of Aegon Life Insurance. Thanks again, I& 039;ll always remember this favor.
Prerna Negi
Chennai
April 8, 2024
I bought a Bajaj Allianz Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.
Preety Kamat
Bhopal
April 8, 2024
Got ICICI Pru iProtect Smart term insurance plan via PolicyX; so far, I& 039;ve hassle-free renewal service and have not faced any kind of nuisance.
Sahani Kaur
Gandhinagar
April 8, 2024
The PNB MetLife Mera Term Plan Plus I& 039;ve bought it at a low premium, and it is fully satisfactory to me. The insurance expert of PolicyX is too polite, and their online buying facility red...
Sneha Nath
Mumbai
March 28, 2024
I would like to inform you that my maturity claims have been settled by SBI Life Insurance on 04.15.2024 and thanks all of you for helping me throughout the claim process.
Khushi Kaur
Chennai
March 28, 2024
I& 039;m writing this review to let you all know that I& 039;m very satisfied because I got my kotak mahindra life insurance policy today as a result of your team effort.
kartik saxena
Goa
March 18, 2024
I had to add some riders to my Sbi life insurance, policy.com team helps to me to understand which rider is more important and which is not. Resulting helps me to save lots of money. Happy with...
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Gandhinagar
March 18, 2024
No hidden fees or charges! I have some doubts regarding my PNB MetLife insurance premiums. So I decided to visit policyx.com. Within in couple of minutes, they resolved all of my queries. I am ...
Priya has been in the content writing industry for over 8 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.
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