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Term Insurance

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.

Entry Age

Minimum: 18 Years
Maximum: 65 | 70 | 85 Years

Plan Type

Individual / Family Floater

Types of Term Insurance

Critical Illness Rider | Accidental Death Cover | Limited Pay | Return on Premium

Initial Waiting Period

30 Days*

Understanding Term Insurance

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.

Key features of Term Insurance:

  • Amongst all the best features of term insurance, the ease of comparing term insurance and buying it online has made it a very popular insurance plan. You can either buy it from the official website of insurers or buy it from a trustworthy insurance aggregator like PolicyX.com.
  • The term plan is a pure life insurance cover, if a policyholder dies before the tenure of the plan is over the insured family receives a sum insured from the insurer. However, if the policyholder survives the term then no benefits are paid on the plan's maturity making the term insurance policy affordable.
  • Availability of return of premiums is one of the best features available when you buy a term plan. You can opt for the ones that come with the return of premiums facility.
  • Term plans offer a variety of options regarding premium payments like yearly, quarterly, and monthly.
  • If you are a non-smoker most insurance companies will offer you a rebate on the premiums.

Who should buy a term insurance policy?

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

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Top Term Insurance Companies

Check and compare plans from 24 IRDAI-approved term insurance providers before purchasing a term plan.

  • Life Insurance Corporation of India - 98.74% CSR
  • Hdfc Life Insurance - 99.39%
  • ICICI Prudential Life Insurance - 95.28%
  • SBI Life Insurance - 97.05%
  • Max Life Insurance- 99.51%
  • Tata AIA Life Insurance - 99.01%
  • PNB Metlife Insurance - 97.33%
  • Bajaj Allianz Life Insurance - 99.04%
  • Bandhan Life Insurance - 99.37%
  • Kotak Mahindra Life Insurance - 98.82%
  • Canara HSBC Life Insurance - 98.44%
  • Bharti AXA Life Insurance - 99.09%
  • Aviva Life Insurance - 98.39%
  • Indiafirst Life Insurance - 96.92%
  • Exide Life Insurance - 99.09%
  • Edelweiss Tokio Life Insurance - 98.09%
  • IDBI Federal Life Insurance - 97.03%
  • Future Generali Life Insurance - 96.15%
  • Aditya Birla Sun Life Insurance - 98.07%
  • Reliance Life Insurance - 98.67%
  • Pramerica Life Insurance - 98.3%
  • Shriram Life Insurance - 82.39%
  • Sahara India Life Insurance - 97.08%

Term Insurance Plans

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

  • Accidental death cover up to 2 Cr
  • Coverage till 99 years of age
  • Terminal illnesses covered
Claim Settlement Ratio 97.90%

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

  • Terminal Illness cover
  • Premium Payment Choice
  • Joint Life Benefit

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

  • Return of Premium
  • Offers coverage for whole life
  • Regular monthly income

HDFC Life Click 2 Protect Life (Pros)

  • Auto Balances Death Cover
  • Auto Balances Critical Illness cover
  • Reduce Premium Payment Term

HDFC Life Click 2 Protect Life (Cons)

  • No Suicide Cover
  • No War Injury Cover
  • No Adventure Sports Cover

HDFC Life Click 2 Protect Life (Other Benefits)

  • Life & CI Rebalance
  • Maturity Benefit
  • Waiver Of Premium

HDFC Life Click 2 Protect Life (Eligibility Criteria)

  • Entry Age -18 Years
  • Max Entry Age - 65 years
  • Minimum Sum Assured - 20 L
  • Maximum Maturity Age - 75 years
  • Premium Payment Term - SP/RP/LP

ICICI Pru iProtect Smart Money Back

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

  • 34 Critical illnesses covered
  • Accidental cover
  • Tax Benefit
Claim Settlement Ratio 97.90%

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

  • Low premiums for women
  • Life cover up to 100 years
  • 24x7 online medical consultation

Sampoorna Raksha Supreme (Pros)

  • 2 Premium Payout Options
  • 2 Rider Option
  • Top-Up Sum Assured

Sampoorna Raksha Supreme (Cons)

  • No Loans Allowed
  • Only 1% Discount on Installment
  • No Suicide Cover in Terminal Illness

Sampoorna Raksha Supreme (Other Benefits)

  • Non-Forfeiture Benefit
  • Survival and Maturity Benefit
  • Payor Accelerator Benefit advances 50% SA

Sampoorna Raksha Supreme (Eligibility Criteria)

  • Entry Age - 18 years
  • Max Entry Age - 60 years(POS)
  • Minimum Sum Assured - 1 L
  • Maximum Maturity Age - NA
  • Premium Payment Term - LP/RP/SP

Aditya Birla Life Shield Plan

Offers 8 different plan options to provide comprehensive financial protection for you and your family.

Unique Features

  • Return of Premium
  • Premiums Waiver off
  • Terminal illness Benefit
Claim Settlement Ratio 98.04%

List of Best Term Insurance Plans in India 2024

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
Bandhan Life Insurance Bandhan Life iTerm Prime 99.37% 18 to 65 years 70 years
What is Insurance Providers?

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.

What is Best Term Plans?

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.

What is Claim Settlement Ratio?

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.

What is Entry Age?

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.

Types of Term Insurance Plans

Level Term Plans

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.

Pure Term Plan

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.

Term Return of premium plans

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.

Increasing Term Insurance Plan

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.

Decreasing Term Insurance Plan

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 Plan

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 Plans

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.

Term Insurance Plans Details Main Banner

Types of Term Insurance Riders

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

Critical Illness Rider

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

Accidental Death Rider

With the help of this rider, your beneficiaries receive the additional benefits, in case of an unfortunate incident due to an accident.

3

Accidental Disability Rider

Provides the full amount of sum assured to the policyholder in case of permanent disability arising due to an accident.

4

Terminal Illness Rider

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

Premium Waiver Rider

Waives off all the future premiums in case the policyholder dies or gets critically ill or disabled.

Difference between Life and Term Insurance

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.

Why buy a Term Insurance Plan?

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:

  • You are a young professional in your 20s as starting early has its own benefits like no dependants and a few financial responsibilities. However, you will soon have them, and planning in advance will give you a good cover for a low premium.
  • If you are in your early 30s and 40s with financial dependants and responsibilities like non-earning spouses, children, and elderly parents.
  • If you are in your late 40s and 50s and have serious financial goals and milestones like funding your children's higher education and building a corpus for their wedding. Amongst all these retirement plans are also on the radar which further requires you to have a strong pool of financial resources.
  • When you are approaching retirement and want to make sure you retire with the freedom from financial liabilities like loans.

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 Benefits

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.

  • Flexibility to customize planIt is one of the most important term insurance benefits in which an individual can customize the term plan based on their needs.
  • Long-Term CoverageTerm insurance offers coverage for the entire life of the policyholder.
  • Premium Payment modesTerm insurance offers multiple premium payment modes such as:
    Regular pay - premium payment term is equal to the policy term
    Limited pay - duration for paying premiums is less than life cover duration
    Single pay - one-time lumpsum payment
  • Tax BenefitThe premiums you paid for term plans are eligible for tax deductions up to INR 1.5 lakhs under Section 80C of the Income Tax Act (ITA), 1961. Moreover, if you come under the 30% tax bracket you can save up to INR 46,800 with a term plan. Your beneficiary's death benefits are also tax-free, subject to Section 10(10D) of the Income Tax Act.
  • Add-on RidersTerm Insurance plan offers various additional riders that can enhance your coverage. Some of the common additional riders under term insurance plans are Accidental Death Benefit Rider, Accidental Disability Rider, Waiver of Premium Rider, etc.
  • Simple and cost-effectiveIt is easy to understand an insurance policy that offers you comprehensive financial protection at a very minimal cost.
  • Financial sources in uncertaintiesIt can be a financial source for your family in your absence as it offers a lump sum amount to the family of the policyholder in case of its untimely death

How much Coverage is Needed?

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:

How Much Coverage is Needed

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:

Coverage Amount | 50 Lakhs

Age Policy Term Coverage Amount Monthly Premium (INR)
18/Male 30 50 lacs 319

Coverage Amount | 1 Crore

Age Policy Term Coverage Amount Monthly Premium (INR)
18/Male 30 1 Crore 498

Coverage Amount | 3 Crores

Age Policy Term Coverage Amount Monthly Premium (INR)
30/Male 30 3 Crore 2,131

Coverage Amount | 5 Crores

Age Policy Term Coverage Amount Monthly Premium (INR)
30/Male 30 5 Crore 3,502

Check Your Premium

What is not Covered under Term Insurance Plans?

Death of the policyholder due to:

  • Liquor/drugs consumption
  • Complications due to pregnancy/childbirth
  • Act of criminal nature
  • Suicide (within 1 year of policy issuance)
  • War or involvement in hazardous acts

Choose the Right Term Plan

Various factors should be considered to select a best term plan tailor-made for your needs. These are:

Assess Financial Needs

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.

Choose the right coverage

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.

Check policy term

Decide the age up to which you want the term insurance cover and pick the policy term relevant to your choice.

Select a trusted term insurer

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.

Check add-on riders

Explore available options of riders to add in a term policy and choose the most suitable rider benefit as per your needs.

Choose payment option

Usually, three premium paying options are available in term insurance plans. These are:

  • Regular payment option: Make periodic payments in monthly, quarterly, half-yearly, or yearly mode. (The premium payment option recommended by most people)
  • Limited payment option: Pay the premium for their entire policy term in a limited period of time, such as 5 or 10 years.
  • Single Payment options: Make a one-time complete payment of the entire premium amount of the plan.

Select payout option

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:

  • Lump-sum Payment: The claimant's family will receive the lump sum amount. In other words, the amount will be paid in a single payment.
  • Monthly Income: The claimant's family will receive the total sum assured in monthly installments. For example, for the sum assured of Rs. 1.2 crores, Rs.1 lakh/month for 10 years will be paid.
  • Lump-sum + Monthly Income: The claimant's family will receive 50%-70% of the assured amount (in a lump sum) just after the death of the insured, and the rest of the amount is paid through monthly installments.
  • Increasing Monthly Income: The claimant's family will get the total sum assured in increasing monthly installments. The installments increase @10-20% (yearly) to help the dependents fight inflation. For example: If the policyholder's family gets Rs.1,00,000/month, and the increasing percentage is 10%, then from the next year, the family will receive Rs.1,10,000/month.

Compare and buy online

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.

Factors affecting the Term Insurance Premium

Major factors that have a direct impact on term insurance premiums are the following:

Age

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.

Gender

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.

Coverage & Term

The higher the coverage you choose, the higher premiums need to be paid. This is applicable to a longer policy period as well.

Self & Family Health History

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.

Profession

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.

Lifestyle

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.

Compare and Buy Online Term Insurance Plans from PolicyX

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.

Documents Required to Buy Term Insurance

  • Salary slips or income tax returns from the last 3 years
  • Form 16 (salaried professionals) and Form 16 A (self-employed)
  • Passport size photo
  • Identity proof such as Aadhar card
  • Others requested by the company

Benefits of Buying Term Insurance Online

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:

  • It is a time-saving process as you can buy your term plan online from anywhere.
  • It offers various payment options like Net banking, Credit card/ Debit card, UPI, etc.
  • Comparatively lower term plan premium than buying offline mode.

Why Choose PolicyX.com?

Certified by IRDAI, PolicyX.com is a one-stop-shop for all your insurance-related needs.

  • IRDAI Approved: PolicyX.com is an IRDAI approved web aggregator that helps consumers in comparing, choosing, and buying policies online.
  • Free Comparison Service: PolicyX.com provides a single platform where you can compare different insurance companies, insurance plans, and their premiums.
  • Compare 15 companies in 30 sec: Consumers can compare up to 15 companies in just 30 sec on PolicyX.com.
  • Buy Insurance within 5mins: PolicyX offers a simple and quick buying process where consumers can buy insurance in less than 5mins.
  • 24x7 Customer Service: PolicyX is always with their customers as we offer 24x7 customer care service.
  • Free Future Claim Assistance: PolicyX is always there to help and assist your claim under any term insurance company.
Why Choose PolicyX.com

Term Insurance Claim Process

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.

  • Step 1 Intimate the company
  • Step 2 Submit the required documents
  • Step 3 Insurer will verify the documents
  • Step 4 Insurance company will take the decision of approving the claim or not
  • Step 5 The claim will be settled if it gets approval from the insurance company
Claim Process term Insurance

Documents Required for Claim Settlement

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

  • Policy document in original.
  • Claim form issued by the insurance company.
  • Application from the claimant.
  • Any other documents required by the insurance company.
  • Hospital discharge summary and medical reports (in case of death due to illness).

Case 2: Accidental Death

  • Post Morterm report of the accident.
  • FIR report of the police.
  • Policy document in original.
  • Claim form issued by the insurance company.
  • Statement of attending doctor or certificate of medical attendance.
  • Any other documents required by the insurance company.

Term Insurance News

24 May

You can buy Bandhan Life Insurance at Bajaj digital financial markets now

Bajaj digital financial markets also known as Bajaj Markets has partnered with Bandhan Life Insurance to sell the life insurance products of the latter. The life and term insurance plans of Bandhan Life such as iTerm Comfort, iTerm Prime, iGuarantee Max Savings can be bought on the digital platforms offering financial solutions of Bajaj. Bajaj Markets is available via website and mobile application.

22 May

Upstox enters the insurance distribution business in India

Upstox, a wealth management platform backed by Ratan Tata and Tiger Global has entered the insurance distribution market in India. With HDFC Life Insurance Company as its first partner, the platform as of now offers term insurance products when it comes to offering life insurance from the company. Upstocx also plans to roll out travel, motor, and health products in the upcoming future. 

Upstocx aims to offer a simple, transparent, and customizable experience for purchasing insurance on its platform.

17 May

Term Insurance: Not Merely a Tax Saving Tool

Term insurance is often considered a tax-saving tool primarily. This is highly backed by the fact that most term insurance policies are bought near the end of the financial year so that tax savings can be rolled out. However, its benefits extend far beyond tax advantages. The core value of term insurance lies in providing life coverage at cheap premiums. 

 

As the term plans get more inclusive with time, they offer amazing benefits such as covering terminal and critical illnesses, taking care of your child’s education after you, replacing your income in case of disability, and offering funds for treatment in case you get diagnosed with life-threatening diseases like cancer. Moreover, term plans today can be bought by diabetics and people with pre-existing conditions as well. Thus, term insurance no doubt comes in handy while saving taxes, but its ability to protect the people you love remains its most amazing benefit.

16 May

PNB MetLife launches a group term insurance plan to cover outstanding loans and life

PNB MetLife Loan and Life Suraksha is a flexible group term life insurance policy that offers protection against your outstanding loans. It comes with a joint life option which means that you can add your spouse to the policy. The plan offers flexible premium payment modes, single pay or limited pay premium payment options, and the option to increase the sum assured due to an increase in loan from INR 5000 per member. Loan and Life Suraksha offers no survival or maturity benefit and excludes suicide during the first 12 months.

13 May

Term insurance: An important investment for working and at-home mothers

Be it a working mom or a homemaker, term insurance is as important for a mother as it is to their male counterparts. For working mothers, it ensures that their income replacement can support their family in their absence. Whereas, at-home mothers, though not earning a formal salary, provide invaluable services such as childcare and household management. Term insurance can ensure these responsibilities are well taken care of in their absence. So, this Mother’s Day, if you are still confused about what to buy for your mum…you can buy her a term insurance plan!

Term Insurance FAQ's

1. What is the minimum age and income to buy term insurance?

To invest in a term insurance plan, the minimum age should be 18 years and the minimum income should be 2 Lakhs.

2. If a person dies due to natural calamity/disaster, will his family/nominee receive the sum assured?

No. Deaths under 'Act Of God' are not covered by term insurance policies.

3. How much tax will I save by buying term insurance?

Under Section 80C of the Income Tax Act, 1961, you can avail deductions up to Rs. 1.5 lakhs.

4. I occasionally smoke with my friends. Do I need to disclose this information while buying term insurance?

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).

5. I have diabetes. Can I get myself insured under term insurance?

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.

6. Do I need to declare myself as a tobacco user if I smoke occasionally?

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.

7. Why are premium rates higher for smokers than non-smokers?

Smokers are at a higher risk of getting ill as compared to non-smokers. That's why insurance companies charge higher premiums from them.

8. Can an NRI buy term insurance?

Yes, insurance companies offer term insurance plans, which are specially designed to fulfil the needs of NRIs.

9. If a person dies outside the Indian territory, will his nominee still receive the death benefit?

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.

10. Can I change the duration of life cover after the policy is issued to me?

No, the duration of life cover cannot be changed once the policy is issued. It is set at the inception of the policy.

11. Can I increase my sum assured during the policy tenure?

Yes, some term plans allow you to increase the sum assured during different life stages. However, this depends on the plan's TnCs.

12. I want to port my term insurance policy from one insurer to another. Can I do that?

No, under the current guidelines issued by IRDAI, one can't port his/her term policy.

13. Is it possible to add a rider to an existing 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.

14. What if my policy has lapsed?

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.

15. What is the free look period and will I get a complete premium back if I cancel my 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).

16. What happens if I discontinue paying the premiums?

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.

17. How much time will it take to settle any claim?

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).

18. What if the claim is rejected?

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.

19. Who will receive the claim if the nominee also dies with the assured?

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.

20. Who will receive the claim if the nominee dies before the policyholder?

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.

21. What is term insurance?

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.

22. What is the difference between term and life insurance?

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.

23. Can we get money back/ return in Term insurance?

Term life insurance has no cash value, so if you outlive or cancel your policy, there's no refund or surrender value.

24. Do companies provide claims in death cases?

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.

25. What is the difference between online buying and buying from an agent?

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.

26. How much time will it take for the insurance company to provide a claim?

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.

27. Will the company provide medical hospitalization costs?

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.

28. Will you cover suicide in term policy?

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.

29. Will you cover a murder in the death policy?

There are two different cases of such a situation.

  • The insurer will not settle the claim if the policyholder is murdered and investigations reveal the nominee was involved in the crime.
  • If the death of the policyholder is due to the involvement in criminal activity the insurer will not settle the claim.

30. Will all the deaths be covered under term insurance?

There are certain types of deaths that insurers do not cover like

  • murder of a policyholder
  • Death caused under the influence of alcohol
  • Policyholder doesn't disclose the habit of smoking
  • If the policyholder dies due to involvement in any hazardous activity
  • Suicidal Death
  • Death due to natural disaster

What Our Customers Have to Say

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Sanjeev

Hyderabad

May 20, 2024

SUD Life term plan truly stands out my expectations as I got SUD Life term plan along with additional riders at very affordable premiums.

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Sumit

Coimbatore

May 20, 2024

I am impresses with the hassle free and quick claim settlement process of SUD Life. Thanks to PolicyX who guided me to get my claim settled.

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Barkha

Delhi

May 20, 2024

Bought SUD Life Family Income Benefit Rider plan to secure the future of my plan financially even in my absence.

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Geetanjali

Kolkata

May 20, 2024

I was looking for a term plan to secure the future of my family. So I contacted PolicyX and one of their representatives Mr. Vaibhav helped me choose SUD Life term plan.

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Armaan khan

Agra

May 17, 2024

I recently purchased a Pramerica term insurance policy from Policyx.com. The customer service team was very helpful in answering all my queries and guiding me through the application process. I...

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Rahul Yadav

Indore

May 17, 2024

PolicyX’s dedicated support made renewing my Bandhan Life Insurance policy easy. I’m absolutely delighted with the service offered by PolicyX Insurance Advisor.

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Priyanshu Sharma

Delhi

May 17, 2024

I bought a Bandhan Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.

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Yash Tomar

Bhopal

May 17, 2024

After getting advice from the PolicyX experts, I chose a Bandhan Life Insurance term plan. Thank you, PolicyX, for helping me buy a term plan at such a low premium.

Priya Singh

Written By: Priya Singh

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.