Buy Policy in just 2 mins
2 lakh + Happy Customers
Free Comparison
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.
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:
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
Here are a few popular 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 perfect term plan that fulfills your needs at every stage of life. Offers all-around protection to the policyholder as it protects against 36 critical illnesses, accidental death benefits, etc.
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
Provides comprehensive financial protection to the family of policyholders and offers the flexibility to customize the plan to best suit your needs.
Unique Features
Offers 8 different plan options to provide comprehensive financial protection for you and your family.
Unique Features
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
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.
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.
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.
Quick Links
See more
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) |
30/Male | 30 | 50 lacs | 509 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 1 Crore | 908 |
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
See More Term Insurance Articles
09 May
Covid outbreak leads to more insurance purchases in tier-2 and 3 cities
A survey from Livemint shows an upward trend in the purchase of insurance products in tier 2 and 3 cities as opposed to tier 1. According to the reports, 89% of respondents, the highest amongst the 3 tiers belong to tier-2 cities. Whereas, only 77% from tier 1 are willing to renew their health cover. Term insurance also showed similar trends where 59% of respondents willing to increase coverage belong to tier 3 cities, as compared to 26% from tier 1.
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
navneet dubey
Agra
February 24, 2022
i am only earning member of my family so term insurance is very important for me. I checked about this company and asked my friends and relatives and they all gave me good response about them. ...
shivani kashyap
Mumbai
February 24, 2022
Max life is a reputed company for a reason. They always take good care of their clients without delaying their requests and claim. I am impressed
prem khanna
Jaipur
February 24, 2022
I am here to write my experience with aegon insurance company. I always got satisfactory support from the company and their customer care people. They are educated and polite.
neha singh
Cuttack
February 24, 2022
I am a single mother with 2 kids. I always think about the future of my kids. Thats why i invested in term insurance plan with PNB as their claim settlement ratio is good so i am sure that my m...
mohit khanna
Madurai
February 24, 2022
I have a home loan, a 4 year daughter, old mother and wife. I am a salaried person and always worried about future saving for them. TATA gave me a good cheap plan that fulfills my wishes for fu...
aman verma
Pune
February 24, 2022
I am 35 years old and new to term insurance. I wanted the best plan for my parents, wife and 1 kid so i got in touch with them. They explained me everything and gave me plan of my choice.
kamlesh
Lukhnow
February 24, 2022
My husband died due to covid and we need money as he was the only earning member in our family for school fees of my children. I shared my problem with them and they paid my money before time.
mayank batra
Dehradun
February 24, 2022
I am a retired army officer who saved money in their retirement plan. This month, the company paid me my money saved with them. I am so happy that i made a right choice.
Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
*T&C Apply