Term Insurance FAQs (Frequently Asked Questions)
  • Financial Security with Pure Term Cover
  • Assured Death Benefits
  • Multiple Riders for Enhanced Coverage
Term Insurance FAQs
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Term Insurance Plan for you.

Get upto 10% Online Discount*



Term Insurance Frequently Asked Questions

One of the most foolproof ways to secure your family's future financial health is to invest in a Term Insurance plan. A Term Plan essentially guarantees a pure life cover for the policyholder for a fixed tenure. In the unfortunate event that s(he) succumbs to death while the policy is active, the nominees assigned by her/him receive promised death benefits. This amount can then be used to fund future expenses, debt obligations and fulfil long-term and short term goals. In order to understand about the intricacies of Term Insurance.

Cover your Family by term insurance Cover your Family by term insurance

Term Insurance FAQs

This article discusses some of the most relevant and Frequently Asked Questions by customers who are looking to get insured under a Term cover. Read along to find your answers.

1. Should I buy a Term Insurance plan or a traditional plan such as Whole Life cover, Endowment plan, ULIP etc.?

The idea behind buying an Insurance Plan should be to effectively accomplish your goals. If your goal is to safeguard your family's interests in your absence, a Term Plan offers the opportunity to do so at affordable premiums, especially if you are the only earning member in your family with several dependents.

On the other hand, if your goal is to save or earn returns on market-linked investments or wealth creation, you should opt for traditional endowment plans or ULIPs.

2. Can I switch my term plan to a different type of plan (such as a whole life cover) after buying the policy?

As you age, your needs will change. Several Term Plans come with the option to port your plan to Whole Life Cover. You should check with your particular Insurance Provider for details on Term Insurance portability.

For your information, the IRDAI (official regulatory body of insurance in India) does not currently allow switching Insurance Providers for an existing Term Plan. However, you could switch to a different policyholder at the time of policy renewal.

3. Does Term Insurance cover deaths occurring as a result of natural disasters?

No, Term Insurance Plans do not cover deaths resulting from natural disasters. Further, there are a few other exclusions against which Insurance companies do not offer death benefits. These exclusions are death due to Self-inflicted injury, HIV/AIDS, Intoxication, or Homicide.

4. What is the cost of Term Insurance?

The cost of a Term Insurance Plan depends upon various factors such as age, annual income, basic sum assured, tenure of insurance coverage, health conditions, and whether you are a smoker/non-smoker.

However, please note that the premiums increase with age, therefore it is always advisable to get a plan as soon as possible. Visit 'Price Index for Term Insurance' for more clarity on how premiums rates for Term Insurance in India vary as per age, gender and other factors.

5. How do I decide how much cover I need?

Financial advisors are of the opinion that a Term Cover should ideally be a minimum of 10 times your current annual income. In fact, it is always advisable to go above and beyond, if your finances allow. This is for the simple reason that recession and inflation along with additional financial liabilities that you might have, may further deter your family's financial health in the absence of the earning member.

Therefore, we would strongly recommend that you get a cover that is sufficient to at least fulfil debt obligations such as outstanding loans for housing, education etc. The primary advantage of Term Insurance is that you can get a high life cover, to the tune of Rs. 1 Crore and above, at affordable premium rates.

For further assistance, you should visit our page on 'Term Insurance' and/or make use of online calculators.

6. Should I declare myself as a smoker if I don't smoke on a regular basis?

Yes, it is important that you declare yourself as a smoker if you have smoked in the last 12 months. If you don't declare the same and the Life insurance provider finds it out later on, your policy might stand cancelled without benefits.

7. Is it important to add riders to my base plan?

Riders are meant to enhance your coverage. While not mandatory, we suggest that you explore the range of add-on benefits that come with the Term Plans and pick the most suitable one for you.

For instance, in the off chance that you are diagnosed with a critical or a terminal illness or fall victim to an accident, a rider could save you a lot of money.

8. Can I invest in multiple Term plans?

Yes, you can. In fact, experts are of the opinion that it is ideal to have two or more Term Plans for an individual. As you age or reach certain milestones in your life, your needs tend to change. A single Life Cover may not be sufficient to sustain your family's needs at the time of need.

It is important that you align your financial obligations to your plan features and then review them as and when required. A major advantage of investing in multiple Term Insurance Plans is that it reduces the risk of having claims rejected.

9. Why are smokers charged more premiums than non-smokers?

Smoking leads to a number of health complications which directly incurs a higher mortality risk. Therefore, Insurance Companies charge higher premiums for smokers to counter this risk.

10. What are the important documents required to purchase a Term Plan?

Standard documents required to purchase a Term Plan are valid ID and address proof. These can include Passport, Voter's ID, Aadhaar Card or PAN Card. Furthermore, you need income proof in the form of bank statements showing salary credited for the last 3 months, Latest Form 16, Income Tax Returns of last 2 years.

If you are self-employed, you are required to submit Income proof in the form of an audited Balance Sheet (certified by CA), Profit & Loss account for the last 2 years, and income tax returns for the last 3 years.

11. Do I get any benefits if I survive the policy term?

Term Covers are usually pure risk Life Covers that offer the sum assured to the nominees on death of the policyholder. Mostly, these plans do not come with survival benefits.

However, there is the 'Return of Premiums' option offered by a number of Term Insurance providers that will pay back the premiums if you survive the policy term. For such benefits, one must go through the policy brochure or talk to the agents directly.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

What Our Customers Have to Say

Customer Review Image

Rohan Verma


October 5, 2023

PolicyX.com made the process of buying Edelweiss Tokio term life insurance hassle-free. Their expertise in insurance is commendable.

Customer Review Image

Rishi Sharma


October 5, 2023

I appreciate PolicyX.com for their dedication to helping customers find the right insurance. Edelweiss Tokio term life insurance was my choice.

Customer Review Image

Rani Devi


October 5, 2023

Edelweiss Tokio term life insurance, facilitated by PolicyX.com, offers peace of mind. Their guidance helped me make a well-informed decision.

Customer Review Image

Rajesh Choudhury


October 5, 2023

PolicyX.com s platform is a game-changer when it comes to insurance comparison. I m satisfied with my Edelweiss Tokio term life insurance policy.

Customer Review Image

Priya Kapoor


October 5, 2023

Edelweiss Tokio term life insurance, recommended by PolicyX.com, offers comprehensive coverage at an affordable price. Great value for money!

Customer Review Image

Pranav Patel


October 5, 2023

I found the perfect term life insurance policy from Edelweiss Tokio on PolicyX.com. The detailed comparisons helped me choose the best one.

Customer Review Image

Prachi Saxena


October 5, 2023

PolicyX.com simplified the complex world of insurance for me. Edelweiss Tokio term life insurance was the perfect choice for my family s financial security.

Customer Review Image

Parul Mishra


October 5, 2023

I m extremely happy with my Edelweiss Tokio term life insurance policy bought through PolicyX.com. The process was efficient and transparent.

Naval Goel

Reviewed By: Naval Goel

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.