Term Insurance - Secure Your Family's Future Today
Term life insurance provides a death benefit for a specified period of time that pays the policyholder's beneficiaries. Once the term expires, the policyholder can either renew it for another term, possibly convert it to permanent coverage, or allow the term life insurance policy to lapse.
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Compare term insurance plans from India's most trusted insurers
Life Cover
₹ 1 Cr
Max Limit : 99 yrs
Claim Settled
99.3%
Premium Starting
₹ 744/month
Free health benefit upto ₹30,933/yr
Option to delay 12 month premium
₹3 lakh immediate payout on claim intimation
Life Cover
₹ 1 Cr
Max Limit : 99 yrs
Claim Settled
95%
Premium Starting
₹ 434/month
Early payout on terminal illness
Free health benefit upto ₹63,000/yr
₹2 lakh immediate payout on claim intimation
Life Cover
₹ 1 Cr
Max Limit : 99 yrs
Claim Settled
99.65%
Premium Starting
₹ 400/month
Free health benefit upto ₹50,000/yr
Waiver of premium on terminal illness
Life line plus (option to increase life cover)
What is a Term Insurance?
Term insurance is a financial safety net that protects your loved ones should something unexpected happen to you. When you pay an insurance company a small amount every month (known as a premium), they pay your family or beneficiaries a lump sum (called a death benefit) if you pass away during the policy term. Their lifestyle can be maintained even without you by managing their expenses.
Term life insurance focuses solely on life insurance, without any investment or savings component, making it more affordable than other types of life insurance. In addition to replacing lost income, paying off debts, or securing your family's future, it can cover a wide range of needs. If you outlive the term, however, there is no payout or refund of premiums.
Why Do You Need Term Insurance?
Term insurance helps protect your family's future and ensures they remain financially secure if something happens to you. Here's how it supports your long-term planning:
Flexible Premium Payment
Your premiums can be paid annually, semiannually, quarterly, or monthly, giving you the flexibility to manage your budget based on your financial situation.
Additional Coverage with
A disability, critical illness, and accidental death rider can be added to the term insurance policy. This type of add-on ensures comprehensive coverage.
Customisable Protection Plans
The policies can be tailored to the specific needs of a customer, and the coverage can be adjusted over time according to the changes in their life stage.
Extended Financial Security
By providing long-term coverage, term insurance offers peace of mind about your family’s future, even in your absence.
Loan Protection
A term policy can specifically cover outstanding loans (e.g., home loans, car loans), preventing your family from inheriting the financial burden in the event of your death.
Income Replacement
Your beneficiaries can receive a regular income for a specified period of time, ensuring more consistent financial support for living expenses and long-term planning.
Tax Benefit
The Income Tax Act, 1961, allows you to deduct premiums up to INR 150,000 per year under Section 80C. Payouts are also tax-exempt under Section 10(10D), so you can save money.
Who Should Buy a Term Insurance Policy?
A term insurance plan is recommended for anyone with financial dependents, such as a spouse, parent, retiree, or business owner
Financial Protection for Family
The term insurance plan helps guarantee that the family will receive a lump sum payment in the event of the policyholder's untimely death. It enables them to fulfil their financial obligations and maintain their standard of living.
Affordable Premiums
Plans for term insurance are typically reasonably priced. A ₹1 Crore life insurance policy, for example, starts at ₹501 per month, making it affordable for people of all income levels.
Tax Benefits
Section 80C of the Income Tax Act allows for tax deductions on term insurance premiums up to ₹1.5 Lakh per year. There is no tax on the death benefit at all.
Coverage for Critical Illnesses
Comprehensive protection is ensured by the riders that many term insurance plans offer, which provide extra coverage against serious illnesses.
Debt Repayment Support
The amount assured can be used to pay off outstanding debts in the event of the policyholder’s death, sparing the family from having to shoulder the burden.
Who Needs Term Insurance?
Working Professionals
At a young age, when you just start working, you can avail lower premiums. Salaried people with life insurance can provide their families with extensive financial coverage at affordable premiums without affecting their other expenses.
Newly-Weds
A joint life insurance policy covers both partners under a single plan for better management, since married couples are more likely to have financial obligations such as mortgages, loans, and home improvements.
Working Parents
In the event that a working parent passes away unexpectedly, life insurance provides income for dependents, covers essentials such as education, housing, and daily expenses, and helps settle outstanding debts.
Homemakers
Having life insurance coverage is important for stay-at-home moms and homemakers. In case of the death of the lady of the house, the life insurance coverage should help the rest of the family manage the household.
Retired Individuals
Retirement insurance plans can provide a regular income during retirement years, which makes it easier for you and your family to take care of yourselves.
Business Persons
Life insurance can help you secure your business and your family’s needs so that any unpaid debts do not burden them in the event of your death.
How to Choose the Right Term Insurance Plan?
Several factors come into play when selecting a term insurance policy. Human Life Value helps determine the appropriate sum insured and any riders needed. There are different factors to consider before finalising a term insurance policy with different insurers:
Assess Your Coverage Needs
Insurance coverage should equal at least 10-15 times your annual income, regardless of debts, future expenses (like your children's education), and daily expenses.
Review the Solvency Ratio
The solvency ratio indicates whether an insurer has enough financial cushion to meet all claims in case of an extreme event. A ratio of 1.5 or higher shows they can meet long-term obligations.
Assurer's Settlement Ratio
You want to ensure your family's financial security by choosing an insurer who has a high claim settlement ratio. In order to judge the insurer's reliability, look at how many claims they have settled.
Reviews and Satisfactions
Check customer reviews and ratings to choose an insurer with good customer support. High customer satisfaction scores and excellent service ratings indicate a company's reliability.
Add Riders for Extra Protection
Add riders like critical illness coverage, accidental death benefit, and premium waiver for additional protection. These can provide additional financial security in case of an emergency.
Avoid Mixing Insurance with Investments
Mixing investment products and insurance can dilute protection. Keep investments separate and use term insurance purely for adequate coverage.
Premium Cost
In choosing a term insurance plan, it's essential to look for plans with favourable terms and comprehensive coverage, including crucial riders, at reasonable prices.
Consider Inflation
Get a term insurance plan to protect your family from inflation. These plans increase the sum assured annually, typically by five to ten percent.
Why Should You Buy Term Insurance Online?
There are several advantages of buying term insurance online:
Frequently Asked Questions
Get answers to common questions about term insurance