Term Insurance is the purest and cheapest form of life insurance.
You pay a small premium, and the insurance company provides a large life cover for a fixed number of years.
If the policyholder dies during the term, the nominee gets the Sum Assured.
👉 No maturity benefit if you survive the policy term (unless you choose Return of Premium variant).
Provides financial protection for your family
Covers loans (home loan, personal loan, etc.)
Ensures children’s education & future
Very affordable compared to other insurance plans
High coverage (₹50 lakh to ₹5 crore+)
You choose sum assured (e.g., ₹1 Crore).
You pay monthly/annual premium.
If you die during the term → Your family receives ₹1 Crore.
If you survive → No payout.
Your premium depends on:
Age (younger = cheaper)
Smoking habits
Medical history
Policy term
Sum assured
Occupation
Add-on riders
Example: A 30-year-old can get ₹1 Cr cover at ₹500–900/month.
Covers from ₹50 lakh to ₹5 crore or more.
Policy duration: 10 to 99 years.
Section 80C: Premium exemption up to ₹1.5 lakh
Section 10(10D): Payout exemption
Accidental death benefit
Critical illness cover
Waiver of premium
Income benefit rider
Disability benefit rider
Fixed premium & fixed cover.
Coverage increases over time.
Coverage decreases (good for loan protection).
If you survive, you get premiums back.
Coverage for husband and wife.
Nominee gets monthly income instead of lump sum.
General rule: 15–20 times your annual income
For example:
Income = ₹6 lakh → Term cover = ₹90 lakh to ₹1.2 crore
CSR indicates how many claims the insurer settles out of total claims.
Higher CSR = More trustworthy.
Salaried employees
Business owners
Married individuals
Parents with children
People with loans
Anyone wanting to protect their family financially
Term insurance is a life insurance plan that provides financial protection to your family.
If the policyholder dies during the policy period, the insurer pays the sum assured to the nominee.
Protects your family financially
Covers liabilities (home loan, personal loan)
Ensures children’s education & future
Cheapest way to get high life cover
Gives peace of mind
| Feature | Term Insurance | Traditional Life Insurance (Endowment/Money-back) |
|---|---|---|
| Purpose | Life cover only | Life cover + savings |
| Premium | Low | High |
| Return on survival | No | Yes |
| Coverage | High (₹50L–₹5Cr+) | Low |
A simple rule: 15–20 times your annual income
Example: Income ₹10 lakh → Cover ₹1.5–2 crore
The earlier you buy, the cheaper the premium.
Best age: 20–35 years.
No.
In most term policies, premiums remain constant throughout the policy term.
Only increasing benefit plans or renewable yearly plans may vary.
You receive no payout — unless you buy a TROP (Return of Premium) plan.
If you survive, the insurer returns all premiums paid.
Premiums are higher compared to basic plans.
A nominee is the person who receives the sum assured in case of the policyholder’s death.
Usually: spouse, children, or parents.
Yes.
Most Indian insurers offer term plans for NRIs with online verification and medical tests abroad.
Your policy lapses, and the company will not provide coverage.
You may revive the policy within a certain time by paying pending premiums + penalty.
Usually yes, especially for high coverage (₹50 lakh–₹1 crore+).
It helps ensure claim approval.
Optional benefits you can add to your plan:
Accidental Death Benefit
Critical Illness Cover
Waiver of Premium
Income Benefit
Disability Cover
Yes.
Section 80C: Deduction up to ₹1.5 lakh
Section 10(10D): Claim amount is tax-free
Aadhar card
PAN card
Address proof
Income proof
Medical reports (if required)
Yes, but premiums will be higher due to higher risk.
CSR = % of claims paid by the insurance company.
Higher CSR → More reliable insurer.
Based on:
Age
Sum assured
Policy term
Health condition
Lifestyle (smoking/drinking)
Occupation
Gender
| Type | Meaning |
|---|---|
| Single Premium | Pay once, get coverage for full term |
| Regular Premium | Pay monthly/quarterly/yearly |
Yes, you can update nominee details anytime.
Yes, after 12 months from the policy start date.
(Terms vary by insurer)
Most term plans cover worldwide deaths (unless exclusions apply).
Nominee must provide proper documentation.
Yes.
Basic term plan covers all types of death, including natural, illness, and accident.
Accidental Death Rider provides extra payout.
Yes, unless:
You hide information (non-disclosure)
Condition is permanently excluded
Transparency ensures claim approval.
Nominee informs the insurer
Submits claim form + documents
Insurer verifies claim
Payout is released
Process usually takes 15–30 days.
