Term Insurance - Buy Best Term Insurance Plans & Policy Online in India 2024 (2024)

• 50 Lakh Term Insurance at Rs 415 per month8
• 1 Crore Term Insurance at Rs 547 per month*
• 2 Crore Term Insurance at Rs 918 per month10
• 5 Crore Term Insurance at Rs 2075 per month11

• Example of Term Insurance

  Ms. Latha Iyer is a 20-year-old individual, who had purchased the Tata AIA Sampoorna Raksha Supreme term plan with a ‘Life Plus Option’, and a sum assured of ₹1 crore for a premium of just Rs 892/month^{^}
  

  She appointed her spouse, Mr Raman Iyer, as her nominee. In case of Latha’s unfortunate demise during the policy term, Raman will receive a death benefit of ₹1 crore. Since Latha chose a regular payment mode for the sum assured payment, Raman will receive a monthly payout to help him take care of regular expenses and manage the income deficit. If Latha survives the policy term, she will be eligible to receive 105% of all premiums paid^**as either a lump sum payout or a regular income.

Term Insurance Benefits

Term insurance is a crucial financial tool providing comprehensive coverage at an affordable premium. Its benefits extend beyond mere protection, making it an indispensable choice in your financial portfolio.

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  Financial Security

  Term insurance provides a substantial death benefit to your beneficiaries in case of your untimely demise, offering them a safety net to cover expenses, debts and future needs.

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  Affordable Premiums

  Compared to other life insurance options, term insurance offers lower premiums, enabling you to acquire higher coverage amounts within your budget.

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  Borrowing Security

  If you have outstanding loans or debts, term insurance can act as a safety net for your family, preventing them from inheriting financial liabilities in case of your passing.

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  Income Replacement

  If you are the primary earner in your family, term insurance replaces your income, supporting your family's living expenses, education and other financial commitments.

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  Lifestyle Safeguard

  Your family's current lifestyle can be maintained even in your absence, thanks to the substantial payout from a term insurance policy, which can maintain their quality of life.

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  Flexibility and Customisation

  Term policies can be tailored to your specific needs, allowing you to choose coverage duration, sum assured and riders like critical illness or accidental death coverage.

Life is unpredictable, and term insurance provides a way to ensure your family's financial stability, offering peace of mind against unforeseen events and allowing you to focus on the present with confidence.

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  Who Should Buy Term Insurance

  Term insurance is a widely embraced life insurance choice, offering vital financial protection to families in the unfortunate event of the policyholder's demise. With its affordability and simplicity, term insurance stands as an attractive option for various individuals and families across India.
  

  Young Earners

  Early-career professionals should strongly consider term insurance. It offers a safety net, guaranteeing their families' financial security in the absence of their income.

  Newlyweds and Young Parents

  Couples entering marriage or parenthood should opt for term insurance. It safeguards the financial future of their partners and children, acting as a crucial support system.

  Sole Breadwinners

  Individuals supporting their families as sole earners must prioritise term insurance. In case of their unfortunate demise, this insurance provides a necessary financial cushion for their loved ones.

  Homeowners with Loans

  Those with home loans should secure term insurance. The policy ensures that outstanding loan amounts do not burden the family if the insured passes away.

  Young Debtors

  Individuals with substantial debts, like education or personal loans, should seriously consider term insurance. This prevents passing on the debt responsibilities to their family.

  Entrepreneurs and Business Owners

  Business owners can strategically utilise term insurance to ensure business continuity and support their family's finances in case of their demise.

  Other Self-Employed Individuals

  The self-employed should opt for term insurance to protect their families from the potential loss of income and business disruptions upon their demise.

  Investors

  Investors pay regular amounts towards investments for wealth generation, which might pause in case of their demise. Term insurance secures the future of an investor’s family and allows the continuation of the investments.

  Individuals with Dependent Elderly Parents

  Adults caring for elderly parents should explore term insurance options. This provides financial security for the parents in case of the adult child's demise.

  Retirement Planning

  Those approaching retirement with dependents should explore term insurance. It offers coverage until dependents attain financial independence, easing the retirement transition.

  Senior Citizens

  Senior citizens looking to secure their spouses can consider term insurance with extended terms. Tata AIA term life policies offer whole life cover up to 100 years of age^$.

  Housewives

  The invaluable contributions of homemakers need recognition. Term insurance for housewives can help cover the replacement costs of their services in the event of their passing.

  Women

  More and more women are entering the workforce and contributing to the family income. Term insurance for women secures their families and ensures their financial stability.

  Taxpayers

  Term insurance premium payments can reduce overall tax liability. The premiums paid are tax-deductible under Section 80C of the Indian Income Tax Act.

  Choosing the right term insurance policy in India involves aligning personal circ*mstances and responsibilities with financial goals. You can use our online term plan calculator to ascertain suitable coverage amounts, policy durations and premium amounts.

• How Much Term Insurance Cover Do You Need?

  • Deciding the right sum assured is crucial to ensure all-round protection of your family. Your insurance coverage should be sufficient to allow your family to continue with the same living standard even when your income ceases to exist.
  • Financial experts have given a simple way to determine how much sum assured you should buy. Your term insurance policy coverage must be a minimum of 15 to 20 times your existing income.
  • Another way to calculate how much term insurance coverage you need is by evaluating your Human Life Value or HLV. The HLV is a numerical process of estimating the current value of your future income. It helps you analyse how your family’s income will be affected if your income stops due to your demise. Thus, it can help you understand the amount of term insurance coverage you need as a replacement for your income.

• 50 Lakh Term Insurance at Rs 415 per month8
• 1 Crore Term Insurance at Rs 547 per month*
• 2 Crore Term Insurance at Rs 918 per month10
• 5 Crore Term Insurance at Rs 2075 per month11

How to Buy the Right Term Insurance policy

Buying term insurance online is simple and hassle-free:

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  Calculate the Right Sum Assured and Tenure

  Assess your current financial status, future financial requirements, and your dependents’ needs. Account for any loans, liabilities, and significant expenses. Find the correct sum assured and duration of term insurance and choose a plan that offers you that.

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  Finalise the Features and Inclusions

  Do not forget to check the list of inclusions, exclusions, features, and riders. List your requirements from a term plan, such as critical illness coverage, return of premium benefit, premium payment flexibility, specific riders, etc.

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  Compare Plans

  Based on your specific needs, research, compare and finalise term insurance options available. Use an online term insurance calculator to select a plan that suits your budget and offers the desired coverage.

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  Apply and Pay the Premium

  Complete the online application for the plan of your choice, provide the necessary information, upload all the required documents, and review the policy terms before paying the premium online.

Once done, rest easy as you have ensured complete financial security for your loved ones and peace of mind for yourself!

Types of Term Insurance

• What Happens if You Die While Your Term Insurance Policy is in Force?

  If you meet with an untimely death during the policy term, your beneficiary or policy nominee gets the sum assured as a death benefit, as per the policy terms.
  

  For instance, Mr Mayur Mishra bought a term insurance policy of ₹50 lakhs for a policy term of 20 years. He nominated his wife, Mrs Madhuri Mishra, as his beneficiary. 15 years after purchasing the policy, Mr Mishra unfortunately passed away. Since, his demise was within the policy tenure of 20 years, his wife will receive the predetermined sum assured of ₹50 lakhs.
  

  If Mr Mishra had passed away after the policy tenure of 20 years, the policy would have expired, and Mrs Mishra wouldn’t be eligible to receive the death benefit. Therefore, it is vital to re-evaluate your term insurance tenure and sum assured from time to time.

• What happens if You Surrender Your Term Insurance Policy?

  If you surrender a term life insurance policy, you forfeit the death benefit. It means your policy nominee cannot make a claim against the surrendered policy. It is advisable to carefully consider your insurance and financial needs before surrendering a term insurance policy.

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  Factors that Affect Term Insurance Premium

  Detailed calculations go into determining term insurance premiums. The premiums for term insurance are different for different policyholders due to several factors that contribute to the premium calculation. Knowing these factors that contribute can help you make efforts to lower the policy premiums.

  Let us see the essential factors that affect term insurance premiums.
  

  Age

  Young policyholders are healthy, have fewer health concerns and are less likely to make a claim on their term plan. For this reason, term insurance premiums are lower for younger policyholders with a lesser probability of claims.

  Sum assured

  The higher the sum assured, the higher is the cost of covering the policyholder. As a result, a ₹1-crore term insurance plan will be more expensive than a ₹75-lakh plan.

  Individual and family medical history

  Illnesses like cancer and heart ailments can be genetic. The premium can be higher for people with existing medical conditions or with family history of certain issues to account for the higher risk of claims.

  Gender

  Research has shown that women tend to have a longer average lifespan than men. Therefore, female term policy buyers usually enjoy lower premiums on their term plans as they are likely to pay premiums for a longer period than men.

  Lifestyle

  Term insurance premiums are higher for people who engage in high-risk activities, like adventure sports and bike racing. Moreover, the term plan premium is higher for professionals who work in high-risk environments regularly, like pilots.

  Smoking and drinking habits

  People who consume alcohol or smoke have to pay higher term insurance premiums than others because of the negative impact of these substances on health, which increases the chances of claims.

  Policy tenure

  The premium for longer tenures will be lower than for shorter policy tenures for the exact coverage due to the assurance of long-term premium payments.

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  What are Term Insurance Riders

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    Term plan riders^@ are additional covers or benefits that you can add to your term insurance policy for an additional premium to enhance or extend the coverage of the base plan for well-rounded protection against various situations and illnesses.

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    You can opt for a life insurance rider of your choice, like an accidental death rider or disability rider, critical illness rider, or premium waiver rider.

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    An accidental death or disability rider offers a sum assured in case the policyholder passes away or suffers disability due to an accident.

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    Health-based riders, such as critical illness or terminal illness⁷riders provide financial protection upon diagnosis of the covered illness.

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    One of the popular term insurance riders, waiver of premium add-on will waive off all future premium payments while continuing the term plan protection in case of diagnosis of covered illnesses or any other insured situation.

Tata AIA Term Insurance Riders to Choose From

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  Sampoorna Raksha Supreme - Our Best Term Insurance Plan

  Avail of 105% Premium Back

  Get 105% of all the premiums paid**as a survival benefit with the Life Plus Plan Option.

  Enjoy Whole Life Cover

  Ensure extended coverage and financial protection for your loved ones with term plan coverage up to 100 years of age^$.

  Increase Sum Assured

  Increase coverage with the Life Stage Benefit for important milestones~, such as marriage, birth/adoption of child, home loan disbursal, etc.

  Improve Protection with Riders

  Enhance your base plan coverage with a choice of 4 riders^@and get protection against critical illness, accidental death/disability, etc.

  Pay Premiums as Per Convenience

  You can opt for varied premium payment frequencies, such as monthly, annually, quarterly or a one-time payment.

  Get In-built Benefits

  Get an in-built Payor Accelerator Benefit that pays out 50% of the sum assured as a lump sum upon diagnosis of a terminal illness⁷.

  Enjoy Tax Benefits Up to ₹46,800

  Get tax deductions up to ₹46,800⁺under Section 80C of the Income Tax Act. The death benefit is tax-free per Section 10(10D).

WhyBuy Term Insurance Online?

Buy a term insurance plan online for the following benefits:

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  Better understanding

  Online term insurance purchase gives you quick access to all policy documents and essential information. You get a clearer picture of the benefits and limitations of your term plan and make a confident buying decision.

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  Plan comparison

  You can visit the websites of multiple insurers and compare their plans. You can also explore the website of your chosen insurer and check various offerings. This way, you can choose the term plan that best suits your financial goals.

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  Discounts and offerings

  Insurers often provide discounts and other special benefits to customers who purchase term insurance online. It can help reduce your term insurance premium.

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  Transparency

  When buying online, you submit all your documents and information directly to the insurer. Moreover, you are actively involved at every step of the purchase process, which helps establish your faith and satisfaction with the insurer.

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  Less time

  Buying term insurance online requires less time and effort. You need not visit the insurer’s branch. You can access the website from the comfort of your home, and the entire processing is done digitally.

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  Multiple secure payment options

  You can choose from quick, secure, and convenient payment options during the purchase. You can also opt for these options while paying your premium based on the mode and frequency you select.

Howto Make Term Insurance More Affordable?

Worried about the term insurance cost? Here are a few ways to get affordable term insurance:

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  Start early

  As explained, buying term insurance at a young age can help you save significantly on the term insurance cost. With an early purchase, you can get long-term insurance for smaller and regular payments on term insurance.

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  Avoid smoking

  Smoking can increase your term insurance cost. Therefore, avoid smoking for a healthier life and also to reduce your term plan premiums. Ensure that you disclose it to your insurer if you smoke or have any other health ailments. Providing incorrect or incomplete information can put your family in difficulty when claiming the death benefit on your term policy.

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  Choose the right tenure

  A term plan with a longer duration will require you to pay policy premiums for longer. Therefore, choose the policy term wisely to ensure coverage till you genuinely require it.

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  Develop healthy habits

  A healthy lifestyle can keep diseases and ailments at bay. Since insurers require your medical history and test reports to decide your term insurance premium, a healthier lifestyle will help you get a cheaper term policy quote and enjoy a longer, healthier life as a bonus.

HowDoes a Term Plan Secure Your Family’s Financial Future?

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  Income Replacement

  The primary purpose of a term plan is to replace your income if you pass away during the policy term. Your nominee receives a tax-free sum assured, ensuring they have financial support to cover essential expenses.

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  Health Crisis Management

  The critical illness and terminal illness⁷rider benefits provide financial assistance in case of diagnosis of the covered illness. Thus, your family can focus on your well-being without worrying about the treatment costs.

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  Debt Settlement

  Term insurance helps settle outstanding debts or loans, preventing your family from being burdened with financial liabilities. This ensures that they can maintain their lifestyle and assets without the risk of losing them to debt repayment.

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  Education and Future Goals

  The payout from a term plan can be used to fund your children's education or other long-term financial goals like buying a home or starting a business. It empowers your family to achieve these aspirations, even in your absence.

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  Maintaining Lifestyle

  Your family can continue their current lifestyle without major disruptions, including covering expenses like groceries, bills, shopping, rent/maintenance, property taxes, investments, insurance premiums, etc.

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  Emergency Fund

  The term insurance payout can serve as an emergency fund, offering a financial cushion to address unexpected expenses or medical bills that may arise due to unforeseen circ*mstances.

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  Tax Benefits

  The payable death benefit of term insurance is exempt from taxation^#under Section 10(10D) of the Income Tax Act, subject to prevailing tax laws. Thus, your family can enjoy a significant payout without worrying about any tax liabilities.

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  Peace of Mind

  Most importantly, a term plan provides peace of mind. Knowing that your family is financially protected allows you to focus on your responsibilities and enjoy life without the worry of what might happen to them in your absence.

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  Most Common Term Insurance Myths

  Let us debunk some common term insurance mythsfor you:
  

  Myth: Term insurance is not worth it!

  Reality: Life is uncertain. Think about what would happen to your family if you were not there to provide for them anymore. A term insurance plan has an important role to play here. The death benefit on a term plan can save your family from financial difficulties and life constraints in your absence. Buying term insurance not only helps you secure your coming years but is also a judicious investment today.

  Myth: Term insurance is too expensive!

  Reality: Term insurance offers substantial coverage for a low premium compared to other insurance plans. You can get a high amount as a death benefit on a term plan for a relatively low premium. Moreover, you can make your term plan more affordable with a few simple steps. The term insurance premium is a small amount compared to the financial protection it gives to your family.

  Myth: Term insurance is only for young people!

  Reality: While it is advisable to get term insurance as early in life as possible, its importance only increases with age. This happens because as you grow older, the number of your dependents increases, like ageing parents, spouses, and growing children. Therefore, the relevance of term insurance in your financial planning increases as you age.

Documents Required to Buy Term Insurance

Term Insurance Related FAQs

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  TermInsurance Features

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    Low age of entry

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    Significant sum assured with affordable premium.

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    Lifetime cover up to 100 years of age^$

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    Flexible premium payment modes and frequencies.

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    Adjustable sum assured and coverage.

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    Death benefit payouts as a lump sum and regular monthly payout

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    Life Stage Benefit^~

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    Coverage against critical illness and terminal illness with riders

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    Accidental Death and Disability Coverage with riders

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  TermInsurance Benefits

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    Financial Security: Provides a tax-free lump sum payment to beneficiaries, helping them maintain their financial security after the policyholder's death.

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    Affordability: It is cost-effective and ideal for individuals looking for maximum coverage with minimal premiums.

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    Flexibility: Policyholders can choose the coverage amount and term length that suits their needs.

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    Peace of Mind: Offers peace of mind by ensuring loved ones are financially protected in case of an unexpected death.

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  WhoShould Buy Term Plans?

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    Primary earners: Main income earners in a family who want to ensure financial security for their dependents.

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    Parents: Parents seeking to provide for their children's education and other financial needs.

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    Debt Holders: Individuals with outstanding loans, such as home loans, credit card bills, etc., to cover these liabilities.

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    Young Professionals: People in their early working years can benefit from lower premiums and long-term coverage.

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    Business Owners: Business owners can use term insurance to safeguard their companies and provide for succession planning.

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  WhoShould Buy Term Plans?

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    Early Age: Purchasing term insurance at a younger age generally results in lower premiums.

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    Major Life Events: Events like marriage, having children or buying a home are excellent times to consider term insurance.

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    Health Condition: Securing coverage while in good health can lead to more affordable premiums.

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    Responsibilities: Buy term insurance when you have dependents or financial responsibilities that require protection.

• Sum Assured

  Sum assured in term insurance is the predetermined amount that the insurance company pays to the nominee if the insured person passes away during the policy term.

• Term Insurance Premium

  Term insurance premium is the regular payment - monthly, quarterly, annually - made by the policyholder to the insurance company to maintain the term plan coverage for a specific duration.

• Death Benefit

  Term insurance death benefit is the money that the insurance company pays to the family or beneficiaries if the person who is insured passes away during the policy period.

• Return of Premium Term Plan

  A term plan with a return of premium returns the total amount of premiums paid as maturity/survival benefit if the insured person survives the policy term. Thus, this term plan combines protection with a savings element.

• Add-on Riders

  Term plan riders^@are optional add-ons that enhance coverage, offering benefits like critical illness, disability protection, health covers and more. These allow term plans to be tailored to individual needs for added security.

• Claim Settlement Ratio

  The claim settlement ratio is the percentage of insurance claims approved and paid by the company against the total claims received, showing its reliability in fulfilling policyholders' claims and honouring agreements.

• Whole Life Cover

  Whole life cover in a term plan provides insurance coverage for the entire lifetime of the insured person, usually up to 100 years of age^$, offering financial protection to beneficiaries upon their passing.

• Life Assured

  It refers to the person whose life is covered by the insurance policy. In case of any unfortunate event, the death benefit is provided to the beneficiaries.