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Term insurance is a type of life insurance policy that adds a financial safety net for your family members or dependents in case of unfortunate life events. Such an insurance product provides coverage for a specified period of time, such as 10, 20 or 30 years or more, depending on the insurer and as agreed upon by you at the time of purchase. In exchange for financial security to your dependents in your absence, you must keep your policy active by paying the set premium as per your chosen plan, tenure and other factors. To financially secure your family against uncertainties of life, explore the best term life insurance plans, their features and benefits with Pluto and make an informed decision.
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Ayush

Written by Ayush

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What is Term Insurance?

Term life insurance is a form of pure life insurance which provides financial protection to the chosen beneficiary of a policyholder for a fixed duration or term. For easier understanding, suppose an individual purchases a term insurance policy with ₹1 crore coverage for 30 years. During this tenure, if something happens to that individual, their appointed nominees receive a lump-sum payout of up to ₹1 crore.

To ensure this benefit for your family members or dependents, you must keep your chosen term insurance plan active by paying premiums on time. Here, you may wonder how much premium you need to pay for a term insurance plan. For this, you must understand that a premium for a term insurance plan primarily depends on the amount of coverage you choose. Generally, the higher the amount of coverage you choose, the higher the premium you may need to pay.

Other crucial factors like the term you choose, your age during your policy purchase, lifestyle habits (e.g., smoking or tobacco usage or level of alcohol intake), pre-existing medical conditions, etc., also matter in determining your premium. If you survive the policy term, your policy expires without a maturity benefit unless you opt for plans with a return of premium option.

How Does a Term Insurance Plan Work?

After understanding the meaning of term insurance, you must understand how it functions. With the help of a simple example, here is an explanation of its working from policy purchase up to the payout process. Suppose Rahul is a 30-year-old working and non-smoking individual who decides to purchase term insurance from a reputed and leading insurer in India. Here are the steps that will unfold next in his journey:

01

Purchase of a Term Insurance Policy

Rahul chooses a term insurance plan for ₹2 crore coverage with a tenure of 30 years. He fills out the proposal form with details such as his age, lifestyle habits, pre-existing conditions and nominee information. Based on these factors, the insurer may require him to undergo a medical test before determining his premium. He then activates the policy by paying the first premium.

02

Regular Payment of Premium

Regular premium payments keep Rahul’s term insurance plan active. He chooses an annual payment frequency, though his insurer offers other options as well. Missing payments beyond the due date and grace period can lead to policy lapse. Therefore, Rahul pays his premiums on time to keep the policy active.

03

An Unfortunate Event During the Policy Tenure

Suppose Rahul, who travels daily for work, gets involved in an unfortunate event. As the sole earner, his family may face financial difficulties after losing his income. However, since he has term insurance, his nominee can file a claim with the insurer and receive the death benefit as a lump sum after verification. This payout can help his family manage daily expenses and secure their financial future.

04

Rahul Outlives His Policy Term

If Rahul survives the 30-year policy term, he will not receive a maturity benefit under a basic term insurance plan. However, if he chooses a Return of Premium (ROP) plan, the insurer may refund the premiums paid at maturity, generally excluding taxes and rider costs, as per the policy terms.

Key Features of Term Insurance Plans

Key features of term insurance typically include its affordability, the flexibility of choosing the term and sum assured, and more. Take a look at the following section and shape your decision:
A term insurance plan is a pure life insurance policy that does not include a savings or investment component. Unlike ULIPs, where part of the premium goes towards life cover and the rest towards market-linked investments, term plans focus solely on providing life cover. This makes them generally more affordable.

Why Do You Need Term Insurance?

One must get term insurance to protect their family from financial distress, secure them from liabilities, reduce the impact of lifestyle-related health risks and more. Thus, if you are the sole earner, you must anticipate such risks while financial planning and stay prepared. While you may not be able to avert all uncertainties, a life cover brings you peace of mind in the following ways:

Secure Your Family Against Financial Distress

As the primary earner, you are responsible for your family’s daily expenses and future goals. In your absence, without term insurance, their daily livelihood may get affected. With India’s retail inflation at around 4.45% in 2026, as per The Hindu, rising living costs can further strain their finances. Thus, a term insurance payout can help your dependents maintain financial stability in your absence.

Security Against Financial Liabilities

As of 2026, 74% of India’s credit-eligible population had accessed a loan at least once in the past 10 years. If you have a loan, ensure the outstanding debt does not burden your family in your absence. Long-term liabilities such as home or car loans can leave dependents with repayment obligations. A term insurance payout can help them clear these debts after your demise.

Reduce Financial Impact from Health Risks

Modern lifestyles can bring health risks that may require hospitalisation. In metro cities, hospitalisation can cost ₹5 lakh to ₹20 lakh, depending on the severity, potentially draining your savings. Critical illnesses such as cancer, heart attack, stroke, kidney failure and major organ failure can involve expensive and prolonged treatment. Adding suitable term insurance riders can provide an additional financial safety net against such uncertainties.

Death Benefit at Affordable Premium

The death benefit, or the lump sum payout that the nominee receives if something unfortunate happens to a policyholder, generally comes at an affordable premium. If you enter into a term plan at a lower age, keep your policy active or have lower health risk, you may be able to get higher coverage at an affordable rate.

Tax Exemptions

Tax exemption brings you the option to save on your taxes while paying premiums to keep your policy active. By opting for the right tax regime, you may claim up to ₹1.5 lakh as a deduction in a financial year. However, you must note the qualifying premium amount for this benefit before making a claim.

Types of Term Insurance Plans in 2026

In India, term insurance policies are available in different types, allowing you to choose a plan based on your specific needs. While some policies offer basic life cover, others allow you to increase the sum insured periodically. Certain plans may also return the premiums you paid if you outlive the policy tenure. For your understanding, here is a detailed breakdown of each of these plans:

Standard Term Insurance Plan

It is the simplest form of term insurance, yet the most popular among policy buyers. You purchase this plan type for a certain term (e.g. for 30 years) and get the coverage for that set tenure. Your premium amount and your chosen coverage remain constant throughout your chosen term.

Increasing Term Insurance Plan

Many insurers offer an increasing term insurance option whose increasing sum assured feature potentially helps with countering inflation. In this type, you choose a base coverage amount during its purchase. However, your coverage increases at a predetermined rate, often annually.

Decreasing Term Plan

A decreasing plan in term life insurance reduces your sum assured gradually through your chosen tenure, usually in line with your outstanding loan or mortgage amount. If you pass away while the loan is still outstanding, the payout can help your beneficiaries repay the remaining debt. Such plans generally have lower premiums than standard or increasing term plans.

Term Insurance with Return of Premium

Standard term insurance plans usually do not pay you a maturity benefit if you survive your chosen policy term. They simply expire once you outlive the tenure. However, a term insurance with Return of Premium (TROP) allows you a return as you outlive your chosen term. It essentially returns all the premium payments that you have made throughout your tenure.

Convertible Term Insurance

Many policyholders often wonder if they can convert their term insurance into a traditional life insurance policy. For this, you do not have to purchase a separate life insurance policy, as a convertible plan allows you to convert your existing term plan to life insurance during its tenure. Depending on the insurer's conditions, you may not need to go for another medical examination during this conversion.

NRI Term Insurance

If you are someone who resides outside India and has a Non-Resident Indian (NRI) status and want to ensure financial protection for your eligible family members in India, an NRI term plan may suit you. Many insurers in India offer such an option for NRIs, ensuring peace of mind by covering eligible family members in India.

What is Covered and Not Covered in Term Insurance?

A term insurance policy generally provides financial protection to your nominee if you pass away during the policy term. However, certain situations may be excluded or subject to specific policy conditions. Knowing these inclusions and exclusions can help you understand when your policy is likely to provide a death benefit:

Covered

  • Death due to natural causes
  • Death resulting from covered illnesses or medical conditions
  • Death caused by accidents, including road or workplace accidents

Not Covered

  • Suicide within the 1st year
  • Non-disclosure or misrepresentation of pre-existing illnesses
  • Death due to illegal activities
  • Death resulting from an accident while under the influence of alcohol or drugs
  • Death related to pregnancy or childbirth

Who Should Buy Term Insurance?

Individuals who have family members who financially depend on them, those who are sole earners, newly married couples, parents, etc., should consider term insurance. Here are some common profiles and their insurance needs to help you understand whether it is right for you:
While you are young and working, purchasing term insurance can offer additional advantages. As people generally stay healthier at this age (e.g. in their 20s or 30s) and financial responsibilities also stay low, it helps to secure a plan at an affordable price. While an individual in their 40s may have mortality risks, increasing their premium amount.

Term Insurance Based on Different Life Stages

As you age, your financial responsibilities evolve, and so does the need for coverage from a term plan. From kicking off your career, getting married, having children, buying a house and retirement planning are some important milestones. Having a term plan with enough coverage helps to ensure that your family maintain a standard of living in your absence:
term-insurance-in-20s

Term Insurance in 20s

At this age, as you initiate your career as a professional or as a self-employed person, your financial responsibilities generally remain low. Aside from this, since health risks are generally lower at this point, insurers consider it relatively safer and offer coverage at lower premiums. This age can be an excellent starting point for securing, say, a 30-year term plan.

How to Choose the Best Term Plan for youself?

Securing your family’s financial future requires evaluating your financial needs, term insurance benefits, available riders and other key factors. Let us take a look at the same:

Assess Financial Requirements

The initial and one of the crucial steps in choosing the best term plan is to assess the financial requirements of you and your family. For this, you must factor in your current standard of living and expenses. You must also assess the healthcare requirements of your dependents, education expenses of your children, etc., and estimate a coverage amount.

Determine Your Policy Tenure

When choosing term insurance, consider your age, income and its stability to select a suitable policy tenure. A tenure that aligns with your earning years can help you maintain the policy without interruptions. For instance, if you are 30 years old with a stable income, you may opt for a tenure of 30 years. This way, you may be able to maintain financial protection throughout your key earning years.

Compare and Choose Riders

To increase the scope of your base coverage, you must also consider and compare riders. Adding riders such as accidental death, critical illness and disability cover can provide extra protection. They cover specific risks that the standard policy may not include. However, choose only the riders you actually need. Unnecessary riders can increase your premium without adding much value.

Look for the Grace Period

Missing term insurance premiums beyond the due date may cause your policy to lapse, leaving your family financially vulnerable. However, insurers generally offer a grace period to make the payment and keep the policy active. As per IRDAI, the grace period is 15 days for monthly premiums and 30 days for quarterly, half-yearly or annual premiums. However, before purchasing, you must inquire about the exact grace period.

Consider the Free Look Back Period

If you are not satisfied with your term insurance plan, you can cancel it during the free-look period and choose another policy. As per IRDAI guidelines, insurers generally offer a 30-day free-look period from the date of a policy purchase. If you cancel within this period, the insurer refunds the premium paid, subject to applicable deductions and terms. Therefore, check the free-look period during term insurance comparisons.

Assess Customer Experience

Aside from financial metrics, reviews by existing policyholders or customers also matter when understanding the reliability of an insurer. Whether it is the policy purchase experience, policy servicing or claim settlement, you may check what customers of specific insurers are saying about them. Consistent support throughout a policy tenure is another aspect to consider.

Understand the Claim Settlement Ratio

A claim settlement ratio (CSR) of an insurer represents the percentage of claims an insurer settles throughout a given period. A higher CSR can indicate a stronger track record of settling claims. When comparing insurers, checking this ratio can help you assess the insurer’s claim settlement record and the likelihood of your nominees receiving the policy benefit after a valid claim.

Look for the Solvency Ratio

Aside from CSR, a solvency ratio is more of a financial metric that indicates the capability of an insurer to meet its financial obligations upon claim. A good solvency ratio, therefore, is an indicator that an insurer has enough capital in reserve to honour a claim and complete its payout accordingly.

Select the Right Payout Option

While choosing the best term insurance plan, check the payout options available under the policy. You may choose for your nominee to receive the death benefit as a lump sum, regular income, a combination of both or increasing monthly income, depending on the insurer. If your family relies on your income, a regular payout can help them manage their monthly expenses after your demise.

Review the Smart Exit Benefit

Some insurers offer a Smart Exit Benefit, which allows you to leave the policy after a specific period. Depending on the policy terms, you may receive a partial or full refund of the premiums paid. This feature can be useful if you want more flexibility with a long-term policy. Thus, check the eligibility rules, exit period and other applicable conditions before prioritising a term plan.

How Much Term Insurance Do You Need?

As you compare insurers and insurance policies, you must ensure coverage that can efficiently cover immediate and future expenses of your dependents in your absence. The following are some approaches to estimate your coverage amount when purchasing a term plan:
If you are the sole earner, your family may face a significant financial gap if your income suddenly stops. Income replacement helps bridge this gap through the term insurance payout. A common recommendation is to choose a cover of 10–15 times your annual income. For example, if you earn ₹12 lakh annually, a 10x cover would amount to ₹1.2 crore.

Understanding Term Insurance Coverage with Examples

Your term insurance needs can change as your income, responsibilities and financial goals evolve. The following examples show how different life stages and financial situations can affect the coverage you may need:
Cases Life Stage Suitable Coverage Key Factor Affecting Coverage
Aarav, 25 Young professional earning ₹6 lakh/year ₹6 lakh × 10 = ₹60 lakh With no major liabilities or dependents, Aarav can focus mainly on replacing his future income.
Meera, 32 Newly married, earns ₹12 lakh/year ₹12 lakh × 12 = ₹1.44 crore Her cover needs to account for the financial support her spouse may require in her absence.
Rohan, 41 Parent; earns ₹18 lakh/year + ₹50 lakh home loan ₹18 lakh × 12 + ₹50 lakh = ₹2.66 crore His cover needs to account for the debt that could otherwise pass on to his family.
Priya, 52 Pre-retirement; earns ₹24 lakh/year + ₹30 lakh loan ₹30 lakh loan + ₹40 lakh future expenses = ₹70 lakh Instead of replacing her entire future income, Priya may focus on clearing liabilities and covering her family’s remaining financial needs.

Choose the Right Term Life Insurance Duration

While choosing the right policy duration or tenure, you must aim to ensure that the duration is enough to cover existing and future financial responsibilities. As you factor in your age, future financial expenditures, your children’s educational needs, liabilities, etc., during coverage estimation, you must consider those factors as well.
Your Situation Suitable Tenure Consideration
In your 20s or 30s You may have several working years ahead, so a longer tenure can provide coverage for a larger part of your earning years.
In your 40s or 50s A shorter tenure may be suitable, provided it covers your remaining financial commitments and dependants’ needs.
Have Long-Term Debt Choose a tenure that lasts long enough to cover your financial obligations, such as a home loan with a longer repayment period.
Planning for Retirement If you plan to retire at 60, you may consider coverage that continues until your planned retirement age.
Concerned About Premiums Longer tenures may come with higher premiums. Avoid choosing an unnecessarily long tenure if the premium becomes difficult to afford.

Choose the Right Sum Assured for Your Needs

Compare Term Insurance in India: CSR & Features

Compare term insurance plans from leading providers on our website and find a suitable option with ease. Get reliable support throughout your journey and ensure peace of mind.
Plan CSR Key Features
PNB MetLife Mera Term Plan Plus 99.81% Step-up benefits by increasing coverage by 10% every year
Child education support benefit available
Axis Max Life Smart Secure Plus 99.8% Cover up to 64 types of critical illnesses
Avail the option to choose payout as a lump sum, monthly or a mix of both
HDFC Life Click 2 Protect Ultimate 99.72% Accelerated death benefit for specified terminal illnesses, till 80 years of age
Get an option to receive death benefits in instalments.
Receive 100% of your premiums back upon term survival
Kotak e-Term Plan 99.5% Cover enhancement option at different life stages.
In-built well-being benefit without extra charges.
Flexibility to choose from 3 payout options.
Tata AIA Maha Raksha Supreme Select 99.45% Special discount for salaried individuals on first-year premium.
Option to get 50% of accelerated benefit on diagnosis of terminal illness.
Women policy buyers get a 15% discount on premiums.
ICICI Pru iProtect Smart Plus 99.34% Instant relief of up to ₹3 lakh on claim as an accelerated death benefit
Flexibility to choose payout as a lump sum, monthly or a combination of both
Non-smokers get a special discount on premiums
Bajaj Life eTouch II 99.33% Premium Holiday option available which helps you skip your premiums for 1, 2 or 3 years
Comes with the Return of Premium (ROP) option
Half-yearly, quarterly and monthly premium frequencies are only allowed under auto-debit mode
Aditya Birla Sun Life DigiShield Plan 98.86% Inbuilt terminal illness benefit
Option to avail Survival Benefit upon attaining 60 years of age
Option to cover spouse under the same policy with joint life protection
Bandhan Life iTerm Elite 98.15% Avail up to 17% discount on the first year premium
Option to include homemakers under the policy with ₹50 lakh coverage
Discounted premiums for women
SBI Smart Shield Plus 96.81% 3 options available with level cover, level cover with future proofing and increasing cover benefits
Lower premiums for women policybuyers

What are Riders in Term Insurance?

In term insurance, riders are optional add-ons which help boost your basic insurance coverage and offer additional protection. While purchasing a term plan, considering riders is important as you ensure that you are not just covering the basics but safeguarding against other potential adverse or uncertain life incidents. Riders generally differ between one insurer and another. Therefore, you must compare term insurance plans from different insurance providers and opt for riders accordingly. However, similar to choosing higher coverage or a tenure, you must also keep affordability in mind. As riders provide additional benefits, you must pay for them separately alongside your base premium. Hence, understand the maximum amount you can bear in terms of premium and include riders that you feel you may need instead of including them unnecessarily.

Types of Riders in a Term Insurance Plan

For a clear picture of what are some common types of riders in term insurance, take a look at their description and choose wisely when purchasing a plan:

Accidental Death Rider

This rider generally provides an additional payout alongside a lump sum payment upon claim of a term insurance if a policyholder passes away due to an accident. It can be an ideal choice for individuals whose job roles require travel by road or who are engaged in high-risk jobs.

Critical Illness Rider

Policyholders who include this rider get a lump sum payout if they are diagnosed with a covered ailment. These include terminal diseases, kidney failure, stroke, heart attack, major organ failure, etc.

Waiver of Premium

As its name implies, this rider waives the premium of a policyholder if they become disabled and lose income due to an injury or an illness. This allows the policy and its coverage to remain active without further premium payments. Without this rider, missing premiums could cause the basic policy to lapse.

Income Benefit Rider

This rider helps your dependents with financial benefits in case something happens to you and your regular income stops. If you add this with your term insurance, your family gets a regular income, instead of or alongside the sum assured amount. This payment is generally for a specified time, and you must enquire about it before choosing it.

Hospicare Benefit Rider

The Hospicare Benefit Rider provides a fixed cash amount for each day you are hospitalised. The payout is not linked to your actual hospital bills, so you can use it for additional expenses such as travel, food or income loss during your hospital stay.

Live Well Rider

This rider combines financial protection with wellness benefits. Along with a death benefit, it may cover services such as OPD consultations, preventive health check-ups and other wellness services, as per the policy terms. While you compare term insurance from leading insurers, do not forget to consider riders as per your requirements. With Pluto, you can explore policies with relevant riders and compare the additional protection they offer before finalising your plan.

Factors That Affect Term Life Insurance Premiums

When you purchase term insurance, you must also prioritise premiums since they are tied to your budget. Consider the following factors as they have an impact on the pricing of your policy premiums:
A younger individual (in their 20s or 30s) may enjoy a lower premium for a certain coverage compared to an older individual (in their 40s). This is because younger people generally have lower health risks in comparison to older people. Also, women tend to live longer than men. Therefore, women often pay lower premiums (often around 15%) than men.

Claim Settlement Process in Term Insurance

Understand the claim settlement process of your term insurance plan at the time of purchase and keep your nominees informed. This will help them file the claim smoothly and receive the policy benefits when needed.
  1. 1
    In case of an unfortunate event, your chosen nominee must approach your insurer. They can do it by visiting their official website or dedicated mobile app. A nominee may claim by visiting a physical branch, if available. For hassle-free claim support, you can always trust Pluto! Our claim assistance experts are available 24/7.
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Documents Required for Term Insurance Claim

In the realm of term insurance, required documents generally differ depending on the event that resulted in the demise of a policyholder. Here are some documents you must note that insurers generally ask for in case of an untimely natural and accidental death:

Natural Demise

  • ✓

    In case of a natural demise of a policyholder, their beneficiaries or nominees must produce these documents:

    • Duly filled out original claim form
    • Nominees must submit their proof of identity and relationship with the policyholder
    • Produce the original term insurance policy documents
    • Provide the medical report for cases of demise due to an illness
    • Original death certificate
    • Produce a discharge summary from the hospital for a demise due to an ailment.

Accidental Demise

  • ✓

    In sensitive cases where a policyholder passes away due to a fatal accident, their nominees must produce these documents:

    • A properly filled claim form
    • A First Information Report (FIR) copy obtained from the police
    • A copy of the post-mortem report
    • Produce the original death certificate copy
    • Provide a copy of the statement from the attending doctor
    • Certificate of attendance in medical terms

How Does Term Life Insurance Payout Work?

After you submit a term insurance claim, the insurer verifies the claim and the submitted documents before processing the payout. Understanding these steps can help you know what happens after claim submission and when your nominee can expect to receive the policy benefit.
  • Investigation and Verification Once your appointed nominee submits a claim form, your insurer carries out a thorough verification. They go through the details of the claim form, submit documents and align them with your policy. They may include an investigation to confirm the authenticity of a claim. Depending on the complexity of an incident and policy terms, it may take a few days.
  • Claim Processing Upon successful verification and investigation, your insurance company processes the claim. As per the IRDAI, insurers must process or settle claims within 15 days of claim intimation. However, if a further investigation is needed, your insurer must accept or reject a claim within 45 days of initial intimation.
  • Approval and Payout As your insurer processes the claim, your nominee receives the payment in a lump sum or by other means as mentioned in your policy. If any documents are missing or discrepancies are found, the insurer may request additional information. Once these are resolved, the payout is released as per the policy terms.

Types of Payout Options in Term Insurance

Term insurance plans in India offer different payout options to help your family manage their finances after your demise. Let’s look at the 4 common payout options available:

Lumpsum Payout

The lump-sum payout option is the most common form of term insurance payout. Under this option, the nominee receives the entire death benefit as a single payment. It may be suitable if your beneficiaries can manage a large amount on their own or need a substantial sum for a major expense at a time.

Monthly Payout

Under the regular payout option, the nominee receives the death benefit through fixed payments over a chosen period instead of getting the full amount at once. For example, if the death benefit is ₹1.2 crore and the payout period is 10 years, the amount may be divided into 120 monthly payments of ₹1 lakh each, subject to the policy terms.

Lumpsum with Monthly Payout

The lump sum with monthly payout option combines the two methods mentioned above. The nominee receives part of the death benefit immediately and the rest through regular payments over a fixed period. For example, if the death benefit is ₹1.5 crore, the nominee may receive ₹75 lakh as a lump sum and the remaining ₹75 lakh through monthly payments of ₹1.25 lakh over 5 years.

Increasing Income Payout

This payout option provides a regular monthly income that increases by a fixed percentage or amount every year. It can help your family manage rising living costs over time. For example, if the nominee receives a monthly payout of ₹50,000 in the first year and it increases by 10% every year, they would receive ₹55,000 per month in the second year and ₹60,500 per month in the third year.

How Does Taxation Work in Term Insurance Policies?

Although a standard term insurance does not have a savings component, you can save on taxes under specified sections of the Indian Income Tax Act. Under Section 123 (previously Section 80C), you can claim up to ₹1.5 lakh for the premiums you paid. However, your premiums must not exceed 10% of the sum assured of your policy bought after April 1, 2012. If you have purchased a term plan before this date, your premiums must not exceed 20% of your sum assured. Under Section 11, Schedule 2 of the Income Tax Act 2025 (previously Section 10(10D)), the death benefit that your family receives remains completely tax-free.

Term Insurance Claim Rejection Reasons & Solutions

Aside from understanding term insurance, its benefits, claim process and other components in detail, you must also stay aware of claim rejection scenarios. Noting them helps prevent your nominees from facing last-minute surprises:
  • Undisclosed Information Fully disclose all the information, such as your current medical condition, lifestyle habits, occupational hazards, and details of any existing policy and other required information to your insurer. Undisclosed information may lead to a rejection if detected during a claim.
  • Ignoring Policy Exclusions Understand the exclusions in detail by thoroughly going through the respective brochure before purchase. Purchasing a policy unaware of exclusions can lead to a rejection, as insurers do not cover conditions mentioned in it.
  • Incorrect Nominee Details Carefully appoint the nominee who you decide to receive the death benefit. Provide their accurate personal details, contact number and relationship with them.
  • Policy Lapse Due to Missed Premiums Keep your policy active throughout your chosen term. Missing premiums, even after a grace period, may lead to a policy lapse and hence a rejection.
  • Delayed Claim Intimation Your nominee must inform the insurer about a covered incident immediately. Insurers generally allow a timeframe for this, which they must look for in policy documents or brochures for the applicable period. Planning for the unexpected starts with the right protection. Explore the top leading options and choose one today!

Frequently Asked Questions (FAQs)

Are term insurance riders too expensive?
Riders available with insurers are mostly affordable. However, as they provide added protection, choosing them increases the scope of your base policy and may slightly increase your overall costs for a policy.
Can I add a minor as a nominee in a term plan?
Yes, you may add a minor as a nominee in a term plan. However, you must mention the name and relationship of their legal guardian, as minors cannot legally file a claim on their own.
Is there any minimum income requirement to get a term plan?
No, generally insurers do not mention any income requirement while purchasing such a plan. However, to get proper coverage, you may need to produce a bank statement or salary slip and purchase one.
What are the benefits of riders covering permanent and partial disability?
As unexpected events may lead to a permanent or partial disability, such riders protect your finances. Depending on their terms, these riders may provide coverage for loss of income. Some may waive the premium while keeping your policy active.
Which incidents come under exclusion of the best term life insurance plan in India?
Term insurance covers incidents like an untimely demise due to covered illness, accident or natural causes. However, insurers pay for claims if such incidents happen during the policy term.
Which types of incidents does term insurance cover?
Term insurance covers incidents like an untimely demise due to covered illness, accident or natural causes. However, insurers pay for claims if such incidents happen during the policy term.
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