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A term insurance policy is a type of life insurance that provides coverage for a specific period of time, also known as the "term. If the policyholder dies during the term, the policy will pay a death benefit to the beneficiary. If the policyholder does not die during the term, the policy will expire and will not pay a benefit.
Term insurance is one of the most popular types of insurance scheme in the market. A term insurance plan provides protection in the form of financial assistance to your family. It pays a certain sum to take care of your family’s financial needs in case of your unfortunate demise.
Term insurance Policy is an insurance built to protect your family in case of your untimely death.
The most important reason to buy term insurance plan is for your family’s future.
You may never know what will happen to you in the future. But you can prepare for it. Do it with a term insurance plan and give yourself peace of mind and your family a stress-free life.
Take a minute to think about this question-
Are you the sole breadwinner of your family? What would your family do if something were to happen to you soon? What about your child’s education and future? How will your family survive in your absence?
This is where a term insurance plan will come to your rescue!
Here are five reasons why a term plan is essential:
Still, confused? Call us on our Toll-Free number at 022 4897 1018 and let us handle the rest.
If you are looking for the best term plan in India, look no further. You can get all of these term insurance plans mentioned below, online on Coverfox . Do check us out today.
Note: The following information has been sourced from the official website of the respective insurers.
A 1 Cr term insurance premium will be 10,000 at 25 & may become 20,000 at 35. Younger you are, the less you pay.
In term insurance, your premium remains the same throughout the policy period. Hence, buying term insurance while you’re young saves money.
There’s no guarantee to life. We may fall prey to accidents or may have heart attacks or cancer. If this happens, your family will be secured after you pass away due to the 1 Cr amount.
As you get old, your premium gets doubled. Secondly, if you get diagnosed with any critical disease, you won’t get a term insurance policy.
Just like every other insurance plan, there are different variants of term insurance. Each is unique with its own set of features and benefits. But the underlying death benefit payout remains the same.
In case of your death, the sum assured will be paid to your family members. No maturity and survival benefit.
You get back all of the premium paid in case you survive till the end of the policy period.
Similar to a standard term insurance plan with the cover regularly increasing by a specific percentage, usually 5%-10% of the original cover annually.
Under this policy, your life cover decreases on an annual basis at a specific percentage.
You have an option to convert your standard term policy into an endowment savings plan or a whole life insurance policy.
You can cover yourself and your spouse. In case of death of anyone, the surviving partner will receive the death benefit.
It covers all the members employed by a company. You will lose this benefit once you resign.
The Indian Government has taken multiple steps to ensure the financial security of the people and their dependents. These plans are also known as Government-sponsored social security schemes.
Online comparison of term insurance will help you determine the right policy as per your financial budget and capacity. With Coverfox, you can make the best out of this opportunity. Once you have entered your necessary details on the website, our super-smart algorithm will do all the hard work for you. You can sit back and compare multiple plans and their features on a single page altogether, and buy your favourite plan in under 5 minutes.
Here is the comparison of a few term insurance plans:
| Best Term Insurance Plan | Age at Entry | Sum Assured | Policy Term |
|---|---|---|---|
ICICI Pru iProtect Smart |
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Aegon iTerm Plan |
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HDFC Click 2 Protect Plus |
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Max Life Term Insurance Plus |
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LIC’s e-Term Plan |
| Term Insurance Plans | Claim Settlement Ratio |
|---|---|
| Tata AIA Life Insurance | |
| SBI Life Insurance | |
| Reliance Nippon Life Insurance | |
| Birla Sun Life Protector Plus plan | |
| PNB Metlife Insurance Company | |
| Life Insurance Corporation of India | |
| Kotak Life Insurance Company | |
| India First Life Insurance Company | |
| IDBI Federal Life Insurance Company | |
| ICICI Prudential Term Insurance Company | |
| HDFC Life Insurance Company | |
| Future Generali Life Insurance | |
| Edelweiss Life Insurance | |
| Canara HSBC OBC Life Insurance | |
| Bharti AXA Life Insurance Company | |
| Bajaj Allianz Life Insurance | |
| Aditya Birla Sun Life Insurance | |
| Aviva Life Insurance Company | |
| Aegon Life Insurance Company |
Disclaimer: The above information has been sourced from the Insurance Company's Website.
Last updated on November 2024
The most important reason to buy term insurance plan is for your family’s future.
To help you make the best decision possible, we at Coverfox have created a list of things you should consider before getting a term insurance plan. Read more about it here:
Buying a term policy is half the battle won. You and your family members need to be completely aware of the term insurance claim process . At Coverfox, we have a dedicated customer service and nominee assistance team. We want you to get the best outcome from your term plan in a hassle-free manner.
In case of the policyholder's unfortunate demise, the family members/beneficiaries/nominees must inform the insurance company as soon as possible. Delaying things will only make it difficult during the time of claim settlement. You can do the same via:
For details on claims info, connect with our experts.
Once you have submitted the application form and the relevant documents , the insurer will thoroughly investigate and approve the same. Post verification, the claim will be processed.
Once the claim has been successfully processed, the payout will be directly transferred to the beneficiary's bank account.
There are certain instances which are not entertained by any term insurance provider, do keep an eye out for these:
The duration of life cover cannot be changed once the policy is issued.
Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy.
Yes, term insurance pays when there is an accidental death claim.
Most term life insurance policies provide cover until the policyholder reaches the age of 60 – 80 years.
You may be an occasional smoker, but if you have smoked in the last 12 months, then you must declare yourself as a tobacco user. If information is withheld and later revealed to the insurer, there are chances that they may charge an increased premium amount. There is also the possibility that the policy may be considered null and void, and the company may deny the policy benefits.
Yes, you can claim term insurance from two companies, provided you have disclosed complete details of the previous policy to the other insurer, from whom you have taken the second policy. This is beneficial in case one company rejects the settlement claim, as you have a second option for making a claim settlement.
Bajaj Allianz Life Secure, HDFC Click 2 Protect 3d Plus and Aegon Life iTerm are few of the term insurance plans that provide coverage up to the age of 100 years. PNB MetLife Mera Term Plan offers users coverage up to the age of 99 years. It must be noted that while the maximum age for which coverage is provided by the above term insurance plans is similar, their features, benefits and costs differ.
The duration of a term insurance plan should be determined mainly on the basis of when one thinks it is possible to achieve life’s major financial goals. If an individual can accomplish that in, say about 10 years, he or she can opt for a policy period of 10 years. Another factor that users need to keep in mind is the existing liabilities (in case there are any). If the individual has a home loan for 20 years, then it is recommended that the duration of the term insurance cover be at least 20 years.
Ideally, everyone should buy a term plan. However, if you are the sole breadwinner or are contributing to the family's income, then you must purchase a term plan. Nevertheless, the below mentioned people should definitely buy a term plan:
Anyone and everyone one who does want to see their loved ones struggle to maintain their standard of living after the loss of the earning family member must buy a Term Insurance Plan. It is most apt for people falling under the below mentioned profiles.
Yes, death due to health complications arising out of Coronavirus / COVID-19 is covered under term insurance plans offered by ICICI Pru Life Insurance and all other life insurance companies.
All term insurance plans have different age limits, while the minimum age for buying a term plan is 18 years, the maximum varies as per the insurer, plan options and other criteria.
Bajaj Allianz Life Secure, HDFC Click 2 Protect 3d Plus and Aegon Life iTerm are few of the term insurance plans that provide coverage up to the age of 100 years. PNB MetLife Mera Term Plan offers users coverage up to the age of 99 years. It must be noted that while the maximum age for which coverage is provided by the above term insurance plans is similar, their features, benefits and costs differ.
For buying a term insurance plan you have to provide basic KYC Documents, which includes the Residence Proof, Address Proof, Latest Photograph and Income Proof documents (if required) like salary slips, Forms 16 and Income Tax Assessment for the last 2 to 3 years.
Yes, you can buy 2 or more term insurance plans if you satisfy the underwriting criteria set by a life insurance company. Be sure to inform the insurance company that you already have a life insurance plan and are proposing to buy a second term plan.
Yes, you can insure your parent’s life with an insurance plan. The insurer will check the presence of insurable interest, i.e. if your parents are working and earning income to contribute towards the family’s total income.
LIC Tech Term Plan is a non-linked, non-participating online pure risk term insurance plan. It provides financial security to your family in the event of your demise during the policy period. However, if the policyholder survives the term of the insurance plan, no benefits are payable. LIC’s Tech-Term plan can only be availed via the online application process. You can check the complete plan details on Coverfox by visiting the dedicated LIC Tech Term Plan page.
There are four types of term insurance plans are:.
Any person who has dependents and financial obligations to be fulfilled like supporting the family, paying off loans, debts, etc., must buy a term insurance plan without fail. People like Young Professional, Newly-Married, Parents, Working Women, Borrower/Debtor need life insurance with the utmost priority.
Yes, a term insurance plan is the best thing to invest in to ensure that your family can continue living happily even after your demise. You can ensure they can continue the same life even after your death through a term insurance plan.
This depends on your insurance needs. If you are looking for protection needs, you must invest in a term insurance plan without fail. If you are looking at creating wealth or leaving a legacy for your loved ones on your death, you can invest in a whole life insurance plan.
