Term insurance

You must be between 18 and 65 years old. Insurance companies will also conduct a medical examination or make you sign a declaration about your health condition. You should also be an Indian resident or citizen.

Yes, term insurance is an affordable way to provide financial security to your loved ones in case of your untimely death. It offers high coverage at low premiums.

Term insurance costs depend on age, health, coverage amount, and policy term. For example, a 1 crore term plan for a young adult starts at a few thousand rupees per year.

The best age to buy is in your 20s or 30s. The earlier you buy a term plan, the lower your premium will be.

The right choice depends on your financial goals as well as your budget. If you need high coverage, such as a 1 crore sum assured, at an affordable price, a term plan is the better choice. This is because traditional life insurance plans, such as endowment or money-back policies, come with higher premiums. But if you are comfortable paying those higher premiums, then a traditional plan can also be a good choice.

Many life insurance companies offer term insurance for senior citizens; however, the premiums are often high, and the coverage is limited.

No. Term insurance does not build up any cash value. It is purely designed to provide financial protection to the surviving dependents.

Yes, you may still need a term plan in your 50s or 60s if you have dependants, ongoing loans, or future financial commitments. You can still buy many term plans at this age, but premiums are higher and term plan options may be fewer.

Yes. Many insurance companies in India allow you to buy term insurance plans online. The process is simple and often gives you lower premiums than offline options.

Smokers face a higher risk of health problems, and because of this added risk, insurance companies charge a higher premium.

A claim settlement ratio refers to the percentage of total claims an insurance company has successfully settled in the past. A higher ratio generally indicates that the insurer is more reliable in paying claims.

 Some of the common terms include Sum Assured, Premium, Policy Term (Duration), Beneficiary, Grace Period, Riders, Maturity Benefit, and Death Benefit.

A term plan provides your family with financial security at an affordable price. It ensures they have the money they need to manage expenses and stay financially stable if you are not there to support them.

The coverage amount for a term life insurance policy should be guided by your financial obligations and goals. However, a general thumb rule is to buy coverage that is 15-20 times your annual income.

​​The premium of term life insurance is calculated based on a number of factors such as age, gender, health status, desired coverage amount, policy term, and lifestyle.

Yes, term insurance policies offer tax benefits under Sections 80C and 80D of the Income Tax Act, 1961. The death benefit is also tax-free under Section 10(10D).

Yes. Premiums for women are often lower than for men because women have a higher life expectancy based on statistical data.

Term Life Insurance policies generally exclude death because of intentionally self-inflicted injuries before the completion of the waiting period, death due to venture into hazardous activities (related to adventure sports or other unlawful activities), death due to abuse of drugs or alcohol and pre-existing conditions, meaning when death is linked to undeclared pre-existing medical conditions.

Yes, it covers death caused by illness, old age, or other natural causes as long as the policy is active and all premiums have been paid.

A critical illness rider in term insurance gives you an extra payout if you are diagnosed with a serious illness covered under the policy, such as cancer or a major heart condition.

Terminal illness in term insurance refers to a condition where the policyholder is expected to live for only a limited time, usually 6 to 12 months. In such cases, many plans allow an advance payout of the sum assured to help with medical or other expenses.

The purest form of term insurance is a basic term plan. It offers only life cover with no savings or investment component. Thus, it gives high protection at a low premium.

Yes, term insurance heavily depend on your salary, as insurers use your income to decide the maximum coverage you can get.

Yes, term insurance generally covers accidental death as long as the policy is active. Some plans also offer an optional accidental death rider for extra payout.

A minor without a legal guardian and anyone who cannot be legally identified or verified cannot be a nominee. In most cases, nominees are close family members like a spouse, parents, or children.

Yes, adding riders usually increases the premium because they provide extra benefits and additional coverage.

The main documents needed to file a term insurance claim include the death certificate, the claim form, the policy document, and identity and address proof of the nominee. In some cases, medical records or a hospital summary may also be required.

You should choose a nominee you trust and who can handle money responsibly. A nominee can be your spouse, son, daughter, or any trusted close family member who understands your wishes. If you choose a minor, you will also need to appoint a legal guardian.

You should always check the coverage amount, premium, claim settlement ratio, policy term, riders, and the insurer’s reputation. Make sure the plan is suitable for your family’s financial needs and your budget.

Your nominee must inform the insurer, fill out the claim form, and submit required documents such as the death certificate, policy details, and identity proof. The insurer will then review the claim and release the payout.

No, you generally do not get money back in a term insurance plan. It only pays out the sum assured if the policyholder passes away during the policy term.

A term plan offers strong financial protection at a low cost. You can also add riders for extra cover based on your needs. Overall, it gives your family a large payout if something happens to you.

The list of documents needed to apply for term life insurance is almost the same: proof of identity, proof of residence, proof of income, and a self-attested copy of your passport. The insurer may also require additional documentation, such as a valid visa or proof of address outside of India. It’s best to confirm these details with your insurer before leaving India.

Premiums are primarily based on your age, health, lifestyle and the amount of coverage you want. However, a few insurers may adjust rates slightly depending on your country of residence.

To insurers, “smoker” means not just someone who smokes cigarettes. It includes someone who consumes any form of nicotine. This includes cigarettes, cigars, pipes, chewing tobacco, gutka, paan masala, electronic cigarettes, and any other form of consumption of nicotine