Term Life Insurance Comparison

Compare term life insurance plans based on key parameters and choose the suitable one to secure your loved ones' future with our term life insurance comparison.
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3 min
10 April 2025

In today’s uncertain world, securing the financial future of our loved ones has become a priority for many. One of the most effective ways to achieve this security is through term insurance. With a plethora of options available in the market, it is essential to conduct a thorough term insurance comparison to ensure you choose the suitable policy that fits your needs. This article will delve into the intricacies of term insurance, discuss why you need it, offer tips on term insurance comparison, and guide you through the process of selecting and purchasing a term insurance plan.

What is a term insurance plan?

Term insurance is a type of life insurance that provides coverage for a specified period or 'term'. If the policyholder passes away during this term, the insurance company pays a death benefit to the designated beneficiaries. Unlike whole life insurance, term insurance does not have a savings component and is typically more affordable. The primary purpose of term insurance is to offer financial protection to the policyholder's dependents in the event of their untimely demise. It is recommended to browse through insurance providers’ official websites for term plan comparison that will help you to choose the suitable term insurance as per your requirements.

Why is term insurance important?

Term insurance is one of the simplest and most affordable ways to protect your family’s future. It provides a large financial cover at a low premium, ensuring your loved ones can maintain their lifestyle and meet important goals like education, loan repayment, or daily expenses if something happens to you. The peace of mind that comes from knowing your family will stay financially stable makes term insurance an essential part of every financial plan. Plus, it offers tax benefits under Section 80C, making it both a smart and secure choice for long-term protection.

Term insurance plans comparison: Features, benefits and options

Here’s a quick term life insurance comparison to help you choose the right protection plan. This term plan comparison highlights key features, benefits, and flexibility options available with our plan and others in the market.

Feature / benefit

Term insurance plan

Standard term plan

Comprehensive term plan with riders

Coverage amount

Up to Rs. 2 crore, flexible as per income and needs

Fixed sum assured

Higher coverage with rider benefits

Premium payment options

Regular pay, limited pay (5, 10, or 15 years), single pay

Regular pay only

Regular and limited pay options

Policy tenure

10 to 85 years of age

10–70 years of age

Up to 80 years with lifelong coverage option

Critical illness rider

Available (covers 30+ illnesses)

Limited or optional

Included with wider coverage scope

Accidental death cover

Additional payout up to Rs. 1 crore

Not always included

Usually included

Return of premium option

Available (refunds all paid premiums on survival)

Not available

Available in select plans

Tax benefits

Deductions under Section 80C and 10(10D)

Section 80C only

Section 80C and 10(10D)

Ideal for

Families seeking flexibility, long-term value, and tax savings

Basic protection seekers

Individuals wanting all-round coverage


Compare features carefully before you buy. Use term life insurance comparison tool to find a plan that suits your financial goals and get personalised premium quotes in minutes!

How does term insurance work?

Here is a breakdown of how a term insurance plan works:

  • Policy purchase:
    You choose a sum assured (the amount your nominee gets if you pass away) and select a policy term, paying a fixed premium regularly.
  • Premium payment:
    Premiums can be paid monthly, quarterly, or annually, depending on the policy. They are generally lower than other life insurance plans.
  • Coverage period:
    The policy covers you for the agreed period (say 10, 20, or 30 years). If you survive the term, there is no payout (except in Return of Premium plans).
  • Claim settlement:
    If you pass away during the policy term, the insurance company pays the sum assured to your nominee, helping your family meet financial obligations.
  • Riders and add-ons:
    You can enhance the policy with riders like accidental death, critical illness, or disability cover for broader protection.
  • No maturity benefit:
    Unlike some other insurance products, term plans typically don’t offer a maturity payout if you outlive the policy term.

Why should you require a term insurance plan?

Term insurance serves as a financial safety net for your family and dependents. Here are several compelling reasons to consider purchasing a term insurance plan:

  • Financial security: Ensures that your family is financially protected and can maintain their standard of living in your absence. With a term insurance plan, your dependents receive a lump sum amount that can help them cover daily expenses, medical bills, and future financial goals. When conducting a term insurance comparison, you will find that plans vary in coverage amounts, so choosing the right one ensures complete security for your loved ones.
  • Debt repayment: Helps cover any outstanding debts such as mortgages, loans, or credit card bills. Many families struggle with unpaid debts in the absence of a primary earner. A term insurance plan ensures that liabilities do not become a financial burden on your family. When comparing different policies, check how well they cover existing and future debts as part of your term insurance comparison.
  • Child’s education: Provides funds for your children's education and future needs. Higher education costs are continuously rising, making it essential to plan ahead. A well-chosen term insurance plan or a child plan ensures that your children can pursue their dreams without financial constraints. When performing a term insurance comparison, look for policies that allow flexibility in payouts to support education expenses at crucial stages.
  • Affordable premiums: Lower premiums make it accessible and affordable for most individuals. Compared to other life insurance products, term insurance offers high coverage at a relatively low cost. With the right term insurance comparison, you can find policies that provide maximum benefits within your budget, ensuring long-term affordability while securing your family's future.
  • Peace of mind: Offers peace of mind knowing that your loved ones are protected against financial hardships. Life is unpredictable and having a term insurance policy provides reassurance that your family will not struggle financially in your absence. By conducting a detailed term insurance comparison, you can select a policy that best aligns with your financial planning and coverage needs.

Pro Tip

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Key benefits of comparing term insurance plans

By comparing term insurance plans before buying you can:

  • Better coverage options: By comparing term insurance policies, you can explore various sum assured options, policy terms, and riders, ensuring your family’s needs are met effectively.
  • Affordable premiums: Comparing term insurance policies helps you find the most affordable premium rates that suit your budget while offering the best value for money.
  • Additional features: Some insurers offer add-on benefits like critical illness or accidental death riders; comparing term insurance policies helps you pick one with the best add-ons.
  • Claim settlement ratio: Checking and comparing term insurance policies allows you to choose an insurer with a higher claim settlement ratio, ensuring a smooth claims process.
  • Flexibility in payment options: When comparing term insurance policies, you can select a policy that aligns with your preferred premium payment frequency and method.

Tips for term insurance plan comparison in 2025

Choosing the right term insurance plan involves careful consideration of several factors during term life insurance comparison. Here are some tips to help you effectively compare term insurance plans:

  • Coverage amount: Determine the adequate sum assured based on your income, liabilities, and future financial goals. A well-chosen coverage amount ensures that your family can maintain their current lifestyle and meet essential expenses such as daily living costs, loan repayments, and long-term financial goals. When conducting a term plan comparison, consider inflation and your family’s expected financial needs to ensure adequate protection.
  • Policy term: Choose a policy term that aligns with your financial responsibilities and dependents' future needs. Selecting an appropriate duration ensures that your loved ones remain protected until all major financial obligations—such as loans, children’s education, and retirement planning—are fulfilled. During a term plan comparison, assess how long the coverage is required to provide the best security for your family.
  • Premiums: Compare the premiums for different policies with similar benefits. While affordability is crucial, it is essential to find a balance between cost and coverage. A detailed term plan comparison helps you identify policies that offer high coverage at competitive premiums. Look for insurers providing discounts for non-smokers, salaried individuals, or online policy purchases.
  • Riders and add-ons: Consider additional riders like critical illness cover, accidental death cover, and waiver of premium. Riders enhance your base policy by offering extra financial protection against unforeseen circumstances. When you compare term insurance plans, evaluate the necessity and cost of these add-ons to ensure they align with your specific requirements.
  • Claim settlement ratio: Check the insurer’s claim settlement ratio to gauge their reliability in processing claims. A high claim settlement ratio indicates the insurer’s efficiency in settling claims without unnecessary delays. As part of your term plan comparison, prioritise insurers with a strong track record to ensure your family won’t face difficulties when making a claim.
  • Exclusions and limitations: Understand the exclusions and limitations of each policy. Every term insurance plan has specific conditions under which the claim may not be honoured. Carefully reviewing these exclusions during a term plan comparison helps prevent future disputes and ensures clarity about what is covered and what is not.

Know the different types of term insurance plans

Understanding the various types of term insurance plans available can help you compare term insurance plans and choose one that best fits your needs. Here’s a breakdown of the common types:

  • Level term insurance: Provides a fixed sum assured and fixed premiums throughout the policy term. Ideal for individuals seeking straightforward coverage with consistent premiums.
  • Increasing term insurance: The sum assured increases at specific intervals during the policy term, while premiums may also increase. Suitable for those expecting their financial responsibilities to grow over time.
  • Decreasing term insurance: The sum assured decreases over the policy term, typically in line with decreasing liabilities like a mortgage. Best for individuals whose financial obligations reduce over time, such as repaying a loan.
  • Return of premium term insurance: These plans offer return of premium option on term insurance if the policyholder survives the term. Ideal for those who prefer a maturity benefit and are willing to pay higher premiums.
  • Convertible term insurance: Allows policyholders to convert their term insurance into a permanent life insurance policy without a medical examination. Good for individuals who may want to switch to a permanent policy in the future.
  • Group term insurance: Offered to a group of people, such as employees of a company, providing coverage under a single policy. Beneficial for employers to provide life insurance to their employees at a lower cost.

How to get a term insurance plan?

Getting a term insurance plan involves several steps to ensure you select the right policy for your needs. Here’s a step-by-step guide:

  • Assess your needs: Evaluate your financial responsibilities, dependents, and future goals to determine the coverage amount and policy term.
  • Research and compare: Use online tools and resources to compare different term insurance plans based on coverage, premiums, benefits, and customer reviews.
  • Select the right insurer: Choose a reputable insurer with a good claim settlement ratio and positive customer feedback.
  • Customise your policy: Add relevant riders and customisations to your policy to enhance coverage as per your specific needs.
  • Apply for the policy: Fill out the application form accurately, providing all necessary personal and medical information.
  • Undergo medical examination: Complete any required medical examinations to assess your health status, which may influence the premiums and coverage.
  • Review the policy document: Carefully review the policy document to understand the terms, conditions, exclusions, and benefits.
  • Make payment: Pay the initial premium to activate the policy. Ensure you understand the payment frequency (monthly, quarterly, annually).
  • Nominate beneficiaries: Designate the beneficiaries who will receive the death benefit in case of your demise.
  • Regularly review your policy: Periodically review your policy to ensure it continues to meet your needs as your financial situation changes.

Deciding between high premium and high coverage in term insurance

Choosing between a high premium or high coverage plan depends on your financial goals, responsibilities, and current income. Making the right decision requires understanding what each plan offers and how it fits into your long-term security. Here is a quick term life insurance comparison to help you choose wisely:

Factors to consider while comparing premium and coverage:

  • Financial stability – Opt for higher coverage if your income can comfortably support a slightly higher premium.
  • Family responsibilities – If you have multiple dependents, higher coverage offers better security.
  • Policy term and age – Younger individuals can get higher coverage at lower premiums.
  • Health conditions – Healthier individuals can benefit more from high coverage plans.
  • Budget flexibility – High premium plans may include additional benefits, so evaluate if those are valuable to you.

Compare term insurance plans by age

Your age plays a big role in how much you pay for term insurance and the coverage you get. The younger you are, the lower your premium—because insurers see you as less risky. Let’s look at how coverage and premiums differ across age groups.

Age group

Average coverage

Approx. annual premium (Rs. 1 crore cover)

Recommended plan type

Why it’s ideal

25–35 years

Rs. 1–2 crore

Rs. 8,000–Rs. 12,000

Long-term plan (up to 40 years)

Best time to lock low premiums for high coverage.

36–45 years

Rs. 1–1.5 crore

Rs. 15,000–Rs. 22,000

Plan with riders (like critical illness)

Balances affordability and family responsibilities.

46–55 years

Rs. 50 lakh–Rs. 1 crore

Rs. 28,000–Rs. 45,000

Limited pay term plan

Ideal for those nearing retirement.

56–65 years

Rs. 25–Rs. 75 lakh

Rs. 55,000–Rs. 90,000

Senior citizen term plan

Shorter coverage for protection during retirement.


Buying early means long-term savings and stable coverage throughout your career.

Term insurance comparison for smokers and non-smokers

Lifestyle choices affect premiums too. Insurers charge higher premiums for smokers due to increased health risks. However, many plans now offer fair pricing and transparency for both categories.

Category

Coverage options

Premium range (Rs. 1 crore cover)

Rider options

Ideal choice

Non-smokers

Rs. 50 lakh–Rs. 2 crore

Rs. 8,000–Rs. 15,000

Critical illness, accidental death

Low-cost plans with wide coverage.

Smokers

Rs. 50 lakh–Rs. 1.5 crore

Rs. 18,000–Rs. 30,000

Health and disability riders

Plans with flexible tenure and add-ons.


Always disclose smoking habits honestly—non-disclosure may lead to claim rejection.

Term insurance comparison based on riders and add-ons

Riders enhance your base term plan by adding extra protection for specific situations like illness or accidents. They make your plan more comprehensive and tailored to your life stage.

Rider / Add-on type

Coverage offered

Ideal for

Average additional premium

Key benefit

Critical illness rider

Covers 30–40 major diseases

All age groups

Rs. 2,000–Rs. 5,000

Lump sum payout for medical costs.

Accidental death cover

Extra payout for accidental demise

Working professionals

Rs. 1,000–Rs. 3,000

Financial cushion for dependents.

Waiver of premium

Waives future premiums after disability

30–50 years

Rs. 800–Rs. 2,000

Keeps policy active during financial hardship.

Return of premium

Refund of all paid premiums on survival

35+ years

Rs. 5,000–Rs. 10,000

Blends protection with savings.


Choose riders that align with your health risks and lifestyle instead of adding all by default.

Term insurance comparison by premium payment term

How long you pay your premiums can impact your cash flow and overall convenience. Some prefer paying regularly, while others like finishing payments early with limited-pay options.

Payment Option

Payment Duration

Policy Coverage Period

Best For

Key Advantage

Regular Pay

Throughout policy term

Same as policy term

Salaried individuals

Budget-friendly, evenly spread cost.

Limited Pay

5, 10, or 15 years

Longer coverage (till 80–85 years)

Pre-retirees

Finish payments early, stay covered longer.

Single Pay

One-time payment

10–30 years

Investors or NRIs

One-time hassle-free payment.


A limited pay plan is ideal if you want to complete payments before retirement and enjoy long-term peace of mind.

Term insurance comparison based on policy duration

The duration of your policy should match your financial responsibilities—like home loans, children’s education, or income replacement goals. Longer tenures offer extended peace of mind, while shorter ones suit specific goals.

Policy Duration

Coverage type

Ideal for

Premium range (Rs. 1 crore cover)

Why Choose It

10–20 years

Short-term coverage

People nearing retirement

Rs. 10,000–Rs. 25,000

Covers short-term liabilities.

20–30 years

Medium-term plan

Mid-career professionals

Rs. 12,000–Rs. 30,000

Protects until children become financially independent.

40+ years / till age 85

Long-term protection

Young professionals

Rs. 15,000–Rs. 35,000

Locks in low premiums early and ensures lifelong security.


Always align your policy duration with your long-term financial goals for consistent protection and peace of mind.

Factors to consider when comparing term insurance

When comparing term insurance, it’s essential to evaluate key factors to make sure you select a plan that suits your financial goals and family’s needs. Let’s look at the most important factors you should consider when comparing term insurance plans:

  • Sum assured: The amount paid to your nominee in case of your demise. Always choose a sum assured that can adequately cover your family’s financial needs.
  • Premium affordability: Compare premium amounts across plans to find an option that fits your budget without compromising on essential features.
  • Claim settlement ratio: Look for insurers with a high claim settlement ratio, as it indicates reliability and a better chance of hassle-free claim processing.
  • Riders and add-ons: Check the availability and cost of additional riders like accidental death, critical illness, or disability for extra protection.
  • Policy term flexibility: Compare plans offering varied policy terms to align with your future financial responsibilities and goals.
  • Exclusions and conditions: Understand policy exclusions to avoid surprises during claim settlement. Reviewing terms carefully is crucial when comparing term insurance plans.

Conclusion

Term insurance is a vital component of a comprehensive financial plan, providing essential protection for your loved ones in the event of your untimely demise. Conducting a thorough term insurance comparison is crucial to finding the policy that best fits your needs and financial goals. By understanding the different types of term insurance plans, assessing your requirements, and carefully comparing policies, you can make an informed decision that ensures your family’s financial security. Remember, the right term insurance plan offers peace of mind, knowing that your loved ones are safeguarded against financial uncertainties. Make sure to regularly review your policy to keep it aligned with your evolving financial responsibilities and goals.

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Frequently asked questions

Which is the best insurance company to get term insurance?
The best insurance company for term insurance varies based on individual needs, including coverage requirements, premium affordability, customer service, and claim settlement ratio. It is essential to research and compare multiple insurers, considering factors like financial stability, customer reviews, and policy features, to find the most suitable option.
How can I pay for term insurance?
Term insurance premiums can be paid through various methods, including online banking, credit/debit cards, auto-debit from a bank account, or via physical payment at an insurer’s branch. Payment frequencies can also vary, offering options like monthly, quarterly, semi-annual, or annual installments.
When is the ideal time to purchase term insurance?

The optimal age to buy term insurance is in your 20s or early 30s. At this stage, premiums are typically lower, and you can secure comprehensive coverage for a longer duration.

What are the different payout options available in term life insurance?

Term life insurance offers payout options like a lump sum, monthly income, or a combination of both. Some plans also provide increasing income benefits to help dependents manage expenses.

Which term insurance provider has the highest claim settlement ratio?

Insurers with high claim settlement ratios indicate reliability in paying claims. It’s best to check the latest IRDAI reports to find the provider with the highest ratio.

Is it advisable to have more than one term insurance policy?

Yes, having multiple term insurance policies is allowed and can be beneficial. It helps diversify risk, ensures better coverage, and offers flexibility in claim settlements based on different life stages or financial needs.

What documents are needed to buy term insurance?

For a term life insurance comparison, most insurers require a valid ID proof (like a passport), address proof, income documents (salary slips or tax returns), and medical reports. These documents help insurers evaluate eligibility and set appropriate premiums.

What if I miss paying my term insurance premium?

When doing a term plan comparison, note that if you miss a premium payment, insurers typically offer a grace period (usually 15-30 days). After this, the policy may lapse, and coverage could stop. It’s crucial to pay on time to avoid losing benefits.

How does adding riders like critical illness or accidental death affect my term insurance?

Adding riders like critical illness or accidental death enhances your term insurance by offering extra financial protection for unexpected events. While it increases the premium slightly, it provides comprehensive cover and ensures peace of mind for you and your family.

What is the difference between regular and limited premium payment options?

In a regular premium plan, you pay premiums throughout the policy term, while in a limited pay option, you pay for a fixed period (like 5, 10, or 15 years) but enjoy coverage for a longer duration—ideal for those nearing retirement.

Does term insurance cover death due to natural calamities or pandemics?

Yes, term insurance covers death caused by natural calamities or pandemics unless specifically excluded in the policy. Insurers generally honour such claims, ensuring your family receives financial support even in widespread emergencies like floods, earthquakes, or global health crises.

How does age affect term insurance premiums?

Age significantly impacts your premium—buying young means lower costs and longer coverage. As you age, health risks increase, leading insurers to charge higher premiums. That’s why experts recommend purchasing term insurance early to lock in affordable rates and ensure lasting financial security.

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*T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Life Insurance Limited (Formerly known as Bajaj Allianz Life Insurance Company Limited), HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj General Insurance Limited(Formerly known as Bajaj Allianz General Insurance Company Limited), SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited, Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure & policy wordings carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also distributor of other third party products from Assistance service providers such as CPP Assistance Services Private Limited, Bajaj Finserv Health Limited. etc. All product information such as premium, benefits, exclusions, value added services etc. are authentic and solely based on the information received from the respective Insurance company or the respective Assistance provider company.

Note- While we have made all the efforts and taken utmost care in gathering precise information about the products, features, benefits etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective products sales brochure and policy/membership wordings before concluding sales.