How is the premium for a term insurance plan determined?

The premium for a term insurance plan is based on factors such as the life assured’s age, health, sum assured, policy tenure, and lifestyle habits (e.g., smoking). Insurers also consider the life assured’s medical history and occupation to assess the overall risk and calculate premiums.

What happens if my term insurance plan matures and I survive the term?

If you outlive your term insurance plan, no maturity benefit is paid since it only covers the policyholder's death during the term. Some plans offer return of premium options, but this may come at a higher cost.

Are term insurance payouts taxable?

In most cases, the death cover received by the nominee is tax-exempt under Section 10(10D) of the Income Tax Act, subject to applicable conditions. Premiums paid towards the policy may also qualify for tax deductions under Section 80C of the Income Tax Act 1961 / Section 123 of the Income Tax Act 2025.

Can senior citizens purchase term insurance?

Yes, senior citizens can buy term insurance plans, but the eligibility criteria and premiums vary by insurer. Some policies may have age limits, and premiums tend to be higher for older applicants.

Is it possible to have multiple term insurance policies?

Yes, there is no restriction on owning multiple term insurance policies. Many people buy additional coverage as their responsibilities increase over time. Just make sure you disclose your existing policies when applying for a new one.

What types of death are covered under term insurance?

A term life insurance policy generally covers deaths due to natural causes, illnesses, and accidents. However, deaths due to suicide within the first policy year and illegal activities may not be covered.

Why do smokers pay higher premiums for term insurance?

Smoking increases the risk of several health conditions, including heart and lung diseases. Since insurers consider smokers to be higher-risk applicants, their premiums are usually higher than those of non-smokers.

Which is better – LIC or a term insurance plan?

LIC offers different types of life insurance products, including term plans. If your priority is high coverage at an affordable cost, a pure term insurance plan, whether from LIC or another insurer, is often more cost-effective than traditional savings-oriented plans.

Can a joint term insurance plan be taken by two individuals?

Yes, spouses can opt for a joint term plan that covers both lives under a single policy. It offers cost savings and is ideal for couples with shared financial responsibilities and dependents.

Who is not eligible to be a nominee in term insurance?

Individuals without an insurable interest—such as casual friends or distant acquaintances—typically cannot be nominees. Nominees should ideally be close family members like spouse, children, or parents to ensure claim acceptance.

Is it possible to extend a term life insurance policy?

Some insurers allow renewal or conversion to a permanent policy at term-end. However, it depends on the plan. Always check your term policy terms before the expiry to explore available extension or conversion options.

Can I increase my term insurance cover in the future?

Yes, many insurers allow you to enhance your term insurance cover later, especially during major life events like marriage or childbirth. However, the increased coverage may lead to a higher premium after reassessment of your profile.

Are term insurance premiums refundable?

In a standard term plan, premiums are non-refundable. However, if you opt for a “return of premium” plan, you’ll get back all premiums paid if you survive the policy term.

Can I convert my term insurance into a whole life policy?

Some term insurance plans offer a conversion feature that allows you to switch to a whole life or permanent life insurance plan later without a new medical test. Check your policy terms for eligibility.

Does term insurance cover accidental death?

Yes, term insurance covers death due to accidents. Additionally, you can add an accidental death rider to get an extra payout, providing higher financial security for your family.

What is family term insurance and how does it work?

A family term insurance plan covers multiple members under one policy, usually the primary earner and dependents. It ensures financial protection for the entire family at affordable combined premiums.

Does a term insurance plan include coverage for accidental death?

Yes, a term insurance plan typically covers death due to accidents as well as natural causes. Additionally, you can enhance your term insurance policy with an accidental death rider for higher payout in such cases.

What is family term insurance and how does it function?

Family term insurance is a term insurance plan designed to cover multiple family members under one policy or provide financial protection for dependents. It ensures a payout to the nominee, helping the family manage expenses and maintain financial stability.

Are NRIs eligible to buy term insurance in India?

Yes, NRIs can buy term insurance in India, subject to insurer guidelines. They may need to provide identity, income, and residency documents, and sometimes undergo medical tests before purchasing a term insurance policy.

Which is the ideal term insurance plan in India in 2026?

The ideal term insurance plan depends on your needs, including coverage amount, premium, claim settlement ratio, and features. Comparing multiple insurers helps you choose a suitable term insurance policy aligned with your financial goals.

How does the premium break benefit work in term insurance?

The premium break benefit allows you to temporarily pause premium payments under specific conditions without immediately losing coverage. Terms vary by insurer, and the policy may have limits or conditions for reinstating full benefits.

What happens when a term insurance plan reaches maturity?

In most term insurance plans, there is no payout if the policyholder survives the term. However, some plans offer return of premium options, where the premiums paid are refunded at maturity.

Is there any maturity benefit in term life insurance?

Traditional term insurance policies do not offer maturity benefits. However, certain variants like return of premium plans provide a refund of premiums if the policyholder survives the policy term.

At what age is it advisable to stop a term insurance plan?

You can consider stopping a term insurance plan when your financial responsibilities reduce, such as after retirement or when dependents are financially independent. The decision should align with your long-term financial security needs.

Buy Term Insurance Plans & Policies Online in India 2026

What is term insurance?

Term insurance is a simple and straightforward type of life insurance that provides financial protection for a fixed period. If the policyholder passes away during the policy term, then the insurer pays a sum assured to the nominee. A term insurance plan is designed to offer high coverage at an affordable premium, making it one of the most cost-effective ways to secure your family’s financial future.

For example, a 30-year-old can buy term insurance with Rs. 1 crore coverage at premiums starting from approximately Rs. 14* per day, depending on the factors such as the insurer, policyholder’s age, health profile, and lifestyle.

A term insurance policy can help your family manage essential financial responsibilities, from everyday household expenses to outstanding loans and long-term life goals. When you buy a term insurance plan, you may also benefit from tax advantages under applicable laws, optional riders for broader protection, and flexible payout choices that suit your family's needs. With its combination of affordability and customisable coverage, a 1 crore term insurance plan has become a popular choice for people seeking dependable and sensible financial protection.

How does term insurance work?

A term insurance plan is a simple protection tool that secures your family financially during a fixed policy period.

Policy purchase:

You choose a suitable term insurance policy, coverage amount, and duration, then pay premiums regularly to activate protection under your chosen term insurance plan.
During policy term:

Throughout the policy term, you continue paying premiums while your term insurance plan provides financial coverage and optional benefits like riders for added protection.
Death during the policy term:

If the insured passes away during the term, the nominee receives the sum assured from the term insurance policy to manage expenses and financial goals.
Outlives the policy term:

If you survive the term, no payout is made in standard plans, but a term plan return of premium option refunds premiums paid.
Claim:

The nominee informs the insurer, submits required documents, and initiates the claim process to receive the benefits under the term insurance policy smoothly.
After claim:

Once verified, the insurer settles the claim and transfers the payout to the nominee, ensuring financial stability and continuity for the family.

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Why should I buy term insurance in 2026?

If you are wondering whether a term policy is the right choice, the answer is simple—yes, it absolutely is. A term life insurance policy offers peace of mind by ensuring your family would not face financial struggles in your absence. Here is why it is a smart move for every individual:

Income replacement:

If you are the sole or primary earner in your family, choosing to buy term insurance can help create a financial safety net for your loved ones. A term policy ensures they have access to funds to manage everyday expenses, future goals, and ongoing financial commitments if you are no longer around. It is a simple and practical way to protect your family's financial stability over the long term.
Covers large financial liabilities:

Have a home loan, education loan, or personal debts? A term life insurance policy helps ensure that these do not become a burden for your family in case of your untimely demise.
Affordable life insurance coverage:

A major advantage of term insurance is that it offers high coverage at very low premiums—making it a budget-friendly safety net.
Customisable with riders:

With add-ons like critical illness or accidental death covers, your term life insurance policy can be tailored to match your specific needs.
Tax-saving benefits:

A term insurance plan offers tax benefits under relevant sections of the Income Tax Act. You get tax benefits premium paid under Section 80C of the Income Tax Act 1961 (valid up to March 31, 2026) / and now under the new Section 123 of the Income Tax Act 2025 (effective from April 01, 2026). You also get a tax exemption on death cover under Section 10(10D), helping you save money while securing your future.
Long-term financial protection:

With policy terms ranging from 10 to 40 years or even up to age 99, you can enjoy financial protection for a significant part of your life.
Provides peace of mind:

Knowing your family is financially covered gives you the freedom to live without stress, especially if you have dependents.

In short, whether you are just starting out or planning retirement, a term life insurance policy is one of the simplest, most impactful financial decisions you can make.

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Real-life examples based on different life stages of policyholders

Choosing a term insurance plan becomes more meaningful when you see how it fits into different stages of life.

In your 20s – early career stage:

At this stage, premiums are lowest. A term insurance plan helps lock affordable rates early while building long-term financial protection for future responsibilities.
In your 30s – growing responsibilities:

With marriage, children, and loans, coverage needs increase. Many choose higher cover like Rs. 1 crore at affordable premiums for stronger family protection.
In your 40s – peak financial commitments:

Responsibilities are highest with education costs and liabilities. A term insurance plan ensures loans are covered and your family’s future goals remain financially secure.
In your 50s – nearing financial stability:

While liabilities may reduce, maintaining a term insurance plan provides continued protection for your spouse and ensures financial support during later life stages.

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Key features of term insurance plans

Following are the key features of term insurance plans – these features highlight why term insurance is considered one of the most reliable and affordable protection options, offering flexibility, high coverage, and long-term financial security for your loved ones:

Feature	Specifications
Pure protection plan	Add suggested pointer and write 10 word content Add KW " Term life insurance, life insurance plans, endowment plan, ULIP"
Affordable premiums	Premium starts at Rs. 14/day* for wide coverage.
Minimum entry age	18 years: Buy term insurance early to secure lower premiums.
Fixed premium	Stable costs: Your term plan premium stays unchanged throughout the policy term.
Sum insured	High coverage up to Rs. 1 crore for family protection.
Tax benefits	Save tax under Sections 80C and 10(10D), Old Regime.
Death cover	Financial support for family on policyholder’s untimely demise.
Maturity benefits	Some plans return premiums on survival of term.
Policy tenure	Flexible terms available from 15 to 30 years.
Riders (add-ons)	Add benefits like disability or accident cover to your plan.
Critical illness cover	Lump sum payout on diagnosis of critical illnesses.
Policy revival	Revive lapsed policies within 2–5 years with conditions.
Return of premium rider	Premium refund option: Get back eligible premiums if you outlive the policy term.

Read about the key features of term insurance plans in detail for better understanding:

Pure protection:

Unlike investment-focused life insurance plans such as an endowment plan or ULIP, term life insurance is designed purely to provide financial protection. It offers a high sum assured at an affordable cost, helping your family stay financially secure if something happens to you. Term insurance keeps the focus on protecting your loved ones rather than combining insurance with wealth creation.

Affordable premiums:

One of the biggest advantages of a term plan is its affordability. You can get substantial coverage for as low as Rs. 14 per day, making it accessible even for young professionals or first-time buyers. A term life insurance policy offers great value for money, especially if you start early, ensuring your family is financially secure without burning a hole in your pocket.

Low entry age:

Most term insurance plans allow you to begin coverage from the age of 18, making it easier to secure protection early in life. When you buy term insurance at a younger age, you may benefit from lower premiums and longer coverage, helping you build a strong financial safety net from the start.

Fixed premiums:

One of the key advantages of a term plan is that the premiums remain fixed throughout the policy term. This means your term plan premiums do not increase with age or health changes. It helps in better financial planning, as you can confidently manage long-term expenses without worrying about rising insurance costs later.

Sum insured (Coverage):

Term insurance plans offer high coverage amounts—up to Rs. 1 crore or more—at low premiums. This large sum assured ensures your family maintains their lifestyle and financial stability in your absence. Whether it's a term plan for family protection or income replacement, this feature makes the term policy an effective tool for long-term financial planning.

Tax benefits:

A term life insurance policy provides tax-saving opportunities under the old tax regime. Premiums paid qualify for deductions under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh per year. Additionally, the death cover received by your nominee is tax exempted under Section 10(10D), making your term plan a dual-benefit product—protection plus tax efficiency.

Death cover:

A term plan ensures that your loved ones receive a financial safety net in the unfortunate event of your demise during the policy term. The death cover in a term life insurance policy provides a lump sum payout to your nominee, helping them manage ongoing expenses, debts, or long-term goals such as education or home loans.

Maturity benefits:

Traditional term insurance policies do not offer maturity benefits. However, some modern term plans include a return of premium (TROP) option. With this, if you survive the term, the total premium paid is returned. Though slightly costlier, this feature makes your term policy a more reassuring investment for those who want something in return.

Policy tenure:

A term life insurance policy offers flexible coverage durations—typically 10, 15, 20, or even up to 40 years. This flexibility allows you to align your term plan with your life goals, such as covering your children’s education years, paying off a home loan, or ensuring your spouse's financial security during retirement.

Riders (add-ons):

You can enhance your base term plan by adding optional riders for comprehensive coverage. Popular add-ons include accidental death, waiver of premium, and disability riders. These provide additional benefits without buying a separate policy. Riders make your term policy more versatile and capable of covering a broader range of risks.

Critical illness cover:

Many insurers offer critical illness riders with a term life insurance policy. This means you’ll receive a lump sum payout upon diagnosis of major illnesses like cancer, heart attack, or stroke. It provides the financial support needed for medical treatment or income loss during recovery, making your term plan a true health and life protector.

Policy revival:

Missed a premium due to an oversight? Most insurers allow a revival period of 2–5 years to reinstate your lapsed term policy. You may need to undergo a medical check-up and pay the pending premiums, but the revival feature ensures you don't lose your term life insurance policy benefits permanently due to minor delays.

Return of premium option:

Some term insurance plans come with a ‘return of premium’ option, where you receive all the premiums you’ve paid if you survive the policy term. This means you enjoy both protection and savings—your family stays financially secure during the policy tenure, and if you outlive it, you get back your money as a lump sum. This feature makes term insurance even more valuable, combining life cover with the assurance of no financial loss.

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What are benefits of buying a term insurance policy?

A term insurance policy is one of those financial decisions that may seem simple at first, but its impact can be significant. At its core, it is designed to protect the people who depend on you. By paying an affordable premium, you can secure a substantial life cover that helps your family manage expenses, future goals, and financial commitments if you are no longer around.

Here is a closer look at the benefits of term insurance plan:

Affordability:

A term insurance plan is designed to fit comfortably into your budget. Since the premiums are generally lower than many other life insurance options, you can start building financial protection early without disrupting your everyday expenses or long-term savings goals.
High coverage amounts:

A term insurance plan allows you to get a high sum assured at a relatively low cost. This larger financial cushion can help your family manage major responsibilities such as household expenses, children's education, outstanding loans, and future milestones if you are no longer there to support them.
Tax saving benefits:

A term insurance plan does more than provide financial protection. It can also help you save on taxes. When you buy term insurance, the premiums you pay may qualify for deductions under Section 80C of the Income Tax Act 1961 (valid up to March 31, 2026) / Section 123 of the new Income Tax Act 2025 (effective from April 01, 2026). In addition, the death cover received under the term insurance policy is generally exempt from tax under Section 10(10D), subject to applicable conditions.
Whole life coverage:

Some term insurance policies extend coverage up to 99 or even 100 years of age. This can offer long-lasting financial protection for your family and the reassurance that they will remain covered throughout your lifetime.
Long-term coverage

Responsibilities evolve over time, whether it is funding your children's education, paying off a home loan, or planning for retirement. Term insurance provides financial security over an extended period, helping your family stay protected through these important milestones.
Disability benefits

Many term plans include disability benefits that provide financial support if you experience a permanent disability. This additional protection can help manage medical expenses or compensate for lost income, easing the financial pressure on your family.
Income options in case of unfortunate events

Some term insurance plans offer the option of regular income payouts instead of a one-time lump sum. This can help your family manage day-to-day expenses and maintain financial stability if an unfortunate event occurs.
Protection against liabilities

Outstanding loans do not disappear during challenging times. A term insurance policy can help your family repay existing liabilities, such as home loans, personal loans, or credit card debt, preventing them from carrying an additional financial burden.
Multiple premium payment options

Not everyone manages their finances the same way, and term plans recognise that. Many policies let you choose how you pay your premiums, whether monthly, quarterly, or annually, so you can select an option that fits comfortably within your budget.
Additional coverage with riders:

You can tailor your term insurance policy to suit your needs by adding riders. Options such as critical illness cover, accidental death cover, or waiver of premium benefits can strengthen your protection without significantly increasing the cost.
Return of premium benefit:

Some plans come with a return of premium feature or you can add the benefit as a rider to your plan. If you outlive the policy term, the eligible premiums paid during the policy tenure are returned to you. This option can appeal to those who want life cover along with the reassurance of receiving their premiums back at the end of the term, subject to the policy's terms and conditions.
Zero GST on term insurance

Certain eligible term insurance policies may offer a zero GST benefit, helping reduce the overall cost of purchasing life cover and making protection even more affordable.

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Who should buy a term insurance policy?

There is a common misconception that term insurance is only for people with large salaries or those who are the sole earning members of a family. In reality, a term insurance policy can be useful for anyone with financial responsibilities or people who want to make sure their loved ones remain financially secure in the future.

Life changes quickly. You may be starting your career today, buying a home tomorrow, or planning for retirement a few years down the line. A term policy can adapt to these different stages of life and provide a financial safety net when it matters most.

Here is who can benefit from buying a term insurance policy.

Term insurance for parents:

If you are raising children, protecting their future naturally becomes a priority. A term insurance plan can help ensure that your child's education, daily expenses, and future aspirations are not disrupted if something happens to you. Term insurance for parents acts as a financial replacement for lost income and gives parents the reassurance that their family will continue to receive support.
Term insurance for young professionals:

Starting early has one clear advantage: lower premiums. If you have recently begun earning, buying a term life insurance plan can help you secure a high coverage amount at an affordable cost. The earlier you start, the easier it becomes to build long-term financial protection before larger responsibilities arrive.
Term insurance for newly married:

Marriage often means shared goals, shared expenses, and shared responsibilities. A life insurance term plan can help protect your spouse financially if you are no longer around. It can support ongoing commitments such as home loan repayments, monthly expenses, or future plans like starting a family.
Term insurance for women:

Whether you work full-time, run a business, or manage your household, your contribution has real financial value. A term life insurance plan helps ensure your family's financial stability is not affected by your absence. It is a simple way to acknowledge and protect the role you play in your family's future.
Term insurance for taxpayers:

A term policy can serve two purposes at once. Along with providing financial protection, it can also help reduce your tax liability. Premiums may qualify for deductions under Section 80C of the Income Tax Act 1961 (valid up to March 31, 2026)/ Section 123 of the Income Tax Act 2025 (applicable from April 01, 2026), while eligible payouts are generally exempt under Section 10(10D), subject to prevailing tax laws.
Term insurance for senior citizens:

Even later in life, financial responsibilities may still exist. You may want to support a dependent spouse, clear remaining liabilities, or simply create a sense of financial security for your family. Although premiums are usually higher at an older age, term insurance for senior citizens can still provide valuable peace of mind.
Term insurance for housewife:

A homemaker may not earn a salary, but her contribution to the household is substantial. If childcare, household management, or caregiving responsibilities suddenly need to be outsourced, the financial impact can be significant. Today, many insurers offer term insurance for housewife – designed specifically for homemakers.
Term insurance for self-employed:

Running your own business often means dealing with fluctuating income. A term policy can help create financial stability by ensuring your family remains protected, regardless of changing business conditions or unexpected life events.
Term insurance for NRI:

Many NRIs continue to support their families in India or invest in property back home. A term insurance policy can help ensure your loved ones remain financially protected, no matter where you live or work. Several insurers also offer term insurance for NRIs designed to suit the specific requirements of NRIs.
Term insurance for home buyers:

Buying a house is one of the biggest financial commitments most people will make. A term life insurance policy can help ensure that your family does not struggle with home loan repayments or risk losing the property if something happens to you.
Term insurance for diabetics:

Living with diabetes should not prevent you from getting life cover. Many insurers now offer term insurance for diabetics that take your health condition into account, allowing you to secure financial protection that suits your needs.
Term insurance for equity investors:

Investments can build wealth, but markets are unpredictable. A term life insurance plan adds a layer of certainty by ensuring your family's financial well-being does not depend entirely on market performance.
Term insurance for retirees:

Retirement does not always mean the end of financial responsibilities. If you have dependants, outstanding liabilities, or estate planning goals, a life insurance term plan can help you continue supporting your loved ones even after you are gone.
Term insurance plan for freelancers:

Freelancing offers flexibility, but income may not always be consistent. A term life insurance plan provides an added layer of financial security by ensuring your family has access to a guaranteed payout if an unfortunate event occurs.

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When should I buy a term insurance plan?

A term policy is not just for one specific age group or life stage—it is for everyone. Whether you are a young professional starting out, a parent securing your child’s future, a homemaker contributing in non-financial ways, or a retiree looking for peace of mind, term insurance has something valuable to offer. It is a customisable plan that aligns with your unique lifestyle and responsibilities. From providing financial security to offering tax benefits, a term plan ensures that your loved ones won’t struggle in your absence. The real beauty of a term policy lies in its flexibility—it moulds itself to fit different needs. Explore how this essential cover benefits people from all walks of life.

How does a term plan secure my family’s future?

A term insurance plan may seem like a simple financial product, but its purpose is far-reaching. It is designed to make sure your family's life does not come to a standstill if you are no longer there to support them. While no policy can replace a person, it can help protect the financial foundation you have worked hard to build. Here is how a term plan helps secure your family's future.

Replaces lost income for daily living

If you are the primary earning member, your income is what keeps the household running. A term plan provides a financial cushion that can help your family manage daily expenses such as groceries, rent, utility bills, school fees, and other regular commitments. The idea is simple: to help them maintain stability without having to make sudden sacrifices.
Helps clear loans and ongoing financial commitments

Financial responsibilities do not disappear during difficult times. Home loans, personal loans, and other liabilities can quickly become an additional burden for your family. A term plan can help ensure these obligations are taken care of, so your loved ones are not left dealing with debt or repayment pressures.
Supports long-term life goals

Life goals often stretch over many years. Whether it is your child's education, higher studies, or other important milestones, these plans require consistent financial support. The payout from a term plan can help your family continue working towards these goals, even if your regular income is no longer available.
Offers peace of mind and emotional security

Financial protection is only one part of the picture. A term plan also offers reassurance. Knowing that your loved ones will have a financial safety net in place allows you to focus on the present, without constantly worrying about unexpected situations that could disrupt their future.

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Compare Bajaj Life term insurance plans

Features	iSecure	eTouch II
Premium Payment Flexibility	Offers options for regular and limited premiums based on the desired policy term.	Provides options for limited or full-term payments with added features like a premium holiday during the term.
Riders Available	Includes riders like Accidental Death Cover and Permanent Disability Benefit.	Offers additional protection through riders like Family Protect and Accidental Death Cover.
Death cover	Paid as a lump sum to the nominee.	Can be received as a lump sum, monthly income, or a combination.
Early Exit Option	Not available	Offers an early exit option, refunding premiums under specific conditions (Life Shield and Life Shield Plus variants).
Return of Premium (ROP)	Not available	Available with the Life Shield ROP variant, offering a return of all premiums on maturity

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Benefits of buying a term life insurance plan online

Buying a term life insurance policy online comes with several advantages, including convenience, cost savings, and transparency. One of the key term insurance benefits is that it allows individuals to compare various term insurance plans and select the option that suits their financial needs and long-term goals.

Convenient and hassle-free process:

Purchasing a term life insurance policy online is quick and easy, allowing you to compare different plans, calculate premiums, and complete the process from the comfort of your home. The digital process eliminates the need for paperwork and frequent visits to insurance offices.
Lower premiums and better affordability:

Online term insurance plans often come with lower premiums as there are no intermediaries or agent commissions. Insurers pass on the cost savings to customers, making it a cost-effective way to secure financial protection for your family.
Easy comparison of policies:

When buying a term insurance plan in India online, you can compare multiple policies, features, and benefits side by side. This helps in selecting a plan that fits your financial needs and provides the right level of coverage.
Faster policy issuance:

Online applications have a quicker processing time, with instant premium calculations and eligibility checks. Many insurers offer instant approval for a term life insurance policy, ensuring financial security without unnecessary delays.
Transparent information and decision-making:

Buying a term insurance plan in India online ensures complete transparency in policy details, exclusions, and benefits. Customers can access policy documents, premium charts, and claim processes, making informed decisions without relying on agents.

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How to choose the most suitable term plan?

Selecting the right term life insurance policy is essential for ensuring your family's financial security. With numerous term insurance plans available, it’s important to evaluate various factors before making a decision.

Step 1: Evaluate coverage based on financial needs

Assess your financial responsibilities, including debts, future expenses, and dependents' needs, to determine the right coverage amount. A well-chosen term insurance plan in India should provide adequate financial support to your family in case of unforeseen circumstances.
Step 2: Compare different term insurance plans

Research and compare term life insurance plans based on premium costs, claim settlement ratio, policy benefits, and additional riders. This ensures you select a policy that offers maximum benefits at an affordable price.
Step 3: Check insurer’s reputation and claim process

Choose a reliable insurer with a high claim settlement ratio and a smooth claim process. A trusted provider ensures that your term life insurance benefits reach your family without hassle during difficult times.

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Types of term insurance plans

Term insurance comes in various forms to suit different financial goals and family needs. Understanding the types of term insurance plans helps you choose one that offers the right coverage and flexibility.

Following are the different types of term insurance policy:

Level term insurance:

This is the most common type of term insurance. In level term insurance, the coverage amount remains the same throughout the policy term.
Decreasing term insurance:

In decreasing term insurance type, the coverage amount decreases over time, often used to cover a specific debt like home loan.
Increasing term insurance:

In an increasing term insurance plan, the coverage amount gradually rises over time to keep pace with inflation and growing financial responsibilities, ensuring your protection remains adequate as your needs evolve.
Year renewable term insurance

This term policy provides coverage for one year at a time and can be renewed annually. It is suitable for those seeking short-term protection with the flexibility to extend coverage based on changing needs.
Convertible term insurance plan

A term policy that allows policyholders to convert it into a permanent life insurance plan later—without a fresh medical exam. Ideal for those who want to keep future options open.
Joint life term insurance

A term life insurance policy that covers both spouses under a single plan. Joint life term insurance ensures financial protection for the surviving partner in case of the other’s demise.
Group term insurance:

Group term insurance is a type of term insurance plan offered to employees or members, providing life cover at lower cost, though coverage is limited and usually linked to employment or group membership.
Term insurance with return of premium (TROP):

This term insurance plan refunds all premiums paid if the policyholder survives the term, combining protection with savings, making it suitable for those seeking returns along with life cover.

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What is the difference between term insurance and whole life insurance?

When choosing a life insurance plan, it is important to understand the key differences between term insurance and whole life insurance. While both provide financial security, they serve different purposes. Term insurance is a pure protection plan for a fixed duration, whereas whole life insurance offers lifelong coverage with an investment component. The table below highlights their main distinctions.

Feature	Term insurance	Whole life insurance
Coverage duration	Fixed term (e.g., 10, 20, 30 years), ideal for covering responsibilities like loans, children’s education, or income replacement.	Lifetime coverage that ensures protection for the insured’s entire life, guaranteeing benefits regardless of when death occurs.
Purpose	Designed to offer financial protection to dependents at an affordable cost, covering major life risks effectively.	Aims to provide lifelong financial protection while also acting as a wealth-building tool through cash value.
Premiums	Lower and fixed	Higher but may offer level premiums
Payout on survival	No payout on survival unless the return of premium option is selected.	Survival benefits may be available depending on cash value accumulation and withdrawals.
Death cover	Paid only if the insured passes away during the term	Guaranteed payout whenever the insured passes away
Maturity benefits	No maturity benefits unless a return of premium (ROP) option is chosen	May have cash value accumulation
Cash value	No cash value component	Builds cash value over time
Investment component	Pure protection plan, no investment benefits	Acts as both insurance and an investment tool
Loan against policy	Usually not available, but some ROP term insurance may allow limited benefits.	Policyholders can borrow against the accumulated cash value as a loan option.
Most suited for	Individuals seeking affordable coverage for a specific period	Those looking for lifelong protection and wealth creation
Conversion option	Some term insurance policies allow conversion to permanent plans without fresh medical tests.	Whole life policies generally do not need conversion as coverage continues for life.
Policy expiry	Policy ends after the chosen term unless renewed or converted into another plan.	Policy continues until the insured’s death, without an expiry during their lifetime.

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Term insurance for different stages of life

Term insurance plays a crucial role at different stages of life, offering financial protection based on evolving needs. Young professionals may opt for it to cover debts, while middle-aged individuals use it to secure their family’s future. Even senior citizens can benefit from it in estate planning. The table below explains how term insurance can help at each stage.

Life stage	Importance of term insurance
Young professionals (20s-30s)	Provides financial security at low premium rates. Ideal for covering student loans, car loans, and early financial responsibilities.
Married individuals (30s-40s)	Ensures financial stability for spouse and children. Helps in covering home loans and long-term financial goals.
Middle-aged professionals (40s-50s)	Essential for maintaining family’s lifestyle and covering children’s education. Premiums may be slightly higher but still affordable.
Pre-retirement phase (50s-60s)	Helps in covering outstanding debts and providing financial security for dependents. Limited-term policies available at higher premiums.
Senior citizens (60s and beyond)	Limited options, mainly for estate planning and covering final expenses. Whole life insurance may be a better alternative.

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KYC documents required for term insurance

When applying for a term insurance policy, individuals and legal entities must complete a Know Your Customer (KYC) process. This process verifies your identity and financial authenticity before the insurer issues the policy. Understanding the documents required for term insurance ensures a smooth and hassle-free application.

For individuals, the process is simple—usually needing proof of identity, address, and income. However, for legal entities like companies, partnerships, or trusts, the insurer requires additional documentation to confirm business legitimacy and authorised signatories. Here’s a detailed look at the documents needed for term insurance in India for different types of legal entities:

Type of entity	Documents required for term insurance	Additional notes
Company (Private/Public Limited)	Certificate of Incorporation, Memorandum & Articles of Association, PAN card, Board Resolution authorising signatory, KYC of authorised person	Signatory should be a director or authorised representative.
Partnership Firm	Partnership Deed, Registration Certificate (if applicable), PAN card of firm, KYC of partners	Premiums must be paid from the firm’s account.
LLP (Limited Liability Partnership)	LLP Agreement, Incorporation Certificate, PAN card, Resolution authorising signatory, KYC of authorised partner	Ensure the LLP name appears in the proposal form.
Trust	Trust Deed, Registration Certificate, PAN card, Resolution from trustees, KYC of authorised trustee	Must provide documents confirming trust objectives and authority.
Society/Association	Registration Certificate, PAN card, Bye-laws, Resolution authorising signatory, KYC of authorised person	Applicable for registered societies and associations only.

Completing these KYC steps accurately helps prevent policy delays and ensures smooth claim settlements later.

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Documents required for raising a claim request for your term insurance policy

Following are the documents you will need to raise a claim with the insurer:

Photograph of the proposer
Age proof, such as PAN card, passport, voter’s ID, birth certificate.
Address proof, such as passport, driving licence, voter ID card, Aadhaar card, etc.
Identity proof such as Aadhaar card, passport, driving licence, etc.
Income proof such as form-16, salary slips, ITRs, etc.

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What are term insurance riders?

Term insurance riders refer to additional benefits or features added to the basic term insurance policy to enhance its coverage. These riders provide additional protection in case of accidental death, disability, and others. They come at an added cost but provide financial security during unforeseen circumstances.

Most common term insurance riders

Riders add extra layers of protection to your term insurance plan, making it more comprehensive and tailored to your family’s needs.

Critical illness rider:

This rider with term insurance plan provides a lump sum if you’re diagnosed with listed major illnesses like cancer or heart disease.
Accidental death cover rider:

Term insurance with accident death cover rider ensures additional payout to your family if your death occurs due to an accident.
Waiver of premium rider:

This rider waives future premiums if you face disability or loss of income, keeping your term insurance policy active.
Accidental total and permanent disability rider:

This term insurance rider provides financial support if an accident leaves you permanently disabled and unable to work.
Terminal illness rider:

Term insurance with terminal illness rider offers payout upon diagnosis of a terminal illness, ensuring financial support when needed most.
Live well rider:

This term insurance rider supports wellness with benefits for preventive health check-ups and lifestyle-related medical needs.

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Importance of riders in a term insurance plan

Adding riders strengthens a term insurance plan by offering enhanced protection, tax savings, and peace of mind without significantly increasing cost.

Enhanced financial cover:

Riders increase the financial shield of your term insurance plan by adding extra coverage, ensuring that your loved ones are protected in case of unforeseen events beyond basic life cover.
Customisation:

A term insurance plan can be personalised through riders, allowing you to choose cover options that align with your health risks, lifestyle, and financial goals, creating tailored protection that evolves with your needs.
Affordable:

Most riders under a term insurance plan are available at a nominal extra cost. They allow you to maximise your policy’s value without straining your budget while adding meaningful protection against specific risks.
Additional tax benefit:

Premiums paid towards certain riders under a term insurance plan may qualify for additional deductions under the Income Tax Act, offering more savings while strengthening your protection cover simultaneously.
Peace of mind:

With riders in your term insurance plan, you know your family is shielded against multiple financial risks. This assurance provides unmatched peace of mind throughout your policy tenure.

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Key benefits of adding riders to term insurance plans

A basic term insurance policy offers great protection, but life is unpredictable. That is where riders come in—they are like custom upgrades that give your plan more power and flexibility. Here is why adding riders to your term policy is a smart move:

Enhanced protection:

Riders help cover additional risks that a standard term insurance policy may not include, like critical illness or accidental death.
Affordable customisation:

Instead of buying separate policies, you can enhance your coverage with minimal additional premium—keeping your term policy budget-friendly.
Critical illness rider:

This pays a lump sum if you are diagnosed with a serious illness like cancer or heart disease, helping you manage medical expenses without dipping into savings.
Accidental death cover rider:

It offers an extra payout over and above the sum assured in case of death due to an accident, offering added financial security to your family.
Waiver of premium rider:

If you are ever disabled or unable to earn, this rider waives all future premiums while keeping your term insurance policy active.
Income benefit rider:

Instead of a lump sum, this rider ensures your family receives regular monthly income in your absence, helping manage ongoing expenses better.

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Why a critical illness rider is essential with term insurance

A critical illness rider is one of the most valuable add-ons to a term insurance policy. It ensures you are financially prepared if a serious illness strikes.

Around 70% of medical expenses in India are paid out-of-pocket, making families vulnerable to debt.
A critical illness rider under a term insurance policy pays a lump sum on diagnosis of illnesses like cancer, kidney failure, stroke, or heart attack.
This payout is independent of hospital bills and can be used for treatment costs, lifestyle changes, or income replacement.
Premiums for a term insurance policy with critical illness rider are eligible for tax benefits under Section 80D.
It prevents your family’s savings from being drained while ensuring your treatment and financial stability remain intact.

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Term insurance eligibility criteria

Before buying a term insurance plan, it’s important to know the eligibility requirements that ensure you qualify for a term insurance policy.

Entry age

Most insurers allow entry between 18 and 65 years for a term insurance plan. The younger you buy, the lower the premium.
Maximum coverage age

A term insurance plan protects you only for a set duration. Most policies allow coverage until 75–85 years, while some extend up to 99 years, ensuring lifelong protection if you choose a longer plan.
Policy term

The term insurance plan duration can range from 5 to 40 years, depending on your financial responsibilities and life goals.
Sum assured

The minimum cover for a term insurance policy can start at Rs. 10 lakh, while maximum coverage depends on income, liabilities, and insurer limits.
Premium paying term

Premiums under a term insurance plan can be paid as regular, limited pay, or single pay, offering flexibility to match your financial planning.
Citizenship

A term insurance policy is available to Indian citizens. NRIs and PIOs can also buy term insurance plans with specific documentation.
Income

Insurers usually require a stable income proof to issue a term insurance plan. It ensures your cover aligns with your financial capacity.
Health and medical history

A term insurance policy requires you to disclose medical history. Insurers may conduct health check-ups to assess risks before issuing coverage.

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Zero GST on term insurance: Save up to 18% on premiums

The central government announced on September 22, 2025 that individual life and health insurance premiums, including term plans will carry zero GST. That can reduce your cost notably, however, the final premium depends on your insurer’s pricing.

What is zero GST on term insurance?

Earlier 18% Goods and Services Tax was added to life insurance premiums, which has been now removed. This means that now you will pay a reduced premium when buying or renewing a term insurance plan.
Who benefits from zero GST?

If you’re buying or renewing an individual term insurance policy (or other individual life insurance product) on or after September 22, 2025, you stand to benefit directly. Group or employer-sponsored policies are not included, so check your policy type and premium date.
Impact on your term insurance premium

With 0% GST, you could save up to 18% on your premium cost compared to earlier tax-inclusive amounts.

Example for a term insurance policy
- Base annual premium (before GST) = Rs. 20,000
- Under the old rule (18% GST) you’d pay:
  Rs. 20,000 + Rs. 3,600 (GST) = Rs. 23,600 per year.
- Under the new rule (from September 22, 2025, 0% GST) you now pay:
  Rs. 20,000 per year.
- Savings = Rs. 3,600 annually in this example.
Important points to note:
- The actual savings will depend on your insurer’s base premium (which might change) and your policy’s term and coverage.
- The exemption applies to individual life insurance policies (including term plans) from the effective date.
- Group policies (employer-provided or group covers) may still attract GST.
Always confirm with your insurer that the revised premium reflects the GST change.

What’s covered and not covered in term insurance?

Here’s a quick overview of what a term life insurance policy covers and excludes:

Coverage	Non-Coverage
Natural death, accidental death, terminal illness, critical illness (if rider added).	Suicide in first year, self-inflicted injuries, illegal activities, war or terrorism-related deaths.

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Easy steps to buy a term insurance plan

Buying a term insurance plan is a simple process that ensures financial security for your loved ones. Follow these easy steps to choose the term insurance policy in India that suits your needs.

Assess your coverage needs:

Evaluate your financial responsibilities, including loans, dependents, and future expenses, to determine the right coverage amount. Choosing the term insurance plan in India depends on your income, liabilities, and long-term financial goals.
Compare term insurance policy:

Research and compare different term insurance plans based on premium rates, policy benefits, claim settlement ratio, and additional riders. Online term insurance comparison tools help find the most suitable plan at the best price.
Complete the application and medical check-up:

Fill out the online application form with accurate details and undergo a medical examination if required. Once approved, pay the premium, and your term insurance plan will be activated, securing your family’s future.

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Types of payout options in term life insurance

When you buy a term plan, it’s equally important to know how your family will receive the payout in case of an unfortunate event. Insurers offer flexible term insurance payment methods to match your family’s needs and financial comfort. Understanding these term insurance premium payment and payout options helps you make a practical choice.

Here are the most common payout options in term life insurance:

Lump-sum payout:

The nominee receives the entire claim amount in one go, ideal for clearing debts or major expenses.
Monthly income payout:

The benefit is paid in fixed monthly instalments, ensuring steady financial support for dependents.
Lump-sum + monthly income:

A part of the claim is paid upfront, and the rest is distributed monthly, balancing immediate and long-term needs.
Increasing income payout:

The monthly income grows every year, helping your family manage inflation and rising expenses.
Decreasing income payout:

The payout reduces gradually over time, suitable when financial responsibilities decline, such as after loan repayments or children’s education.

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How to apply for term insurance plan with Bajaj Finance Insurance Mall?

Applying for term insurance plans through Bajaj Finance Insurance Mall is easy, as you need to follow only a few simple steps to get quote based on your requirements. Here’s how:

Step 1: Click on Get Quote

Click on Get Quote. You will be asked to enter your mobile number so we can send you a one-time password (OTP).
Step 2: Enter the OTP

Check your phone for the OTP and type it in when prompted. This helps us verify it is you.
Step 3: Fill in your details

Once the OTP is confirmed, you’ll see our application form pop up.
- If you are an existing user, some of your details might already be filled in.
- If you are new, just enter your name, gender, date of birth, email ID, and PIN code.
Do not forget to tick the checkboxes to proceed.
Step 4: Choose your plan

You will now be redirected to our partner’s page. This is where you can:
- Select the coverage amount
- Choose the policy tenure
- Pick your payment type
- Decide how much you want to invest
Once everything looks good, you can go ahead and complete your purchase.

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How much term insurance cover do you need?

Choosing the right cover amount in your term life insurance policy is crucial. It is about balancing affordability with adequate protection. Here's a quick way to understand how much cover you actually need:

Your annual income x 10–15 times:

A common rule is to have a term life insurance cover that’s 10–15 times your annual income to secure your family’s lifestyle.
Account for debts and liabilities:

Add any loans like home or personal loans that your family might struggle to repay in your absence.
Consider your family’s future goals:

Think about children’s education, marriage, and day-to-day expenses while choosing your cover.
Include inflation:

The value of money depreciates over time, so factor in inflation while estimating future needs.

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What is the ideal duration for term life insurance?

Choosing the right duration for your term policy is as important as the sum assured. Your policy tenure determines how long your family remains protected under your term life insurance policy. Here's how you can decide the ideal duration based on different life scenarios:

Start young for a longer cover:

If you are in your 20s or early 30s, consider a term life insurance policy of 30–40 years. It is cheaper and ensures long-term protection.
Cover till your retirement age:

A practical way to choose the duration is to align it with your retirement. If you plan to retire at 60, choose a term policy that covers you until then.
Consider financial responsibilities:

If you have young kids or a long-term loan like a home mortgage, opt for a policy duration that matches those obligations—maybe 20–25 years.
Do not delay purchase:

The later you buy, the shorter your policy term might be and the more expensive it becomes. Buying early locks in lower premiums and allows a longer cover.
Account for spouse’s dependency:

If your partner is financially dependent on you, a longer tenure ensures they’re taken care of for a longer period.
Freelancers or self-employed? Go for flexibility:

If your income is not fixed, go for a slightly longer policy to provide safety during income fluctuations.

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Which factors affect term insurance premiums?

Understanding what impacts your term life insurance policy premiums can help you make informed choices and maybe even lower your cost. Here’s a complete breakdown:

Age

Younger applicants get lower premiums. Starting a term plan in your 20s or early 30s can save you a lot over the policy term.
Health status

Your current medical condition and history matter. Healthier individuals get lower premiums, while pre-existing illnesses may increase the cost.
Lifestyle choices

Smokers and drinkers usually pay higher premiums because they’re considered high-risk applicants under a term life insurance policy.
Policy term and coverage

A longer term policy or a higher sum assured generally means a higher premium—but it also means better protection.
Occupation type

High-risk jobs (e.g., mining, aviation) can lead to increased premiums, as they elevate the chances of life-threatening events.
Gender

Women generally pay lower premiums because statistics show they tend to live longer.
Riders and add-ons

Adding features like critical illness, accidental death, or premium waiver to your term policy increases the premium slightly but offers more robust protection.
Family medical history

A history of hereditary illnesses may affect your premium. Insurance providers assess risk based on these factors.
Smoking habits

Non-smokers get better deals on a term life insurance policy. So, quitting the habit can actually save you money on your term plan.
BMI and physical fitness

Obesity or being underweight can affect your premium, as both extremes are linked to health risks.
Medical check-up reports

Your insurer may require a medical test. Any unfavourable results could increase your term policy premium.

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Key things to consider before buying a term insurance plan

Here are the key factors you must consider when selecting the term insurance plans in India:

Term insurance plan as per your sum assured

Choose a plan offering a sum assured that’s at least 10–15 times your annual income. It ensures your family can manage living expenses and financial goals even in your absence.

1 crore term insurance

2 crore term insurance plans

5 crore term insurance plans

50 lakh term insurance plans

Term insurance plan as per policy term

Select a policy term that covers you until retirement or your financial responsibilities end. A longer term provides extended protection and better peace of mind for your family’s future.

5 years term insurance	20 years term insurance	35 years term insurance
10 years term insurance	25 years term insurance	40 years term insurance
15 years term insurance	30 years term insurance	50 years term insurance

Term insurance plan as per your age

Younger individuals can get higher coverage at lower premiums. Start early to lock in affordable rates and ensure long-term financial security with maximum benefits throughout the policy duration.

Term insurance plan in 50s	Term insurance plan in 40s
Term insurance plan in 30s	Term insurance plan in 20s

Term insurance plan basis your salary

Choose a term plan based on your current salary and liabilities. Ideally, the coverage should replace your income for the next 15–20 years to maintain your family’s lifestyle.

45k salary term insurance plan	35k salary term insurance plan	25k salary term insurance plan
40k salary term insurance plan	30k salary term insurance plan	20k salary term insurance plan

Term insurance for all

A term insurance plan is a simple and accessible way to secure your family’s financial future, regardless of your life stage or income level.

Term insurance is designed to offer high coverage at affordable premiums, making it suitable for individuals across different age groups and financial backgrounds. Whether you are starting your career, supporting a family, or planning long-term goals, a term insurance plan provides reliable financial protection.

Term insurance plans for NRI	Family term insurance
Group term insurance plans	Senior citizen term insurance plan

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Policy exclusion

Suicide exclusion

In case of death of a life assured due to suicide within 12 months from the date of commencement of risk or the date of latest revival of the policy, whichever is later, then the nominee or beneficiary of the policyholder shall be entitled to receive, the higher of 80% of the Total Premiums9 Paid or the surrender value as on the date of death, provided the policy is in force.

9Total Premiums Paid means total of all the premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly. Please note that GST and cess, if any, will be collected over and above the premium under the policy

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How to raise a claim for your term insurance plan?

Below are the steps you may follow to raise a claim with the insurer for your term insurance plan:

Step 1 - Register your claim request

Register the claim request with the insurer through their website, e-mail or by calling their claim assistance contact number.
Step 2 - Submit the required documents

Submit the necessary documents along with the duly filled claim form online. You can also submit it to the nearest branch of the insurer.
Step 3 - Claim settlement

The insurer will assess the claim request. The claim initiator will receive the status via e-mail and SMS. The claim initiator can also check it online on the insurer’s website.

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How long does term insurance claim approval take?

Claim settlement is often one of the biggest concerns families have when buying term insurance, especially during emotionally difficult times. Although the exact timeline can vary based on the documents submitted and the verification required, insurers today are working to make the process quicker, simpler, and more transparent.

In most cases, once a claim is registered, the insurer follows a structured assessment process. Providing complete and accurate documents from the start can help minimise delays and speed up approvals. Here are some of the factors that typically influence claim settlement timelines:

Claims with complete documentation are processed faster:

When all required documents—death certificate, policy details, and claim forms—are submitted correctly, insurers can process claims quickly. In many cases, approval happens within a few working days, offering timely financial support to the family.
Early claims may take slightly longer:

If a claim arises within the initial policy years, insurers conduct a more detailed verification. This is standard practice and ensures policy authenticity. While it may add a few days, genuine claims are still settled fairly and transparently.
Digital claim processes reduce turnaround time:

Most insurers now allow online claim submissions and tracking. This eliminates paperwork delays and helps families stay informed at every step, significantly improving the overall claim approval experience.
Clear communication speeds up resolution:

If insurers need additional details, quick responses from nominees help prevent back-and-forth delays. Staying reachable and informed ensures the claim moves forward smoothly without unnecessary waiting.

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How to avoid term insurance claim rejection?

While term insurance claims are designed to support families, certain mistakes can lead to unnecessary delays or even rejection. Being mindful during policy purchase and maintenance can significantly improve claim success and reduce stress for your loved ones. Follow these simple steps to ensure a smooth claim experience:

Do not hide any relevant information:

Always disclose accurate details about health conditions, habits, and income while buying the policy. Even small omissions can raise red flags during claim verification. Honest disclosure builds trust with the insurer and ensures your family receives the claim without complications.
Fill the form yourself:

When you personally fill out the proposal form, you understand what information is being shared. This reduces the risk of incorrect entries made by third parties and ensures all details truly reflect your situation, making future claim reviews smoother.
Pay the premium on time:

Timely premium payments keep your policy active. Missed payments may lead to lapses, which can create complications during claims. Setting reminders or opting for auto-debit ensures uninterrupted coverage and complete peace of mind.
Examine the policy document carefully:

Once you receive the policy, review every detail—coverage amount, tenure, exclusions, and nominee details. Any discrepancies should be corrected immediately. A well-understood policy prevents confusion and protects your family from unexpected claim issues.
Raise the claim timely:

Inform the insurer and initiate the claim as soon as possible. Early intimation helps insurers guide nominees on documentation and next steps, reducing delays and ensuring faster financial support when it’s needed the most.

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What are common misconceptions about term insurance?

Despite being one of the most affordable and essential financial tools, term insurance is often misunderstood. Many individuals avoid purchasing it due to various life insurance myths, which can lead to inadequate financial protection. Below are two common misconceptions about term insurance.

Term insurance is only for breadwinners

A common belief is that only the primary earning member of a family needs term insurance. However, non-earning members, such as homemakers, also contribute significantly to the household. Their absence could lead to financial strain, making term insurance a valuable safety net for all family members.
Term insurance offers no returns and is a waste of money

Many people assume that term insurance is a poor investment because it does not provide maturity benefits. However, its primary purpose is to offer financial protection, not wealth accumulation. The affordable premiums and high coverage make it a cost-effective way to secure a family's future.

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Common mistakes to avoid while buying term insurance

Buying a term life insurance policy is one of the most important decisions to ensure your family’s financial security. However, several individuals make common mistakes while purchasing a term plan, which can reduce its effectiveness. Avoid these pitfalls to get the most out of your term policy:

Underestimating the required coverage:

Many people opt for a lower sum assured to save on premiums. However, your term plan should ideally provide coverage that is at least 10–15 times your annual income, factoring in debts, future obligations, and inflation.
Choosing an inadequate policy term:

Selecting a shorter policy term might leave your family unprotected later in life. Always choose a term that covers your working years or financial liabilities—ideally till retirement age.
Delaying the purchase of a term policy:

Waiting until your 30s or 40s to buy a term life insurance policy can lead to higher premiums. The earlier you buy, the more affordable the premiums and the longer the coverage duration.
Not disclosing accurate health and lifestyle information:

Concealing medical history or smoking habits to get lower premiums can result in claim rejection later. Always provide honest and accurate information while buying your term policy.
Ignoring riders and add-ons:

Riders such as critical illness, accidental death benefit, and waiver of premium can enhance the utility of your term plan. Avoid the mistake of overlooking these valuable additions.
Only comparing premiums, not features:

Many buyers only look for the cheapest term policy. Instead, compare the claim settlement ratio, insurer reputation, customer service, and flexibility of the term plan.
Skipping regular reviews:

Life situations change—marriage, kids, loans, or career growth. Regularly review your term life insurance policy to ensure it still aligns with your financial goals and responsibilities.

Avoiding these common mistakes can help you choose the most suitable term plan that offers comprehensive protection to your loved ones when it is needed the most.

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Term insurance terminology

When you’re exploring term plans, you’ll often come across a few technical words. Don’t worry — they’re easy to understand once you know what they mean. Here’s a quick guide to common terms used in term insurance, explained in simple language.

Coverage:

It refers to the amount of financial protection your policy offers to your family if something happens to you during the policy term.
Insurability:

Insurability means your eligibility to get insurance coverage based on factors like age, health, occupation, and lifestyle habits.
Maturity date:

The maturity date is when your term insurance policy ends. If you survive till this date, the policy expires unless it has a return of premium feature.
Nomination:

Nomination means appointing a person (nominee) who will receive the insurance payout in case of your unfortunate demise during the policy term.
Premium:

Premium is the regular amount you pay to keep your term insurance active. It can be paid monthly, quarterly, or yearly.
Surrender value:

Surrender value is the amount you receive if you cancel the policy before it matures. Regular term plans usually don’t have this value, but return-of-premium plans do.
Individual death claim settlement ratio:

This ratio shows how many death claims an insurer successfully settles compared to total claims received — a higher ratio means a more reliable insurer.
Add-on benefits or riders:

Riders are optional add-ons you can include for extra protection, such as accident, critical illness, or disability benefits, by paying a small additional premium.
Sum assured:

Sum assured is the guaranteed amount your nominee will receive if you pass away during the policy term. It forms the core of your policy coverage.
Death cover:

The death cover is the payout given to your nominee upon your demise during the policy period, helping your family stay financially secure.
Insured:

The insured is the person whose life is covered under the term insurance policy — usually, it’s you, the policyholder.
Maturity claim:

A maturity claim is the amount paid when a policy with a return-of-premium feature ends and the insured survives till maturity.
Vesting age:

Vesting age refers to the age when the policyholder starts receiving policy benefits, usually applicable in retirement or pension-linked insurance plans.

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Term Insurance

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4 Reasons to choose us

How age affects term insurance premium

What is term insurance?

How does term insurance work?

Why should I buy term insurance in 2026?

Real-life examples based on different life stages of policyholders

Key features of term insurance plans

What are benefits of buying a term insurance policy?

Who should buy a term insurance policy?

When should I buy a term insurance plan?

How does a term plan secure my family’s future?

Compare Bajaj Life term insurance plans

Benefits of buying a term life insurance plan online

How to choose the most suitable term plan?

Types of term insurance plans

What is the difference between term insurance and whole life insurance?

Term insurance for different stages of life

KYC documents required for term insurance

Documents required for raising a claim request for your term insurance policy

What are term insurance riders?

Most common term insurance riders

Importance of riders in a term insurance plan

Key benefits of adding riders to term insurance plans

Why a critical illness rider is essential with term insurance

Term insurance eligibility criteria

Zero GST on term insurance: Save up to 18% on premiums

Example for a term insurance policy

Important points to note:

What’s covered and not covered in term insurance?

Easy steps to buy a term insurance plan

Types of payout options in term life insurance

How to apply for term insurance plan with Bajaj Finance Insurance Mall?

How much term insurance cover do you need?

What is the ideal duration for term life insurance?

Which factors affect term insurance premiums?

Key things to consider before buying a term insurance plan

Term insurance plan as per your sum assured

Term insurance plan as per policy term

Term insurance plan as per your age

Term insurance plan basis your salary

Policy exclusion

How to raise a claim for your term insurance plan?

How long does term insurance claim approval take?

How to avoid term insurance claim rejection?

What are common misconceptions about term insurance?

Common mistakes to avoid while buying term insurance

Term insurance terminology

Frequently asked questions

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term insurance premium