Term Insurance

A term insurance plan is a straightforward life insurance policy designed to provide financial security to your family in case of an unfortunate event. It offers high coverage at affordable premiums for a fixed duration. If the policyholder passes away during the policy term, the nominee receives the death cover. Below are the key aspects of how a term insurance plan works.
 

Key aspects of a term insurance plan

• Choose the sum assured – The policyholder selects the coverage amount based on financial needs and liabilities.
• Select the policy term – The coverage duration can range from 5 to 40 years, depending on the insurer.
• Pay regular premiums – Premiums can be paid monthly, quarterly, annually, or as a lump sum.
• Nominate a beneficiary – The policyholder designates a nominee who will receive the sum assured in case of their demise.
• Claim settlement – In case of the policyholder’s death during the term, the insurer processes the claim and pays the death benefit to the nominee.
• Policy expiry – If the policyholder survives the term, there are no payouts unless a return of premium (ROP) option is chosen.

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:
 

• It replaces lost income:
  If you're the sole or primary earner in your family, a term policy ensures your loved ones have financial support if you're no longer around.

• 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 protection:
  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.

• Helps with tax planning:
  A term policy offers tax benefits under Section 80C and Section 10(10D), helping you save money while securing your future.

• Gives long-term coverage:
  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.

Term insurance is essential for everyone—regardless of age, gender, profession, or lifestyle. It is not a one-size-fits-all product but a customisable safety net that adapts to your unique life goals. Whether you're starting a family, growing your career, or planning retirement, a term policy ensures financial peace of mind for every stage of life.

Term insurance for parents

If you are a parent, securing your child’s future is non-negotiable. A term insurance plan ensures that even in your absence, your child’s education, daily needs, and dreams do not get disrupted. Term insurance for parents acts as a financial cushion, replacing lost income and offering peace of mind. Parents with dependents should definitely consider term insurance early on.

Term insurance for young professionals

Starting early has its perks. If you're a young earner, a term life insurance plan offers high coverage at a very low premium. It's a smart way to secure your future before responsibilities grow. Locking in a policy young means long-term benefits with minimal cost.

Term insurance for newly married

Marriage comes with shared dreams and responsibilities. A life insurance term plan ensures your spouse remains financially protected in your absence. It helps cover home loans, EMIs, or future plans like starting a family—offering a strong foundation for your new journey together.

Term insurance for women

Whether you are a working professional or managing your home, a term life insurance plan is crucial. It helps protect your family from sudden financial burdens. Women often underestimate their economic value, but a term plan ensures their contribution is never overlooked.

Term insurance for taxpayers

Looking to save on taxes? A term policy is eligible for tax deductions under Section 80C and provides tax-free payouts under Section 10(10D). It’s an effective financial instrument that offers both protection and tax savings.

Term insurance for senior citizens

A term policy can help cover financial liabilities or support a dependent spouse. Though premiums of term insurance for senior citizens may be higher, it is still a reliable option for peace of mind.

Term insurance for housewife

A housewife’s role might not generate income, but her contributions are priceless. A term policy helps secure the family’s financial balance in case of unexpected loss, especially if childcare or home management responsibilities must be outsourced. Insurers today offer tailored term insurance for housewife at affordable premiums.

Term insurance for self-employed

Irregular income shouldn’t mean compromised security. A term policy helps self-employed professionals protect their family from financial stress due to uncertain business cycles or unfortunate events. It adds much-needed financial stability to a flexible career.

Term insurance for NRI

NRIs often support families back home or invest in Indian properties. A term insurance policy offers global coverage and ensures your loved ones are protected financially, regardless of where you live or work. Many insurers offer tailored term insurance for NRIs as per their needs and budget, helping them to ensure their family is secure back home.

Term insurance for home buyers

Buying a house is a long-term financial commitment. A term life insurance policy ensures that in case of your untimely demise, your family doesn’t struggle to repay EMIs or lose their home. It’s a must-have for homeowners.

Term insurance for diabetics

Managing diabetes is lifelong, but that shouldn't mean missing out on life cover. Many insurers now offer a term life insurance policy tailored for diabetics. Term insurance for diabetics offer necessary protection while considering your health needs.

Term insurance for equity investors

Stock markets are unpredictable. A term life insurance plan ensures your family doesn’t depend on volatile returns in your absence. It adds a layer of safety to your financial portfolio, ensuring long-term peace of mind.

Term insurance for retirees

Even after retirement, a life insurance term plan can help leave a legacy or take care of dependent spouses. It’s ideal if you still have liabilities or want to ensure estate planning for your loved ones.

Term insurance plan for freelancers

With no fixed income, freelancers often miss out on long-term financial security. A term life insurance plan provides stability by offering a guaranteed payout, protecting loved ones from financial disruptions in uncertain career paths.

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.

Affordability:

Term insurance is an affordable option. It is an excellent choice for individuals who want to ensure their family’s financial security without incurring steep costs.

Pure protection:

Term life insurance focuses solely on providing a death benefit. It is a straightforward and effective way to ensure your loved ones are taken care of in case of your untimely demise.

High coverage amounts:

Term insurance plan enables you to secure a substantial coverage amount, offering a higher level of financial protection at low cost.

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.

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.

What is a term insurance calculator?

A term insurance calculator is an online tool designed to help individuals estimate the premium they would need to pay for a specific term life insurance plan. By inputting details like age, sum assured, policy tenure, and smoking habits, the calculator provides an approximate premium amount. It simplifies the decision-making process by allowing users to compare different plans and customise them according to their financial goals. Additionally, it helps in understanding how changes in coverage or tenure impact the premium, making it a useful tool for anyone looking to purchase term insurance.

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:

Here, the coverage amount increases over time to account for inflation or other financial responsibilities which are of growing nature.

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.

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.

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.

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.

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.

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.

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.

Immediate financial protection:

If the unexpected happens, your term policy ensures your family receives a lump sum amount that helps them manage day-to-day expenses.

Loan and debt repayment:

Whether it is a home loan or business debt, the payout from your term policy ensures your family does not have to carry the burden.

Children’s education:

Your children’s dreams do not need to end with you. A well-chosen term policy can fund their higher education or career aspirations.

Maintains lifestyle:

It ensures your family’s standard of living is maintained—helping them pay bills, buy groceries, and continue with life without major compromises.

Acts as income replacement:

If you are the sole earner, your term policy steps in to replace your income, so your family never feels the financial void.

Gives peace of mind:

Knowing that your loved ones will be taken care of even when you are not around brings emotional relief and confidence.

Supplement to other savings:

Even if you have investments, a term policy acts as a dependable backup, especially in case of an untimely death.

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.

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 Premiums paid or the surrender value as on the date of death, provided the policy is in force.

Total 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

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.

Contact No.: 1800-209-7272
Email at: customercare@bajajallianz.co.in

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.

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.

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.

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.