- High coverage at a low premium
- Financial protection for your family’s future
- Tax benefits up to Rs. 46,000`` under Section 80C and 10(10D)
- Dedicated claim assistance
- Customisable plans to suit your needs
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People’s trust in Bajaj
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10 million+
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In summary
Key things to know
- Provides life cover for a chosen period such as 10, 20, or 30 years.
- Offers high coverage amounts at comparatively affordable premiums.
- Helps your family manage living expenses, education costs, loans, and other financial commitments.
- Available in multiple variants including level term, increasing term, decreasing term, renewable term, and return of premium plans.
- Coverage recommendations typically range from 8x to 20x annual income, depending on age and responsibilities.
- Premiums paid may qualify for tax deductions under Section 80C, subject to prevailing tax laws.
Choosing the right life insurance cover depends on your income, liabilities, family responsibilities, and future goals. Explore different life insurance solutions that combine protection, savings, or investment benefits to find a plan that fits your needs.
What is term insurance: Meaning and definition
Importance of term insurance
If the insured person passes away during the policy term, the nominee receives the death cover. If the policyholder survives the term, no payout is made under a standard term insurance plan.
Unlike savings-oriented life insurance products, term insurance focuses purely on financial protection. This makes it one of the most straightforward ways to secure your family's financial future.
Why should you consider a term insurance plan?
Many people purchase life insurance to ensure their loved ones remain financially secure even when they are no longer around. Term insurance achieves this goal in a simple and cost-effective way.
Key reasons to consider term insurance
| Benefit | How it helps |
| Affordable premiums | Allows you to obtain substantial life cover without significantly impacting your monthly budget |
| Pure protection | Focuses entirely on providing a death cover to your family |
| Flexible policy term | Lets you align coverage with major financial responsibilities |
| High sum assured | Helps create a stronger financial safety net for dependents |
| Complements financial planning | Can work alongside savings, investments, and retirement planning goals |
Term Insurance ensures financial security with high cover at low premiums. Don’t wait—protect your loved ones today! Get quote!
Why is term insurance often considered a better protection option?
When comparing life insurance options, many individuals prefer term insurance because of its simplicity and affordability.
What makes term insurance stand out?
| Feature | Advantage |
| High coverage at lower cost | Enables larger financial protection at affordable premiums |
| Simple structure | Easy to understand with no complex investment component |
| Family-focused protection | Helps dependents manage future financial obligations |
| Flexible customisation | Allows selection of policy term and optional riders |
For families seeking financial protection rather than investment-linked benefits, term insurance can be an effective solution. Explore plans!
What are the key features of term insurance?
| Feature | Description |
| High sum assured | Large life cover at comparatively affordable premiums |
| Flexible policy term | Coverage duration can be selected based on requirements |
| Rider options | Additional protection through optional rider benefits available |
| Online purchase facility | Convenient application and policy issuance process |
| Tax benefits | Eligible tax advantages as per prevailing tax laws |
What are the key benefits of a term insurance policy?
A term insurance policy does more than provide a death cover. It helps protect your family's financial stability when they may need it the most.
Financial security for your loved ones:
The sum assured can help your family continue meeting everyday expenses and long-term financial commitments. This support can be valuable during a difficult period.
Helps protect your assets:
If you have outstanding liabilities such as a home loan, car loan, or personal loan, the insurance payout can help your family manage these obligations.
Supports lifestyle continuity:
A sudden loss of income can affect your family's financial plans. Term insurance helps reduce this financial disruption by providing a lump-sum benefit.
Helps manage unexpected expenses:
The payout can assist your family in handling unforeseen financial requirements without immediately relying on existing savings.
Affordable way to obtain life cover:
One of the biggest advantages of term insurance is the ability to secure significant coverage without paying very high premiums.
Acts as income replacement:
The death cover can help replace lost income and support important goals such as education, healthcare, and household expenses.
Tax benefits:
Premiums paid may qualify for deductions under Section 80C / Section 123 of the Income Tax Act 2025 (new act), subject to applicable provisions.
Death covers are generally eligible for tax exemption under Section 10(10D), subject to prevailing tax regulations.
Note: Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors.
Who should buy a term insurance policy?
Term insurance can be suitable for anyone whose family or dependents rely on their income.
| Profile | Why term insurance may help |
| Young professionals | Allows early access to life cover and potentially lower premiums |
| Parents | Helps protect children's future financial needs |
| Primary earners | Creates a financial safety net for dependents |
| Individuals with loans | Helps reduce the burden of outstanding liabilities |
| Business owners | Can support business continuity and financial obligations |
Which type of term insurance plan is right for you?
Different term insurance plans are designed to address different financial requirements.
| Type of term insurance | Key characteristic |
| Level term insurance | Coverage remains unchanged throughout the policy term |
| Decreasing term insurance | Coverage gradually reduces over time |
| Increasing term insurance | Coverage increases during the policy term |
| Convertible term insurance | Option to convert into permanent life insurance |
| Renewable term insurance | Allows renewal without a new medical examination |
| Return of Premium (TROP) | Returns eligible premiums if you survive the policy term |
| NRI term insurance | Designed for Non-Resident Indians |
| Group term insurance | Provides life cover to a group under one policy |
| Basic term plan | Pure life cover at affordable premiums |
| Basic protection plan | Focuses entirely on family financial protection |
How does term insurance plan work?
If the insured person passes away during the policy term, the nominee receives the death cover. If the policyholder survives the term, no maturity benefit is payable under a standard term insurance plan.
How term insurance works
| Step | What happens |
|---|---|
| Buy a policy | Choose the sum assured and policy term |
| Pay premiums | Premiums are paid monthly, quarterly, half-yearly, or annually |
| Stay covered | Life cover remains active throughout the policy term |
| Claim event | Nominee receives the sum assured if the insured passes away during the term |
| Policy completion | Standard plans do not provide a maturity benefit if the insured survives the term |
Example:
Suppose you purchase a term insurance policy with a sum assured of Rs. 1 crore and a policy term of 30 years.
If an unfortunate event occurs during those 30 years, your nominee receives the policy benefit. This amount can help manage household expenses, education costs, future financial goals, and outstanding liabilities.
When is the right time to buy term insurance?
The ideal time to buy term insurance is generally when you are young, healthy, and beginning to take on financial responsibilities.
Starting early may help you secure coverage for a longer duration and can potentially result in lower premiums compared to purchasing later in life.
Factors to consider
| Factor | Why it matters |
| Age | Younger applicants often have access to lower premium rates |
| Health | Good health can improve eligibility and pricing |
| Family responsibilities | Dependents may require long-term financial protection |
| Loans and liabilities | Coverage can help protect your family from debt burdens |
| Financial goals | Supports long-term planning for education, retirement, and family security |
Common life stages when people buy term insurance
- Starting your first job
- Getting married
- Becoming a parent
- Purchasing a home
- Taking significant loans
- Starting a business
How much term insurance coverage do you need?
The ideal coverage amount depends on your income, lifestyle, liabilities, future goals, and family responsibilities.
A commonly used guideline is to choose coverage between 10 and 15 times your annual income. However, your actual requirement may vary depending on your financial situation.
Recommended coverage by age
| Age group | Suggested coverage |
| 20 – 25 years | 20x your annual income – Suitable for young professionals starting out, ensuring future family protection and covering education or debts. |
| 26 – 30 years | 18x your annual income – Ideal for individuals planning major milestones like marriage or buying a home. |
| 31 – 35 years | 15x your annual income – Balances protection and affordability as financial responsibilities increase. |
| 36 – 40 years | 12x your annual income – Offers security for dependents, covering long-term goals and liabilities. |
| 41 – 50 years | 10x your annual income – Helps safeguard lifestyle needs and future expenses of dependents. |
| 51 years & above | 8x your annual income – Focuses on legacy planning and covering any outstanding obligations. |
What should your coverage include?
When calculating life insurance needs, consider:
- Outstanding home loans and other debts
- Household expenses
- Children's education goals
- Future family milestones
- Inflation
- Existing investments and savings
A term insurance calculator can help estimate the appropriate sum assured based on your personal financial profile.
Who can buy a term insurance plan?
Eligibility criteria:
| Parameter | Requirement |
| Minimum age | Generally 18 years |
| Maximum entry age | Generally up to 65 years (varies by insurer) |
| Income | Regular source of income required |
| Health status | Subject to underwriting and medical assessment |
Eligibility conditions may differ across insurers and plans.
What documents are required for term insurance?
Keeping the required documents ready can help speed up the application process.
Documents commonly required:
| Document type | Examples |
| Age proof | Birth certificate, PAN card, passport |
| Identity proof | Aadhaar card, PAN card, passport |
| Address proof | Utility bill, rental agreement, telephone bill |
| Income proof | Salary slips, bank statements, income tax returns |
| Medical records | Required in certain cases based on underwriting requirements |
Insurers may request additional documents depending on the applicant's profile and coverage requirements.
Term insurance vs whole life insurance: What is the difference?
Both term insurance and whole life insurance provide life cover, but they serve different financial objectives.
| Basis | Term insurance | Whole life insurance |
| Coverage duration | Fixed policy term (usually up to 10/20/30 years) | Lifelong coverage (usually up to 99 or 100 years) |
| Premium | Generally lower | Generally higher |
| Primary purpose | Financial protection | Protection with long-term benefits like savings option |
| Maturity benefit | Usually not available | May be available depending on policy |
| Investment component | Generally absent | May include cash value accumulation |
| Suitable for | Protection-focused individuals | Long-term estate or wealth planning |
If your primary objective is affordable financial protection, term insurance is often considered a practical option.
What should you consider before buying a term insurance policy?
Selecting a policy should involve more than comparing premiums alone.
1. Claim settlement ratio:
A higher claim settlement ratio can indicate an insurer's track record in settling claims.
When evaluating insurers, review claim settlement data for the most recent financial year available.
2. Available riders:
Optional riders can strengthen your protection.
Common rider available with term insurance plans are:
| Rider type | Purpose |
| Critical illness rider | Provides additional protection against specified illnesses |
| Accidental death rider | Additional coverage in case of accidental death |
| Waiver of premium rider | Future premiums may be waived under specified conditions |
3. Payout options:
Many term insurance plans offer flexibility in how benefits are paid.
Common payout structures include:
- Lump-sum payout
- Monthly income payout
- Combination of lump sum and monthly income
4. Adequate coverage:
The selected sum assured should account for:
- Current income
- Existing liabilities
- Future goals
- Family living expenses
- Inflation
Important points to remember when calculating term insurance coverage
Before finalising your coverage amount, consider these factors carefully:
- Calculate your annual income replacement requirement.
- Include all outstanding loans and liabilities.
- Estimate future education and family expenses.
- Consider the impact of inflation over time.
- Review existing investments and savings.
- Reassess coverage periodically as responsibilities increase.
A coverage review every few years can help ensure your family's protection remains aligned with changing financial needs.
How do you buy a life insurance plan through Bajaj Finance Insurance Mall?
Buying a life insurance plan online through Bajaj Finance Insurance Mall typically takes only a few minutes and allows you to compare available options from the comfort of your home.
Follow these steps:
- Click on 'Get Quote' on the life insurance page to access the online application form.
- Enter your name, mobile number, email ID, date of birth, and gender. Click 'Proceed' to generate a personalised premium estimate.
- Share additional details related to your occupation, lifestyle, education, income, and PIN code. Then click 'View Plans'.
- Compare available plans, riders, coverage options, and premium details.
- Select the plan that matches your requirements and click 'Buy Now'.
- A representative will contact you to explain the available options and help you make an informed decision.
Conclusion
Term insurance is one of the simplest ways to create financial security for the people who depend on you. By offering substantial life cover at affordable premiums, it helps your family manage daily expenses, outstanding liabilities, and future goals even in your absence. Whether you are a young professional, a parent, a business owner, or the primary earner in your family, a suitable term insurance plan can provide valuable peace of mind. Before choosing a policy, assess your income, financial responsibilities, coverage needs, and policy features carefully so that your loved ones remain financially protected for years to come.
Related articles:
| 1 crore term insurance | 2 crore term insurance | Tax benefits of term insurance |
| Term insurance plans in India for NRI | Return on premium option in term insurance | Term insurance age limit |
Explore more and stay informed
Frequently asked questions
Frequently asked questions
What is term insurance with an example?
Term insurance provides financial protection to your family for a specific period. For example, if a 30-year-old buys a term insurance policy with a sum assured of Rs. 50 lakh for 25 years, the policyholder will pay premiums throughout the policy term. If the policyholder passes away during those 25 years, the nominee will receive Rs. 50 lakh as the death cover. This payout can help your family manage daily expenses, outstanding loans, education costs, and other financial commitments.
Is taking term insurance a good option?
Yes, taking term insurance is a good option as it offers comprehensive life coverage at affordable premiums. It provides financial security to the policyholder's family in case of unexpected and untimely death, ensuring their well-being and financial stability. In addition, term insurance policies offer flexibility and tax benefits, making it a reliable and suitable life insurance option for most individuals.
What are the minimum and the maximum age to buy a term insurance policy?
The minimum age to buy a term insurance policy is 18 years, and the maximum age varies between 65 to 75 years, depending on the insurance provider. The earlier you purchase the policy, the cheaper it is, as the premium rates are lower for younger applicants because they have a lower chance of making a claim.
What are the exclusions of term insurance plan?
The exclusions of a term insurance plan include death caused by suicide within the first year of the policy commencement, participation in illegal activities or criminal acts, death due to self-inflicted injury, and consumption of drugs or alcohol. It is important to read the policy document carefully to understand the list of exclusions.
Do term insurance plans cover terminal illness?
Some term plans include terminal illness benefits, paying out the sum assured if diagnosed with a terminal condition during the policy term, offering financial support when needed most.
