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Things to Know About Reviving a Lapsed Term Insurance

When a life insurance policy provides insurance coverage for a person for a duration of time or pre-defined term of years, it is called term insurance. In the event of the demise of the insured during this term, their nominee is eligible to receive the death benefit. Cost-wise, when compared to permanent life insurance, term insurance is less expensive. Also, unlike accumulating cash benefits attached to a permanent life insurance product, a term insurance product may not have a cash value. The only value that is guaranteed out of it is the death benefit.

Even term insurance can have various types. Term insurance policies can be of the duration of 20 years or 30 years. The premium of the insurance policy is calculated based on life expectancy, age, medical report, health records, etc. Only fixed premiums are levied and are paid throughout the life of the term insurance policy.

Why Revive a Lapsed Term Insurance Policy?

A term insurance policy lapse happens when one fails to pay premiums. As a result, the insurance policy contract lapses. The insurer is not liable to pay the death benefit in the event of the death of the insured. Insurers offer grace periods of 15 days for monthly payments or 30 days for yearly payments. The revival of a lapsed term insurance is dependent on the duration of inactivity of the insurance policy. If the term insurance policy was active for three years, then the insured gets two years to revive the policy.

If the policy is revived with six months of lapse, the insured is liable to pay the premiums that were overdue along with penalty charges. There could be an interest payment required as well – in the range of 12% to 18% of the value of the premium.

List of Term Insurance Plans

Term insurance plans cover uncertainties such as death, disease, etc. In India, there are many companies that offer online term insurance plans and policies.

Company	Term Insurance Plan	Eligibility Age	Coverage in years	Minimum Assured Sum	Claim Settlement Ratio	Special Features
Aditya Birla Sun Life Insurance	Aditya Birla Sun Life Insurance LifeShield Plan	18 years to 65 years	10-55 years	Rs 25 Lakh	96.38%	Inbuilt terminal illness benefits available 8 comprehensive plan options available Riders available
	Aditya Birla Sun Life Insurance Digi Shield Plan	18 years to 65 years	5-50 years	Rs 30 Lakh	97.2%	Enhance policy coverage at each life milestone, such as 1^st marriage and childbirth. 2 plan variants Flexible premium payment terms
	Aditya Birla Sun Life Insurance Protect @Ease Plan	18 years to 55 years	5-40 years	Rs 30 Lakh	97.54%	Death benefits can be a Lump sum or annual income. Option to add a spouse under the same plan Enhanced protection on life milestones, like marriage or childbirth
	Aditya Birla Sun Life Protector Plus Plan	18 years to 65 years	5-30 years	Rs 5 Lakh	97.5%	Inbuilt total and permanent disability cover available Life cover plus disability benefit available Rewards for a healthy lifestyle
	Aegon Life iTerm Plan	18 years to 50 years	100 years	Rs 25 Lakh	98.01%	Inbuilt Terminal Illness benefit. Hassle-free buying process. 3 plan options
	Aegon Life iTerm Plus Plan	18 years to 65 years	80 years	Rs 25 Lakhs	98.01%	Lumpsum payment for a death benefit, terminal, and critical illness benefit 4 plan options Enhanced life cover option available
Aviva Life Insurance	Aviva Life Life Shield Advantage Plan	18 years to 55 years	65 years	Rs 35 Lakh	96.06%	Waives future premium in case of death of the policyholder Maturity benefits are available which is the total premium paid. Two options of a plan to choose from.
Aviva Life Insurance	Aviva Life JanaSuraksha Plan	18 years to 45 years	55 years	Rs 50,000	96.06%	Offers accidental death benefits, maturity benefits, and surrender benefits No medical tests required. In accidental death, twice the sum insured is paid to the nominee
Bajaj Allianz Life Insurance	Bajaj Allianz Life Insurance eTouch Online	18 years to 65 years	75 years	Rs 50 Lakh	95.01%	Accidental cover Option for a premium waiver Critical illness cover
	Bajaj Allianz Life Smart Protect Goal	18 years to 65 years	With ROP-75 Years With ROP &Whole Life-80 years Whole life Cover-99 years	Rs. 50 lakhs	92.04	Multiple add-ons and variants 55 Critical illnesses covered 4 comprehensive cover variants available
	Bajaj Allianz Life Insurance iSecure	18 years to 60 years	70 years	Rs 2.5 Lakh for General Category, Rs 20 Lakh (Smoker, Non-smokers and preferred non-smokers)	98%	Rebate on premium for high sum assured. Joint life cover for a spouse. Installment pay-out option available
	Bajaj Allianz Life Insurance iSecure Loan	18 years to 60 years	65 years	Rs 3 Lakh	92.04%	Joint life cover available. Decreasing term insurance. Rebate on premium for high sum assured.
	Bajaj Allianz Life Insurance iSecure More	18 years to 60 years	70 years	Rs 2.5 Lakh	-	Joint life cover available. Rebate for joint life cover. Flexibility to change Premium Payment mode
	Bajaj Allianz Life Insurance Life Secure	25 years- 50 years (Option III), 55 years (Option I and II)	100 years	Rs 20 Lakh	-	Three coverage options to choose from. Rebate for high sum assured Choice available for Premium Payment terms
	Bajaj Allianz Life Insurance LifeStyle Secure	18 years to 50 years	60 years	Rs 3 Lakh	-	Inbuilt accelerated risk cover for terminal illness is available. No medical certificate is needed. Death benefit available as Income pay-outs a
	Bharti AXA Life Insurance Flexi term	18 years to 65 years	5/10/15/20 years	Rs 1 lakh	97.4%	Critical illness cover. Flexible payout options.
	Bharti AXA Life Income Protection Plan	18 years to 58 years	70 years	Rs 5 Lakh	98.2%	Two death benefit available Return of Premium is available as an option Provides income to the family after policyholder’s death
	Bharti AXA Life Insurance POS SaralJeevanBimaYojana	18 years to 55 years	65 years	Rs 50,000	98.2%	Double the sum assured on death due to an accident. No medical test.
	Bharti AXA Life Smart Jeevan	18 years to 50 years	62	Rs 50,000	98.2%	Easily affordable premiums Maturity benefit is 100% return of premium paid till the end of the policy. Easy, hassle-free purchase.
	Bharti AXA Life Insurance Premier Protect	18 years to 65 years	75 years	Rs 50 lakhs	98.2%	Increase cover with life milestones. Multiple options for death benefit payout Tax Benefits
Canara HSBC OBC Life Insurance	Canara HSBC OBC Life Insurance iSelect Star Term Plan	18 years to 70 years	80 years	Rs 25 Lakhs	98.12%	The discounted premium for non-smokers and females. Easy online purchase. Inbuilt covers for accidental total and permanent disability.
	Canara HSBC OBC Life Insurance POS Easy Bima Plan	18 years to 55 years	65 years	Rs 50,000	98.12%	Sum assured double for death by accident Double Life Cover option Return of premium available
	Edelweiss Tokio Life Insurance Zindagi Plus	18 years to 65 years	80 years	Rs 25 Lakh	97.8%	Hospitalization daily cash allowance and other benefits 4 Plan variants Flexible premium pay terms
Edelweiss Tokio Life	Edelweiss Tokio Life Simply Protect	18 years to 65 years	80 years	Rs 25 Lakh	93.29%	4 life variants available Flexible premium payment term Payout options
	Edelweiss Tokio Life My Term+	18 years to 65 years	85 years	Base Sum Assured: 25lakh Sum Assured under Better Half Benefit: 25lakh, only when Base Sum Assured chosen is 50 lakh or more	93.29%	Cover for spouse available Cover against Life for 12 Critical Illnesses Payout options
	Edelweiss Tokio Life- Protection	18 years to 60 years	70 years- 30-year coverage	Rs 15 lakhs	93.29%	The premium payment term reduction Affordable premium rates available for non-tobacco users Choice of 4 available riders
	Edelweiss Tokio Life Zindagi Plus		80 years	For Life Stage/Better half/ Top-Up Benefit-Rs. 50 lakhs Other options-Rs. 25 lakhs	93.29%	Sum assured options available Better half Benefit Life stage or key milestone benefit and top-up benefits available
Exide Life Insurance	Exide Life Smart Term Pro	18 years to 60 years	80 years	Rs 15 lakhs for 8/10/12 Pay Rs. 50 lakhs for 5Pay	98.15%	Return of total premiums on plan maturity Family Income Payout option for 5 or 10 years Rider protection available
	Exide Life Smart Term Edge	18 years to 60 years	70 or 75 years as per plan option	Classic-Rs. 5 lakhs StepUp& Comprehensive Plans-rs. 10 lakhs	98.15%	3 plan options Enhanced protection with Riders Up to 150% return on premiums paid
	Exide Life Term Plan With ROP	18 years to 50 years	65 years	Limited Premium-Rs. 10 lakhs Regular Premium-Rs. 5 lakhs	98.15%	Premium return on policy term completion Premium discounts for females No medical tests required
	Exide Life Elite Term Insurance Plan	21 years to 60 years	70 years ; 80 years age in case of extended-term opted	Rs.50 Lakhs (online mode) Rs. 2 Crore (offline mode)	98.15%	Increased life cover at affordable premiums Option to extend policy by 5 or 10 years Benefit pay-out options available
Future Generali Life Insurance	Future Generali Flexi Online Term Plan	18 years (Basic Life Cover), 25 (Income Protection) to 55 years	Smokers -60 years Non-Smokers-75 years	Rs 50 Lakh	95.2%	The discounted premium for females, non-smokers, and incentives for a healthy lifestyle 2 customized plan variants Increasing Income Protection option
	Future Generali Express Term Life Plan	18 years to 65 years	80 or 85 years as per plan option	Rs. 25 lakhs	95.2%	Flexibility to choose policy and premium pay terms Lumpsum Death/Terminal Illness benefits given 4 plan options
	Future Generali Care Plus Plan	18-65 years	85 years	For Classic Option: Rs. 1.5 lakhs For Premier Option: Rs. 25 lakhs	95.2%	Enhanced cover at low premiums Available in 2 variants-Classic and Premier Riders available
	Future Generali Jan Suraksha	18 years to 50 years	8 years	Based on the age group, the Premium option	95.2%	Life cover at a small one-time premium payment Tax Benefits available Provides savings with life cover
HDFC Life ICICI Prudential Life	HDFC Life Click 2 Protect 3D Plus	18 years to 65 years	85 years	Rs 10,000	99.04%	Waiver of premium on accidental total and permanent disability. Lower premium for non-smokers, females. Life stage protection increases 9 Plan Options
	HDFC Life Click 2 Protect Plus	18 years to 65 years	85 years	Rs. 25 lakhs	99.04%	4 plan options Enhanced protection through Riders Flexible premium payment modes and policy terms
	HDFC Click 2 Protect Corona Kavach	18 years to 65 years	85 years or Whole Life, as per plan option	Sum Insured:Rs. 50,000 –Rs. 5 lakhs	99.04%	9 Plan options Special protection against COVID and Co-morbidity illnesses All premiums waived off in case of Accidental Total Permanent Disability
	ICICI PruiProtect Smart	18 years to 65 years	85 years	Rs 50 Lakh	97.8%	Purchase online and customizable Accidental death and critical illness cover option Choice of 4 Payout-options
	ICICI PruiProtect Smart Money Back	20-54 years	For iProtect Smart -99 years For Savings Suraksha -70 years	For iProtect Smart –Rs. 25 lakhs For Savings Suraksha- 10X Annually paid premiums	97.8%	Optional cover for 34 critical illnesses Lumpsum payout in case of demise Combination of iProtectSmart+SavingsSuraksha
	ICICI Pru POS iProtect Smart	18 years to 45 years	65 years	Subject to the minimum premium amount	97.8%	Accidental Death Benefit Option Affordable premiums
IDBI Federal Life Insurance	IDBI Federal Life MyLife Protection term plan	21 years to 65 years	65 years	Rs 50 Lakh	95.79%	Three life cover options. Lower premium for healthy lifestyles. Flexible and affordable premium. Enhance cover with the accidental death benefit.
	IDBI Federal Life Termsurance Life Protection	18 years to 60 years	70 years	Rs 5 Lakhs	95.79%	The discounted premium for high sum assured and female policyholders Choice of the policy term and premium payment modes 2 plan options available as per need
	IDBI Federal Life Income Protect Plan	25 years to 60 years	70 years	Rs 15,000 per month monthly income at inception	95.79%	Rider benefit for accidental death. Flexible premium and payout options Increasing monthly income
IndiaFirst Life Insurance	IndiaFirst Life Guaranteed Protection Plan	18 years to 65 years	Whole life cover till 99 years under option	For COVID Cover: Rs 1 Lakh For ROP& Incidence Cover-Rs. 25 lakhs Other options: Rs. 50 lakhs	96.65%	Easy to buy online. Terminal illness cover, critical illness cover, accidental death cover Return of premium option
	IndiaFirst Life e-Term Plan	18 years to 55 years	80 years	Depends on premium and cover option	96.65%	8 different coverage options Critical illness, accidental death, and disability cover.
	IndiaFirst Life Plan	18 years to 60 years	70 years	Rs 1 Lakh	96.65%	Surrender benefit for single premium payment Assured Benefit if the life assured dies High Cover provided at affordable premiums
Kotak Life insurance	Kotak Life eTerm	18 years to 65 years	75 years	Rs 25 Lakh	97.4%	Three payout option to choose from. Accidental death and disability rider. The discounted premium for females, non-smokers.
Kotak Life insurance	Kotak Life eTerm	18 years to 65 years	75 years	Rs 25 Lakh	97.4%	waiver for premium on total disability. Increase or decrease cover based on life stages. Hassle-free with no medical test. Flexible premium payment options.
	Kotak Term Plan	18 years to 65 years	70 years	Rs. 3 lakhs	97.4%	Plan Conversion allowed Riders available Affordable premium options
Life Insurance Corporation of India	LIC Tech Term	18 years to 65 years	80 years	Rs 50 Lakh	97%	Accidental death benefit rider available 2 Benefit options offered Special savings for female policyholders
	LIC Jeevan Amar	18 years to 65 years	80 years	Rs. 25 lakhs	97%	High coverage eat affordable premiums 2 Benefit Options Special rates for women
Max Life Insurance	Max Life Online Term Plan Plus	18 years to 60 years	85 years	Rs 25 Lakh	99.22%	Accelerated critical illness benefit 3 plan variants Multiple pay-out options
	Max Life Premium Return Protection Plan	21 years to 55 years	75 years	Rs 5Lakh	99.22%	Waiver of premium plus rider Return of total premiums (TROP) if the policyholder survives till maturity Lifetime benefits for the limited premium term of 11 years
	Max Life Smart Term Plan	18 years to 75 years	85 years	Rs 1 Crore	99.22%	Maturity benefits are available Choice of premium payment options Life Insurance plus health cover with protection under 40 critical illnesses
	Max Life Super Term Plan	18 years to 65 years	75 years	Rs 25 Lakh	99.22%	High cover at affordable premiums Flexible policy term and death benefit payout option Increasing Life Cover
PNB Metlife Life Insurance Pramerica Life	PNB Metlife Family Income protector plus	25 years to 60 years	75 years	Rs 14.20 Lakh (for 10 years), Rs 9.10 Lakh (for 20 years)	96.21%	Guaranteed monthly income for 20 years TROP option available Tax savings
	PNB MetlifeAajeevanSuraksha Plan	18 years to 65 years	80 years	Rs 25 Lakh	96.21%	Comprehensive terminal illness cover Joint cover for a spouse Choice of benefit payout and premium modes
	PNB MetlifeMeraMediclaim Plan	18 years to 65 years	80 years	Rs 25 Lakh-	96.21%	Inbuilt terminal illness cover and Critical illness cover Automatic sum insured recharge available Savings on combined premiums
	PNB MetlifeMera Term Plan	18 years to 65 years	99 years; 75 years for Joint Life Cover	Rs 10 Lakh	96.21%	Joint life cover for spouse Premium savings for non-smokers Child education benefit
	PNB MetlifeMera Term Plan Plus	18 years to 60 years	99 years	Rs 25 Lakh	96.21%	Joint cover offer Return of premium Child education benefit
	Pramerica Life TruShield Term Plan	18 years to 55 years	65 years	Rs 5 Lakh	90.87%	Maturity benefits and Additional Shield Cover available ROP available Death benefit options
	Pramerica Life U Protect	18 years to 55 years	65 years	Rs 25 Lakh	90.87%	Critical illness and accidental death benefit rider available Low premiums for non-smokers and females High cover at affordable premiums
Sahara Life Insurance	Sahara SamoohSuraksha Term Plan	18 years to 64 years	64 years	Rs 50,000	90.16%	Group term plan for a minimum of 50 people
Shriram Life Insurance	Shriram Life Cash Back Term Plan	12 years to 15 years	70 years	Rs 2 Lakh	85.30%	Accident, critical illness, and family income benefits available Increase cover at life stages Riders available
	Shriram Life Online Term Plan	18-55 years	75 years	Rs. 25 lakhs	85.3%	Payout options available High sum assured savings
	Shriram Life My Spouse Term Plan	18-55 years	75 years	Rs. 25 lakhs	85.3%	Low premium rates for women Additional covers present High sum assured premium savings
	Shriram Life Family Protection Plan	18 years to 60 years	75 years	Rs 15 Lakh	85.3%	Multiple options for death benefit payout Premium savings for higher sum assured Affordable premiums
	Shriram Life Smart Protection Plan	18 years to 65 years	Life-time	Rs 1 Lakh	85.3%	Available in 3 variants-Gold, Silver and Diamond Critical illness benefits are available for the Diamond option. Enhanced protection available
	Shriram Group Life Term Insurance	14 years to 79 years	80 years	Rs 5000 (lump sum)per member	85.3%	Critical illness and accident benefit available Minimum 20 member group.
Star Union Dai-ichi Life Insurance	SUD Life Abhay	18 years to 65 years	80 years	Rs 50 Lakhs	96.74%	Accident, total and permanent disability rider available Choice of pay-out options Affordable premiums
State Bank of India Life	SBI Life eShield	18 years to 60 years	75 years	Rs 35 Lakh	95.03%	Accident death benefit rider available Second Medical opinion available Low premiums for non-smokers
	SBI Life Smart Shield	18 years to 65 years	70 years	Rs 25 Lakh	95.03%	Accident, total and permanent disability rider available Increasing Term Insurance High sum assured premium savings
	SBI Life Saral Shield	18 years to 60 years	65 years	Rs 7.5 Lakhs	95.03%	Accident, total, and permanent disability rider available. Premium savings on the large sum assured amounts 3 benefit payout options
	SBI Life GrameenBima	18 years to 50 years	55 years	Rs 10,000	95.03%	Hassle-free, affordable Affordable cover at low premiums No medical tests needed
	SBI Life SaralSwadhan+	18 years to 55 years	70 years	Rs 30,000	95.03%	Guaranteed maturity benefits Life Insurance+ Savings+ ROP Easy to enrol
	SBI Life Smart Swadhan Plus	18 years to 65 years	75 years	Rs 5 Lakh	95.03%	Maturity benefits Affordable premiums Return of premium benefits added
TATA AIA Life Insurance	TATA AIA Life Insurance MahaRaksha Supreme	18 years to 70 years	Non Whole Life-85 years Whole Life-100 years	Rs 5 Lakhs	99.07%	Inbuilt payout accelerator benefit, Critical terminal illness benefit Flexible premium payment options
	TATA AIA Life Insurance iRaksha TROP	18 years to 65 years	100 years	Rs 50 Lakhs	99.07%	Online purchase hassle-free Rebates on premium for high sum assured Females and non-smokers have a discounted premium
	TATA AIA Life Insurance SampoornaRaksha	18 years to 70 years	99 years	Rs 50 Lakhs	99.07%	Rebates on premium for high sum assured Non-smokers have discounted premiums Riders available
	TATA AIA Life Insurance SampoornaRaksha+	18-70, as per plan option	100 years	Rs. 50 lakhs	99.07%	2 Death benefit options Optional Riders available ROP option

Disclaimer:Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Best Term Insurance Plans

When choosing the best term insurance plan, a significant consideration is the claim settlement ratio. Best plans have percentages in the range of 98-99 percent. It has to be noted that when making a claim, it is the responsibility of the insured to disclose all their details accurately. This would avoid any situation of claim rejection. In case the insured feels that the claim was rejected in error, they can approach the ombudsman. He/She has the authority to check the claim details and provide a ruling that could be in favour of the insured or the insurer, depending on the accuracy of the claim.

How to Apply for the Term Insurance Plan?

Presently, most term insurance plans are bought online. The following is the general process:

Logon to the website of PaisaWiki
Enter the sum assured amount
Choose the term insurance policy duration
Choose the term for paying premium – monthly, quarterly, yearly
Select the bank from which premium is deducted
An acknowledgment message is displayed

The process may involve uploading documents pertaining to age, medical conditions, identify proof, etc.

Features and Benefits of the Term Insurance Plan

The following are the salient features and core benefits of the term insurance plans:

Affordable – A pure term plan only covers life. The amount and premium are fixed
Easy purchase process – The term plan can be bought easily. It’s just like buying another insurance product
Return on premium – Most term insurance plans have no returns on the premium paid. There is a variant of a term plan that offers a return on premium upon the plan’s maturity. Such term insurance plans are slightly more expensive than the common term insurance policies
Staggered payments – Sometimes, a huge corpus of money on the death of a person that is delivered to the nominee might pose a risk. The money could be poorly managed. To prevent this, there is an option to provide the corpus of money in a phased manner
Flexible payment – Term insurance plans offer flexible payment options of monthly, quarterly, semi-annually, or annually
Rebate – Some life insurance companies offer rebates for term insurance plans with higher sum insured. There are congenial plans for non-smokers and women, too – they can get discounted premiums

Comparison with Other Plans

If term insurance has to be compared, it can only be compared to life insurance:

Death benefit – This is an essential difference. Term insurance provides death benefits upon the death of the insured. But life insurance offers death benefit amount and maturity value amount as well
Risks covered over savings – Term insurance only covers the risk of death of the insured. Its premiums are, therefore, lower in cost than life insurance. So if the objective of the insured is to cover only life, then term insurance is the best
Flexibility – Surrendering a life insurance plan is more cumbersome. In life insurance, the maturity benefit is provided only if the insured completely pays all premiums up to policy maturity
Tax benefit – Term insurance premiums are eligible to be covered under tax benefits

Things to consider while buying the Term Insurance Plan

Select the right insurance company – Check the company’s claim settlement ratio, solvency ratio, market reputation, financial standing, etc.

Payout option – Some common payout options are lump sum payout on death or monthly income with life cover. The payout could be 148% of the assured amount if it is a lump sum amount. In the case of monthly income, it is generally about 0.4% of the assured amount paid over a period, such as ten years
Policy period – A person in their 50s may need coverage for 10 – 15 years, whereas a person in their 20s may need coverage for 40 years
Cover amount – This is identified based on age, financial obligations, basic expenses, current loans, etc.

FAQs

Q: Can term plans have maturity benefits too?

Ans: Term insurance plans do not have maturity benefits. They are only a life-saver kind of plan.
Q: What if the insured starts developing poor lifestyle habits?

Ans: The insured increases their risk of death. Their claim may get rejected or incur a lower payout on their death.
Q: Does term insurance cover accidental death?

Ans: Yes. The assured sum will be paid to the nominee.
Q: Is term insurance valid outside of the country?

Ans: Yes. The untimely death of a person outside of their country can be qualified for a payout. If the person has migrated to another country, then it is their responsibility to inform the term insurance provider on this.
Q: How does the investigation happen?

Ans: If a claim is made within the first two years of purchasing a term insurance cover, then the insurance company may examine the cause of death.
Q: Can Non-Resident Indians purchase term insurance plans?

Ans: NRI’s who are Indian residents can purchase term insurance plans.