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.
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.
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% |
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Aditya Birla Sun Life Insurance Digi Shield Plan | 18 years to 65 years | 5-50 years | Rs 30 Lakh | 97.2% |
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Aditya Birla Sun Life Insurance Protect @Ease Plan | 18 years to 55 years | 5-40 years | Rs 30 Lakh | 97.54% |
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Aditya Birla Sun Life Protector Plus Plan | 18 years to 65 years | 5-30 years | Rs 5 Lakh | 97.5% |
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Aegon Life iTerm Plan | 18 years to 50 years | 100 years | Rs 25 Lakh | 98.01% |
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Aegon Life iTerm Plus Plan | 18 years to 65 years | 80 years | Rs 25 Lakhs | 98.01% |
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Aviva Life Insurance | Aviva Life Life Shield Advantage Plan | 18 years to 55 years | 65 years | Rs 35 Lakh | 96.06% |
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Aviva Life JanaSuraksha Plan | 18 years to 45 years | 55 years | Rs 50,000 | 96.06% |
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Bajaj Allianz Life Insurance | Bajaj Allianz Life Insurance eTouch Online | 18 years to 65 years | 75 years | Rs 50 Lakh | 95.01% |
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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 |
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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% |
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Bajaj Allianz Life Insurance iSecure Loan | 18 years to 60 years | 65 years | Rs 3 Lakh | 92.04% |
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Bajaj Allianz Life Insurance iSecure More | 18 years to 60 years | 70 years | Rs 2.5 Lakh | - |
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Bajaj Allianz Life Insurance Life Secure | 25 years- 50 years (Option III), 55 years (Option I and II) | 100 years | Rs 20 Lakh | - |
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Bajaj Allianz Life Insurance LifeStyle Secure | 18 years to 50 years | 60 years | Rs 3 Lakh | - |
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Bharti AXA Life Insurance Flexi term | 18 years to 65 years | 5/10/15/20 years | Rs 1 lakh | 97.4% |
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Bharti AXA Life Income Protection Plan | 18 years to 58 years | 70 years | Rs 5 Lakh | 98.2% |
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Bharti AXA Life Insurance POS SaralJeevanBimaYojana | 18 years to 55 years | 65 years | Rs 50,000 | 98.2% |
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Bharti AXA Life Smart Jeevan | 18 years to 50 years | 62 | Rs 50,000 | 98.2% |
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Bharti AXA Life Insurance Premier Protect | 18 years to 65 years | 75 years | Rs 50 lakhs | 98.2% |
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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% |
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Canara HSBC OBC Life Insurance POS Easy Bima Plan | 18 years to 55 years | 65 years | Rs 50,000 | 98.12% |
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Edelweiss Tokio Life Insurance Zindagi Plus | 18 years to 65 years | 80 years | Rs 25 Lakh | 97.8% |
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Edelweiss Tokio Life | Edelweiss Tokio Life Simply Protect | 18 years to 65 years | 80 years | Rs 25 Lakh | 93.29% |
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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% |
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Edelweiss Tokio Life- Protection | 18 years to 60 years | 70 years- 30-year coverage | Rs 15 lakhs | 93.29% |
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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% |
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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% |
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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% |
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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% |
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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% |
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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% |
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Future Generali Express Term Life Plan | 18 years to 65 years | 80 or 85 years as per plan option | Rs. 25 lakhs | 95.2% |
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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% |
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Future Generali Jan Suraksha | 18 years to 50 years | 8 years | Based on the age group, the Premium option | 95.2% |
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HDFC Life ICICI Prudential Life |
HDFC Life Click 2 Protect 3D Plus | 18 years to 65 years | 85 years | Rs 10,000 | 99.04% |
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HDFC Life Click 2 Protect Plus | 18 years to 65 years | 85 years | Rs. 25 lakhs | 99.04% |
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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% |
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ICICI PruiProtect Smart | 18 years to 65 years | 85 years | Rs 50 Lakh | 97.8% |
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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% |
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ICICI Pru POS iProtect Smart | 18 years to 45 years | 65 years | Subject to the minimum premium amount | 97.8% |
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IDBI Federal Life Insurance | IDBI Federal Life MyLife Protection term plan | 21 years to 65 years | 65 years | Rs 50 Lakh | 95.79% |
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IDBI Federal Life Termsurance Life Protection | 18 years to 60 years | 70 years | Rs 5 Lakhs | 95.79% |
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IDBI Federal Life Income Protect Plan | 25 years to 60 years | 70 years | Rs 15,000 per month monthly income at inception | 95.79% |
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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% |
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IndiaFirst Life e-Term Plan | 18 years to 55 years | 80 years | Depends on premium and cover option | 96.65% |
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IndiaFirst Life Plan | 18 years to 60 years | 70 years | Rs 1 Lakh | 96.65% |
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Kotak Life insurance | Kotak Life eTerm | 18 years to 65 years | 75 years | Rs 25 Lakh | 97.4% |
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Kotak Term Plan | 18 years to 65 years | 70 years | Rs. 3 lakhs | 97.4% |
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Life Insurance Corporation of India | LIC Tech Term | 18 years to 65 years | 80 years | Rs 50 Lakh | 97% |
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LIC Jeevan Amar | 18 years to 65 years | 80 years | Rs. 25 lakhs | 97% |
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Max Life Insurance | Max Life Online Term Plan Plus | 18 years to 60 years | 85 years | Rs 25 Lakh | 99.22% |
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Max Life Premium Return Protection Plan | 21 years to 55 years | 75 years | Rs 5Lakh | 99.22% |
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Max Life Smart Term Plan | 18 years to 75 years | 85 years | Rs 1 Crore | 99.22% |
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Max Life Super Term Plan | 18 years to 65 years | 75 years | Rs 25 Lakh | 99.22% |
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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% |
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PNB MetlifeAajeevanSuraksha Plan | 18 years to 65 years | 80 years | Rs 25 Lakh | 96.21% |
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PNB MetlifeMeraMediclaim Plan | 18 years to 65 years | 80 years | Rs 25 Lakh- | 96.21% |
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PNB MetlifeMera Term Plan | 18 years to 65 years | 99 years; 75 years for Joint Life Cover | Rs 10 Lakh | 96.21% |
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PNB MetlifeMera Term Plan Plus | 18 years to 60 years | 99 years | Rs 25 Lakh | 96.21% |
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Pramerica Life TruShield Term Plan | 18 years to 55 years | 65 years | Rs 5 Lakh | 90.87% |
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Pramerica Life U Protect | 18 years to 55 years | 65 years | Rs 25 Lakh | 90.87% |
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Sahara Life Insurance | Sahara SamoohSuraksha Term Plan | 18 years to 64 years | 64 years | Rs 50,000 | 90.16% |
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Shriram Life Insurance | Shriram Life Cash Back Term Plan | 12 years to 15 years | 70 years | Rs 2 Lakh | 85.30% |
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Shriram Life Online Term Plan | 18-55 years | 75 years | Rs. 25 lakhs | 85.3% |
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Shriram Life My Spouse Term Plan | 18-55 years | 75 years | Rs. 25 lakhs | 85.3% |
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Shriram Life Family Protection Plan | 18 years to 60 years | 75 years | Rs 15 Lakh | 85.3% |
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Shriram Life Smart Protection Plan | 18 years to 65 years | Life-time | Rs 1 Lakh | 85.3% |
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Shriram Group Life Term Insurance | 14 years to 79 years | 80 years | Rs 5000 (lump sum)per member | 85.3% |
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Star Union Dai-ichi Life Insurance | SUD Life Abhay | 18 years to 65 years | 80 years | Rs 50 Lakhs | 96.74% |
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State Bank of India Life | SBI Life eShield | 18 years to 60 years | 75 years | Rs 35 Lakh | 95.03% |
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SBI Life Smart Shield | 18 years to 65 years | 70 years | Rs 25 Lakh | 95.03% |
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SBI Life Saral Shield | 18 years to 60 years | 65 years | Rs 7.5 Lakhs | 95.03% |
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SBI Life GrameenBima | 18 years to 50 years | 55 years | Rs 10,000 | 95.03% |
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SBI Life SaralSwadhan+ | 18 years to 55 years | 70 years | Rs 30,000 | 95.03% |
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SBI Life Smart Swadhan Plus | 18 years to 65 years | 75 years | Rs 5 Lakh | 95.03% |
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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% |
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TATA AIA Life Insurance iRaksha TROP | 18 years to 65 years | 100 years | Rs 50 Lakhs | 99.07% |
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TATA AIA Life Insurance SampoornaRaksha | 18 years to 70 years | 99 years | Rs 50 Lakhs | 99.07% |
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TATA AIA Life Insurance SampoornaRaksha+ | 18-70, as per plan option | 100 years | Rs. 50 lakhs | 99.07% |
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Disclaimer:Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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.
Presently, most term insurance plans are bought online. The following is the general process:
The process may involve uploading documents pertaining to age, medical conditions, identify proof, etc.
The following are the salient features and core benefits of the term insurance plans:
If term insurance has to be compared, it can only be compared to life insurance:
Select the right insurance company – Check the company’s claim settlement ratio, solvency ratio, market reputation, financial standing, etc.