General eligibility criteria for buying Term Life Insurance are -
Parameter | Remarks |
Citizenship | Indian (NRIs & PIOs can also purchase Term Life Insurance plans from various Indian insurers) |
Medical Tests | Most insurers require you to undergo certain medical tests. |
Tobacco consumption | Both smokers & non-smokers are eligible to buy. |
Documents | Buyer must possess basic KYC documents. |
These are a few of the best term insurance plans available in India. You can get various Term insurance comparisons on MyInsuranceClub.
Company | Plan Name |
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Max Life Smart Term Plan |
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HDFC Life Click 2 Protect |
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ICICI Prudential iProtect Smart |
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Sampoorna Raksha Supreme Instaprotect |
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Smart Protect Goal |
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Mera Term Plan Plus |
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Kotak e-Term Plan |
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DigiShield Plan |
A Level Term Life insurance policy offers fixed death benefits for the entire policy tenure. Regardless of whether the insured dies on the 5th or the 25th year of his 30-year policy tenure, his beneficiaries will get the same amount.
The coverage amount chosen by the insured at the commencement of the policy increases every year by a predetermined amount to cope with the inflation.
Decreasing term insurance is a type of term life insurance with the cover decreasing over the life of the policy at a predetermined rate. If you want your life insurance to cover a temporary financial liability, you can purchase a decreasing term plan.
TROP pays back the total annualized premium excluding taxes at the end of the policy tenure if the insured survives.
Under critical illness rider a lump sum amount is provided to the family of the life assured in case the life assured is diagnosed with a listed critical illness during the policy tenure.
This rider ensures that benefits of the policy continue even if the policyholder is unable to pay policy premiums due to a critical illness or death. All the future premiums are waived off.
This rider pays the accidental death benefit in case the insured dies an accidental death or faces a dismemberment.
This rider provides an additional benefit equal to the rider sum assured on total & permanent disability due to an accident.
Company | Monthly Premium |
HDFC Life |
₹638 |
ICICI Prudential |
₹599 |
Max Life |
₹521 |
Aditya Birla Sun Life |
₹542 |
Bajaj Allianz Life |
₹483 |
Kotak Life |
₹452 |
India First |
₹337 |
PNB Metlife |
₹491 |
Tata AIA |
₹682 |
Canara HSBC OBC Life |
₹518 |
Edelweiss Tokio Life |
₹423 |
Bharti Axa |
₹450 |
Exide Life |
₹825 |
Below mentioned are the most Frequently Asked Questions on Term Insurance -
You should choose a policy term till your retirement age or maybe till a few years after retirement. Term policy is taken to cover the risk of loss of income. So ideally take a term policy for a period in which you will be earning money. Beyond that period, the premiums paid by you will become a burden for you.
Though the benefits are exactly the same, online term insurance plans are much cheaper than the ones sold by agents or branches. This is because of several reasons listed below –
No, you will not face any problem just because you purchased an online term insurance plan. Every insurance company has a centralized customer service team that attends to all the customer queries/complaints. They do not differentiate between customers who have purchased online or offline.
Online transactions are completely secure and are done directly on the insurance company’s website. Today almost all financial transactions including banking, stocks, etc have moved completely online. Even Indian Railways and Airline ticketing are completely online and lacs of people are making online payments every day.
Both are very different offerings - they are like chalk & cheese. Term insurance is a pure risk cover and a product that is an absolute must for every individual who has any dependence relying on their income. You typically should take a term insurance
Insurance premium is an amount paid by the policyholder to the insurance company in return for the risk cover. Every insurance company assesses the risk differently and accordingly, decides the premium. So if Company A assesses your risk to be low, they will offer you lower premiums.
As a rule of thumb, your minimum risk cover should be 10 times your annual income. While the optimum risk cover should be around 15 to 20 times your annual income.
At MyInsuranceClub, we strive to cut through the clutter and the jargon to help you select the best insurance solution.
- By comparing, you can get the best term insurance plan for your needs
- We are India’s 1st IRDAI-approved insurance web aggregator providing the best Term insurance comparison.
- Save money by buying feature-rich insurance plans at lower premiums
- We are unbiased and don't have favorites
- Oh yes, ours is a free service!
At MyInsuranceClub, we strive to cut through the clutter and the jargon to help you select the best insurance solution.
- By comparing, you can get the best term insurance plan for your needs
- We are India’s 1st IRDAI-approved insurance web aggregator providing the best Term insurance comparison.
- Save money by buying feature-rich insurance plans at lower premiums
- We are unbiased and don't have favorites
- Oh yes, ours is a free service!
There are 4 types of payouts:-
a) 100% lump sum payout
In this option, the nominee will receive the entire cover amount in a single payout at the time of the insured’s death.
b) 100% monthly payouts
In this option, the nominee will receive the cover amount on a monthly basis. The entire sum assured is divided into equal parts which is then given out as a monthly payout for a fixed number of years.
c) Part lump sum payout and balance in fixed monthly payouts
In this option, the sum assured is broken into two parts. One is given out at the time of the insured’s death as a lumpsum payout and the other part is equally divided in the form of a fixed monthly payout.
d) Part lump sum payout and balance in increasing monthly payouts
Just like the previous option, the sum assured is paid in two parts. One is paid as a lump sum at the time of the insured’s death and the other is paid in the form of monthly payouts which increases over time at a fixed rate.
- Assess your current life stage & dependants
- Evaluate the amount of risk cover you basis your life stage, income, dependents and future needs
- Select a policy term (preferably till your retirement age)
- Visit our term insurance comparison page to get various comparisons
- Punch in your details carefully and fill the personal detail form
- You will get an exhaustive Term insurance comparison of various plans which match your eligibility
- Select a suitable plan which doesn’t burden your current income
- After selecting, our trained relationship managers will contact you and guide you through the process of application and first premium payment.
To buy a Term Life insurance plan, one has to submit the following documents:
You have a large number of variants among the term plans on offer. While the base variant offers a life cover, the variants add more benefits in terms of cover and payments. Some of the popular term plan variants are as follows -
Company Name | 2020-21 |
HDFC Life |
98.01% |
ICICI Prudential |
97.9% |
Max Life |
99.35% |
Aditya Birla Sun Life |
98.04% |
Bajaj Allianz Life |
98.48% |
Kotak Life |
98.5% |
LIC |
98.62% |
PNB Metlife |
98.17% |
SBI Life |
93.09% |
AEGON Life |
99.25% |
Exide Life |
98.54% |
Canara HSBC |
97.1% |
Tata AIA Life |
98.02% |
Edelweiss Tokio |
97.01% |
Bharti Axa Life |
99.05% |
Reliance Nippon Life |
98.49% |
DHFL Pramerica |
98.61% |
Future Generali Life |
93.08% |
Aviva Life |
98.01% |
Sahara Life |
97.18% |
IDBI Federal Life |
95.07% |
Star Union Daichi |
95.96% |
Shriram Life |
95.12% |
IndiaFirst Life |
96.81% |
A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder's demise. This is the cover amount of the term insurance plan.
Policy term refers to the period for which your term insurance policy will remain active. This period is determined at the time of purchasing the insurance plan. The life cover is valid during this period.
A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder's demise. This is the cover amount of the term insurance plan.
Premium payment term is the total number of years the policyholder has to pay the premium.
Your mode of premium payment determines the frequency with which payments are made. It could be Annual, Half-yearly, Quarterly, or Monthly.
A free look period is the time period when a new life insurance policyholder can terminate the policy without any penalties. This period usually is 15 to 30 days from receiving the policy document.
The claim settlement ratio is a metric used to gauge the percentage of life insurance claims an insurer has settled during a financial year against the number of claims it has received.
A person who receives the benefit in case of death of the insured person is a nominee.
Tax Benefits refer to the insurance premiums amounts which can be deducted from the taxable income for the purpose of calculating your income tax liability.