Term Insurance

What is Term Insurance?

Term life insurance provides a high sum assured at a low premium — paid as a lump sum to your nominee if you pass away during the policy term. Unlike endowment or ULIP plans, term plans have no maturity payout — they are pure protection.

Why buy Term Insurance?

• Highest cover at lowest premium — ₹1 Cr cover from ₹500-700/month for a 30-year-old
• Replaces your income for 20-30 years if anything happens to you
• Section 80C deduction on premiums and Section 10(10D) tax-free claim payout
• Optional riders: critical illness, accidental death, waiver of premium
• Online plans skip agent commission — premiums are typically 30% lower

Key benefits

• Pure protection — entire premium goes toward your life cover
• High sum assured (₹50 L to ₹10 Cr) at affordable rates
• Level premium for the entire policy term
• Optional return-of-premium variant if you outlive the term
• Riders for critical illness, disability, and accident

What to check before you buy

• Pick cover of 10-15× your annual income
• Choose policy term up to age 60-65 (your earning years)
• Check the insurer’s claim settlement ratio (95%+)
• Disclose all health conditions honestly — non-disclosure can void the claim
• Add critical illness and accidental death riders

Tax benefits

Premium up to ₹1.5 lakh is deductible under Section 80C. The death benefit paid to the nominee is fully tax-free under Section 10(10D), making term insurance one of the most tax-efficient protection products.