Get Free Quotes

Term Insurance

Term insurance plans are way economical than any other form of insurance. They come at comparatively much lower premium rates for the cover amount they offer. So, don't delay your decision anymore and invest in a term insurance plan today. Get your peace of mind and your family's financial stability in a single package.

What is Term Insurance Plan?

Term insurance is a life insurance plan that provides pure protection and covers the risk of untimely death of the policyholder during the policy term. A term plan is one of the cheapest ways to insure your family’s financial future. With this form of life insurance, you get the highest life insurance coverage by paying the lowest premium amount. Not only it will make your family financially independent in your absence, but it will also help them fulfil their future financial liabilities such as your child’s higher education, etc.

Why are Term Insurance plans known as the most affordable form of Life Insurance?

Term insurance plans

  • They are pure protection plans with no investment factor.
  • The insurance provider pays the benefit nominee only in case if the policyholder dies during the policy term.
  • By purchasing term insurance online, you get to save a good amount of money on administration & other related charges.
  • You only have to pay a sum of 2-3% of your annual income to get a cover 20 times your annual income

How a Term Plan Will Secure the Future of Your Family?

Like every other doting father/mother/guardian of a family, you will definitely want your loved ones to get all the good things in life. You will want your children to study in the best institutions and your spouse to get all the pleasures and privileges s/he deserves. Have you ever wondered what will happen to your family when you won’t be around?

God forbid if anything happens to you, the last thing you would want is your family to face a financial crunch. Therefore, buying a term plan is considered as the best and the most affordable way to secure the future of your family.

A term insurance plan allows the nominee or the beneficiary to receive a fixed sum assured in case of covered eventualities. For example, if you opt for a term plan with a cover of Rs. 1 Crore for the tenure of 30 years and you pass away during the policy tenure, the insurer will provide your nominee/family/dependents the pre-decided sum assured as the death benefit.

Your family can use the payout to meet the day-to-day expenses and fulfill other financial liabilities (if any). It can also be used to pay off your loans (if any) or to pay for the education of your children.

Best Term Insurance Plans

There is a wide range of term insurance plans available in Indian insurance market. All of them come with different set of features and benefits. Choosing the best term insurance plan amongst this wide array might prove to be a tedious process for the prospective buyers.

Please go through the below enlisted table of the best term insurance plans that have been shortlisted to smooth out this process for you:

InsurerPlan NameEntry Age (Min/Max)Maturity Age (Max)Premium for cover amount of Rs 1 crore (Annual Illustration)
HDFC LifeHDFC Life Click 2 Protect 3D Plus18/65 years85 yearsRs.6244
MAX BupaOnline Term Plus18/60 years85 yearsRs. 13,216
Aegon lifeiTerm Plan18/65 years100 years-
PNB MetlifeMera Term Plan-Full Lumpsum payout18/65 years99 yearsRs 8,196
Bharti Axa LifeFlexi term + Lumsum18/65 years85 yearsCalculated upon various factors such as age, policy term chosen, smoking habits, etc.
SBI LifePoorna Suraksha18/65 years75 yearsRs 3,000
SBI LifeeShield18/65 years75 yearsRs 2, 779
IDBIIDBI Federal iSurance Flexi Lump Sum Plan18/60 years75 yearsRs 11,190
ICICIiProtect Smart18/65 years75 yearsRs. 5,880
BAJAJeTouch Lump Sum18/65 years75 yearsRs 5,167
AVIVAiLife Total Protect18/65 years75 yearsRs 10,622
Edelweiss TokioTotalSecure+ Lump sum18/65 years80 yearsRs 7,481
Edelweiss TokioMyLife+ Lump sum18/65 years80 yearsRs 4,950
Aegon LifeLife Plus18/65 years80 yearsRs. 11,953
LICe-Term18/60 years75 years-

Types of Term Insurance

Before you write a cheque and sign the dotted line to finalize your deal, it’s important to understand the different types of term insurance plans available in the market. It will help you buy the one that will meet your set of requirements and will give you the best deal in return of your money.

Enlisted below are the various types of term insurance plans available:

Hence, it becomes extremely important to buy a term plan for the financial betterment and independence of your family. A term insurance plan will work as an income replacement tool in the hour of need. It will not only safeguard your family from financial distress but will also take care of your loans, children’s education, EMIs, etc.

Standard Term Insurance

It is undoubtedly the simplest and most uncomplicated form of term insurance. The premium amount, as well as the sum assured, is decided at the time of purchasing the policy and can’t be changed later on. In case the policyholder dies during the policy period, the life cover amount will be given to the nominee by the insurer. This form of term insurance only has death benefit to offer and doesn’t have maturity or survival benefit. It means that if the policyholder outlives her/his policy period, there will be no pay-outs.

Term Return of Premium (TROP)

In this type of term insurance, if the policyholder outlives her/his policy tenure, the insurer will pay back the entire premium amount paid by you. If you buy a plan where you have to pay Rs. 7,000 annually for 25 years for a term life cover of Rs. 50,00,000, and if you survive the plan term, the insurer will return approximately Rs.1,75,000 (exclusive of applicable taxes).This is why TROP plans are more expensive than standard term life insurance plans.

Increasing Term Insurance Plan

This policy is very much like the standard term policy in terms of premium payment & policy period. The only difference is, under this plan, the life cover also increases with the age of the policyholder. Increasing term plan has been structured to match the inflation rate; it increases the original life cover by 1.5 to 2 times over its term period. The life cover increases at a pre-decided rate. Mostly, the sum assured increases annually and the increment can be anywhere between 5% and 10% of the base coverage.

Life-Stage Event Term Insurance Plan

In this type of term plan, you get an option to increase your life cover at every life-related milestones, such as your marriage, first child, the second child, etc.

Convertible Term Plan

With this term plan, you get the option to convert your existing term insurance into an endowment plan or a whole life insurance. You can switch the plan at a later stage in your life. Please remember that the charges may be applicable at the time of the switch.

Joint Life Term Plan

A joint life term plan is designed to cover both husband and wife in a single policy. In this plan, both will pay a combined premium. If any of the husband or wife dies unexpectedly, the insurer will give the sum assured to the surviving partner as s/he will be the rightful nominee.

Features of a Term Insurance Policy

The basic concept behind buying a term insurance plan is to provide coverage to your family in times of stress, especially when you (the income generator) are absent. Its primary purpose is to keep your family stable & happy and ensure that they meet their regular and unexpected expenses without much trouble.

Enlisted are few key features of the term insurance plans that make them stand out:

FlexibilityGenerally, a term insurance plan offers a policy term from 5 to 25 years. Further, whole life plans are also available. This flexibility lets you choose a tenure which would be best-suited for you. Along with that, also keep in mind the financial needs of your family while finalizing the term of your plan.
Maturity AgeIt is considered to be one of the most important features of a term plan. This is because, as an individual, you would like to be covered for most of your life, typically until the age of 75 years and term insurance provides you with just that. However, it isn’t technically a maturity age as you do not get anything back unless it is a TROP plan.
RenewabilityRenewability is one of the most unique features of term insurance plans. With this feature, whether you opt for a 20-year or 50-year policy at inception, you get to renew your plan at any point of time. Due to this, you get to enjoy the benefits of your plan at the same price and premium. Hence, it as a good deal in the long run.
Death BenefitThis is a benefit provided to your nominee in case of your unfortunate death. Since there are various types of term insurance plans available, this benefit can be availed in several ways. It may be a lump sum amount, a partial lump sum amount combined with a fixed amount payment at a monthly, quarterly, half-yearly or annually basis. Or else, you can also extend the annuities over several years.
Survival BenefitsTechnically, term insurance plans don’t offer survival or maturity benefits. However, you can opt for their advance version, Term Return of Premium (TROP), if you’re looking for maturity/survival benefits.

Advantages of Term Insurance Policy

Simplicity

Term plans are much easier to understand as compared to the policies that combine risk cover with investments or savings like ULIPs and endowment policies. It is not easy for a layman to understand the complexities of cash value plans.

A term life is all about simplicity; you just have to pay the premium and get covered for the policy term – as simple as that.

Affordability

With term plans, it’s easier to get a large life cover amount at a much smaller premium. For instance, a 30-year-old individual can easily get a Life Cover of Rs. 1 crore for 20 years at a premium of approximately Rs. 500 per month.

On the other hand, for the same sum assured, the premium of an endowment policy can go up to Rs. 2100 per month, which is indeed a huge amount of difference.

Tax Benefit

With term plans, you get dual tax-benefits. The first tax benefit can be availed on the premiums paid. The maximum permissible limit of this benefit is up to Rs 1.5 lakhs u/s 80C. The second, the lump-sum amount paid to your family in case of an eventuality is eligible for a tax rebate under section 10(10)D of the Income Tax Act.

Critical Illnesses Cover

New age term insurance plans have introduced critical illness cover to provide additional protection to the insured. Now, besides safeguarding your family’s financial future in your absence, you are also protected against lifestyle and critical illnesses. All you have to do is pay a nominal amount of additional premium and you will be provided with a lump-sum cash pay-out on the very first diagnosis of a critical illness like cancer, heart attack, kidney failure, etc.

Disability Coverage Rider

With this particular feature, the insurance provider will pay all your future premiums if there is a case of total or permanent disability. Here, you will get the assurance that your life coverage will remain active even if you are unable to pay your future premiums due to a permanent disability.

Additional Security

The term insurance plans also give you the option to enhance your family’s financial security by opting for its double pay-out feature. For example, if you have got a life coverage of Rs. 1 crore, with additional Accidental Cover, in case of an accidental death, your family will get Rs. 2 crores instead of the initial amount of Rs. 1 crore.

Variety of Claim pay-outs Options

Although, most of the term insurance plans pay death benefit as a lump sum amount, you still have the option to disperse this pay-out payment in different forms. There are certain scenarios wherein the policyholders don’t feel too confident about the financial reasonability of their dependents.

To handle such scenarios, one can opt for different payout options available with the insurance companies wherein 50% of the sum assured will be a lump sum amount and other 50% as monthly payments or 100% of the sum assured will be given as monthly payouts.

It all depends upon the financial understanding and maturity of your family members and your own decision that how you want to get the life cover amount given to them.

This arrangement usually proves to be beneficial in case an emergency situation arises. Your family can use the lump sum amount to deal with the particular emergency; whereas, the monthly pay-outs can be used to handle monthly expenses.

Adjust It Suiting Your Life-Needs

Term insurance plans come with an option to be adjusted according to the current stage of your life. For instance, if you buy a term plan in your bachelorhood for a sum assured of Rs 25 lakhs, you can get it increased to Rs 50 lakhs or more, once you get married. In other words, a term plan allows you to make amendments in it at any time during its tenure.

 Add-on Riders

There are certain riders available with a term plan that can be used to add another layer of protection to your plan. Few of these add-on riders include disability rider, accidental death rider, income benefit rider, critical illness rider, waiver of premium rider, etc.

Different riders have a different set of benefits attributed to them which increases the value of your policy. A combination of different riders makes your policy an all-inclusive, well-rounded which ultimately benefits your loved ones.

Protection For Your Liabilities

It’s a natural phenomenon to procure assets in order to lead a comfortable life. Besides buying a house, car, etc. there are other liabilities too that we procure in the forms of debts or credits.

These liabilities are not necessarily in smaller amounts that can be taken care of in a few months. In case something untoward happens, you need to make an arrangement that will help your family to deal with the expenses related to those liabilities. Term insurance will work as an income replacement tool in your absence so that your loved ones aren’t burdened with these unnecessary burdens.

Why Should You Buy a Term Insurance Plan?

Life is never predictable and eventualities can rip you off physically, emotionally, and financially too. No one has control over death neither can anyone predict it. For a family, the death of the bread-earner can cause emotional as well as financial setbacks.
Tem insurance plays a vital role in finding solutions for these setbacks. Due to their low premium, term plans are the most affordable way to build a financial safety net for your family. It will help your family take care of regular and unexpected expenses, such as children’s fees, unpaid loans, etc. when you aren’t around.
Your family members will receive a lump sum amount (death benefit) upon the policyholder’s death. Here, it’s important to understand that the death benefits will be zero if the policyholder dies after the policy expires.

Who Should Go For a Term Insurance Plan?

Ideally, everyone who has a dependent should buy a term plan. In case you are the sole breadwinner of your family, you ought to purchase a term plan. It will ensure the financial future of your family.

Here is the list of individuals that should go for a term insurance plan:

  • If you are the sole breadwinner of your family.
  • If you have dependents like your parents, spouse, kids, etc. to take care of.
  • If you are a married and working individual who is planning to start a family.
  • If you are an entrepreneur running a start-up or business.

Everyone wants their loved ones to prosper. No one wants them to face a financial struggle or see them struggling to make the ends meet. If you are the sole breadwinner of your family, if you pass away your family would be affected emotionally as well as financially. Buying a term insurance plan is the sure-fire way to secure the financial future of your loved ones.

Secure Children’s Future

Being a parent is a major life-changing event in one’s life. From the moment a child is conceived, the monthly expenses begin to touch the new heights.

As the child grows up, the responsibilities of a parent along with the monthly expenses keep on increasing. After all, raising a child is not a child’s play.

With the sense of responsibility sinking-in, parents start looking for different savings instruments to secure the future of their child. A child’s major long-term financial includes education or marriage.

When financial needs arise, a term insurance plan comes to the rescue.  It helps to keep financial woes at bay.

A Source of Regular Income

Buying a term insurance plan helps to ensure that your family gets a financial cushion even in your absence. As a death benefit, it provides a pre-decided lump sum payment that helps your family to live a dignified life.

Outstanding Debts or Bank Loans

Currently, most of the individuals take a loan to pay for their dream car or dream house. In case a person who has to pay different EMIs such as housing loan, mortgaged property, business loan, car loan etc. passes away, his family would suffer financially in his/ her absence

With the lump sum payment provided by a term plan, such outstanding loans can be paid without any hassle.

How Does a Term Insurance Plan Work?

Term insurance plan is one of the traditional forms of life insurance. In a term insurance plan, you get a higher sum assured at lower premiums. As a policyholder, you’ll be covered by your insurer against any life risk (accidental or natural death) during the tenure of the policy.

In case of any eventuality, the insurance provider will pay the sum assured to your nominee. The sum assured payout is based on the payment format you have opted at the time of purchasing the term plan. The benefit can be paid out either as a lump sum, a lump sum and monthly income or as monthly income.

How to Choose the Best Term Insurance Plan?

People are often confused about what should be the characteristics of the best term insurance plan and which one plan to buy. To help you make a better selection, here are a few questions that you must ask:

What is your life stage and how many members are there in your family?

Financial responsibilities of an unmarried individual might be very different when compared to that of a married person with kids. It means that the needs of your dependent family members will not be the same at every stage of your life.

Therefore, a term plan and its sum assured should be chosen accordingly. Make sure to keep an eye on your future financial responsibilities to make the right calculation.

In your absence, how much will your family need to maintain its current lifestyle?

Typically, people follow the approach of considering their family’s current lifestyle to calculate the extent of cover in a term plan. However, one should always assess the situation by calculating the amount of funds required in the future to sustain their current lifestyle. Make sure to include the inflation factor while planning the life cover.

Is your income the sole criterion in choosing a plan?

It doesn’t matter whether you are a contributing member of your family or the sole income generator. It’s always better to opt for a term plan that can provide your family with a sum assured that is equivalent to the funds they will need in your absence.

Are your Liabilities accounted for?

There might be certain liabilities for you to take care of, such as personal loans, short-term loans, mortgage, car loan, etc. To prevent your family from the burden of paying EMIs for these liabilities, it’s advised to look for a term plan that can take care of these outstanding loans in your absence.

Have you checked the Claim Settlement Ratio (CSR) of the insurer?

Claim Settlement Ratio actually represents the number of claims settled against the number of claims filed with an insurance company. Higher the claim settlement ratio of the company, better are the chances of your claim getting settled. Insurance companies are supposed to have an effective claim settlement process in order to show their ability to pay reimbursements.

Exclusions for a Term Insurance Plan

An insurance policy provides the opted sum insured if a covered event occurs during the policy term. However, every insurance provider lists down some exclusions and restricts its insurance coverage.

These exclusions can be defined as certain conditions and events that are not covered under a particular insurance policy.

Illustration

Shivam, a 30-year old healthy individual purchased a life insurance plan. Unfortunately, he chose to end his life and committed suicide. Ideally, as per the policy norms, his nominee should receive the pre-decided death benefit. However, an event of suicide is not covered under a term plan and is usually termed as exclusion in most of the term plans.

Insurance providers do not pay out the sum insured if the death occurs due to suicide.

Exclusions for Accidental Death

In case of accidental death under suspicious circumstances, the insurance provider will take its time to investigate the case before settling the claim. Every insurance company follows its own investigation procedure. Hence, it might differ from one insurance provider to another. Insurers can also take help from a team of equipped medical professionals to investigate the claim.

However, in the case of death due to accident or critical illness, sum insured won’t be paid if death occurs due to:

  1. Taking part in a hazardous sports activity.
  2. Drought, war, and terrorism.
  3. Consumption of drugs or alcohol.
  4. Criminal act.
  5. Pregnancy, childbirth, and related complications.
  6. Pre-existing illness.

Exclusions for Death due to Lifestyle Diseases

In case the policyholder passes away due to a lifestyle disease, the insurer can reject the claim. Additionally, if the insured has not revealed his/his pre-existing illness at the time of filling out the application form and he passes away because of the same, no coverage will be provided.

Note- Smokers are categorised as high-risk as they are more likely to succumb to lifestyle diseases. Based on the risk factor, they attract higher insurance premiums.

Why You Should Buy Term Insurance Online?

Everyone likes to save some extra penny while buying new commodities. Buying term plans online gives you an easy chance to do so. As per an estimate, buying online term plans is approximately 40% cheaper as compared to buying them offline.

Going for the online buying mode effectively saves you from unwanted charges such as agent’s commission, paper cost, processing fees, etc. In the modern era, when everything is going digital, buying insurance is no different. Besides the usual benefits such as 24X7 availability, speed and convenience, using online insurance makes sense.

Here’s a look into the reasons why it’s a convenient option:

Option to Compare & Choose

Almost every insurance company in India is offering online term plans these days.   As an interested buyer, you can access a plethora of information including informative articles, online calculators, educative videos, case studies, customer reviews, etc. All these entities ultimately help you learn the benefits & features of different plans in more details and make informed decisions.

Lower Premiums

One of the key elements that affect the cost of online plans is the absence of a consultant or an agent. It saves the random costs associated with selling term plans such as distributions costs, commission, etc. Apart from this, you also get to save a good amount of money on documentation, stationary, logistics, etc.

Speed and Security

When you opt for online payment mode for your premiums, you get to choose from a whole set of secure and fast payment options such as net banking, credit cards, debit cards and more. You don’t need to fret over payment delays or even worse payment lapse, as these online payments are instantly processed through a secure gateway.  You also get an instant online receipt for your payments which can use as a proof of payment if required. This especially comes handy when you need to claim your tax exemptions and need to furnish the documents on an urgent basis.

While buying term plans through online mode offers all these benefits, you can still contact the insurance providers on their online or on phone assistance channels to get your doubts clarified. Please make sure that you get all your concerns addressed before you finalize your decision to buy a term insurance plan.

11 Factors that Affect Premium Charges for Your Term Plan

Before you start looking for a term insurance plan, it would do you good to get familiar with different factors that influence its premium rates. This will help you get a better idea of how insurance companies compute premium for term plans and what factors they look into before issuing a policy.

The below-enlisted factors may affect the premium rates of a term plan.

Age:It is one of the initial factors that is taken into consideration while deciding the premium rates for an applicant. A young individual is considered as a low-risk entity. It’s because his/her health is at its peak and the chances of him/her contracting or developing any life-threatening diseases are lower.

Additionally, a young individual will pay more premium installments as compared to the old aged people. Hence, the premium rates for them are low.

Gender: As per recent studies, it has been found that on an average, women live five years longer as compared to men. Due to this reason, women usually have to pay less premium amount as compared to men.

Current Health Condition:Before an insurance provider underwrites the policy, the applicant has to undergo a preliminary medical screening. It is done to check the eligibility of an applicant for the policy. The applicant’s cholesterol level, blood pressure, blood sugar level, etc are checked as a part of the preliminary medical screening.

It helps the insurer to compute insurance premium for the applicant on the basis of his/her current health status. Hence, the fitter you are, the less premium you need to pay.

Medical History of the Family: The medical history of your family plays a crucial role in determining the premium amount. In case anyone from your elder generation has suffered from serious illnesses such as stroke, heart attack, cancer, etc., it exposes you to the risk of developing/ contracting the same illness. As a result, the premium for your plan may go higher.

Health History: Insurance providers take your health status into consideration while determining your premium rates. Therefore, if you are healthy & fit and don’t have any medical history of chronic diseases or any other health issues, the premium rates for you will be low and vice-versa.

Smoking and Drinking Habits: Your smoking and drinking habits also contribute to the final premium amount you would have to pay for a particular term plan. This is because these factors expose an applicant to the risk of contracting/ developing life-threatening diseases. Every life Insurance provider checks with the applicant about such habits. An individual who is a chain smoker or a heavy drinker will have to pay a premium 2-3 times higher than a teetotaler does.

Participation in Adventure Sports: If you are an adventure junkie who loves the adrenaline rush triggered by participation in adventure sports such as skydiving, car racing, mountain climbing, sea diving, hot air ballooning, etc., the premium charges for you is going to be on higher side.

Profession: In case your profession exposes you to life-threatening risks, it affects your term insurance premium. Individuals working in industries such as mining, shipping, aviation, oil, and gas, etc., are highly exposed to the risk of accidental death. Due to this, the premium is bound to be much higher as compared to the individuals having desk jobs.

Premium Payment Mode: You can choose to pay your premium on the annual, half-yearly, quarterly or monthly basis. However, it’s important to note that the insurance providers charge a higher premium from the policyholder paying a premium on the monthly or quarterly basis.

This is because frequently made payments attract various costs such as administration cost, collection cost, and processing cost for the companies. Whereas, the premium paid on an annual basis helps the insurer to saves such costs.

Policy Tenure &Payment Mode: The policy tenure also plays a vital role in determining the premium amount. The policy with a longer duration is more expensive as compared to the policies with shorter duration. The longer tenure you opt for, the higher the death benefit your nominee would get. Therefore, long-term plans attract a higher the premium.

Policy-buying Mode: Buying a policy through online mode always costs less than the offline mode. It is because buying a term plan offline increases the company’s service & administration costs such as the agent’s commission, distribution channel cost, etc.

Buying a plan online saves the insurer from these extra costs and hence, the applicant has to pay low premiums.

Different Payouts Offered Under Term Plans

Lump Sum: The nominee will receive the sum assured as a one-time payment after the unfortunate demise of the policyholder.

Illustration-

Shikhar, a 30-year old healthy (non-smoker) individual has opted for a term plan with a sum assured of Rs 1 Crore for the tenure of 30 years. In case he dies (due to a natural cause or due to an accident) during the 21st year of the policy, his nominee will receive Rs 1 Crore as the sum assured, all at once as the death benefit.

Lump Sum + Monthly Income: The nominee of the policyholder will receive half of the sum assured as a lump sum and the remaining half will be paid as on a monthly basis.

Illustration-

Shikhar, a 30-year old healthy (non-smoker) individual has opted for a term plan with a sum assured of Rs 1 Crore for the tenure of 30 years. In case, he dies (due to a natural cause or due to an accident) during the 21st year of the policy, his nominee will receive the sum assured in two parts: the first 50 Lakhs as a lump sum and the second half in the form of regular monthly payouts.

Monthly Income or Income Replacement: The sum assured is paid at regular intervals as a percentage of the sum assured from the first month of processing the death claim.

Illustration-

Shikhar, a 30-year old healthy (non-smoker) individual has opted for a term plan with a sum assured of Rs 1 Crore for the tenure of 30 years. In case, he dies (due to a natural cause or due to an accident) during the 21st year of the policy, his nominee will receive Rs 1 Lakh every month for next 84 months (approximately) as the death benefit.

What could happen if you don't purchase a term insurance plan?

Nowadays in most of the families both the partners are earning.  Still, the untimely demise of one partner can affect the financial stability of the family. It is because the family is already used to a good lifestyle because of the double breadwinners of the family.

If you don’t opt for a term insurance plan and you pass away, your untimely demise can severely affect the mental peace and financial stability of your loved ones.  The emotional trauma may subdue after a certain period of time but the financial stress won’t be minimised until and unless your financial planning is strong.

Hence, it becomes extremely important to buy a term plan for the financial betterment and independence of your family. A term insurance plan will work as an income replacement tool in the hour of need. It will not only safeguard your family from financial distress but will also take care of your loans, children’s education, EMIs, etc.

 

Term Insurance – FAQ’s

Unless stated otherwise the premium is not going to change throughout the policy term. However, if the insured develops any life-threatening habits, such as smoking, drinking etc., after purchasing the policy, the insurance company may alter the premium.
If the policyholder has developed smoking habits, this is going to affect her/his life expectancy. Therefore, it becomes necessary to inform your insurance provider about this habit at the earliest to avoid any hassle in the future. Withholding such information can lead to claim rejection.
Yes, your family will get the sum assured (claim amount) in case of accidental death. Additionally, you can also opt for accidental death benefit rider which will double the sum assured given to your family.
Yes, term plans are very much valid even if the death occurs outside India. However, it’s important to understand here that if the death happens in countries considered to be in war-zone, such a Syria, Afghanistan, etc., this facility might not be valid. For further clarification, you can refer to the policy document.
Once your plan reaches the maturity date, you can avail several options. One of them is renewing your policy. Or else, if you have lesser responsibilities than when you had bought the plan, you can go for a lesser cover amount or can upgrade your policy with a new cover.
Here, your nominee needs to submit the death certificate to the company you have been associated with for the longest period. It’s also important to inform the said insurance provider about possessing a policy from another company while buying the second policy. These days, insurance companies don’t ask to submit an original death certificate. A photocopy of the certificate is accepted while settling the claims.
Yes, NRI customers can buy term plans. They can purchase the policy online and need an address proof which shows from where they belong in India combined with 3 ITR forms and their medical test reports. These documents can be submitted during their next visit to India.
Riders offer an option to avail add-on benefits and enhance the basic term insurance coverage. Additionally, they enable you to customize your policy and avail coverage for critical illness, accidental death, permanent disability etc.
No, if you want to cover your spouse or children, you need to buy individual term plans for them.
The benefits of your term plan will continue even after you become an NRI. However, if you don’t intimate the insurer about the same, your term plan will become invalid for the first two years. You can share your KYC status as a Non-Residential Indian in your existing policy. If you fail to do so, your policy can’t be renewed. Also, your claim will be settled in the bank account that you used to your premiums. The denomination can be both in Indian or foreign currency.
Usually, the claims are settled even if the death of the policyholder occurs within one year of the inception of the plan. However, depending upon the terms and conditions of a particular insurance provider, it may vary from insurer to insurer. Make sure to go through the fine print of your policy document. If you have any doubts, get them clarified with your insurer.
Yes, you can change your nominee by contacting the customer care support of your insurance provider. The customer care executive will help you to make the required changes in your policy. Generally, this process doesn’t require any document, but some insurers may ask you to submit ID proofs of your spouse to make the changes.