How to Get Affordable Term Insurance in India


A term insurance is a simple agreement between an insurer and a policy holder. According to the policy, the policy holder must pay the decided premium either annually, half yearly or quarterly and in turn will receive life cover. Should anything happen to the policy holder within the term of the plan, the nominees of the policy will receive the sum assured.

However, if the insured sees the term through, there are no financial benefits. Though in the last few years, insurers have come up with return of premium term plans. Should you choose this; the insurer will return all the premiums that you have paid, if you outlive the term plan. But one of the major reasons why you should be buying a term plan is its high sum assured values with really low premiums.

How to Save Money and Get Discount on Term Insurance in India

One of the biggest selling points of a term insurance is its affordability. Just for some perspective, if you are an individual in his/her 30s and do not smoke or drink, you can walk away with a life cover of Rs.1 crore by paying Rs.8000-Rs.9000 approximately on a yearly basis. If you have had any prior experience with other insurance products, you can fairly guess the premium you would have to pay for that kind of sum assured.

Since term plans do not have a saving or investment component, their premium prices are low. However, there are a few ways by which you can further reduce your term insurance plans premiums.

  • Go online

Almost all the insurers have their own online platform from which you can buy term plans. When you buy these plans online, you bypass all the intermediaries such as agents and logistical expenses involved. As a result, the insurer then passes on these financial benefits to you, thereby reducing the premium costs.

  • Compare

If you already are familiar with the online world, a comparison can give you a completely different dimension to term insurance. When you compare different policies, you get to know the premium costs of plans offered by different insurers. The comparison also lays out the different features and benefits provided by different insurers. So, you can take a more informed decision.

Best Term Insurance – Features, Plans

Though all of the plans come under the umbrella of Term Insurance, the features and benefits provided differ by some margin. Here are some of the features and benefits of opting for a term insurance plan.

  • Financial Freedom

Should anything unexpected happen to you, the insurer will pay a lump sum amount to the nominees. This ensures that their life is not hampered by any financial shortcomings. Some insurers also give you the option to convert the payment into equated instalments. This would make the policy a regular source of income.

  • Flexibility

Term plans provide the end users a host of customizations and you can tweak a plan as per your needs. You can either choose to pay all the premiums at a single shot or pay them yearly or half yearly or quarterly. You can choose the term duration to be as less as 5-10 years (depending on the insurer) and go as high as 40 years, subject to the maximum age limit.

  • Tax Benefits

What good would an insurance plan be, if it doesn’t provide any form of tax benefits? A term insurance plan gives you upfront tax benefits where you can claim the premiums paid under Section 80C. Any proceeds of the fund are non-taxable under the Section 10(10D) of the Income Tax Act of 1961.

  • Add-ons

You can enhance the capabilities of your term plan by a substantial margin with the help of add-ons or riders. Here are some of the most popular ones.

  • Disability Cover

Accidents can be gruesome and at times might cause disability. This add-on provides you cover under such circumstances.

  • Critical Illness

Insurers usually have a list of critical illness that they provide cover against. If the insured is diagnosed with any of these, the insurer will pay an agreed sum assured. You can use the funds for treatment and other purposes.