Term insurance offers a simple yet effective way to secure your family’s financial future.... Read more
Buy Term Insurance plan in a few simple steps
A term insurance refers to a straightforward plan that offers financial security to dependents in the event of any unfortunate demise of the policyholder (during the tenure of the policy). Unlike traditional life insurance or investment-linked plans, a term plan focuses solely on protection without providing any survival or maturity benefits. The primary feature of a term-insurance policy is its affordable nature.
A term insurance provides life coverage for a fixed period (policy term). If the insured person passes away during this period, the insurer pays the sum insured to the nominee. If the policyholder survives the term, the coverage ends.
You need to pay a fixed premium at regular intervals, such as monthly, quarterly or yearly, to keep the policy active.
If the policyholder passes away during a policy term, the nominee files a claim with the insurer. After document verification, the insurer pays the death benefit as a lump sum or in instalments (as selected earlier).
Most of the term insurance plans do not offer any maturity benefits. However, some plans return the total premiums paid if the policyholder survives the full term. These plans generally have higher premiums.
There are some term policies which allow a renewal at the end of the term. You can also add riders such as critical illness or accidental death cover for extra protection by paying an extra premium amount for it.
These types of term insurance plans are the most basic and affordable ones out there. In these policies, the sum assured is fixed for the whole duration of the policyholder. The death benefits are paid to the nominee upon the death of the policyholder during the policy tenure.
In this type of term life insurance policy, the insurer returns all the premiums paid if the policyholder survives until the policy ends. The premiums are higher for these policies than for others.
In increasing term insurance, the sum assured rises each year at a fixed percentage to help you stay ahead of inflation. This type of plan is nice for people with growing responsibilities, such as young parents whose financial obligations increase over time.
Decreasing term insurance offers coverage that reduces annually. These are generally aligned with declining financial liabilities such as home loans or personal loans. The decreasing term life insurance plans are cost-effective and suitable for individuals whose primary need is to cover the outstanding debts rather than long-term family protection.
Convertible term plans enable policyholders to convert their term policy into a whole life, endowment, or other long-term insurance plans at a later stage. This option of term life insurance offers flexibility if your financial goals change significantly over time.
In these types of term insurance plans, policyholders can exit the plan at an earlier stage, as selected by the policyholder. If a policyholder terminates their policy, the premiums paid up until that point are returned to the policyholder.
Anyone who has financial dependents should get a term insurance policy for their spouse, children or ageing parents. Uncertainties in life, such as death due to illnesses, accidents and natural causes, are inevitable. In such an instance, a term life insurance policy acknowledges this reality and provides a financial safety net for beneficiaries by offering a lump sum amount to help support the future of dependent members and families. There is absolute flexibility in using the lump sum payout for anything that the nominees see fit There is absolute flexibility in using the lump sum payout for anything that the nominees see fit.
Bajaj Capital has been a trusted name in the insurance services field for over 60 years. With strong associations across a wide network of insurers, we provide guidance to help you compare suitable term life insurance policies.
Finding the right term insurance policy is now convenient with our platform. You can access plans from different insurers all in one place. Compare premiums, coverage, benefits, exclusions, riders and policy terms for clarity. Our platform will provide you with personalised term life insurance quotes based on your age, lifestyle, and medical profile, to help you make informed decisions.
Disclaimer : Bajaj Capital Insurance Broking Ltd. is an IRDAI-licensed Composite Broker (Life & General). We do not underwrite or issue insurance policies.
Birth Certificate, Driving License, 10th or 12th Mark Sheet, Passport, Aadhaar Card, PAN Card, Voter ID
Aadhaar Card, Ration Card, Electricity Bill, Telephone Bill, Passport, Driving License, Voter ID
Aadhaar Card, Passport, Voter ID, Driving License, PAN Card
Many insurers allow individuals between 18 and 65 years of age to apply for term life insurance policies. Some plans can extend the entry age depending on the insurer and type of policy.
Applicants need to show a steady source of income. Insurers assess this income to decide the maximum sum insured. This ensures that the coverage amount is reasonable.
Insurers evaluate the health condition and medical history. Applicants get asked health-related questions or are made to undergo mandatory medical tests based on coverage amount, age, and lifestyle habits.
Having habits such as smoking and alcohol consumption affects the eligibility. Insurers can charge higher premiums or impose conditions based on the perceived risk factors.
Insurers require valid identity, address, age proof, and income proof to complete the application process.
Browse through the various available options of insurance providers and plans on the Bajaj Capital website. This will make it easy to compare the coverage features, benefits and pricing without visiting multiple sources.
After a review of the available options, you can compare the selected plans side by side. This step will allow you to focus on the key details, such as inclusions, coverage limits and exclusions.
Choose your preferred insurer from the given list of Life Insurance providers and then fill out the form with required information such as vehicle owner details, vehicle details and CPA details. Finally, make the policy premium purchase to confirm your application.
If required, you may have to do medical tests to be eligible to buy the desired term life insurance plan.
Policy Activation and Ongoing Support. After your policy is approved by the insurer, it will be activated.
Note: The policies are issued by the insurer and not Bajaj Capital.
Disclaimer: The above insurers are listed for illustrative purposes only. Bajaj Capital Insurance Broking Limited does not recommend or promote any specific insurer. The information displayed on this website is of the insurers with whom our company has an agreement.
Begin by calculating the coverage amount you need. Add up long-term financial responsibilities such as future family expenses, outstanding loans, and daily living costs. You need to subtract the existing savings or investments to arrive at the final sum assured required.
Choose a duration for which you need life coverage. The policy term is calculated based on your working years or until major financial goals are achieved. A longer policy term results in a higher total premium.
Premium calculations depend on current age and lifestyle habits. Enter accurate details such as occupation type, smoking status, and health conditions. These inputs can help assess risk and calculate the premium amount.
Include any riders which you want, such as critical illness or accidental death benefits. Each rider will add a specific cost to the base premium. Add these amounts to the base premium to get an updated total.
Enter the above details into an online term insurance calculator. This tool will automatically process the inputs and display an estimated premium.
These people can secure higher coverage at affordable premiums. It ensures long-term financial protection for dependents.
Term life insurance ensures funding for education, marriage, and other life goals. It helps maintain the future and financial stability of the family.
People with home loans, car loans, and other financial liabilities can use term life insurance to ensure that these obligations do not burden their families.
Term life insurance plans protect the continuity of business and provide financial security to employees and partners in case of the demise of the policyholder.
The 20s are the ideal time to buy term life insurance. Premiums are lower during this time as age-related health risks are minimal. Getting a policy at this stage helps lock in lower rates and provides long-term financial security.
Marriage brings shared financial responsibilities and future planning. Getting term life insurance at this stage makes sure your spouse is financially protected in case of an unexpected event. It will help cover joint liabilities and support long-term financial goals such as family planning and home ownership.
Becoming a parent significantly increases your financial responsibilities. Term life insurance becomes essential to secure your child's future expenses, such as healthcare, education and daily living costs.
During the mid-career stage, individuals often have a higher income, loans and lifestyle expenses. This is a critical time to reassess or purchase term insurance to cover outstanding liabilities such as car loans, home loans, and other financial commitments.
In the pre-retirement phase, a term life insurance policy helps to protect dependents and safeguard any remaining financial obligations. While the premiums are higher, coverage can still ensure valuable support for dependents and spouses.
Additional coverage, such as accidental death, critical illness, or premium waiver, increases the overall premium.
Jobs which involve physical labour, hazardous environments or high-risk industries lead to higher premiums.
The sum insured directly impacts the premium. The higher the coverage, the higher the cost. Longer policy terms also sometimes increase premiums.
Young policyholders enjoy lower premiums because they are statistically less likely to face health-related risks.
The lump sum payout is one of the most common term life insurance payout options. Here, the entire sum assured is paid to the nominee in a single payment upon the policyholder's death during the tenure of the policy. This payout helps the beneficiaries manage large expenses such as household costs, outstanding loans, or future financial goals without any delay.
In this payout option, the insurer pays the sum assured in the form of regular monthly payments over a predefined period. This option is more suitable for families who rely on a steady source of income to manage their daily expenses. It helps to maintain financial stability and consistent cash flow.
This payout option combines both the lump sum and monthly income benefits. A portion of the sum assured is paid immediately as a lump sum. While the remaining amount gets distributed as a monthly income over a selected duration. This kind of an approach offers immediate financial support along with long-term income security.
The increasing monthly income option provides periodic payouts which rise annually by a fixed percentage. It helps to offset the inflation impact and ensures that the beneficiary's purchasing power is maintained in changing times.
With the return of premium option, all the premiums paid are refunded to the policyholder if they survive the policy term. For this payout option, the premiums are higher. However, this option offers both protection and savings, making it an appeal to the risk-averse individuals.
Term insurance provides large coverage amounts at low premium rates, making it accessible for most income groups.
You can choose coverage that lasts 10, 20, 30 years, or even up to age 99, based on life goals and financial responsibilities.
Death benefits can be received as a lump sum, a monthly income, or a combination, which ensures your family receives steady financial support.
Riders such as critical illness, accidental death benefit, disability cover, or premium waiver enhance protection for unpredictable life events.
Term insurance typically covers both natural and accidental deaths. This broad coverage ensures complete financial security regardless of the nature of the event, as long as it is not excluded in policy terms.
Many term plans include terminal illness coverage, where the insurer pays a portion or the full sum assured if the policyholder is diagnosed with a life-limiting illness. This helps families manage treatment costs and other financial demands.
The critical illness rider provides financial protection if the policyholder is diagnosed with serious illnesses such as cancer, heart attack, or kidney failure. It pays a lump sum upon diagnosis, helping cover treatment costs, rehabilitation, and other related expenses. This ensures the family is not financially burdened while the policyholder focuses on recovery.
This rider provides an additional payout over the base sum assured in case the policyholder dies due to an accident. It is particularly useful for individuals with high-risk jobs or active lifestyles, offering extra financial security to the family in unforeseen situations.
The waiver of premium rider ensures that if the policyholder becomes critically ill or permanently disabled, future premiums are waived while the policy remains active. This guarantees uninterrupted coverage without financial strain, protecting the family even during challenging times.
This rider allows the policyholder to convert a term insurance plan into a permanent life insurance policy, such as whole life or endowment, without additional medical tests. It offers flexibility to adapt coverage to changing financial needs over time.
The return of premium rider refunds all premiums paid if the policyholder survives the policy term. It combines protection with a savings element, making it appealing for those seeking life cover with a financial return.
This rider provides financial support for children in the event of the policyholder’s death. It helps cover education, healthcare, and living expenses, ensuring the child’s future remains secure.
The disability rider provides a lump sum or periodic payouts if the policyholder becomes permanently disabled due to an accident or illness. It helps cover medical costs and compensates for lost income.
This rider offers a fixed daily benefit during hospital stays due to illness or injury. It helps cover daily living expenses and medical costs not covered by other policies.
Distinct from critical illness, this rider covers severe injuries such as paralysis, burns, or major fractures. It pays a lump sum to assist with medical treatment and lifestyle adjustments.
Natural Death Coverage
Most of the term life insurance plans provide coverage for death caused by natural reasons, such as age-related conditions or illness (during policy tenure). This ensures that the nominee gets the sum assured, which can help the family manage their financial obligations, daily expenses and long-term goals even in the absence of a policyholder.
Accidental Death Coverage
An accidental death is generally included as part of the base term insurance plan. If the policyholder passes away due to any accident during the policy period, the beneficiaries become entitled to receive the full sum assured.
Waiver of Premium Rider
The waiver of premium rider provides an added financial relief in case the policyholder becomes permanently disabled or is diagnosed with a critical illness. Under this rider, future premium payments are waived while the policy continues to remain active. This ensures uninterrupted life cover during tough times without placing an additional financial burden on the policyholder or their family.
Note: Coverage features vary across insurers and plan types.
Certain incidents are not covered by a Life Insurance policy. Here are the key exclusions:
Suicide Within the First Policy Year
Most of the term insurance polices do not cover death due to suicide during the first policy year. In such cases, the insurer generally refunds only the premiums paid after deducting the applicable charges. This exclusion remains standard across insurers and is meant to prevent misuse of the policy.
Death Due to Hazardous Activities
Deaths occurring while participating in hazardous or high-risk activities such as adventure sports, professional racing and dangerous stunts are also excluded. Coverage may apply only if the policyholder has opted for an additional rider or disclosed such activities at the time of purchase.
Death Caused by Intoxication
If death occurs while the policyholder is under the influence of alcohol, drugs or other intoxicating substances, the insurer rejects the claim. This exclusion applies when the intoxication directly contributes to the cause of death.
Non-Disclosure of Health Conditions
Failure to disclose existing medical conditions, smoking habits or lifestyle risks during policy application leads to a claim rejection. An accurate and honest disclosure is essential as the insurer assesses risk based on the information provided.
Note: Excluded coverage features vary across insurers and plan types.
Choosing the perfect term insurance plan starts with a clear understanding of your financial responsibilities. You need to assess your current income, existing loans, children’s education needs, and long-term family goals.
Next, determine how long you need coverage. Ideally, the term should cover your working years or until major financial goals are achieved, such as paying off a home loan or ensuring your children become financially independent.
Every insurer offers different premium rates for similar coverage. Compare plans from multiple providers to make sure you’re not overpaying. While affordability matters, never compromise on essential benefits just to reduce premiums.
One of the most crucial factors is the insurer’s claim settlement ratio (CSR), the percentage of claims an insurer pays out. A high CSR indicates reliability and increases the chances of your family receiving timely support.
Enhance your policy with riders like critical illness, accidental death, or disability coverage. Riders provide extra financial security for unforeseen events at a marginal cost. Choose only those riders that align with your lifestyle and risks.
Life circumstances change. For example, there can be major life events such as marriage, children, or increased income. Select a plan that allows coverage enhancement in the future so your policy remains relevant despite inflation and lifestyle upgrades.
Finally, go through policy terms, exclusions, waiting periods, and premium payment conditions. Knowing these details ensures there are no surprises later, helping you confidently choose the perfect term insurance plan.
One common mistake is purchasing a term insurance plan without evaluating the actual coverage required. Many people either opt for minimal coverage or choose excessively high sums without considering their financial obligations, such as loans, daily expenses, or future family needs. Calculating an appropriate sum ensures the policy provides adequate protection without overpaying on premiums.
Choosing a policy term that does not align with financial goals can reduce the effectiveness of coverage. Some may select a shorter term to save on premiums, while others may overlook the need for protection until major liabilities are cleared. Selecting a term that covers key life stages, such as children’s education or mortgage repayment, is essential for optimal protection.
Riders such as accidental death, critical illness, or premium waiver add extra protection. Many buyers ignore these options or select unnecessary riders without understanding their benefits, which can lead to either inadequate coverage or higher costs. Evaluating and choosing relevant riders ensures comprehensive coverage.
Providing incomplete or incorrect information about health, age, lifestyle, or occupation can result in a claim rejection later. Transparency during the application process is crucial to ensure that the policy remains valid and claims are processed conveniently.
Failure to compare multiple policies from different insurers can result in paying higher premiums for similar coverage. Using online tools and reviewing policy features carefully helps to make an informed choice.
Disclaimer: Bajaj Capital Insurance Broking Ltd. is an IRDAI-licensed Composite Broker (Life & General), License No. 241, and does not underwrite or issue insurance policies. Policies are issued by respective insurers. Bajaj Capital Insurance Broking Ltd. acts as a facilitator providing comparison of insurance products. The information displayed does not constitute insurance advice, recommendation, or endorsement of any product or insurer. The information displayed on this website is of the insurers with whom our company has an agreement. The prospect’s/visitor’s particulars may be shared with insurers for the purposes of soliciting insurance policies. Your personal information is collected only for the purpose of providing insurance comparison and quotes. We do not sell or misuse customer data.
Scan QR to chat on WhatsApp
+91 9667-753-599
Need help? Scan QR CODE
orChat on +91 9667-753-599