Jane Dotson
Term life insurance in India is a type of life insurance that offers high coverage at affordable premiums. It is a simple and cost-effective way to ensure your family receives a lump sum to cover expenses and achieve goals if you pass away within the policy term. Term life insurance plans offer financial security for 30 years or more, depending on the policy. They can also offer protection against critical illnesses like heart attack, cancer, and kidney failure.
| Characteristics | Values |
|---|---|
| Type of insurance | Basic life insurance |
| Coverage | High |
| Premiums | Affordable |
| Payout | Lump sum |
| Policy term | 30 years or more |
| Tax benefits | Yes, under Sections 80C and 80D of the Income Tax Act |
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What You'll Learn
How does term life insurance work in India?
Term life insurance is a basic type of life insurance that offers high coverage at affordable premiums. It is a simple and affordable way to ensure your family receives a lump sum to cover expenses and achieve goals if you pass away within the policy term.
Term insurance offers financial security for 30 years or more, depending on your policy. It is essential to consider when selecting the best term insurance plan in India for your needs. Term insurance plans in India align with the financial planning of all kinds of taxpayers, irrespective of their age, income or gender.
The taxpayers can avail deductions of up to ₹ 1.5 lakh per annum for the amount paid towards the premium of a life insurance policy, subject to the conditions prescribed under Section 80C6 of The Income Tax Act, 1961. Additionally, the proceeds from the term insurance are exempt subject to the conditions prescribed under Section 10 (10D)6 of The Income Tax Act, 1961.
Most term insurance plans offer tax benefits under Sections 80C and 80D of the Income Tax Act. You can compare different policies online, pick the one that suits you best, and even customise it with extra options if needed. Once you’ve chosen your policy, just upload a few document scans and pay the premium to complete your purchase.
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How much does term life insurance cost in India?
The cost of term life insurance in India depends on several factors, including your age, gender, and whether you smoke. The premium decided at the time of purchase stays the same throughout the policy duration, but the older you are when you take out the policy, the higher the premium is likely to be. Experts suggest that the sum assured of a life insurance policy should be at least 10 times your annual income, while 20 times is preferable.
For example, a 1 crore term insurance policy can start at just ₹487 per month, or ₹18 per day.
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What are the benefits of term life insurance in India?
Term life insurance in India is a basic type of life insurance that offers high coverage at affordable premiums. It is a simple and affordable way to ensure your family receives a lump sum to cover expenses and achieve goals if you pass away within the policy term. The payout from a term insurance policy can also help your loved ones deal with debt liabilities, such as paying off existing debts and loans.
Term insurance offers financial security for 30 years or more, depending on your policy. It is essential to consider when selecting the best term insurance plan in India for your needs. For example, you can get a 1 crore term insurance plan for just Rs. 21 per day. A healthy 25-year-old can get 1 crore term insurance coverage for just ₹616 per month until the age of 60.
Term insurance plans in India align with the financial planning of all kinds of taxpayers, irrespective of their age, income or gender. The taxpayers can avail deductions of up to ₹ 1.5 lakh per annum for amounts paid towards the premium of a life insurance policy, subject to the conditions prescribed under Section 80C6 of The Income Tax Act, 1961. Additionally, the proceeds from the term insurance are exempt subject to the conditions prescribed under Section 10(10D)6 of The Income Tax Act, 1961.
New-age term insurance policies extend beyond life cover, offering protection against critical illnesses like heart attack, cancer, and kidney failure. The payout assists in covering your treatment expenses or compensating for lost income due to the critical illness, offering financial relief when you need it most.
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What is covered by term life insurance in India?
Term life insurance in India offers financial coverage to the policyholder against fixed premiums for a specified duration. This means that, in the case of the policyholder's death, their family will be financially protected. Term insurance is the simplest and purest form of life insurance and is an affordable way to safeguard your family's finances. You can opt to increase or decrease your sum assured depending on your evolving financial needs. Term insurance also offers life cover for the highest age bracket, with some policies allowing you to continue cover up to the age of 85.
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How do I buy term life insurance in India?
To buy term life insurance in India, you must be an Indian citizen and be between the ages of 18 and 65. You can choose to pay your premiums annually, half-yearly, quarterly or monthly.
You can buy term life insurance online by comparing different policies, picking the one that suits you best, and customising it with extra options if needed. You will then need to upload a few document scans and pay the premium to complete your purchase. You can also schedule medicals via video or phone call.
The age at which you buy term insurance will determine your policy premium. You will need to provide the necessary medical reports and undergo some diagnostic tests if required. You will also need to provide correct information about your medical history to avoid complications in the claim process.
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Frequently asked questions
Term life insurance is a basic type of life insurance that offers high coverage at affordable premiums.
You pay regular premiums and, in the case of your death, your family will receive a lump sum to cover expenses and achieve goals.
Term life insurance offers financial security for 30 years or more, depending on your policy. It's also a good way to safeguard your family's finances, as well as your own.
Term insurance plans in India are available to all kinds of taxpayers, regardless of their age, income or gender.
Term life insurance is an affordable way to protect your family. For example, you can get a 1 crore term insurance plan for just Rs. 21 per day.
