The Ultimate Guide to
Term Life Insurance

Term insurance curated for every specific need.

How To Choose The Right Term Insurance Plan In 2025?

Choosing the best term insurance plan in 2024 is a crucial decision for securing your family's future. To simplify this process, you can leverage tools like "MyInsureBuddy Match." MyInsureBuddy Match is a user-friendly platform that helps you compare and find the most suitable term insurance plans tailored to your needs in just under 5 mins!

• Visit our website.
• Check out the MyInsureBuddy Term Rating.
• Generate a MyInsureBuddy Match report.
• Talk to our expert insurance advisors to discuss the report.
• The expert will break down all the details for you and help you understand all the nitty-gritty.
• You can choose on a plan and then pay the premium. Easy!

How To Buy A Term Life Insurance Plan?

Buying a term life insurance plan is a straightforward process, and MyInsureBuddy makes it even more accessible by providing expert guidance.

Here's a step-by-step guide -

• Visit our website. Here you can find comprehensive information about term insurance plans. MyInsureBuddy simplifies insurance complexities, making it easier for you to understand your options.
• Use MyInsureBuddy Match. It begins with a tailored questionnaire to understand users' insurance needs and preferences for term plans. It gathers detailed information on financial status, lifestyle, health, future goals, etc. for precise matching.
• MyInsureBuddy Match delivers personalised term plan recommendations, considering the user's requirements and preferences. These recommendations cover coverage amount, premiums, policy features, riders, and provider reputation.
• You also have the option to speak with a financial advisor at MyInsureBuddy. This step is crucial for addressing any specific concerns, clarifying doubts, and ensuring you make a well-informed decision.
• After thorough consideration and consulting with an advisor, choose the term insurance plan that aligns with your requirements.

Who Should Buy Term Insurance?

Essentially, term insurance functions like a reliable fire extinguisher for your family. It operates on a straightforward, no-frills approach, doing precisely what it's designed for – providing your family with the security and protection they require.

You should buy a term insurance if you have-

Outstanding Financial Obligations

If you're the main provider for your family, you carry responsibilities like funding our child's education, younger siblings' weddings, etc. Meeting these obligations is both your duty and a testament to your commitment to your loved ones. However, if an unfortunate event occurs, fulfilling these commitments may become challenging. To ensure your family's well-being in such situations, having a proper financial plan is crucial. Term insurance acts as a financial cushion, offering your family a lump sum in case of your sudden demise. This money empowers them to pursue their dreams and goals without compromising their current lifestyle.

Financial Dependents

Financial dependents are those who rely on your income for their well-being, including your spouse, retired parents, younger siblings, present or planned children, etc. Term insurance creates a sturdy foundation, ensuring your loved ones can pursue their goals and live fulfilling lives, regardless of challenges. It offers financial support, allowing them to maintain their lifestyle even without you, providing comfort during uncertain times.

Debts Or Liabilities

If you've taken substantial loans like a home loan, business loan, etc. to meet your financial commitments, there's a risk that if something were to happen to you, your family might be burdened with repaying the loan. Term life insurance comes to the rescue in such situations. By having a term life insurance policy, you ensure that your family won't be left grappling with an overwhelming financial burden if you were to pass away unexpectedly.

Lacking Adequate Wealth

It's vital to ensure your family's financial security, even in your absence, by accumulating enough wealth. Establishing a secure financial foundation capable of sustaining your family in the long term becomes essential. However, with the challenges of rising living costs and inflation, accumulating substantial funds may not be feasible for everyone. Recognizing the differing financial capabilities of individuals, opting for term insurance is a wise move. It ensures adequate coverage for your family while you are still in the process of building substantial wealth. In the unfortunate event of something happening to you, term insurance offers protection for your loved ones until you accumulate ample wealth.

Eligibility Criteria For Term Insurance

A term insurance policy has certain eligibility criteria that need to be met before you can purchase it, let’s take a look at them -

Age

To purchase any term insurance policy, you must be at least 18 years old. The maximum age limit varies, typically falling between 60 to 65 years or even more, depending on the specific type of policy you choose.

Income

The income criteria for term insurance eligibility can vary among insurers. Some insurers may require a minimum income of Rs. 5 Lakhs or more, while others might allow individuals with lower incomes to opt for a term plan. Your income also influences the maximum sum assured you can choose. Insurers calculate this based on your income and age at the time of policy purchase, using factors like 25X or 20X. If you have an existing life insurance policy, the cover amount of that policy is subtracted from the eligible term cover.

Educational Qualification

Typically, you need to have completed graduation to buy a term insurance policy. However, some insurers may also allow individuals without a graduate degree to opt for a term plan.

Location Of Residence

Insurance companies use various sets of pin codes for their insurance plans, which are managed in their backend systems. The list of pin codes is subject to change, and you can verify the eligibility for your specific pin code by entering it when prompted in the application form. Financial advisors also have access to these lists, so if you're using their services, you can request the information. Typically, top insurance companies include Tier 1, Tier 2, and most Tier 3 cities, but it's advisable to confirm before proceeding with your application.

Occupation

Term insurance is primarily available for professionals, self-employed individuals, and salaried workers. Some insurers extend coverage to housewives and small business owners, but eligibility may vary. Insurers may assess the risk associated with certain occupations, and if deemed too risky (e.g., working in an underground mine or chemical factory), they may reject the policy. The decision depends on the underwriting process.

Maximum Maturity Age

Some insurance companies offer term plans with a maximum maturity age of 85 years, while others extend the duration up to 99/100 years, commonly known as 'Whole life plans.' These plans aim to provide coverage for your entire lifespan.

Income Proof Documents

When applying for a term insurance policy, you need to assure the insurer that you can pay the premiums throughout the policy or premium payment tenure. To prove your income, you'll be required to submit specific documents, including -

Note: Different insurers may have varying document requirements based on your occupation.

Medical History

The cost and coverage of your term insurance are closely tied to your present health and potential future medical risks. Before getting the policy, you'll need to go through a medical check-up. If the results suggest a higher risk to the insurer, they may not issue the policy. If another insurer does, it might come with substantial loading charges.

What Are The Documents Required To Buy Term Insurance?

When you buy a term insurance policy, whether online or offline, you need to provide certain documents. The exact requirements can vary between insurance companies, but here are some common documents you might need -

• Age  Proof - PAN card, driving license, birth certificate, passport, etc.
• Identity Proof - Aadhaar card, passport, voter ID card, driving license, authority letter verifying identity, etc.
• Address Proof - Ration card, bank account statement, electricity bill, telephone bill, voter ID card, passport, pension order issued by the government, etc.
• Income Proof - Income tax returns, employer’s certificate, Income Tax assessment order, latest salary slip, latest Form 16, CA’s certificate showing income of past 3 years, etc.
• Other Documents - In addition to the above mentioned documents, insurance companies may request supplementary paperwork to support your application.

How To Compare Term Insurance Plans Online?

Powered By Our Research Team

LIC Digi Term

Expert Ratings

Expert Ratings

Increasing cover

Short death claim form

Relatively Cheaper

Bajaj Life eTouch II

Expert Ratings

Expert Ratings

Comprehensive CI Rider

Early exit option

ICICI Pru iProtect Smart Plus

Expert Ratings

Expert Ratings

Increasing cover

Comprehensive CI rider

Early exit option

Compare Plans

Add 2 more plan to compare

When comparing term insurance plans online, it's crucial to evaluate multiple options to find the one that best suits your needs. On the MyInsureBuddy website, users can utilise the comparison page, available on our page.

Using the compare function on MyInsureBuddy allows you to -

• Compare the features of different term insurance plans side by side. Understand what each plan offers in terms of coverage, riders, and other benefits.
• Understand the policy terms, including the policy duration and any specific conditions associated with each plan.
• Evaluate the various factors including pros and cons associated with each plan. This helps in choosing a plan that fits your budget while providing adequate coverage.
• When evaluating insurance companies, review their ratings and reviews for claims processing. MyInsureBuddy offers insights into the reputation of various insurers in handling claims efficiently.
• Additionally, MyInsureBuddy assesses the customer service experiences based on research when considering insurance plans for you.

How Long Should Your Term Insurance Policy Period Be?

You should have term insurance from the moment you acquire financial dependents until you achieve financial freedom. But what does achieving 'financial freedom' mean?

Let's explore!

Typically, you attain financial freedom when -

Your Earnings Are No Longer Relied Upon To Cover Anyone's Expenses.

Indicating that your spouse, children, siblings, parents, and anyone who previously depended on you for financial support has achieved financial independence or is no longer dependent. Typically, this situation arises around the age of 65 or 70. Therefore, it is generally suggested to have a term insurance policy until the age of 65-70. However, individual preferences, life decisions, and family priorities may influence this. So, it's essential not to follow a one-size-fits-all rule and tailor your decision based on your specific life plans.

You've Established A Substantial Corpus To Last A Lifetime.

The main reason for getting term insurance is to relieve your family of financial burdens if something happens to you. If you've accumulated enough wealth that can sustain your family's needs throughout their lives, addressing both short-term and long-term financial requirements, you may not need the term plan anymore. You can stop paying the premiums, and the policy will be closed.

You've Successfully Fulfilled All Your Financial Obligations.

This means you have successfully met all your financial obligations from the past. For instance, you've covered your children's higher education expenses, cleared all your loans and liabilities, taken care of your children's marriage expenses, etc. If you've accomplished these financial responsibilities, you may consider discontinuing your term insurance plan.

When Is The Right Time To Buy Term Insurance?

Buying term insurance early in life is often advised with the popular notion of "Buy Early, Save More." Insurance agents commonly recommend purchasing a policy as soon as you start earning. But does this mean rushing to get term insurance right away, and can it be considered too early? Let's Understand More!

Before you start looking for the right policy, ask yourself this: Do you have loved ones (spouse, children, or elderly parents) relying on your income? Do you have significant financial responsibilities? If your answer is yes to either question, it's wise to get term insurance right away. However, if you answered 'no,' You may discover more ways to utilise your funds, at least for the time being.  Check out our detailed article on who should buy term insurance and who might consider skipping it for more insights.

How Does Age Play A Role In It?

You're convinced that term insurance is essential once you have financial dependents, but why the urgency? Here's why.

The premium you pay for your term insurance is directly linked to your age. In simpler terms, the younger you are, the lower your premium for a term insurance policy. Therefore, the sooner you purchase an insurance policy, the more you save on premiums throughout your life.

However, COST isn’t the sole consideration!

As you age, the chances of developing lifestyle-related conditions such as diabetes and high cholesterol, leading to heart issues, increases. If you acquire a serious medical condition, insurers may demand higher premiums (up to 50-100% more), and there's also the risk of policy rejection. To avoid these risks, it's advisable to purchase a term insurance plan as soon as you have financial dependents, without delay. Additionally, your premiums may increase by around 5% once you cross your birthday. Therefore, if your birthday is approaching in the next few months, it's wise to conduct your research, customise the policy, and make the purchase while still enjoying the lower cost.

How Much Term Insurance Cover Do You Need?

You get term insurance to shield your family members who rely on your income. It ensures that even if you're not around, they won't face financial difficulties due to the gap between what you leave behind and what they require.

How Do We Calculate This GAP?

This can be done by subtracting your liabilities from your assets, offering a clear understanding of the coverage needed to ensure your family's financial stability.

👉 The Amount You Owe We can categorise these into three main areas -

• Living Expenses: This covers the financial requirements for sustaining your family's everyday life. It entails calculating both monthly and yearly expenditures like school fees, salaries for household staff, rent, utilities, groceries, and more. To determine the required coverage, this total is divided by an assumed interest rate, commonly set at 3% after accounting for taxes, mirroring the prevailing fixed deposit interest rate.
• Future Investments: This fund is earmarked for substantial upcoming expenses, such as education costs for your spouse or children, wedding expenses, and other long-term financial commitments.
• Loans/Liabilities: It's important to consider any outstanding loans or financial obligations. If something were to happen to you, your family would need to handle these. By tallying up all loans, whether it's a mortgage, personal loans, car loans, shared debts, etc., you get a straightforward picture of the total amount that needs to be settled.

👉 The Amount You Own

Determining your net worth isn't as straightforward as just adding up the values of all your assets. There's a bit more to it. Not all assets can be quickly turned into cash, and each comes with its own level of risk. To get a more accurate picture, you need to factor in the risk for each asset by multiplying it by its corresponding risk factor, giving you its "effective value." Here's a breakdown -

• Existing Life Insurance Policies @ 100%: Count these in at their full value.
• Savings, Fixed Deposits, and Cash @ 100%: These are also considered at their full value.
• Equity Investments @ 50%: To be on the cautious side, treat equity holdings and investments linked to equity as half their face value.
• Gold and Residential Property @ 0%: Since these assets aren't easily turned into cash and aren't suitable for immediate expenses, don't assign any immediate value to them.
• Stock Options @ 0%: Given their high-risk nature, don't assign any value to stock options. If there's any payoff from them, consider it a bonus rather than part of your regular assessment.

To figure out your actual net worth, you add up all these adjusted values. Once you have this information, you can then calculate the amount of insurance coverage you need using this formula -

Coverage Amount = ([Living Expenses + Future Investments + Loans/Liabilities] - [Existing Funds])

To consider inflation over the entire term, a good practice is to multiply your current coverage amount by a factor of 2.5 to 3X. This step helps ensure that your coverage remains sufficient to handle increasing costs throughout the duration of your policy. It's a way of future-proofing your financial protection.

Select your gender

What's your Age?

What's your Pincode?

Get Started

You have exceeded your limit of generating MyInsureBuddy Match reports. Please contact our WhatsApp support to take this forward.

What Are The Key Factors That Can Affect Term Insurance Premiums?

The premiums for term insurance depend on various factors, such as age, health, occupation, lifestyle choices, and more. Let’s delve into the details!

Your Age

When you get term insurance, how old you are makes a big difference in how much you pay. If you're younger, your premium payments are usually less. That's because younger people are usually healthier, and there's less chance something bad will happen to them.

Insurance companies look at your age and health to figure out how risky it is to insure you. The price you pay for your insurance is set based on how old you are when you start, and it stays the same until the end. So, if you buy it when you're younger, you can save money for a long time.

But here's the important part: only get term insurance if there are people who depend on you for money, like your parents, kids, spouse, etc. If you don't have anyone like that, you might not really need term insurance.

Your Gender

Guess what? Your gender can affect how much you pay for term insurance! Insurance companies look at a bunch of things when deciding the price you pay, and one of them is whether you're a guy or a girl. Here's the deal: because women tend to live longer, they're seen as less risky, and that means they usually get to pay less for their insurance.

Here’s a table to understand the gap better:

The premiums, inclusive of tax, are collected on 10/01/2025 for a 30-year-old non-smoker individual in Zone 1 choosing a sum assured of Rs 1 Crore for 30 years with regular payments. These premiums are payable annually.

Health

As mentioned earlier, your health is a big deal when it comes to how much you pay for term insurance. Before the insurer issues you the health insurance policy, they might ask you to undergo some medical tests. If you're healthy, you pay the regular price. But if you already have some health issues, they might charge you extra, calling it a 'loading.' That's because having health problems makes you riskier for the insurance company to cover.

Lifestyle

The way you live and the choices you make can affect how much you pay for term insurance. If your job is risky or you love adventurous stuff, you might pay more because it raises the chance of accidents. Also, if you smoke, drink a lot, or have unhealthy habits, your premiums could be higher. These habits make it more likely to have health issues that can affect how long you might live.

Now, let's check out how much non-smokers and smokers might pay for different term insurance plans -

The premiums were collected on 10/01/2025 for a 30-year-old male selecting a sum assured of 1 crore for 30 years with regular payments. These premiums, inclusive of tax, are payable annually.

Occupation

Ever think your dream job could affect how much you pay for term insurance? Well, it can! Insurance companies look at how risky your job is when deciding your premiums. Jobs with a lot of physical risks, like being a firefighter or a pilot, might mean higher premiums. Also, if you work in industries like mining, fisheries, or chemicals, where there can be health issues, you might pay more because of the higher risk. So, your job can play a big role in how much your insurance costs.

Amount Of Coverage

Picking the right amount of coverage is super important in term insurance, but it also affects how much you pay. Yep, it's true – if you need more coverage, you'll probably pay more for your policy. The coverage amount is the money your loved ones get if, unfortunately, you pass away during the policy period.

Choosing a higher sum assured will result in a higher premium. That's because the the insurance company is taking a bigger risk of paying out more if something happens to you. But if you choose a smaller coverage amount, your premium will likely be less because there's less risk for the insurance company.

Payment Frequency

When you get term insurance, you pick how often you want to pay the premiums. This choice can change how much you pay. If you go for yearly payments, it's usually less than paying every month, quarter, or half-year. For example, monthly payments might cost you 5-8% more than yearly ones.

But, what's important is to choose what works for you and your money situation.

What Is A Term Insurance Rider?

Riders are like extra goodies you can add to your main term insurance plan by paying a bit more. No extra paperwork is needed - it's simple and easy. These add-ons give you extra payouts in specific situations. Once you've already given the documents for your main term insurance plan, there's no need for more paperwork.

And here's the cool part: since the rider is part of your main term insurance, you don't have to do any extra health checkups, besides the ones you did when you got the main policy. Easy, right?

What Are The Types Of Term Life Insurance Riders?

Let’s learn about the different types of term life  insurance riders-

Critical Illness Rider

The critical illness rider addition, gives you a fixed amount of money if you're diagnosed with a serious illness listed in the policy. This cash can help with extra costs for you and your family due to the illness. This money can act as an income replacement if you have to take a break from work for treatment.

Here's the trick: when getting a policy, be really careful about the type of critical illness rider. Some come with accelerated riders, and some have comprehensive ones. It's good to know which one you're getting!

• Accelerated Critical Illness Rider

It gives you some money upfront from your total cover amount if you use it for a specific illness. But, here's the catch – if you use the rider, your base cover goes down by that same amount.

• Comprehensive Critical Illness Rider

This one's different. It won't touch your base cover  amount. If you get sick with one of the listed illnesses, it offers a payout . And if you pass away during the policy tenure, your family gets the full amount you signed up for in the term insurance policy.

Accidental Death Benefit Rider

In case of your unfortunate demise due to an accident while your insurance policy is active, this rider gives your family some extra money. But here's the trick - you might want to think about this only if you can't buy enough regular term insurance for your family because of certain rules. When you do the numbers, you might notice that the cost isn't much different between getting this rider or just getting a regular term insurance policy with the same cover amount. So, it's all about what makes the most sense for you and your family!

Accidental Disability Rider

If you have an accident that leaves you disabled, this rider gives you an additional sum of money. Accidental disabilities can mess with your ability to work and live a regular life. And guess what? At times, a disability can impose greater financial burdens on your family compared to a loss of life. That's because there's an absence of income and extra expenses, like changes in your home,  special vehicles, etc.

So, this rider is like a shield against the financial trouble that can come with a disability. But here's the thing to keep in mind: not all types of disabilities are covered by this rider. It might only cover you if you are diagnosed with permanent and total disability.

Waiver Of Premium Rider

Here are the two types of premium waiver riders available under a term insurance policy -

• Waiver Of Premium On Critical Illness Rider: If you get diagnosed with a critical illness listed in your policy, this rider is like a superhero. It waves away all the pending premium payments you have to make for your term insurance. So, you don't have to worry about paying premiums when you're dealing with a serious illness.
• Waiver Of Premium On Accidental Disability Rider: In the unfortunate event of disability resulting from an accident, this rider becomes invaluable. It ensures that you are relieved from the obligation of paying future premiums.

Surgical Care Rider

If you end up in the hospital for at least 24 hours because you need a surgery that's medically necessary, this rider comes into play. It gives you a chunk of money – a fixed sum on a daily basis to help you out. The amount you get depends on whether the surgery is a 'major surgery' or an 'other surgery,' as mentioned in the policy document.

Hospital Care Rider

If you end up in the hospital for a necessary treatment due to an illness or injury, this rider steps in to pay  a set amount of money each day you're in the hospital. But there's a catch – you need to stay in the hospital for at least 48 hours to get this benefit.

How Will A Term Plan Secure Your Family’s Future?

A term plan provides crucial financial support for your family in the event of your untimely demise. It's a form of life insurance that offers a lump sum, known as the death benefit, to your loved ones if you pass away during the policy term. This fund assists your family in covering essential expenses such as living costs, debt repayment, and children's education. Term plans stand out for their flexibility, affordability, and robust financial protection for your family's future.

Choosing The Best Term Insurance Plan With The Right Claim Payout Option

Here are some of the most common claim payout options available with term plans today -

Lump Sum Payout

With this choice, your family gets the entire claim amount all at once. After the claim process is done, the insurance company transfers the whole sum directly to your nominee's bank account. However, be cautious – if your family isn't familiar with handling significant sums, there's a risk they might make unwise investment decisions.

Monthly Income Payout

With this choice, your family gets a fixed amount every month for a specific duration, acting as a substitute for your monthly income. This money can cover their monthly expenses like bills, EMIs, rents, etc., for several years. Some plans even offer an 'increasing monthly income' option, where the monthly amount grows by 5/10% each year. It's a good way to combat inflation and ensure a steady income for their needs.

Lump-Sum With Monthly Income

This option combines elements of the above two choices. Here, you can designate a portion of the claim amount to be provided to your family as a single payment (lump sum). The remaining amount will be converted into recurring monthly payments disbursed regularly.

For instance, if your total sum assured is Rs 1.5 Crores, you might opt for Rs 50 lakhs to be given as a single payment to your family. The remaining amount, Rs 1 Crore, can be divided into monthly income payments based on your preferences. This arrangement allows your family to settle any outstanding loans and debts in the short term while still receiving regular monthly payments to cover their ongoing expenses.

Select your gender

What's your Age?

What's your Pincode?

Get Started

You have exceeded your limit of generating MyInsureBuddy Match reports. Please contact our WhatsApp support to take this forward.

How To File A Term Life Insurance Plan Claim?

The term insurance claim process comprises four key steps. Let’s know them one by one -

Step 1:  Informing The Insurance Company

To start the claim process, your nominee must let the insurance company know about the claim. They can do this by -

• Visiting the nearest branch
• Using the company's website
• Reaching out through phone, email, or the toll-free number.

Once notified, the claim settlement process kicks off.

STEP 2: Completing The Claim Form

After notifying the insurance company, your nominee needs to fill out a claim form. They can find this form online on the insurance company’s website or get a physical copy at the branch office. Alongside the completed form, your nominee will also need to provide necessary documents to support the claim.

STEP 3: Providing Additional Documents (if requested)

In some cases, the insurance company might need more documents for the claim. Your nominee should swiftly submit any extra documents asked for to prevent delays in the claim settlement process. It's essential to ensure everything is provided promptly.

STEP 4: Approval And Payout

After your nominee submits all the necessary documents, the insurance company will review them. If the claim is approved, the payout will be made according to the chosen option during the policy purchase. Remember, the required documents and steps might vary among insurers, so clarify these details when buying the policy.

If you have more questions about claiming term insurance after a loss, simply post them on the MyInsureBuddy Insurance Forum. Get free expert answers from trusted professionals!

Documents Required For Term Life Insurance Claim Process

Here are the types of insurance documents your nominee will have to submit at the time of claim -

In Case Of Natural Death

• Original policy certificate
• Death certificate copy given by the local authority
• Nominee's address proof
• Photo identity proof
• Cancelled cheque
• Bank passbook copy
• Copy of medico-legal cause of death
• Medical records (Admission notes, Discharge / Death summary, Test reports, etc.)

In Case Of Unnatural Death

• Original policy certificate
• Death certificate copy given by the local authority
• Nominee's address proof
• Photo identity proof
• Cancelled cheque
• Bank passbook copy
• Copy of medico-legal cause of death
• Medical records (Admission notes, Discharge / Death summary, Test reports, etc.)
• Copy of FIR
• Panchanama
• Inquest report
• Driving licence
• Postmortem report

Terms Related To Term Insurance

Let's break down the confusing terms in term insurance so you can navigate your coverage with ease.

Policyholder:

The policyholder is the individual who owns or purchases the insurance policy. Only the policyholder has the authority to make changes to the life insurance contract and is responsible for paying the premiums, which represent the cost of the insurance.

Life Assured:

The “life assured” is the individual whose life is insured under the insurance contract. It's the person for whom the policy is purchased to mitigate the risk of premature death.

Important Note: The life assured and the policyholder may or may not be the same individual in a life insurance policy. If they are the same, the individual whose life is insured owns the policy and pays the premiums. If they are different, the individual whose life is insured differs from the policy owner. For instance, a husband may purchase a life insurance policy for his wife, who is a homemaker. In this scenario, the wife, unable to pay her premiums, becomes the life assured, while the husband acts as the policyholder.

Riders:

It's an additional benefit for your term life insurance! You have the option to broaden your coverage by paying a little extra, and this supplementary feature protects against various risks, including loss of income due to critical illness or permanent disability.

Free-Look Period:

If you ever decide to cancel your life insurance plan for any reason, you have the option to receive a refund of the premiums paid. Within a 15-day Free-Look Period, which commences upon receipt of your policy document, you can choose to cancel the policy. During this period, the insurer will refund the full premium amount, deducting minor charges such as administration and stamp duty fees.

Grace Period:

The Grace Period is akin to a small extension offered by the insurance company for paying your life insurance premiums. There may be occasions when you are unable to make the payment by the due date, but with the Grace Period, you can catch up without risking the loss of your life cover. However, if you fail to make the payment within this additional time frame, your policy will lapse, and you will forfeit the associated benefits. The grace period for premium payments is 15 days for the monthly mode and 30 days for the annual, semi-annual, or quarterly modes.

Revival Period:

Every life insurance policy has a termination date. Once it expires or is discontinued, you become ineligible for any benefits. However, there's an opportunity to reinstate it during the Revival Period, provided by insurance companies after the grace period. Typically lasting for 5 years from the date of the initial missed premium, this period allows policyholders to revive their lapsed policies.

Nominee:

A nominee is an individual who receives the benefits from your life insurance in the event of your passing while the policy is active. You have the flexibility to designate anyone, such as your spouse, children, parents, or siblings, as your nominee. Additionally, you have the option to select one or more nominees and determine the distribution of the funds among them by assigning percentages. While your policy is still active, you can add, remove, or change nominees by asking the insurance company to make the changes.

Appointee:

This is the person you choose and authorise to get the benefits from your policy on behalf of your nominee if they're under 18 years old when the claim is paid.

Death Benefit:

In the event of your passing, while your life insurance is active, the funds received by your nominee are referred to as the death benefit. This sum is intended to assist with your family's immediate and long-term expenses, including outstanding loans and other financial obligations.

Limited Pay:

Normally, you pay for your life insurance until the duration of your chosen policy ends. For example, if you pick 25 years, you pay for 25 years. But, with the limited pay option, you can speed up your payments. It lets you finish paying premiums in fewer years compared to the full policy duration. You can choose different limited pay options, like 5-pay, 10-pay, or 15-pay, to pay off premiums in 5, 10, or 15 years. So, if you choose a 5-pay option, you finish payments in 5 years, and your coverage lasts until the end of the 25-year policy.

Popular Term Life Insurance Myths

Considering the significance of term insurance for your family's financial security, it's crucial not to fall for common misconceptions. Let's swiftly debunk six prominent myths that might steer you in the wrong direction when choosing term insurance – and how you can steer clear of them!

Misconception 1: Getting A Policy Quickly Is Important So That The Premiums Stay Low.

Truth: The main goal of term insurance is to safeguard your dependents financially. If you're unmarried and your parents are financially stable, you might not need a term insurance policy right now. Term insurance is about providing financial security for your loved ones in case of your untimely demise, ensuring they aren't burdened with financial responsibilities. It's essential to consider term insurance based on your life stage and responsibilities.

Misconception 2: Term Insurance Doesn't Cover All Types Of Deaths. "I'll Ask My Agent For A List."

Truth: After reviewing numerous term insurance policies, it's clear that, apart from suicide within the first year, there are no specific types of death excluded from coverage. The insurance company is obligated to mention any exceptions in the proposal document. Unless explicitly stated, you can assume that there are no exclusions. So, no need to worry about specific types of death not being covered.

Misconception 3: Riders Are Great Because They're Easy To Choose And Much Cheaper Than Getting Full Coverage.

Truth: Riders are like shortcuts for those who prefer quick and easy options instead of a comprehensive cover. While they might be a bit cheaper, they come with limitations. Buying specialised covers separately can provide more tailored protection. However, exceptions like the Waiver of Premium in Critical Illness or Waiver of Premium in Disability riders are highly recommended and useful. It's essential to weigh the pros and cons before choosing riders.

Note: While it's ideal to purchase a separate Critical Illness cover, it can be quite expensive. As a more cost-effective alternative, consider adding a Comprehensive Critical Illness Rider (Not accelerated) to your Term Insurance policy.

Misconception 4: I Chose The Insurance Company With The Best Track Record Of Paying Claims. This Ensures My Family Receives The Claim Amount!

Truth: The Claim Settlement Ratio shows the percentage of claims settled to the total received. However, it doesn't reflect the quality of the claims experience or the actual value of term insurance claims settled. It's calculated across various products and may not accurately represent term insurance claims alone. Don't rely solely on this ratio for your decision; consider other factors too.

If Not The Claim Settlement Ratio, Then What?

This is the question we faced every time we debunked the Claim Settlement Ratio myth. So, we gathered data from various sources, including insurer portals and the IRDAI website, among others, to extract relevant insights. We then organised these metrics based on their impact and importance to you as a consumer, creating what we call MyInsureBuddy Ratings!

MyInsureBuddy Ratings is the first-ever unbiased and data-backed solution for insurance comparison. Our goal is to help our community members objectively compare term insurance product features and make informed purchase decisions. Just visit MyInsureBuddy Ratings to compare your preferred plans.

Misconception 5: To Be Sorted, I Need To Pick A Cover Amount That’s 20x My Present Annual Salary.

Truth: While the 20x annual salary rule is a common guideline, it has its limitations. Your family's term insurance needs depend on your lifestyle, commitments, and future plans. To decide on the right amount, create a detailed list of short and long-term expenses, factor in your investments and savings with risk, and make a careful calculation. Our free eBook, "The Ridiculously Simple Guide to Term Insurance," provides detailed instructions and examples to help you make the right decision. Following these steps ensures you won't go wrong!

Misconception 6: My Term Insurance Claim Amount Will Directly Go To My Wife, And She Can Take A Call On If She Wants To Pay The Creditors.

Truth: According to the law, creditors have the first right to your term insurance claim amount, even before your wife and children. To address this, you can take the term insurance policy under the Married Women’s Property Act (MWP) by signing an extra addendum during the policy purchase. This ensures that only your wife receives the claim amount directly, prioritising her financial security.

Armed with this information, you can now make an informed decision about your insurance purchase and avoid any future regrets.

For more fascinating myths and facts, check out our eBook - "The Ridiculously Simple Guide to Term Insurance."

Term Insurance Knowledge Hub

Explore our extensive library of guides, articles, and reviews tailored specifically for Term Life Insurance.

Best Term Insurance Plans & Reviews

• → LIC Digi Term
• → ICICI Pru iProtect Smart Plus
• → Bajaj Life eTouch II
• → Best Term Life Insurance Plans of 2026
• → Bandhan Life iTerm Comfort
• → TATA AIA Sampoorna Raksha Promise
• → Go Digit Glow Plus Term Life
• → PNB Metlife Mera Term Plan Plus
• → TATA AIA Maha Raksha Supreme Select
• → Aditya Birla Sun Life DigiShield
• → Where Insurance Finally Brings Peace.
• → LIC New Tech Term
• → LIC Digi Credit Life
• → Canara HSBC Young Term Plan
• → Canara HSBC iSelect Smart360
• → Aditya Birla Sun Life Super Term Plan
• → Axis Max Life Smart Term Plan Plus

In-Depth Articles & Guides

• Featured Articles
• Types Of Insurance
• Is Decreasing Term Insurance The Right Choice For You?
• Term Insurance with Return of Premium
• How Does A Joint Life Term Insurance Policy Work?
• All You Need To Know About Group Term Insurance Policies
• Why Should You Pay Your Term Insurance Premiums On Time?
• Difference Between Term Insurance and Life Insurance
• What Are The Types Of Deaths Covered By Term Insurance?
• Designing a term insurance policy to match your needs
• Limited Pay vs Regular Pay Term Insurance
• How to choose the right claim payout option for your Term Insurance?
• Should You Choose The Monthly Income Payout For Your Term Insurance Claim?
• Should you buy Riders sold with Term Insurance? Which ones?
• Critical Illness Riders - Useful Or Taking You For A Ride🚴?
• Does Term Insurance Cover Accidental Death?
• How Does The Waiver Of Premium Rider Work In Term Insurance?
• Should you buy the Accidental Disability Rider with Term Insurance?
• Term Insurance Tax Benefits Under Section 80C, 80D & 10D (2024 Updated)
• Section 10(10D) of the Income Tax Act: Criteria, Benefits, and Exemptions
• Don't Ask ‘When to buy?’, Ask ‘For Whom to buy’ Term Life Insurance?
• Could Term Insurance Be Wrong For You?
• How is Term Insurance Cover Amount Calculated? Effective method to calculate your Term Insurance Cover
• What is a Critical Illness Rider in Term Insurance?
• MWP act can ensure smooth term insurance claim settlement
• How Does Term Insurance Work?
• The ABCs Of Insurance Premiums: What You Need To Know
• Term Insurance Eligibility
• How To Select The Right Riders In Term Insurance?
• What is Sum Assured in Term Insurance?
• Did You Know About These 10 Types of Term Insurance Policies?
• Whole Life Insurance
• What Should NRIs Know About Buying Term Insurance In India?
• What is a Lapsed Policy? Here’s How You Can Revive It
• All You Need To Know About The Term Insurance Claim Settlement Process
• Hospital Cash Benefit Rider In Term Insurance Explained
• Solvency Ratio In Life Insurance
• 7 Point Guide To Buying A Term Insurance Plan
• Who Should Choose The Limited Pay Option In Term Insurance?
• Death Benefits of Life Insurance: A Complete Guide
• Term Insurance Premium Calculator
• Top 8 Reasons For Term Insurance Claim Rejections
• ICICI Pru iProtect Smart Plus vs LIC Digi Term
• Aditya Birla Sun Life Super Term Plan vs LIC Digi Term
• Bajaj Life eTouch II vs ICICI Pru iProtect Smart Plus
• Canara HSBC Young Term Plan vs LIC Digi Term
• Aditya Birla Sun Life Super Term Plan vs Bajaj Life eTouch II
• Bajaj Life eTouch II vs Canara HSBC Young Term Plan
• Bandhan Life iTerm Comfort vs ICICI Pru iProtect Smart Plus
• Aditya Birla Sun Life Super Term Plan vs Bandhan Life iTerm Comfort
• Bandhan Life iTerm Comfort vs Canara HSBC Young Term Plan
• 6 Misconceptions about Term Insurance you may not believe!
• The Complete Truth Behind The Huge ‘1 Crore Term Insurance Cover’
• Where Insurance Finally Brings Peace.
• Could it be ‘too early’ to buy Term Insurance for you?
• Does buying Term Life Insurance early make sense? What is the right age?
• ICICI Pru iProtect Smart Plus vs TATA AIA Sampoorna Raksha Promise
• Aditya Birla Sun Life Super Term Plan vs TATA AIA Sampoorna Raksha Promise
• Canara HSBC Young Term Plan vs TATA AIA Sampoorna Raksha Promise
• Who Gets the Insurance Money if a Policyholder Dies?
• Why Are Medical Tests Important While Buying Term Insurance?
• Things to Consider While Buying Term Insurance Plan
• Go Digit Glow Plus Term Life vs ICICI Pru iProtect Smart Plus
• Aditya Birla Sun Life Super Term Plan vs Go Digit Glow Plus Term Life
• Canara HSBC Young Term Plan vs Go Digit Glow Plus Term Life
• Essential Documents For Term Insurance Purchase: What You Need To Know?
• 7 Key Factors That Can Affect Term Insurance Premium
• How does a Critical Illness Insurance plan help out your family?
• ICICI Pru iProtect Smart Plus vs PNB Metlife Mera Term Plan Plus
• Aditya Birla Sun Life Super Term Plan vs PNB Metlife Mera Term Plan Plus
• Canara HSBC Young Term Plan vs PNB Metlife Mera Term Plan Plus
• ICICI Pru iProtect Smart Plus vs TATA AIA Maha Raksha Supreme Select
• Aditya Birla Sun Life Super Term Plan vs TATA AIA Maha Raksha Supreme Select
• Canara HSBC Young Term Plan vs TATA AIA Maha Raksha Supreme Select
• Aditya Birla Sun Life DigiShield vs ICICI Pru iProtect Smart Plus
• Aditya Birla Sun Life DigiShield vs Aditya Birla Sun Life Super Term Plan
• Aditya Birla Sun Life DigiShield vs Canara HSBC Young Term Plan
• Received Your Term Insurance Policy Document? Make Sure To Check These Things!
• ICICI Pru iProtect Smart Plus vs LIC New Tech Term
• Aditya Birla Sun Life Super Term Plan vs LIC New Tech Term
• Canara HSBC Young Term Plan vs LIC New Tech Term
• ICICI Pru iProtect Smart Plus vs LIC Digi Credit Life
• Aditya Birla Sun Life Super Term Plan vs LIC Digi Credit Life
• Canara HSBC Young Term Plan vs LIC Digi Credit Life
• Canara HSBC Young Term Plan vs ICICI Pru iProtect Smart Plus
• What Does Becoming ‘Financially Free’ Mean?
• Aditya Birla Sun Life Super Term Plan vs Canara HSBC Young Term Plan
• Canara HSBC iSelect Smart360 vs Canara HSBC Young Term Plan
• Canara HSBC iSelect Smart360 vs ICICI Pru iProtect Smart Plus
• Aditya Birla Sun Life Super Term Plan vs Canara HSBC iSelect Smart360
• Know About The Various Benefits Of A Life Insurance Policy
• A Quick Guide To Common Term Insurance Jargon
• Who should buy the Standard Term Plan - Saral Jeevan Bima?
• Understanding Term Insurance Riders: A Complete Guide
• Term Insurance Glossary: Confusing Terms Explained
• Advanced Buying Guide: Claims, MWP Act & Solvency Ratios
• Aditya Birla Sun Life Super Term Plan vs ICICI Pru iProtect Smart Plus
• Axis Max Life Smart Term Plan Plus vs ICICI Pru iProtect Smart Plus
• Aditya Birla Sun Life Super Term Plan vs Axis Max Life Smart Term Plan Plus
• Axis Max Life Smart Term Plan Plus vs Canara HSBC Young Term Plan
• The Inconvenient Truth About The Claim Settlement Ratio
• 5 Things to do after buying term insurance- to ensure a smooth claim settlement
• 4 Things That Can Affect A Term Insurance Death Claim!
• How To Get A Term Insurance Policy To Cover A Home Loan?
• Can You Change The Nominee Of A Term Life Insurance Policy?
• Where can I buy insurance from? PolicyBazaar vs Agents vs Insurance Brands | MyInsureBuddy

Key Benefits

Securing a term life insurance policy is one of the smartest financial decisions you can make. Here is why the MyInsureBuddy experts highly recommend it:

• High Coverage at Low Cost: You can secure a massive payout (often over ₹1 Crore) for a surprisingly affordable monthly premium, especially if you buy young.
• Complete Debt Protection: Ensures your family isn't left burdened with heavy liabilities like home mortgages, car loans, or outstanding business debts.
• Tax Advantages: Enjoy lucrative tax deductions on your premium payments under Section 80C, while the final death benefit is completely tax-free under Section 10(10D) of the Income Tax Act.
• Powerful Riders: You can enhance your core policy with add-ons (riders) that pay out upon diagnosis of critical illnesses, permanent disability, or accidental death.

Frequently Asked Questions