Term Insurance

What Is Term Insurance?

Term insurance is a life insurance policy that provides financial coverage to the beneficiary of the policy if the life insured dies during the active term of the policy.
A term insurance plan provides life insurance cover against the fixed premium paid for specified "term" of the year.

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Why Term Insurance?

  • 1. To Secure Your Family’s Future
  • 2. To Protect Assets
  • 3. To Minimize Lifestyle Risks
  • 4. To Stay Prepared for Uncertainties

Who should Buy Term Insurance Plan?

all individuals who have financial dependents should buy a term insurance policy. They can be:
  • Parents:

    • A term policy will act as a source of financial support for the children, ensuring that they do not miss life’s opportunities.

  • Young Individuals:

    • Young professionals who do have many financial liabilities can benefit from lower premiums of term insurance plans.

  • Newly-married Individuals:

    • With a term insurance plan, you can secure the financial future of your spouse, giving her a truly long-lasting gift.

    Consider, for example, a family of four, where the father is the primary breadwinnerand has bought a term insurance policy. The family needs about Rs. 50,000 a month to fund regular expenses like rent, food, other groceries, electricity, water, education fee, etc. Debts, if any, are over and above this.

    In case of an unfortunate event, life continues, and so do these quintessential expenses. The family will still need Rs. 30,000 to 40,000 a month to meet all their needs. Here,adequate term insurance cover comes into the picture. It provides for the family with the following:

    • A lumpsum to meet their immediate needs
    • A regular income to meet their household expenses (if opted)

    The loss of life cannot be compensated. However, a term insurance plan can help to tide over the financial requirements of a family.

Types of Term Insurance Plans?

Basic Term Insurance Plan

Basic term insurance plan is the one with life cover and pays a death benefit in a lump sum only. This type of term insuranceplan does not have any maturity benefit.

Term Insurance Plan with Monthly Income

A term insurance plan with monthly income gives you the option to ensure a regular stable income to your family apart from a lump sum death benefit.

Term Insurance Plan with Growing Monthly Income

Inflation is a major factor when it comes to regular household expenses. Term plan with growing monthly income gives the death benefit as growing regular income to your family along with a lump sum amount.

Term Insurance Plan with Return of Premium (TROP)

Term plan with return of premium is a specific kind of term insurance plan where all the paid premiums are returned back to you at the end of the maturity.

Group Term Life Insurance Plan

Financial security is one of the essential needs of your employees. Group term life insurance plan is the most affordable way to ensure financial security for your employees’ families.


Term Insurance Plan Variants Benefits in Brief
Basic Term Plan Death benefit in a lump sum amount for an affordable premium
Term Insurance with Monthly Income Regular stable income for family along with death benefit
Term Insurance with Growing Monthly Income Growing income for family along with death benefit
Term Plan with Return of Premium Return of all premiums paid on maturity, along with death benefit during the policy period
Group Term Insurance Life cover for a group of people under one policy

What is Rider?

A rider is an amendment or attachment with a life insurance plan that adds additional coverage above its basic insurance benefits. In other words, it aims to strengthen a life insurance with multiple benefits, apart from its base offering.

Rider Name Key Benefits
Comprehensive Accident Benefit Rider (UIN: 104B025V02) Additional protection benefits in case of an accident, leading to death or dismemberment
Waiver of Premium Plus Rider (UIN: 104B029V02) Waiver of all future premiums in case of an eventuality, including dismemberment, death, and diagnosis of specific critical illnesses
Critical Illness Benefit Rider Periodic or lumpsum benefit when diagnosed with a critical illness defined in the policy
Term Plan with Return of Premium Return of all premiums paid on maturity, along with death benefit during the policy period