“Best Term Insurance Plans in India for 2025: Compare, Choose & Save Big”
🔹 1. What Is a Term Insurance Plan and Why Do You Need One in 2025?
In an unpredictable world where the cost of living is rising every year, securing your family’s financial future is no longer optional — it’s a necessity. That’s where a term insurance plan comes in.
A term insurance policy is the simplest and most affordable form of life insurance. It provides a lump-sum payout (sum assured) to your nominee if you pass away during the policy term. This amount can be used by your family to:
- Repay loans or debts
- Cover children’s education and marriage
- Maintain household expenses
- Ensure long-term financial stability
✅ If you’re the main earning member of your family, term insurance is not a luxury — it’s a responsibility.
🧾 Why Term Insurance Matters More in 2025
India’s inflation rate for healthcare and education has grown by 10–12% annually, and critical illness cases are on the rise. A sudden death without life cover could financially paralyze a family.
That’s why more people today — especially millennials and Gen Z professionals — are searching for the best term insurance plan in India to protect their loved ones.
👨👩👧👦 Who Should Buy Term Insurance?
Term plans are ideal for:
- ✅ Salaried professionals with dependents
- ✅ Self-employed individuals with unpredictable income
- ✅ Young adults in their 20s or 30s — to lock in low premium term insurance plans early
- ✅ Parents who want to secure their children’s future
- ✅ Senior citizens (up to age 65 in many plans) seeking limited cover for late-life protection
🔍 Search trends show rising interest in term insurance for parents and term insurance for senior citizens, especially post-COVID.
📊 Real-Life Scenario
Let’s say a 30-year-old non-smoker buys a term plan with ₹1 crore coverage for 30 years.
| Insurer | Premium (Annual) | Claim Settlement Ratio (CSR) | Notable Feature |
|---|---|---|---|
| LIC | ₹12,000 | 98.52% | Highest trust factor |
| HDFC Life | ₹9,500 | 99.04% | Online discounts |
| Max Life | ₹8,600 | 99.51% | High CSR + rider options |
These are some of the top IRDA approved term plans, offering robust protection at very low annual premiums — sometimes less than a weekend dinner out.
💡 Why Early Buyers Save More
When you buy young:
- Premiums are 30–50% lower
- Fewer health checks required
- Wider plan and rider options
- You get longer coverage (up to 40 years)
This is why experts recommend choosing a low premium term insurance plan in your 20s or early 30s — it’s smart, cost-effective, and future-ready.
🧠 Final Thoughts
If you’re thinking about buying life insurance this year, go beyond marketing hype — and focus on plans that offer:
- High claim settlement ratio
- Useful term insurance riders in India like critical illness or waiver of premium
- Option for term insurance with return of premium (TROP) if you want maturity benefit
- Affordable premiums with flexible tenure
✅ Finding the best term insurance plan in India starts with understanding why you need one — and who it’s meant to protect.
🔹 2. Which Are the Best Term Insurance Plans in India (2025 Edition)?
Now that you understand the importance of term insurance, the next question is:
Which plan should I buy?
To help you make an informed decision, we’ve reviewed and compared some of the best term insurance plans in India for 2025, based on:
- Claim Settlement Ratio (CSR)
- Premium affordability
- Features like riders, return of premium, and digital support
- IRDAI approval and brand trust
🏆 Top IRDA-Approved Term Plans (2025)
| Insurer | Entry Age | Max Cover (₹) | Annual Premium* (30 yrs, ₹1 Cr) | CSR (2023–24) | Unique Features |
|---|---|---|---|---|---|
| LIC e-Term | 18–65 | Up to 25 Cr | ₹11,800 | 98.52% | Most trusted brand, high CSR |
| HDFC Life Click 2 Protect Super | 18–65 | ₹1–50 Cr+ | ₹9,900 | 99.04% | Critical illness & income payout options |
| Max Life Smart Secure Plus | 18–60 | ₹1–50 Cr | ₹8,400 | 99.51% | Multiple payout options, terminal illness cover |
| ICICI Pru iProtect Smart | 18–65 | ₹1–30 Cr | ₹9,200 | 97.9% | Wide rider options, tax-saving features |
| Tata AIA Sampoorna Raksha Supreme | 18–60 | ₹2–50 Cr | ₹9,800 | 98.02% | Life-stage upgrades, premium return option |
| SBI Life eShield Next | 18–65 | ₹1–25 Cr | ₹9,600 | 96.76% | Multiple benefit options, flexible coverage |
*Premiums based on a 30-year-old non-smoker, ₹1 Cr sum assured, 30-year policy term (subject to underwriting).
✅ Key Criteria for Selection
These policies rank among the top IRDA approved term plans due to:
- High claim settlement ratios (CSR): Above 95% = trust
- Custom rider options: Add accidental death, critical illness, waiver of premium
- Affordable premiums: Ideal for first-time buyers and young professionals
- Tax benefits under Sections 80C and 10(10D)
- Option for term insurance with return of premium (TROP) in select plans
🧠 Choosing the Right One for You
- New professionals or those under 35:
👉 Start with Max Life or HDFC Life (low premium + long tenure) - Parents or buyers aged 40+:
👉 Choose ICICI Pru or LIC e-Term for high CSR and robust underwriting - Looking for flexibility with payout or TROP?
👉 Try Tata AIA for premium return or SBI Life for staged benefits
📌 Don’t Just Pick the Cheapest — Compare for Value
Remember, the best term insurance plan in India is the one that fits your family’s financial goals, not just the cheapest one.
✅ Use a trusted comparison tool to evaluate CSR, premiums, payout options, and plan terms before purchasing.
🔹 3. How to Compare Term Insurance Plans the Right Way
With dozens of options available, it’s easy to feel overwhelmed when trying to compare term insurance plans. But selecting the right plan becomes simple when you focus on key comparison points that actually impact your family’s future.
Let’s break down how to compare term policies like a pro — so you don’t just choose the cheapest, but the most value-packed one.
📏 1. Sum Assured: How Much Coverage Do You Need?
Your sum assured is the amount your family will receive if something happens to you.
✅ General rule:
15–20 times your annual income
- Any outstanding liabilities (home loan, car loan, etc.)
Example:
- Annual income: ₹8 lakh
- Loan: ₹20 lakh
→ Recommended sum assured: ₹1.4 – ₹1.8 crore
If you’re married or have young children, always aim for higher coverage to protect their future goals.
📆 2. Policy Tenure: How Long Should It Be?
Choose a policy term that covers you till retirement or till your financial responsibilities are over.
| Profile | Recommended Tenure |
|---|---|
| Single (Age 25–30) | 35–40 years |
| Married (Age 30–40) | 25–30 years |
| Parents (Age 45+) | 10–20 years |
| NRIs | Based on home country exit age |
🧠 Remember: Longer tenure = higher premium, but more peace of mind.
💸 3. Premium: Low Isn’t Always Best
It’s tempting to pick the lowest premium plan — but it may come with:
- Higher co-pay clauses
- Fewer riders
- Poor digital support
- Delays in claim settlement
✅ Balance your budget with reliability. Premiums vary based on age, lifestyle, medical history, and tenure — but for a 30-year-old with ₹1 Cr cover, it usually ranges between ₹8,000 to ₹12,000/year.
📊 4. Claim Settlement Ratio (CSR) vs. Premium Trade-Off
The Claim Settlement Ratio (CSR) tells you how many claims an insurer successfully settles out of every 100 received.
| Insurer | CSR | Avg. Premium (₹1 Cr Cover) |
|---|---|---|
| Max Life | 99.51% | ₹8,400 |
| LIC | 98.52% | ₹11,800 |
| ICICI Pru | 97.9% | ₹9,200 |
✅ Tip: Always prioritize CSR above 95% — even if it means paying ₹1,000 more per year. Peace of mind is worth it.
🛡️ 5. Riders: Add More Power to Your Policy
When you compare term insurance plans, riders make a big difference. These are optional benefits you can include in your base plan.
Top riders to consider:
- Critical illness cover
- Accidental death benefit
- Waiver of premium (if disabled)
- Income payout rider (monthly income to family)
💡 Not all insurers offer every rider — choose plans that let you customize coverage as per your life stage.
👤 6. Use Case: How Plan Comparison Changes by Life Stage
| Profile | What to Compare |
|---|---|
| Single (25–30) | Low premium, long tenure, basic riders |
| Married | High sum assured, critical illness & income riders |
| Parents (45+) | Shorter tenure, high CSR, waiver of premium rider |
| NRIs | Insurer must allow overseas medical checks & payout |
🧠 Final Thoughts
Don’t get swayed by ads or premium discounts alone.
✅ To find the best term insurance plan in India, you must compare term insurance plans based on what truly matters — coverage, tenure, claim trust, and rider flexibility.
🔹 4. What Are the Benefits of Term Insurance for Parents & Seniors?
Most people assume that term insurance is only for young professionals — but that’s not true. If your parents are financially dependent on you, or if you’re a senior citizen still supporting family or loans, a well-chosen term plan can still make a huge difference.
In this section, we’ll explore the key benefits of term insurance for parents and term insurance for senior citizens, along with eligibility rules, tenure limits, and what to watch out for.
👵 Why Should Parents and Seniors Consider Term Insurance?
✅ Protect family in case of untimely death
✅ Cover outstanding loans or medical bills
✅ Leave behind a financial legacy for children or spouse
✅ Get peace of mind in post-retirement years
It’s especially relevant for:
- Single parents
- Recently retired professionals with dependents
- Senior citizens still paying EMIs or housing loans
🧠 Think of it as a safety cushion, not an investment.
📅 Entry Age Limit & Policy Tenure
Most insurers allow new policyholders up to age 60–65, though some offer plans up to age 70 with medical underwriting.
| Insurer | Maximum Entry Age | Policy Tenure (Years) |
|---|---|---|
| LIC e-Term | 65 | Up to 25 years |
| HDFC Click 2 Protect | 65 | Up to age 85 |
| ICICI Pru iProtect | 65 | Up to age 75 |
| Tata AIA Sampoorna | 60 | Up to age 100 (limited pay) |
✅ Choose shorter-term plans (10–20 years) to balance premium and coverage.
🩺 Medical Tests & Disclosures: Non-Negotiable for 50+
After age 45 or 50, most term plans require:
- Blood tests, ECG, lipid profile
- Medical history of diabetes, hypertension, or cardiac issues
- Lifestyle habits (smoking, alcohol, BMI)
🔍 IRDAI guidelines mandate full disclosure of pre-existing conditions. Hiding information can lead to claim rejection.
✅ Pro Tip: Always go for policies that offer telemedical options or tie-ups with local diagnostic labs for convenience.
🛡️ Plans Tailored for Seniors
A few insurers now offer senior-specific term insurance, with:
- Lower sum assured options (₹10–25 lakh)
- 5–15 year tenure
- Rider options for accidental death
- Monthly income payout to surviving spouse or children
💡 These are ideal for parents without pension or financial backup.
📉 Considerations & Limitations
While buying term insurance for parents or after age 50:
- Premiums will be higher due to age
- Riders may be limited
- Medical exclusions may apply for lifestyle or chronic conditions
- Term insurance with return of premium is often recommended for peace of mind
✅ When It’s a Smart Move
You should consider term insurance for senior citizens when:
- They don’t have any other life cover
- They still have active financial responsibilities
- They want to protect their spouse or children after them
- They’re healthy and can pass the underwriting process
🧠 Final Thoughts
Term insurance for parents and senior citizens is a thoughtful way to offer dignity and financial independence in their later years.
✅ Choose plans with simple documentation, short tenures, and flexible payouts — even a ₹20–30 lakh cover can mean the world to a grieving family.
🔹 5. What Is Claim Settlement Ratio in Term Insurance and Why It Matters?
When you buy term insurance, you’re not just buying a policy — you’re buying a promise. A promise that your family will receive financial support if something happens to you. But what if that promise is broken?
That’s where Claim Settlement Ratio (CSR) comes in — and it’s one of the most important things to check before choosing a policy.
📊 What Is Claim Settlement Ratio (CSR)?
CSR = (Number of claims settled / Total claims received) × 100
For example:
If an insurer receives 1,000 claims and settles 980, the CSR is 98%.
✅ A high CSR means:
- The company is reliable
- Your family has a better chance of receiving the full sum assured
- The insurer follows transparent claim procedures
📈 IRDAI CSR Data (2023–24): Top Insurers Compared
Here’s a look at the claim settlement performance of some of the top IRDA-approved insurers in India:
| Insurer | Claim Settlement Ratio (CSR) | Average Claim Processing Time |
|---|---|---|
| Max Life | 99.51% | 2–5 days |
| HDFC Life | 99.04% | 3–7 days |
| LIC of India | 98.52% | 7–10 days |
| ICICI Pru Life | 97.90% | 5–8 days |
| Tata AIA | 98.02% | 3–5 days |
🧠 Recommendation: Always choose a plan from an insurer with a CSR above 95%, preferably closer to 98–99%.
🧾 Why CSR Matters in Real Life
Imagine this:
Your family files a claim after your unfortunate passing. If your insurer has:
- A low CSR (under 90%), they may delay, dispute, or reject the claim.
- A high CSR (above 95%), your loved ones are more likely to receive timely support.
✅ High CSR = High Claim Confidence
Also consider:
- Whether the insurer offers 24×7 claim tracking
- Availability of dedicated claim support or settlement assistance
- If claims can be processed digitally or via app
🚫 Common Reasons for Claim Rejection (Even with High CSR)
Even with a high CSR, claims can be rejected if:
- There’s non-disclosure of medical history
- Documents are incomplete or incorrect
- Premiums were not paid on time
✅ Always ensure full transparency while filling the proposal form, and inform your nominee about the claim process.
✅ Pro Tip: CSR Isn’t the Only Metric — But It’s a Critical One
When comparing policies, you must also consider:
- Sum assured vs. premium
- Riders like accidental death, critical illness
- Online support and claim digitalization
But CSR gives you a clear signal of trustworthiness.
🧠 Final Thoughts
The term insurance claim settlement ratio is your safety net’s safety net.
✅ Don’t skip this number. Use IRDAI’s annual report or trusted portals like PolicyGuy.co.in to check CSR before buying.
Because in the end, what matters isn’t how cheap the policy is — but how dependable it is.
🔹 6. What Are Term Insurance Riders and Do You Need Them?
When buying term insurance, most people focus only on the sum assured and premium. But there’s another powerful way to upgrade your policy — without spending much more.
Enter: Riders.
Riders are optional add-ons that enhance your base term insurance policy by providing additional protection against specific life risks. They are particularly useful for those seeking comprehensive, cost-effective coverage in today’s unpredictable world.
Let’s break down the most popular term insurance riders in India and help you decide which ones are worth it.
🛡️ Common Term Insurance Riders in India
✅ 1. Critical Illness Rider
This rider pays a lump sum if the policyholder is diagnosed with a serious illness such as:
- Cancer
- Heart attack
- Kidney failure
- Stroke
💡 Example: You survive a heart attack. Your insurer pays ₹10–25 lakh (as per rider limit), which can be used for treatment, recovery, or income support.
🔹 When to opt-in:
Ideal for breadwinners, those with family history of illness, or no separate health insurance.
✅ 2. Accidental Death Benefit Rider
In case of accidental death, this rider adds an extra payout on top of your base sum assured.
💡 Example: If your base cover is ₹1 Cr, and the accidental death rider is ₹25L, your family receives ₹1.25 Cr in case of an accident-related demise.
🔹 When to opt-in:
Ideal for those with jobs involving travel, field work, or high-risk environments.
✅ 3. Waiver of Premium Rider
If you become critically ill or disabled, this rider waives off all future premiums while keeping your policy active.
💡 You won’t lose coverage due to inability to pay, and your nominee will still get the full sum assured if anything happens to you.
🔹 When to opt-in:
Highly recommended for self-employed or single-income families where financial interruptions are possible.
📊 How Riders Add Value Without Breaking the Bank
The best part? Riders come at minimal extra cost — often just 3–5% more than your base premium.
| Base Premium (₹1 Cr Cover) | With Riders | Additional Cost |
|---|---|---|
| ₹9,000/year | ₹9,800/year | ~₹800/year (for all 3 riders) |
For this small price, you unlock layered financial protection against disease, disability, and accident.
✅ Some insurers even offer built-in riders at no extra cost in premium plans (like Tata AIA or Max Life).
❌ When to Skip Riders
- You already have standalone critical illness or personal accident policies
- You’re on a tight budget and want to maximize pure life cover
- You don’t qualify medically (some riders need separate underwriting)
✅ Tip: Riders are optional, not mandatory. Customize them based on your lifestyle, budget, and family needs.
🧠 Final Thoughts
Term insurance riders in India are a smart way to turn your basic plan into a complete protection shield — without significantly increasing your premium.
✅ Don’t ignore riders. They’re your policy’s silent backup plan — and often, the difference between surviving a crisis comfortably or falling into financial stress.
🔹 7. What Is Term Insurance with Return of Premium (TROP)?
One of the most common reasons people hesitate to buy term insurance is this:
“What if I survive the policy term and don’t get anything in return?”
If this sounds like you or your customers, then Term Insurance with Return of Premium (TROP) might be worth exploring.
Let’s break down how it works, how it compares to a pure term plan, and who it’s really meant for.
🧾 What Is TROP?
A TROP plan is a special type of term insurance where the insurer returns all the premiums paid at the end of the policy term — provided the policyholder survives.
It offers life cover + maturity benefit, making it attractive for people who don’t want to “lose” their premiums.
🔍 TROP vs. Pure Term Insurance — Key Differences
| Feature | Pure Term Plan | TROP Plan |
|---|---|---|
| Premium | Low | 2x to 3x higher |
| Life Cover | Yes | Yes |
| Maturity Benefit | No | Yes (return of premiums) |
| Ideal For | Value seekers, higher coverage | Conservative buyers, non-risk takers |
| Tax Benefits | Section 80C, 10(10D) | Same as pure term |
✅ TROP plans ensure that even if you survive the term, you get something back — typically the entire premium (excluding taxes).
💸 Premium vs. Refund – Real Cost Comparison
Let’s say a 30-year-old male takes a ₹1 Cr cover for 30 years:
| Plan Type | Annual Premium | Total Paid (30 yrs) | Payout if Survives | Payout if Dies |
|---|---|---|---|---|
| Pure Term | ₹9,000 | ₹2.7 lakh | ₹0 | ₹1 Cr |
| TROP | ₹24,000 | ₹7.2 lakh | ₹7.2 lakh (refund) | ₹1 Cr |
🔹 Observation:
TROP gives you back ₹7.2 lakh — but you paid nearly 3x the premium. The effective return is low (2–3% per annum), which is not investment-efficient.
👤 Who Should Consider TROP?
- Individuals with low risk appetite who want some return from their policy
- Buyers who dislike “pure protection” models
- Parents buying insurance as a forced savings tool
❌ Who Should Avoid TROP?
- Young earners who want maximum cover at low cost
- Investors looking for high ROI (you’ll get better returns from mutual funds, PPF, or ULIPs)
- People already holding health and life coverage and seeking tax efficiency only
✅ Instead of TROP, many buyers prefer:
- Pure term + separate SIP or FD to grow wealth
- Pure term + critical illness rider for value
🧠 Final Thoughts
Term insurance with return of premium sounds attractive — but it’s not for everyone.
✅ If your goal is affordable financial protection, stick with a pure term plan.
✅ If you want guaranteed money back and can afford the higher premium, TROP offers peace of mind — just not high returns.
🔹 8. Where to Find Low Premium Term Insurance Plans Online?
In 2025, buying insurance has never been easier — or more affordable. Gone are the days when you had to rely only on offline agents and paperwork. Thanks to digital platforms, finding low premium term insurance plans is just a few clicks away.
But to truly save money and get the best protection, you need to know where to look and how to compare.
🖥️ Online Term Insurance in India: Why It’s Better Than Offline
Here’s why more than 70% of new buyers now prefer online term insurance in India:
| Feature | Online | Offline (Agent) |
|---|---|---|
| Premium | Lower (no commission) | Higher (includes agent fees) |
| Comparison | Side-by-side within minutes | One or two options only |
| Documentation | 100% digital | Manual paperwork |
| Transparency | Full policy info upfront | May depend on agent knowledge |
| Convenience | 24×7 access | Fixed hours, physical meetings |
✅ Online plans cost 10–20% less than offline ones, without compromising on coverage.
💸 Sample Quotes: Age-Wise Comparison (₹1 Crore Cover, 30-Year Term)
| Age | Insurer | Annual Premium (Online) |
|---|---|---|
| 25 | Max Life | ₹7,200 |
| 25 | ICICI Pru | ₹8,100 |
| 35 | HDFC Life | ₹9,900 |
| 35 | Tata AIA | ₹10,400 |
| 45 | LIC e-Term | ₹15,500 |
| 45 | SBI Life | ₹13,800 |
🔍 These are indicative rates for healthy, non-smoking males (as of 2025). Rates may vary by gender, city, and medical history.
✅ Pro Tip: Buy early. Even a 10-year delay can double your premium.
🔍 How to Find the Best Low-Premium Plans
Here’s how to get started:
- Visit Insurer Websites:
Directly buy from LIC, HDFC Life, Max Life, etc. — often with exclusive web discounts. - Use Aggregator Portals:
Platforms like PolicyGuy.co.in let you:- Compare multiple term plans side by side
- Filter by age, sum assured, tenure, CSR, riders
- View hidden clauses (like co-pay, exclusions)
- Get free premium quotes in 30 seconds
- Use Premium Calculators:
Calculate how much coverage you need based on your income, lifestyle, and liabilities.
🛡️ Why Low Premium ≠ Low Quality
It’s a common myth that cheaper policies are less reliable. In fact, most IRDA-approved insurers now offer:
- 95%+ Claim Settlement Ratios
- Digital onboarding and e-KYC
- Instant e-policy delivery
- Free look periods (15 days to cancel risk-free)
✅ Just ensure you’re buying from an IRDAI-registered provider or comparison platform.
🧠 Final Thoughts
Thanks to digital tools and competition, getting a low premium term insurance plan is easier than ever — and doesn’t require compromising on quality or trust.
✅ Use trusted portals like PolicyGuy.co.in to find and compare the best online term insurance in India, customized for your age and financial needs.
🔹 9. How to Save Tax with Term Insurance?
Buying term insurance isn’t just a wise step toward protecting your family — it also brings along some powerful tax benefits.
Whether you’re salaried, self-employed, or a freelancer, a term plan can help reduce your taxable income significantly while giving you peace of mind.
Here’s a simple breakdown of term insurance tax benefits under Indian tax laws in 2025.
💰 Section 80C – Tax Deduction on Premium Paid
Under Section 80C of the Income Tax Act, the premium you pay for your term insurance policy is eligible for a tax deduction.
| Provision | Details |
|---|---|
| Max deduction | ₹1.5 lakh/year |
| Eligible plans | Term insurance for self, spouse, and children |
| Conditions | Premium ≤10% of sum assured |
✅ Example:
If you earn ₹10 lakh annually and pay ₹25,000/year as term insurance premium, your taxable income becomes ₹9.75 lakh — reducing your tax burden.
🧠 Pro Tip: This benefit is applicable under the old tax regime only. Choose your regime wisely.
🪙 Section 10(10D) – Tax-Free Death Benefit
The payout (sum assured) received by the nominee in case of the policyholder’s death is completely tax-free under Section 10(10D) — regardless of the amount.
✅ Example:
If your nominee receives ₹1 crore after your demise, they do not pay any income tax on it.
This makes term insurance one of the most tax-efficient legacy tools in India.
🎁 Bonus: TROP and Tax Implications
If you opt for a Term Insurance with Return of Premium (TROP) plan:
- The premiums paid are still eligible under Section 80C
- The maturity amount (refund of premium) is tax-free under Section 10(10D, provided:
- Premium is ≤10% of the sum assured
- Policy tenure is at least 10 years
🔍 Note: TROP is considered a non-participating life insurance plan — hence, treated similarly to traditional policies for tax purposes.
🧾 Key Tax-Saving Checklist
✅ Ensure your policy is from an IRDAI-approved insurer
✅ Pay premiums via digital/trackable modes
✅ Don’t miss renewal — lapsed policies don’t get deductions
✅ Inform your tax consultant about rider premiums (also eligible)
✅ Claim these under Section 80C, even if you have PPF/ELSS/Housing Loan
📉 Who Benefits Most?
- Salaried employees under the old tax regime
- Self-employed individuals seeking fixed annual deductions
- Parents buying term insurance for their children’s protection
- Anyone opting for long-term tax planning + life cover
🧠 Final Thoughts
Term insurance tax benefits make your policy not just a safety net — but a smart financial move.
✅ Claim up to ₹1.5 lakh deduction under 80C, enjoy tax-free payouts under 10(10D), and structure your plan for maximum savings.
With proper planning, your term insurance becomes both a protector and a tax shield.
🔹 10. FAQs: Real Questions People Ask About Term Insurance
If you’re planning to buy a term insurance policy, chances are you’re still unsure about a few details — and you’re not alone. Here are answers to some of the most frequently asked questions about term insurance in India, based on what real customers want to know.
❓ Can I buy term insurance without a medical test?
✅ Yes, but only in limited cases.
Some insurers allow “no medical test” policies if:
- Your sum assured is below ₹25–50 lakh
- You’re under age 35–40
- You don’t have any pre-existing medical conditions
However, medical underwriting is strongly recommended. It increases transparency, lowers the risk of claim rejection, and helps you get the best premium.
🧠 Pro Tip: Always choose a plan that includes a health check — it builds long-term claim confidence for your nominee.
❓ Can NRIs buy term insurance in India?
✅ Yes. Non-Resident Indians (NRIs), PIOs, and OCIs can buy term insurance from Indian insurers, provided:
- You comply with FEMA and IRDAI guidelines
- You provide KYC, income proof, and medical tests (in India or abroad)
Many top insurers like HDFC Life, ICICI Pru, Max Life, and LIC offer NRI-friendly term plans with flexible payment options and overseas coverage.
🔍 Some insurers even allow video medical check-ups and digital onboarding for NRIs.
❓ What happens if I miss a premium payment?
Missing a premium can cause your policy to lapse, which means:
- You lose your life cover
- No claim will be paid during the lapse period
✅ However, insurers give a grace period (15–30 days) to make your payment without penalty. If you miss that too, you can still:
- Revive your policy within 2–5 years (depending on insurer)
- Submit a health declaration or medical test if required
🧠 Best Practice: Set up auto-debit or reminders to avoid unintentional lapses.
❓ What is the minimum and maximum term for term insurance?
| Age at Entry | Minimum Policy Term | Maximum Policy Term |
|---|---|---|
| 18–30 years | 10 years | 35–40 years |
| 31–45 years | 10 years | 25–30 years |
| 46–60 years | 5–10 years | 15–20 years |
✅ Some plans even offer coverage up to age 99 or 100, especially in whole life or limited-pay plans.
Choose your term based on:
- Until when your financial responsibilities last (EMIs, child’s education)
- Your expected retirement age
🧠 Final Thoughts
These FAQs cover just the beginning — but they address the most common concerns buyers have before taking the leap.
✅ When in doubt, always choose clarity, transparency, and a well-reviewed insurer. The right questions today lead to confident decisions tomorrow.
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