Compare and Choose a Suitable Term Insurance Plan in India
Insurance 101s
Term Insurance Companies in India with Upstox
The Term Insurance Plans on Upstox
An Overview of the Term Insurance Plans in India
- Provides comprehensive financial protection to your family
- Get back all premiums paid on survival till maturity with Return of Premium^ option
- Provides comprehensive financial protection to your family
- Get back all premiums paid on survival till maturity with Return of Premium^ option
What is term insurance?
Term insurance is the simplest and most affordable form of life insurance that provides financial protection to your family in case of an untimely death during the policy period. You pay a fixed premium for a specific tenure (e.g., 10, 20, or 30 years). The nominee receives the death benefit if the insured person passes away during this period. Term insurance typically has no maturity benefits and is ideal for people seeking pure life coverage
Critical Term Insurance Benefits
Affordable premium
Financial security
Transparency
How to Select a Suitable Term Insurance Plan in India?
Why Buy Term Insurance from Upstox?
Convenient Online Purchase
Easily compare and buy term insurance through a seamless digital platform.
Affordable Premiums
Get cost-effective policies with competitive pricing and zero middleman charges.
Multiple Policy Options
Choose from various term insurance plans with customizable coverage.
Trusted Insurance Partners
Policies offered in collaboration with reputed insurers for reliability.
Quick and Hassle-Free Process
Simple application with minimal paperwork and instant policy issuance.
Integrated Financial Planning
Manage insurance alongside investments and trading on a single platform.
How to Buy Term Insurance from Upstox?
Visit the Upstox website or App.
Provide your details, coverage requirements, and policy tenure.
Compare different term insurance policies based on coverage, premium, and claim settlement ratio.
Select a policy that fits your budget and offers adequate protection.
Customize your plan by adding riders such as critical illness coverage or accidental death benefits.
Fill out the online application with personal details, health history, and nominee information.
Complete any required medical tests based on the insurer’s policy terms.
Review all policy details, terms, and conditions before proceeding.
Make the payment online using the available digital payment options.
Receive instant policy confirmation and access your documents via email or the Upstox dashboard.
FAQs
What is term insurance?
Term insurance is a life insurance policy that covers a specific period. The nominee receives a death benefit if the policyholder passes away during this term. Unlike other life insurance policies, term insurance typically does not offer maturity benefits if the insured survives the policy term.
Why should I buy term insurance?
Term insurance offers financial protection to your family in case of your untimely demise. It ensures that your loved ones can maintain their standard of living, pay off debts, and meet future financial goals like education or marriage expenses.
How does smoking affect term insurance premiums?
Smokers are considered higher risk by insurers due to health complications associated with smoking. Consequently, premiums for smokers are typically higher than for non-smokers.
Can I purchase term insurance online?
Yes, many insurers offer the option to purchase term insurance online. Buying online can be convenient and may offer lower premiums due to reduced overhead costs.
Are there tax benefits associated with term insurance?
Yes, premiums paid towards term insurance are eligible for tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakh per annum. Additionally, the death benefit received by the nominee is tax-exempt under Section 10(10D).
What happens if I outlive my term insurance policy?
Traditional term insurance plans do not offer any maturity benefits if the policyholder survives the policy term. However, some plans, known as Term Return of Premium (TROP) plans, return the premiums paid if the insured outlives the policy term.
Can I increase my term insurance coverage over time?
Some term insurance plans offer the option to increase coverage at significant life stages, such as marriage or the birth of a child. It's advisable to check with the insurer about such features before purchasing.
What is the claim settlement ratio (CSR), and why is it important?
The CSR indicates the percentage of claims an insurer has settled against the total claims received in a financial year. A higher CSR reflects the insurer's reliability in honouring claims, making it an essential factor when choosing an insurance provider.
Are medical tests mandatory for buying term insurance?
While some insurers offer term plans without medical tests, especially for younger applicants or those seeking lower coverage, undergoing medical examinations can provide a more accurate assessment of health risks, potentially leading to more favourable premium rates.
Can NRIs purchase term insurance in India?
Yes, Non-Resident Indians (NRIs) can purchase term insurance policies in India, provided they meet the insurer's eligibility criteria and complete the necessary documentation.
What riders can be added to a term insurance policy?
Common riders include Critical Illness Rider, Accidental Death Benefit Rider, Waiver of Premium Rider, and Income Benefit Rider. These riders enhance the policy's coverage by providing additional benefits under specific circumstances.
How is the premium for term insurance determined?
Premiums are calculated based on the applicant's age, health status, lifestyle habits (e.g., smoking), occupation, sum assured, and policy term. Younger and healthier individuals typically enjoy lower premiums.
Is death due to natural causes covered under term insurance?
Yes, term insurance covers death due to natural causes, illnesses, and accidents unless specified otherwise in the policy exclusions.
Can I have multiple-term insurance policies?
Yes, individuals can purchase multiple-term insurance policies from the same or different insurers to achieve the desired level of coverage. It's essential to disclose existing policies when applying for a new one.
What is the free-look period in term insurance?
The free-look period (usually 15 to 30 days) from the policy's inception date, during which the policyholder can review the terms and conditions. If dissatisfied, they can cancel the policy and receive a refund after deducting nominal charges.
How do I choose the right term insurance plan?
Consider your financial obligations, number of dependents, future financial goals, policy features, premium affordability, insurer's reputation, and claim settlement ratio. Comparing different plans can help in making an informed decision.
What is the difference between term insurance and whole life insurance?
Term insurance provides coverage for a specific period and does not offer maturity benefits. Whole life insurance covers the insured for their entire lifetime and includes a savings component, resulting in higher premiums.
Can I change the nominee in my term insurance policy?
Yes, policyholders can change or update their nominee details during the policy term by informing the insurer and completing the necessary documentation.
What happens if I miss a premium payment?
Insurers typically offer a grace period (usually 15 to 30 days) to pay the overdue premium. If the premium is not paid within this period, the policy may lapse, and the coverage will cease. Some policies offer revival options within a specified timeframe.
Is suicide covered under term insurance policies?
Most term insurance policies have a clause stating that if the policyholder commits suicide within a specific period (usually one year) from the policy's commencement, the insurer will not pay the death benefit. It's essential to review the policy terms for specific details.
