Term insurance that your family deserves
Enjoy up to 18.5%* discount on premiums with flexible payment options.
Term insurance is the simplest and most fundamental form of life cover.
It is a pure protection plan that pays a pre-defined death benefit to your nominees if the policyholder passes away during the specified policy term. Unlike other life products, a standard term plan offers no maturity benefits unless you opt for a Return of Premium (ROP) variant, making it the most cost-effective way to get high coverage.
Real-World Example: Imagine a 30-year-old breadwinner with an annual income of ₹10 Lakh and a home loan of ₹50 Lakh. By paying a small premium of roughly ₹800–1,000 per month, they can secure a ₹1 Crore term cover. If an unfortunate event occurs, the ₹1 Crore payout ensures the family can pay off the mortgage and maintain their standard of living. People choose term insurance over other products because of its simplicity and the ability to get 100x coverage relative to the annual premium.
Buying term insurance is the basis of responsible financial planning. Here is why buy term insurance is essential for different life stages:
Replaces the policyholder's earnings to support daily household expenses.
Ensures liabilities like home loans or education loans don't burden the family.
Premiums paid are eligible for tax deductions under Section 80C, and payouts are generally tax-free under Section 10(10D).
A reliable term plan is defined by features that offer convenience and comprehensive security. The features of term insurance you should look for include:
The core payout provided to nominees.
Flexible duration ranging from 5 to 50 years or up to age 99.
Options for single, limited (e.g., pay for 10 years for a 30-year cover), or regular pay.
Waiver of premium in case of accidental total permanent disability.
Optional covers for critical illness or accidental death.
Early payout of a portion of the sum assured upon diagnosis of a terminal illness.
A 15–30 day window to review and cancel the policy if unsatisfied.
Provisions to restart a lapsed policy within a specific timeframe (usually 5 years).
Standard exclusion where the claim is not paid if suicide occurs within the first 12 months.
Choosing the right types of term insurance depends on your financial liabilities and life stage.
| Plan Type | What it Pays | Best For | Premium Trend | Pros | Cons |
|---|---|---|---|---|---|
Level Term Plan | Constant sum assured throughout the term. | Salaried individuals with stable needs. | Fixed/Static | Simple and cheapest. | No inflation protection. |
Increasing Cover Plan | Sum assured grows (e.g., 5-10%) annually. | Young professionals with rising income. | Fixed | Beats inflation. | Slightly higher starting premium. |
Decreasing Term Plan | The sum assured reduces as life progresses. | People with large home/car loans. | Fixed | Perfectly mirrors debt reduction. | Only covers the loan amount. |
Pays death benefit OR refunds premiums on maturity. | Individuals who want "money back." | Fixed | No loss of premium if you survive. | significantly more expensive. | |
Convertible Term | Initial terms cover that can change types later. | People with changing financial goals. | Increase in conversion | Future-proof. | Complex terms. |
Term insurance riders allow you to customise your base policy for 360-degree protection. Here is a breakdown of common critical illness riders and others:
Pays a lump sum upon diagnosis of major illnesses like cancer or a heart attack. Cost impact: ~15-20% of base premium.
Provides an additional payout if death occurs due to an accident. Cost impact: ~5-10% of base premium.
All future premiums are waived if the insured becomes critically ill or disabled. Cost impact: ~2-5% of base premium.
Provides monthly income if the insured is diagnosed with a covered disability/disease. Cost impact: ~10% of base premium.
Buying a rider is often 30-40% cheaper than buying a separate standalone policy, but standalone policies might offer more comprehensive illness definitions.
Calculating your premium involves several variables that assess the insurer's risk. Use a term insurance premium calculator to see how these factors affecting premium change your costs:
| Factors affecting | Description |
|---|---|
Age | This is the most significant factor; premiums are lowest for young adults and increase as you age. |
Nature of Work | Individuals in high-risk occupations (e.g., mining, aviation, or offshore oil rigs) may face higher premiums than those in desk jobs. |
Smoking Habit | Being a smoker can increase your premium by 40–70% compared to a non-smoker due to higher health risks. |
Pre-Existing Disease | Chronic conditions like diabetes or hypertension may lead to premium loading or specific exclusions. |
Insurance Plan Type | A pure term plan is the cheapest, while a Term Return of Premium (TROP) variant costs more due to the maturity benefit. |
Number of Members | While most term plans are individual, a "Joint Life" option for spouses will have a consolidated premium. |
Gender | Statistically, women in India often enjoy lower premiums due to higher life expectancy. |
Choosing how your family receives the sum assured is as important as the cover amount itself. You can select from these common payout modes:
Deciding between pure protection and a savings-linked plan is a key step in financial planning. Here is how they compare:
| Feature | Term Insurance Plan | Endowment Plan |
|---|---|---|
Primary Goal | Pure life protection | Life Cover + Savings |
Sum Assured | High (e.g., 100x premium) | Low (e.g., 10x premium) |
Maturity Benefit | None (Except TROP) | Guaranteed Sum + Bonuses |
Premium Cost | Very Affordable | High |
Surrender Value | Usually Zero | Available after 2-3 years |
Buying your policy online is fast, transparent, and often cheaper due to the absence of intermediary commissions. Follow these steps:
A term plan is a fundamental requirement for anyone with financial dependents. Specifically:
If you are the primary earner, this is non-negotiable for your family's survival.
To ensure your child's education and future milestones are funded regardless of your presence.
To cover large liabilities like home loans, so your family isn't evicted in your absence.
Buying in your 20s locks in the lowest possible premiums for life.
To protect the lifestyle and future of your spouse.
Determining the best age for term insurance depends on your current financial liabilities and the number of dependents you support. Buying a policy at these five critical milestones ensures your family remains protected:
A critical illness rider (CI Rider) is an essential add-on that provides a lump-sum payout upon the diagnosis of life-threatening diseases like cancer, heart attack, or kidney failure. Unlike standard health insurance, which only reimburses hospital bills, a CI rider term insurance payout can be used for any purpose, including replacing lost income during recovery or paying for out-of-network specialised treatments.
Lower cost compared to a standalone CI policy; immediate liquidity for non-medical expenses; dual tax benefits under Section 80C and 80D.
Typical waiting periods (e.g., 90 days) and survival periods (e.g., 30 days) apply, meaning the payout is only made if the insured survives for a specific duration after diagnosis.
This rider complements the death benefit by ensuring you are financially supported while you are alive and fighting a major illness.
| Feature | Term Insurance Plan | Endowment Plan |
|---|---|---|
Primary Goal | Pure Life Protection | Life Cover + Savings |
Sum Assured | High (e.g., 100x premium) | Low (e.g., 10x premium) |
Maturity Benefit | None (except TROP) | Guaranteed Sum + Bonuses |
Premium Cost | Very Affordable | High |
Surrender Value | Usually Zero | Available after 2-3 years |
Finding the right coverage ensures your family doesn't face a shortfall. You can determine how much term insurance you need using these proven methods:
Your term insurance tenure should ideally last until your last financial dependent achieves independence or your major debts are cleared. Choosing the correct policy term length prevents your family from being under-insured in their most vulnerable years.
Align the term with your planned retirement age (usually 60 or 65).
If you have a 20-year home loan, your policy should be at least 20–25 years long.
A 30-year-old with a toddler should choose a 30-year term to ensure the child is covered through college and initial job years.
To buy term insurance online instantly, keep these digital copies ready:
Aadhaar Card, PAN Card (Mandatory), Voter ID, or Passport.
Utility bills (Electricity/Gas), Passport, or Bank Statement.
Birth Certificate, School Leaving Certificate, or PAN.
Digital passport-sized photos.
Salaried: Last 3 months’ salary slips, Form 16, or 6 months' bank statements. Self-Employed: Last 2–3 years of ITR with computation of income.
The medical tests for term insurance are a standard part of the underwriting process to assess the risk of your profile. These tests ensure that your claim is not rejected later due to non-disclosure.
Avoid these pitfalls to ensure your plan delivers when it's needed most:
| Common mistakes | Description |
|---|---|
Underinsuring | Choosing a round figure like ₹50 Lakh without considering inflation or actual liabilities. |
Hiding Medical History | Non-disclosure of smoking or chronic illnesses is the #1 reason for claim rejection. |
Buying for a Short Term | Selecting a 10-year term to save on premium, only to be left uninsured in your 40s when premiums are much higher. |
Ignoring Riders | Skipping the Accidental Disability or Critical Illness riders that provide vital "living benefits." |
Relying on Office Cover | Group term plans end the moment you leave your job; always have a personal policy. |
Focusing Only on Premium | Ignoring the Claim Settlement Ratio (CSR) and choosing the cheapest plan from a less reliable insurer. |
The mechanism of a term plan is straightforward: you pay a fixed premium, and the insurer provides a high life cover for a specific duration.
Navigating the term insurance claim process during an emotional time requires a clear, structured approach. At Jio Insurance Broking, we act as your dedicated claim coordinator to ensure a seamless experience.
The nominee must notify the insurer or Jio's support team immediately. Provide the policy number, date, and cause of death.
Submit the required documents, including the original policy copy, death certificate, nominee’s KYC (Aadhaar/PAN), and bank account details (cancelled cheque).
For early claims (within 3 years of purchase), insurers require hospital discharge summaries and past medical history.
The insurer verifies the documents and may conduct an investigation for high-value or early claims.
Once approved, the Sum Assured is transferred via NEFT to the nominee’s account.
The claim settlement ratio (CSR) is the percentage of claims an insurer pays out compared to the total claims received in a financial year. While a high CSR (ideally above 97%) is a strong indicator of reliability, it isn't the only metric that matters.
CSR can be skewed by the volume of old vs. new policies. Always check the Repudiation Rate (percentage of claims rejected) and Grievance Redressal efficiency.
A high CSR is great, but ensure the insurer also settles high-value claims, not just small-ticket ones.
You can find the latest insurer CSR data in the IRDAI Annual Report or on the Jio comparison portal.
Once you buy term insurance online, your policy is usually issued digitally within minutes or days after medical clearance.
The total duration (e.g., 40 years) for which the life cover remains active.
The period during which you pay premiums. It can be "Regular" (same as policy term) or "Limited" (e.g., pay for 10 years for a 40-year cover).
The total payout received by the nominee, including the base Sum Assured and any additional rider benefits (like accidental cover).
An optional add-on that provides extra protection (e.g., Critical Illness, Accidental Disability) for an additional premium.
You should aim for 10–15 times your annual income. Common benchmarks include a 1 crore term insurance for basic needs, or a 2 crore term insurance and 5 crore term insurance for those with higher liabilities, ensuring your family can maintain their lifestyle and clear large debts.
The best age for term insurance is your 20s. Premiums are significantly lower and stay fixed for the entire duration. Buying early also helps you qualify for zero-cost term insurance options that allow you to exit and get premiums back once your liabilities are over.
Term insurance covers you for a specific period (e.g., until age 65), whereas whole life insurance covers you until age 99. Term plans are more affordable, especially for high covers like a 2 crore term insurance, making them better for pure protection during your working years.
Standard plans have no maturity benefit. However, term insurance with return of premium (TROP) plans refund your total premiums if you survive the term. Alternatively, zero-cost term insurance allows you to surrender the policy at a specific age and get all your paid premiums back.
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Jio Insurance Broking Limited
IRDAI License No: 347,
Direct Broker (Life & General),
Valid upto: 11/03/2028
(Renewable)
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