Buy Term Insurance Plan & Policy Online

Life is uncertain, and one can never foretell what the future holds for us. We cannot be certain about anything in life, whether we will be successful, get married, or have kids, but there is just one thing that is guaranteed: Death.

We cannot control life's unpredictability, but we can prepare for the unexpected just as we plan to lead a good life. The most crucial factor towards achieving this objective is ensuring your family is financially secure even after you are gone. 

While most of the products in our investment basket are directed toward the objective of wealth creation, Life Insurance has a much broader purpose. It is financial support to the family in the unfortunate event of the breadwinner's demise. Term Insurance is the most fundamental kind of life insurance.

What is Term Insurance?

Term insurance is a type of life insurance policy that provides coverage for a specified duration known as the “Term” of the policy. It offers financial protection to the policyholder's beneficiaries in the event of the policyholder's death during the term.

Unlike other types of life insurance, such as whole life insurance or endowment policies, term insurance does not accumulate cash value over time. Instead, it focuses solely on providing a death benefit to the beneficiaries.

Term insurance policies are typically more affordable compared to permanent life insurance options, making them an attractive choice for individuals seeking cost-effective coverage for a specific period, such as during their working years or mortgage repayment period.

Why Do You Need Term Insurance?

  • ✓

    Provide Financial Security to Your Family: In case of an untimely death of the family's breadwinner, while the family is still struggling with the emotional turmoil, a financial burden falls on the dependents, which is not easy to handle. To prevent that situation, it's always a good idea to secure your family's financial future with insurance.

     

  • ✓

    Secure Your Lifestyle: With a progressing lifestyle, your assets progress, and you buy a house, car, etc. But with all that, your liabilities increase if these are on loan. In the event of an untimely death of the primary earner, the burden of these liabilities falls on the dependents.

    In many cases, these assets need to be given up by the family because they can't bear the burden. Insurance is a must-buy to avoid these situations and secure assets.

     

  • ✓

    Secure Your Finances Against Critical Illnesses: The modern lifestyle has given rise to many ailments, many of which require highly expensive treatments. Some term plans provide financial stability in the case of death of the life assured and financial assistance if the policyholder is diagnosed with any critical illness.

     

  • ✓

    Cost-Effective Coverage (Affordable Premiums): Term insurance stands out among other life insurance options for its balance of extensive coverage at considerably low premium costs. This affordability makes term insurance attractive for those seeking effective yet budget-friendly life insurance solutions.

     

  • ✓

    Substitute for Lost Income: Term insurance acts as an income replacement tool. The death benefit can replace the lost income, ensuring that the family’s standard of living is not compromised and long-term goals can still be achieved.

     

  • ✓

    Customizable Protection Plans: Term insurance plans offer flexibility regarding coverage amount, policy term, premium payment term, and rider options. Policyholders can choose a plan that fits their needs and increase coverage based on life-stage requirements.

     

Who Should Buy a Term Insurance Policy?

Any individual with financial dependents, such as a spouse, parents, retirees with liabilities, or business people with financial liabilities, must invest in a term insurance plan. 

young man working on computer

Young Professionals

Young, freshly employed individuals usually think they don't need Term Insurance since they don't have any dependents. However, this thought might not be correct. At a young age, with a healthy body and no liabilities, your premium would be much less than it becomes in the later stages of life and it remains the same for the entire term.

newly wed couple

Newly Weds

Post-marriage, we start a new life and build a new lifestyle. We don't have just an emotional dependency on each other, but there is a financial dependency too. So, while we are still lost in the roses and chocolates, do take time to purchase a gift that will secure your partner's future life. Buy a term plan.

tax payer

Tax Payers

Term Insurance premiums fall under tax exemption under section 80C of the Income-tax. The payouts from term insurance are also exempt from tax, subject to some T&C under section 10(10 D) of the Income Tax Act. Hence, term insurance is a wise investment when it comes to securing life and saving tax.

purchasing a home

Home Loan Borrowers

The purchase of a home is a huge expense; if done through a Home loan, it’s a huge liability. Unfortunately, if the primary earner passes away, it would be difficult for the dependents to repay the home loan. Life Insurance provides this assurance that the burden of a loan would not come on the family members in such unfortunate circumstances.

parents with kids

Parents

Parents are vital in securing their children’s financial future through activities like paying for education and saving for university; mitigating these burdens with a term insurance plan ensures their dreams remain within reach, even in unforeseen circumstances.

working woman

Working Woman

Working women are pivotal in their families' financial well-being, and a term insurance plan safeguards their family's lifestyle and aspirations, covering any debts and serious health conditions and providing peace of mind.

old couple

Retirees

For retirees, term insurance is key to ensuring their partner’s financial comfort and healthcare needs in the later stages of life, maintaining their living standards without worry.

housewife

Housewives

Housewives also significantly contribute to their family's financial stability; term insurance guarantees that, in their absence, the household and childcare costs are manageable, preserving their family's way of life.

self employed individual

Self-Employed

Self-Employed individuals can protect their family's future and business obligations with term insurance, ensuring financial continuity and household stability after they're gone.

parents and kids travelling

Non-Resident Indian

NRIs can support their family back home through a term insurance plan. This plan offers a safety net against the economic challenges of medical care and travel, ensuring peace of mind across miles.

Why Should You Buy Term Insurance Online?

Buying term insurance online offers several advantages:

Easy Comparison of Plans

Buying term insurance online allows you to quickly compare different plans and understand their benefits, ensuring that you make an informed decision. 

Lower Premiums

Online term insurance plans often have lower premiums compared to offline plans. 

Quick and Simple Process

The online buying process is quick and straightforward, saving you much time.

Convenience

You can compare, choose, and pay for the most suitable plan at your convenience without physical meetings or paperwork.

Comfort and Flexibility

The entire process can be carried out from the comfort of your home at any time that suits you, making it highly convenient. 

Accurate Information

Opting for an online purchase reduces the risk of misinformation and inaccuracies that can sometimes occur when buying through a sales agent over the phone. This method ensures that all the information you receive is precise and reliable.

FAQs about Term Insurance Policy in India

Is there an age limit to buying a term insurance plan?

up-arrow
The age limit varies across insurance providers and plans. Most of the time, the entry age is 18+ years, and the maximum age is 65 years to buy a Term Insurance Plan.

What are the types of deaths covered in term insurance?

up-arrow

The following types of deaths are considered valid by an insurance provider at the time of claim settlement:

  • Natural Death
  • Death due to any critical illness
  • Accidental Death
  • Death due to natural calamities like earthquakes, floods, etc.
  • Suicide is covered if it happens after 12 months of buying the policy. However, if it occurs within 12 months, a certain proportion of the sum assured is paid to the nominee. This depends from one insurer to the insurer.

What types of deaths are not covered by insurance?

up-arrow
  • Any Death that involves self-harm or self-infliction of injury like suicide is not covered under insurance.
  • Death due to driving under the influence of alcohol or drugs is not covered. 
  • Death due to participating in hazardous activities
  • Death due to the involvement in illegal activities when either the life insured was involved in any criminal activity or the nominee is criminal, and it is discovered that the life insured was killed with the nominee's involvement. 

Can I buy more than 1 term insurance policy?

up-arrow
Yes. You can buy more than 1 Term Insurance Policy. It is beneficial to buy more than one Term Insurance Policy, owing to multiple factors, the foremost being reducing the risk of claim rejection.

Can I change the nominee in my term plan, and how many times can I do so?

up-arrow
Yes. You can change the nominee during the term of your policy. And you can do this as many times as you want. But the change should be communicated to your insurance provider clearly in writing to ensure that the change is correctly incorporated and the nominee receives the payout hassle-free.

Should we take riders along with term insurance?

up-arrow
Yes, Riders enhance the effectiveness of a Term Insurance Plan with minimal additional premium. They are optional add ons but adding them to your base plan can be very useful, especially for specific circumstances otherwise not covered in your base plan, like critical illness, accidental Death, disability etc. 

Do we get any return in term insurance?

up-arrow
Term Insurance mostly has no savings component and is designed to provide only the Death Benefit. However, some specific Term Insurance plans come with the Return of a Premium Option. In these plans, at the end of the policy tenure, if the policyholder survives, the complete premium is paid back to the policyholder, and in case of the policyholder's demise, the Death Benefit is paid to the nominee. 

Can I get term insurance if I'm not in a job?

up-arrow
You cannot purchase Term Insurance if you are not earning. An Income Proof needs to be submitted for Term Insurance. Income can be from a job, profession or business.

Can husband and wife both take term insurance?

up-arrow
Yes, husband and wife both can take a joint Term Insurance. In this case, the Sum Assured is paid out on the first claim basis. In case of the demise of both joint holders, the sum assured is payable to the nominee.  

What is the difference between term insurance and accidental insurance?

up-arrow
Accidental Insurance provides Death Benefit only if the policyholder dies due to an accident, while Term Insurance provides Death Benefit in case of any death.

Why should I buy term insurance when I already have life insurance from my employer?

up-arrow
It's great if you have life coverage from your employer. However, in most cases, these covers are not enough. Analyse your financial cover requirements and decide if you need another insurance cover. In such cases, Term Plans, due to their affordability, can be a good choice as an addition. Also, the insurance plans provided by the employer cease to exist once you leave your company. 

What would happen if a person has two term insurance policies?

up-arrow
If the policyholder has two separate Term Insurance policies, the second insurer must be made aware of the first policy, and the first insurer must provide acknowledgement. 

Can Non-Resident Indians (NRIs) buy term plans in India?

up-arrow
Yes, if the NRI is legally an Indian citizen, they can buy a Term Plan in India.

Does the premium remain the same throughout the tenure of a policy? 

up-arrow
Generally, the premium of a Term Insurance remains the same throughout the tenure of the policy; however, if the policyholder develops some ailments or lifestyle habits like smoking, drinking etc., the premium would increase when the same is declared to the insurer. And it is essential to make this declaration to avoid any claim decline in the future. 

What if I do not want my term cover once I have taken it?

up-arrow
Term Plans generally come with a Free-Look period of 15 days, 30 days in case the policy is purchased online during which you can check the complete details, accept certain terms or cancel the policy altogether. 

On maturity, can a fresh policy be availed at the rate of the old premium?

up-arrow
No. Once the policy matures, it is considered closed and cannot be renewed. In such a case, if the policyholder wishes, they have to take a new policy as per the new terms and conditions. 

What is the contestability period in life insurance?

up-arrow
The Contestability Period in Life Insurance is the time frame during which an insurer can contest or question the claim raised by the beneficiaries. This is usually 2 years from the date of policy purchase.

If I stop smoking today, or maybe 6 months before taking a Term Insurance Policy, will I get a Non-Smoker rate?

up-arrow
The cost difference between insurance premiums for smokers and non-smokers is significant. Smokers typically pay at least two to four times more than non-smokers. However, Digit offers non-smoker premium rates to individuals who have been tobacco-free for 3-5 years and have been smoke-free for a year.

What is the best kind of life insurance policy?

up-arrow
The best kind of Life Insurance is the one that suits your requirements. If you want high coverage at a low cost, go for Term Insurance. However, Whole Life Insurance should be the choice if you want coverage for the rest of your life.

What is the difference between term insurance and life insurance?

up-arrow
The primary distinction between term insurance and life insurance is that term insurance offers only death and tax-saving benefits, while life insurance provides death, maturity, survival, and tax-saving benefits.

Under which sections of the Income Tax Act can policyholders claim term insurance tax benefits?

up-arrow

Term insurance offers tax benefits under various sections of the Income Tax Act. 

  • Section 80C of Income Tax Act: Term insurance policyholders can claim a deduction of up to ₹1.5 lakh in premiums paid annually. This section also covers other investments like the Public Provident Fund, National Savings Certificates, ELSS, and tax-saving FDs.
  • Section 80D of Income Tax Act: While this section primarily applies to health insurance plans, term insurance policyholders with additional covers (such as Critical Illness or Surgical Care) can also save taxes on premiums paid.

Is term insurance refundable?

up-arrow
Term insurance is typically non-refundable. It is designed to protect for a specific period, and if the policy expires or is cancelled before the term ends, the premiums are not reimbursed. However, there are term insurance with return-of-premium policies available that do refund the premiums at the end of the term, although they come with higher monthly costs.

What is the policy term?

up-arrow
The policy term, also referred to as “policy period”, is the duration or lifetime of an insurance policy. It’s the specific period during which your insurance coverage is active. It is when the policyholder is entitled to benefits or coverage under the term life insurance plan. Policy terms can vary from as short as 5 years to as long as 40 years, depending on the insurance provider and the policy chosen.

Does term insurance have maturity?

up-arrow
No, traditional term insurance policies do not have a maturity benefit. These policies are pure protection plans designed to provide financial security to the policyholder's beneficiaries in the event of the policyholder's death within the policy term. No benefit is typically paid out if the policyholder survives the policy term. However, if a policyholder wants the maturity benefit, they can opt for a Term Return of Premium plan.

What expenses are covered in my term plan?

up-arrow
The sum assured provided to the beneficiaries after the policyholder's death can cover various expenses, including outstanding loans, daily living expenses, children's education costs, and other financial obligations. Some term plans offer additional riders to cover critical illness, accidental death, and disability.

How long should be the term of the plan?

up-arrow

Choosing the longest possible term insurance duration, depending on individual needs and responsibilities, is generally a good idea. Consider your current age, expected retirement age, your children's age, and any significant financial liabilities.

For example, if you are 30 years old and think you will only need life insurance for the next 30 years, opting for a 40-year tenure is still recommended.

How to get low premiums on term insurance plans?

up-arrow
First, compare various policies to secure a low premium on term insurance plans. Opt for a policy at a younger age, as premiums tend to be lower. Consider your health and lifestyle; non-smokers and those in good health usually get better rates. Lastly, choose a policy duration and coverage amount that accurately reflects your needs to prevent overpaying.

What happens at the end of the policy tenure?

up-arrow
At the end of the policy tenure of a term insurance plan, if the policyholder has not made a claim (i.e., the insured person is still alive), the policy simply expires. There is no maturity benefit or payout as it is purely a protection plan designed to offer financial security to the policyholder's beneficiaries in the event of their death.

Is there any age limit to getting a term insurance plan?

up-arrow
Yes, the minimum entry age is usually around 18; the maximum age at which one can buy a term life insurance plan varies between 60 and 65. The exact age limits can differ from one insurance company to another.

Why is term insurance essential at every stage of life?

up-arrow
Term insurance provides a safety plan for your spouse and dependent children, ensuring they will be okay and helping them keep up with their lives even after you are gone. This invaluable protection offers peace of mind at every stage of life, ensuring that your family will not face financial hardships. With term insurance, you can take proactive steps to safeguard your family's future with confidence and certainty.

What is the rule of term insurance?

up-arrow
The general rule of thumb is to purchase term insurance that is at least 15 to 20 times your current annual income.

Do you get your money back at the end of the policy term?

up-arrow
No, you typically do not receive your money back at the end of a term insurance policy. But term insurance with a return of premium plan can receive a refund of your premiums at the end of the policy if you make all payments on time and have survived the term.

What are the advantages and disadvantages of each premium payment option?

up-arrow
  • The Single Premium Payment Option entails paying the full premium upfront, avoiding monthly hassles. However, due to its size, it can strain budgets. 
  • Regular Premium Payment Option allows for periodic payments (monthly, quarterly, half-yearly, or yearly), making it budget-friendly, though it might incur extra charges. 
  • Automatic payments ensure timely contributions and help avoid missed payments by requiring enough funds in your account to prevent late fees or coverage lapses.
  • Lump-sum payments may attract discounts, benefiting upfront payers, but require careful financial consideration to prevent strain.

Which is the most common type of term insurance?

up-arrow
Many people prefer to purchase level-term plans because they are affordable and provide a guaranteed death benefit as a fixed sum. If you are willing to pay a slightly higher premium, consider a term plan with a return of premium benefit, which is another popular option.

Who can be a nominee in term insurance?

up-arrow
According to the Insurance Laws (Amendment) Act of 2015, immediate family members like your spouse, children, or parents can receive the claim amount as the beneficiary nominee. This means that they have priority in claiming the death benefit over any other legal heir.

How to claim term insurance after death?

up-arrow

Please ensure that you remember the following steps to claim the assured sum as a nominee of the term insurance policyholder:

  • Step 1 - As a nominee, notify the insurance company about the claim
  • Step 2 - Keep your documents handy to ensure a smooth claim process.
  • Step 3 - The insurance company will carefully evaluate your claim.
  • Step 4 - Claim settlement

Do I need to buy term insurance even if I am covered under my company's group policy?

up-arrow
Yes, Buying individual term insurance is recommended even if you are covered under your company's group policy. Company-provided covers are often insufficient, losing coverage when changing jobs, and group policies must be tailored to personal needs. Therefore, purchasing a separate term plan ensures your family maintains their standard of living and is well-provided for, ideally with a cover of 10-15 times your annual income.

What are the eligible investments and expenses under Section 80C for tax deductions in India?

up-arrow
Under Section 80C of the Income Tax Act, you can claim a tax deduction of up to ₹1.5 lakhs for various eligible investments and expenses such as Public Provident Fund (PPF), Employee Provident Fund (EPF), Unit-Linked Insurance Plans (ULIPs), Equity-Linked Savings Schemes (ELSS), home loan, child education, etc.