Digit Glow Term Life Insurance

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Written By

Fathima Tabasum

Reviewed By

Ashok Manwani

Buy Term Insurance Plan & Policy Online in India 2025

Term Life Insurance, often referred to as a pure protection plan, provides financial security to your loved ones by offering a lump-sum payout in the event of your untimely demise during the policy term. This coverage ensures that your family can maintain their standard of living, pay off debts, or meet future financial goals without the burden of financial stress.

Thus, it allows you to safeguard your family's future without worrying about unforeseen circumstances impacting their well-being.

Listen to the Audio Overview of This Article

What is Term Insurance?

Term insurance is like a financial safety net that protects your loved ones in case something unexpected happens to you during a specific period. You pay a small amount regularly (known as a premium) to an insurance company, and in return, if you pass away during the policy term, the company pays a lump sum amount (called the death benefit) to your family or beneficiaries. This helps them manage expenses and maintain their lifestyle even in your absence.

Unlike other types of life insurance, term insurance focuses purely on life cover without any investment or savings component, making it more affordable. It can cover a range of needs, such as replacing lost income, paying off debts, or securing your family’s future. However, if you outlive the term, the policy ends without any payout or refund of premiums.

However, if you outlive the policy term, there is no premium or sum assured returned to you.

Think of it like a reliable guardian who steps in to support your family financially when you’re no longer there to do so.

Why Do You Need Term Insurance?

Term insurance doesn’t just offer peace of mind today, it’s a smart way to protect your family’s future and make sure they are financially secure if something happens to you. Let’s understand how:

Extended Financial Security

A term insurance policy can secure financial protection for a long duration, often up to 30 years or more. This long-term coverage ensures that your loved ones will be financially supported in your absence, providing peace of mind about their future well-being.

Financial Stability for Your Loved Ones

Term plans offer a lump sum benefit if an unfortunate event occurs, ensuring your family has a steady income stream. This lump sum can cover daily living expenses, pay off debts, or fund future goals, providing a safety net for your loved ones.

High Coverage at Low Cost

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.

Flexible-Premium Payment Options

You can choose how you pay your premiums. Whether annually, every six months, quarterly, or monthly, this flexibility allows you to align your premium payments with your financial situation, making it easier to manage your budget.

Additional Coverage with Riders

You can enhance your term insurance coverage with additional riders for disability cover, critical illness cover, and accidental death cover. These add-ons provide extra layers of protection, offering financial support for daily expenses, loan payments, and clearing debts, ensuring comprehensive coverage.

Customisable Protection Plans

Term insurance offers flexibility in terms of coverage amount, policy term, premium payment terms, and rider options. This allows policyholders to tailor a plan to their specific needs and adjust coverage as their life stage requirements evolve.

Loan Protection

Term insurance can be specifically designed to cover outstanding loans (e.g., home loans, car loans). In the event of your demise, the policy payout can directly settle these debts, preventing the financial burden from passing to your family.

Income Replacement

Beyond a lump sum, some term insurance policies can offer a regular income stream to your beneficiaries for a specified period, ensuring a more consistent financial support system for daily expenses and long-term planning.

Estate Planning

Term insurance can play a crucial role in estate planning by providing liquidity to cover estate taxes or other settlement costs, ensuring that your assets are distributed to your heirs as intended without being diminished by immediate financial obligations.

Tax Benefit

Term insurance policies offer the advantage of tax deductions on premiums paid up to INR 150,000 annually under Section 80C of the Income Tax Act, 1961. Moreover, the payouts are tax-exempt under Section 10(10D), providing a dual benefit of protection and tax savings. There is no cap on the exemption limit for the payout received.

Types of Term Insurance Plans in India

While the primary benefit of term insurance remains the same, based on a few features, Term Insurance can be classified into the following types:

Level Term Insurance Plan

The premium remains constant throughout the term life policy duration, ensuring that both the premium and the death benefit remain unchanged. Level term insurance can last anywhere from ten to thirty years, depending on the policyholder's requirements.

Increasing Term Insurance

With an Increasing term insurance plan, your insurance coverage grows over time. It's particularly useful because as life goes on, your financial responsibilities and the need for a larger safety net might increase. You start with a certain amount of coverage, and it gets bigger as the years pass, helping you keep up with the cost of living and inflation.

Decreasing Term Insurance Plan

This type of insurance is tailored for people whose financial responsibilities decrease over time. This policy includes a feature that enables the benefit amount to decrease monthly or yearly. Generally, the size of the policy also decreases over time until the coverage period ends or until the policy pays out.

Return of Premium Term Insurance Plan

A Term Plan with a Return of Premium option provides life coverage during the policy term; imagine paying premiums regularly for insurance to protect your family. If you outlive the policy term, you get all the money you paid back. You get peace of mind knowing your family is protected, and if the insurance isn't used, you don't lose the money you paid.

Convertible Term Insurance Plan

A Convertible term insurance plan offers flexibility. It starts as a basic term plan but allows you to switch to a whole-life policy later without going through medical exams again. It's perfect for those who have limited financial resources now but anticipate a need for longer-term coverage in the future. You do not need to pay a fee while converting but can expect higher premiums.

Group Term Insurance

Employers often provide Group Term Insurance as part of their employee benefits package. This type of insurance covers multiple people under a single policy, typically lowering premiums.

Joint Term Insurance

Joint Term Insurance is specifically designed for couples. Both you and your spouse can be covered under one policy. If either of you passes away, the surviving spouse receives the benefit. This type of insurance helps ensure financial security for the family.

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 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.

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.

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.

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.

Newly Weds

Post-marriage, you start a new life and build a new lifestyle. You 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.

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.

Single Parent

If you are a single parent, your children depend on you completely. Term life insurance can provide peace of mind, knowing that your kids will have financial support if something happens to you.

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.

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.

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.

Tax Payers

Term Insurance premiums fall under tax exemption under Section 80C of the Income-tax. The death benefits received under the term insurance are also exempt from tax, subject to some T&C under Section 10 (10 D) of the Income Tax Act.

Some Relatable Real-Life Examples for Better Understanding

Married Couple

Sole Breadwinner

Single Woman

Aravind, 35, and Priya, 30 (Married Couple)

Aravind and Priya, both successful IT professionals, are repaying a mortgage for their dream home. Their jobs include insurance covering the outstanding mortgage balance if either of them passes away during the loan term, leaving other financial needs unaddressed.

So they decided to buy term life insurance, knowing their loved ones would be secure even if the unexpected happened.

Rohit, 34, Family Man (Sole Breadwinner)

Rohit, aged 34, is a devoted husband and father of two who is responsible for his family's financial well-being. His father is close to retirement, while his parents-in-law are also approaching retirement.

To safeguard the financial future of his loved ones, he plans to obtain term life insurance with the flexibility to adjust the coverage as the family's dependency needs evolve, providing safety for their future.

Sneha, 23, (Single Woman)

Sneha, a young professional with no dependents to worry about, is considering applying for a home loan. She recognizes the value of purchasing term life insurance to secure her future while she is young and can benefit from lower premiums due to her age and health.

Plus, she knows that once she gets married, she can easily update her policy to include her spouse as the nominee. This proactive approach ensures Sneha stays ahead in her financial planning.

Find the Most Suitable Term Plan as Per Your Need

Choosing the right sum assured is crucial for selecting the best term life insurance plan to protect your family’s financial future. Here are the available options for sum assured amounts that might suit your needs:

25 Lakh

Term Insurance Plan

50 Lakh

Term Insurance Plan

75 Lakh

Term Insurance Plan

Recommended

1 Crore

Term Insurance Plan

5 Crore

Term Insurance Plan

10 Crore

Term Insurance Plan

Disclaimer: The sum assured specified applies to the term insurance plans and is subject to eligibility, terms, and conditions. It is essential that you review the official plan details thoroughly and choose the coverage that best aligns with your needs before proceeding with your purchase.

How Much Term Life Insurance Do You Need?

When considering life insurance, it's essential to ensure that the insurance payout covers financial obligations in the event of the breadwinner's death. Here are a few methods to estimate your life insurance coverage:

Expense Replacement

This approach calculates total expenses, including daily costs, education, marriage, and debts. From this total, deduct your current savings and investments (excluding assets like homes and cars, which are considered utilities). The resulting figure indicates your insurance coverage needs.

Income Replacement

This method provides insurance based on replacing the breadwinner's lost income. The formula is:

Insurance Cover = Current Annual Income x Number of Years left for retirement

While straightforward, this method doesn’t account for inflation or significant future expenses.

Why Selecting Right Sum Assured is Important When Selecting the Term Plan?

Choosing the right coverage for your term insurance is crucial for your family’s financial safety. This amount, known as the sum assured, protects your family if something unexpected happens to you

Financial Security for Beneficiaries: The primary purpose of a term plan is to provide financial protection to your loved ones in case of your untimely demise. A well-chosen sum assured ensures that your beneficiaries have adequate funds to maintain their standard of living and cover essential expenses, like mortgages, children's education, and daily living costs.
Coverage of Debts and Liabilities: If you have outstanding loans or other financial obligations, the sum assured should be sufficient to clear these debts. This prevents your family from being burdened with financial liabilities during a difficult time.

Our Expert Explains About Choosing the Right Term Insurance Coverage

When considering term insurance, it is essential to choose a coverage period that aligns with your financial goals.

The coverage should ideally extend until your children’s education and marriage expenses are taken care of, your dependents achieve financial independence, you accumulate a sufficient retirement corpus, and any outstanding loans are fully repaid.

This approach ensures that your family is financially protected during crucial phases of your life, while providing you with peace of mind as you work toward financial independence and being debt-free. Selecting a term that comprehensively addresses these milestones will enhance your long-term financial security.

Ashok Manwani

VP, Life Insurance Products

How to Decide the Term Insurance Policy Duration?

The duration of a term insurance policy, often referred to as the "term length," can vary significantly based on individual circumstances, financial goals, and life stages. Here’s a breakdown of how to determine the appropriate term duration for your needs:

Mortgage Coverage

It's crucial to ensure that your life insurance policy spans the duration of your mortgage. This means if you are committed to a 30-year mortgage, securing a 30-year term life insurance policy is sensible. This alignment guarantees that in the unfortunate event of your passing, your family won't have to worry about continuing mortgage payments, thus securing their living situation.

Children’s Education

Planning for your children's education requires foresight. If your children are currently in elementary school, a policy term of 20-25 years is recommended. This timeframe ensures that funds will be available to cover their higher education expenses, from undergraduate to potentially graduate studies, providing them a solid foundation without the burden of student loans.

Debt Repayment

When considering other debts beyond a mortgage, such as personal loans or credit card debt, selecting a term that matches your repayment timeline is wise. This strategy ensures that your debts won't become a financial burden to your family, maintaining their financial stability.

Spousal Support

If your spouse depends on your income, it's important to choose a policy term that allows for enough time for them to become financially independent. This might mean covering the timeframe until they can re-enter the workforce, complete education or training programs, or reach a financial milestone that ensures stability.

Dependents’ Self-Sufficiency

For those with dependents, the goal should be to maintain coverage until they no longer rely on your financial support. This often aligns with them completing their education and establishing their careers. Tailoring your policy's term to these life milestones ensures they have the support they need during their formative years.

Retirement Planning

Life insurance can also be a strategic part of retirement planning. Choosing a term that extends until your anticipated retirement age, say 65, means your spouse or dependents would have financial support in replacing your income, should something happen to you before then. This is especially critical if your retirement savings aren't sufficient to support your loved ones in your absence.

Income Replacement

If your family heavily relies on your income, ensuring your policy covers the span until your planned retirement is crucial. This approach acts as a safeguard, providing your family with the necessary financial resources to maintain their lifestyle and meet future goals without your income.

Age Considerations

Choosing a longer term of 20-30 years is often beneficial, as it aligns with key financial milestones like buying a home, family planning, and children's education. A 15-20 year term may suit those facing significant obligations such as mortgage and tuition payments. For individuals with fewer debts or financially independent children, a shorter term of 10-15 years could be sufficient.

When Should I Buy a Term Plan?

Buying a term insurance plan is an important financial decision, and the timing of your purchase can have a significant impact on the cost of premiums and the benefits of the coverage. Here’s a breakdown of when to buy a term plan at different stages of life, and how the premium tends to vary with age:

In Your 20s (Age 20-29)

For fresh graduates and young professionals, it’s smart to secure lower premiums. If you are single or just starting your career, this is a great time to get long-term coverage at a lower cost. Additionally, if you have student loans or other debts, a term plan can help ensure these are covered in case of unexpected events.

In Your 30s (Age 30-39)

This stage is perfect for married couples, new parents, and homeowners. It’s a time when many start families, buy homes, and take on financial obligations. Ensuring financial protection for your dependents, like children or a spouse, is crucial in case of an unexpected event.

In Your 40s (Age 40-49)

This stage is ideal for parents with older kids and those approaching retirement. You might still have financial duties like paying off a mortgage, supporting college-bound children, or assisting elderly parents. Even though premiums are higher, it’s crucial to ensure your family is protected.

In Your 50s (Age 50-59)

This stage is perfect for those nearing retirement, with dependent children or debt. It's a good time to reassess your insurance needs, especially if your children are grown or your debt is cleared. Since insurers evaluate health risks more strictly, it's wise to secure a policy sooner if you are in good health.

In Your 60s and Beyond (Age 60+)

This stage is ideal for those with minimal or no debt, aiming to cover final expenses like funeral costs or leave a small financial legacy. Opting for shorter-term policies, such as 10 or 15 years, can help keep costs lower.

Why NRIs Should Consider Buying Term Plan in India?

As an NRI, securing your family’s future is a top priority, no matter where you live. Buying a term insurance plan for NRI in India is a smart and practical decision because it offers strong financial protection at a much lower cost compared to policies in foreign countries.

Term insurance premiums in India are more affordable, offering high coverage, at low premiums. The process is simple, requiring minimal documents like a passport or income proof. NRIs benefit from convenient options like video medical exams and tests in their country of residence.

Term plans offer global coverage, ensuring your loved ones in India receive a tax-free lump sum in INR, no dealing with currency exchange or cross-border complications. Also premiums qualify for tax benefits under Section 80C.

If you’re an NRI with family or financial ties in India, it’s worth exploring term insurance policies tailored to your needs.

Digit Life Insurance in the Spotlight

Digit Life Doubles Revenue To Over Rs 1,300 Cr In FY25

4 June 2025
BW Businessworld

Go Digit Life Insurance FY25 Results: Revenue more than doubles, settles claims worth ₹2.2 bln

5 June 2025
CNBC TV18

Go Digit Life Insurance reports 719% increase in claims payouts, group term category leads surge

4 June 2025
Money Control

How Self-employed Individuals Can Secure Better Term Life Insurance Coverage

22 Mar 2025
CNBC TV18

Digit Life Insurance launches ‘Glow Term Life’ for Telangana

31 Jan 2025
The Hans India

Why Reviewing Your Life Insurance Plan Is Important, Especially After Major Life Events

13 Jan 2025
Outlook Money

Digit Life Insurance Launches Glow Term Plan for 300M Self-Employed Indians

7 Jan 2025
Varindia

Go Digit Life launches its first individual pure term life insurance plan

6 Jan 2025
CNBC TV18

Go Digit Life Insurance Unveils New Term Plan for Workers

6 Jan 2025
SMEStreet

Glow Term Life Insurance by Digit: A New Era of Simpler Coverage for Self-Employed Indians

6 Jan 2025
Biz News Desk

How to Choose the Right Term Insurance Plan?

Several factors come into play when selecting a term insurance policy. HLV or Human Life Value assist in determining the appropriate sum insured and necessary riders, if any. It's important to note that different insurance providers have varying factors to consider before finalising a term insurance policy:

Assess Your Coverage Needs

Calculate the coverage you need based on your financial obligations, such as outstanding loans, future expenses (like children's education), and daily living expenses. A common rule of thumb is having coverage at least 10-15 times your annual income.

Claim Settlement Ratio of the Insurer

When choosing Term Insurance, focus on the Insurer's Claim Settlement Ratio. This ratio shows how many claims are settled compared to those received. Choose an insurer with a high ratio for quick and efficient claim processing. This ensures financial security for your family. Check the total claims settled to gauge the insurer's reliability.

Review the Solvency Ratio

The Solvency Ratio gives an idea of whether your insurance provider has enough financial buffer to settle all claims in case of any extreme situation, such as natural disasters. The Insurance Regulatory and Development Authority of India (IRDAI) mandates a minimum solvency ratio of 1.5, indicating the insurer's ability to meet its long-term obligations.

Customer Satisfaction and Ratings

High customer satisfaction scores and excellent service ratings are indicators of a company’s reliability and quality of service. Research customer reviews and ratings to ensure you choose an insurer known for good customer support.

Add Riders for Extra Protection

Opt for policies with customization options to meet your needs. Add riders like critical illness cover, accidental death benefit, and waiver of premium for extra protection. These can provide additional financial security in case of unexpected events.

Premium Cost

The premium cost of a term insurance plan is significant but should not overshadow the value of the protection offered. It's essential to look for plans with favourable terms and comprehensive coverage, including crucial riders, at fair rates.

Avoid Mixing Insurance with Investments

Insurance should primarily provide financial protection. Mixing it with investment products can dilute its effectiveness. Focus on pure term insurance for adequate coverage and keep investments separate.

Consider Inflation

Choose a term insurance plan with increasing coverage. These plans raise the sum assured annually, typically by 5-10%, to keep up with rising costs. This ensures your coverage remains adequate over time, protecting your family's financial security against inflation.

How to Buy Digit Term Insurance Policy Online?

The five easy steps to buy term life insurance plans are as follows:

Visit Digit Website/App

Visit the official Digit Life Insurance website or app and compare the types of life insurance policy options.

Enter Details

Fill in your personal information, share your lifestyle habits, date of birth, annual income, and mobile number.

Coverage & Payment

Now it’s time to choose your ideal coverage, premium payment methods, and any additional benefits you want!

Payment & KYC

Complete your payment, and then finish the KYC process and fill in your nominee details.

Access Documents

Congratulations! Your policy documents will be sent to your email and WhatsApp. You can also access it 24/7 on the Digit App.

Documents Required to Buy a Term Life Insurance Policy

When buying a term life insurance policy, you must provide several important documents. Here's a list of the key documents typically required:

Identity Proof

Age Proof

Address Proof

Income Proof

Photographs

Medical Reports

Eligibility Criteria for Term Life Insurance

Age: Term insurance is available for individuals aged 18-65. You can still buy a policy at 65 with coverage up to 99. Age significantly affects the premium
Citizenship: Residents of India are eligible for term insurance, even if they later move abroad for study or work.
Medical Tests: Purchasing term insurance may require medical tests to assess the premium based on your health accurately. Some policies bypass medical tests but offer lower coverage.
Lifestyle: Smoking, high-stress levels, and poor sleep habits can increase your premium. Jobs or hobbies that are considered risky can also lead to higher premiums.

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 than offline ones.
Quick and Simple Process: Online buying 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.

1 Crore Term Life Insurance Premiums for Different Age Groups

Here is a look at the ₹1 crore term life insurance plan for different age groups till the age of 60 years:

How Term Insurance Calculator Can Be Helpful?

A term insurance calculator is a helpful online tool designed to assist individuals in determining the premium amount for a term insurance policy. Users provide details such as:

Age
Income
Desired coverage amount
Policy term
Lifestyle habits (smoker or non-smoker)
Health conditions.

Based on this information, the calculator estimates the premium required to secure the specified coverage. It’s a convenient way to assess your insurance needs without the need for medical exams.

Benefits of Using a Term Insurance Calculator

The benefits of using a term insurance calculator are:

It provides an instant, personalised estimate of your premium and the coverage you can expect, saving you time and making decisions efficiently.

It allows you to adjust critical variables like the sum assured, policy term, and premium payment options, providing a real-time view of how each adjustment impacts your monthly premiums.

It saves time by providing quick estimates, eliminating the need to manually contact insurance agents or sift through multiple insurance websites for information.

It provides policy cost transparency, allowing for easy understanding of premium rates based on various levels of coverage and term lengths.

What are the Factors Affecting Term Insurance Premiums?

When you buy a Term Insurance plan, your premium is calculated based on several demographic and lifestyle factors, such as age, gender, present or past medical ailments, habits like smoking or drinking, and hereditary diseases.

Here are the most common factors that affect a Term Insurance premium:

Age

The topmost factor affecting your Life Insurance premium is your age. A younger age means fewer chances of developing any life-threatening ailments and a long premium payment term. This translates to lower premiums at lower ages that, in turn, increase with age.

Term

The Insurance Premium directly depends on the period and increases with the increasing term, considering the older and the riskier years of life.

Medical History

Insurers usually ask for medical checks before issuing a policy, and they assess the health records, especially any serious ailments or family history. Other body metrics like cholesterol, BP, etc., are also considered since any health risk would mean a higher chance of a Life Insurance claim, which results in a higher premium.

Current Health Condition

While issuing the policy, a health assessment of the prospective policyholder is done to ensure they do not suffer from any serious ailment that might pose a life risk and thus increase the policy's premium.

Occupation

Your premium is also affected by the profession you are in. People in professions where they are directly exposed to life risks, like soldiers, mine workers, etc., are charged higher premiums.

BMI

A skewed BMI index can directly mean you are at a health risk, increasing your premium.

Lifestyle Habits

Smoking, Alcohol consumption, inclination towards adventure sports, all these lifestyle habits increase your premium.

What are Term Life Insurance Riders/Add-ons?

A basic term insurance policy offers financial protection, but adding Term insurance riders enhances coverage. Riders provide additional benefits for specific risks, such as critical illness, accidental disability, or income loss due to disability. They help tailor your policy to your needs, ensuring broader protection for you and your family during challenging times.

Note that adding riders to a policy typically costs as low as ₹50 - 300 per month, depending on the type of riders, in addition to the premiums for the primary policy.

Accidental Death Benefit Rider

In case of the policyholder's death due to an accident, this rider pays an additional sum assured over and above the basic sum assured to the nominee. This provides extra financial security for your family against the risk of accidental death within 120-180 days post-accident.

Accidental Total and Permanent Disability Benefit Rider

This rider offers financial aid to policyholders who can no longer work in case of accidental partial or permanent disability. It pays a specific portion of the sum assured regularly for a few years, helping the family manage finances during challenging times.

Terminal Illness Rider

This rider provides a portion of the sum assured, or sometimes the entire sum assured, as a lump sum payment if the policyholder is diagnosed with a terminal illness and has a limited life expectancy (typically 6-12 months, as defined by medical professionals and the policy terms). This allows the policyholder to access funds while they are still alive.

Critical Illness Rider

This rider provides a lump sum payment if you are diagnosed with major life-threatening diseases (e.g., cancer, heart attack, kidney failure) during the policy term. This payment can be used to cover medical expenses, loss of income, or any other financial needs, without affecting the base sum assured.

Waiver of Premium Rider

If the policyholder becomes totally and permanently disabled or suffers from a critical illness (as defined in the rider terms), all future premiums for the base policy and chosen riders are waived. The policy continues without interruption, ensuring your family's financial protection remains intact even if you cannot pay premiums.

Our Expert Explains Why You Should Enhance Your Term Plan with Riders

Riders can be added to the plan at a small additional cost. They enhance the coverage and provide much-needed financial support during challenging times.

For instance, the accidental death and disablement rider ensures financial stability in the event of accidental death or disability. The critical illness rider offers a lump-sum payout if diagnosed with severe illnesses like cancer or heart disease. Lastly, the waiver of premium rider keeps the policy active even if premiums cannot be paid due to disability or illness. These riders offer tailored protection to meet unique needs.

Ashok Manwani

VP, Life Insurance Products

Benefits of Adding Riders to Your Term Insurance Policy

Adding riders to your term insurance policy significantly enhances its value and provides a more comprehensive safety net. Here are the key benefits of including riders in your term life insurance plan:

Riders offer additional financial coverage beyond the basic death benefit of a term policy. This means your family receives extra funds in specific situations like critical illness, accidental death, or disability, providing a stronger financial cushion when they need it most.

You have the flexibility to adjust the coverage of various riders and personalise your plan. This means you can choose and modify riders based on your individual concerns ensuring that your insurance policy fits your unique needs and life situation.

Each rider is designed to cover a particular risk for a wider range of unforeseen circumstances. For example, a Critical Illness Rider protects against the financial burden of severe diseases, while an ADB provides an additional payout in case of death due to an accident.

Early access to funds during your lifetime if you are diagnosed with a terminal condition. This allows you to access funds for medical care, living expenses, or other needs without waiting for the policy to mature or for your demise.

Continued coverage ensures your policy remains active even if you become unable to pay premiums due to disability or critical illness. This prevents your coverage from lapsing during a financially challenging time, safeguarding your family's future.

Adding riders is often more cost-effective than purchasing separate, standalone policies for each specific risk. It allows you to consolidate your protection under one plan, simplifying management.

How to Download Term Insurance Policy Document With Digit App?

Need a copy of your term life insurance policy document? You can download it easily through the Digit App by following these simple steps:

Visit the Digit website or app and click on ‘Login’ at the top-right corner. Enter your registered mobile number and verify with OTP.

Visit ‘Active Policies’

Once logged in, navigate to the Active/My Policies section. Here, you can check the policy number, end date & start date.

Download the Policy

Done! You can save, share, print or email the policy for future reference anytime, anywhere.

Complimentary Wellness Benefits for Digit Life Customers

At Digit, we believe life insurance should do more than just protect you from the unexpected; it should also help you live a healthier and happier life. That's why we offer Wellness Benefits to support your overall well-being. These programs are designed to improve your physical, mental, and emotional health through various resources and activities.

With Digit Life Insurance, you gain exclusive access to wellness perks that make living well more achievable and affordable. These benefits are part of our life insurance plans and aim to enhance your holistic health and wellness. Some of these great benefits include -

Unlimited 24×7 Teleconsultations with General Physicians

Get expert medical advice anytime, anywhere.

Mental Health Consultation & Services

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Diagnostic Tests & Health Check-Ups

Stay ahead of health concerns with affordable screenings and lab tests.

Specialist Teleconsultations

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Women's Health Care Programs

Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!

Physiotherapy Sessions

Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.

Dental Consultation Offers

Avail unlimited, free dental consultations and exclusive discounts on dental treatments.

Sexual Wellness

Get flat 15% discount on Sexual Wellness Programs!

Chronic Care Support Programs

Personalised assistance for long-term health conditions.

Tools to Simplify your Life!

Term Insurance Calculator

Calculate Term Insurance Premium Online

BMI Calculator

Calculate BMI Online

Income Tax Calculator

Calculate Income Tax Online

HRA Exemption Calculator

Calculate Exemptions Online

Bike Loan EMI Calculator

Calculate Two Wheeler Loan EMI Online

Home Loan EMI Calculator

Calculate EMIs Instantly

What Happens if I Outlive my Term Insurance Policy?

This is the most typical outcome for a standard term insurance policy. Once the policy term ends, the coverage simply ceases. You will no longer be required to pay premiums, and the insurer will no longer have any obligation to pay a death benefit.

You will not receive any payout or return of premiums paid. The premiums you paid essentially bought you protection for that specific period, similar to how you pay for car insurance or home insurance, you don't get your money back if you don't make a claim.

It is important to review your insurance needs periodically and consider other financial planning options to ensure continued protection and financial security for you and your loved ones.

How to File Term Insurance Claim with Digit?

Filing a Claim for your Digit Term Insurance can feel overwhelming during challenging times, but understanding the step-by-step process can help ensure ones receive the financial support one needs promptly and efficiently:

Inform Digit Immediately

Notify us about the occurrence of the claim event as soon as possible. You can do this by contacting via helpline at 1800-296-2626 or emailing lifeclaims@godigit.com.

Submit Required Documents

Provide necessary documents such as death certificate, policy document, valid ID proof of the nominee and claim form duly filled and signed.

Receive Claim Acknowledgment

After submitting the documents, you will receive an auto-generated ticket number for your claim.

Claim Settlement

Digit will verify the documents and assess the claim. Once the claim is approved, you will receive updates via SMS, email, or through the app, and the company will process the payout to the beneficiary's account.

What Happens Once You Make a Claim?

When you make a claim on a term insurance policy, the process generally involves several key steps:

Inform the insurance company about the claim. This can usually be done online, or through an agent.

Provide the policy number, the insured's name, the date of death, and the cause of death.

Download or request a claim form and gather all necessary documents.

Submit the claim form and documents to the insurer.

The insurance company will review and verify the claim details.

If verified, the insurer processes the claim and transfers the death benefit to the nominee’s account.

How Long Does it Take for the Claim Approval?

The approval time for a term insurance claim can vary based on several factors, including the completeness of the submitted documents and the specific procedures of the insurance company.

Verification and Investigation

Once the documents are submitted, the insurance company will verify them. This may involve an investigation to confirm the authenticity of the claim. This step can take anywhere from a few days to a few weeks, depending on the complexity of the case.

Claim Processing

After verification, the insurance company processes the claim. According to the Insurance Regulatory and Development Authority of India (IRDAI), insurers are required to settle claims within 30 days of receiving all necessary documents. If further investigation is needed, the insurer must complete it within 90 days.

What are the Payout Options in Term Life Insurance?

In term life insurance, payout options generally refer to how the death benefit is paid out to the beneficiaries upon the insured's death. The most common payout options include:

S.No	Payout Options	Description
1	Lump-Sum Payment	This is the most straightforward option. The beneficiaries receive the entire death benefit as a single payment, allowing them immediate access to the funds.
2	Fixed Monthly Payout	Instead of a lump sum, the death benefit can be paid in instalments over a specified period, to care for the family's monthly financial needs.
3	Increasing Income	Your nominee will receive monthly instalments for 10 years. The income amount will increase by 10% per annum every year, providing a 45% additional life cover.
4	Lump-Sum Plus Income	An option could be to receive a partial payment as a lump sum upfront, with the remainder provided as monthly payments over a fixed period.

99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY 2024-25

When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.

Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.

That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.

₹2.88 Billion Worth Claims Paid in FY 2024-25

At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.

Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.

15,000+ Claims Settled in FY 2024-25

At Digit, numbers aren’t just metrics; they are milestones of real lives touched. We are proud to share that the number of families we have supported through life insurance has soared from just 600 to 15,596 – a 25x growth that reflects the deep trust people place in us. That means thousands more families received the support they needed during life’s toughest moments. It shows how more and more people are choosing Digit to stand by them in their most vulnerable moments.

Solvency Ratio for Digit's Life Insurance in FY 2024-25 is 3.85

At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.

This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.

Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.

Disclaimer: This report offers an overview of Digit Life Insurance’s performance, highlighting the growth in premiums, solvency ratio, and claims settlement metrics (CSR, claims paid, and claims settled), based on the company’s FY 2024-25 internal data. The information is intended for general awareness only and should not be considered financial advice. Past performance may not reflect future outcomes.

[Source]

How Efficiently Digit Life Insurance Settles Claims?

While this data reflects another life insurance product, it demonstrates Digit Life Insurance’s strong track record in settling claims quickly and fairly, an important factor when choosing any life cover, including term insurance.

Two important metrics that reflect efficiency:

1. End-to-End Turnaround Time (TAT)

This is the total time taken, from the day we first get the death claim to the day we complete it.

Formula: Claim Closing Date - Claim Registration Date

2. Last Document Received (LDR) TAT

Sometimes, claims take time because we’re waiting for all the required documents. This number indicates how quickly we process a claim once we receive the final document from the claimant.

Formula: Claim Closing Date - Date Last Document Received

Industry-Leading Speed

On average, Digit Life Insurance settles claims within 13 days of registration, ensuring families receive timely financial support.

Note: If there are any discrepancies or missing documents, the process might take longer. It’s always a good idea to keep in touch with the insurance company and provide any additional information they might need promptly.

How to Avoid Term Insurance Claim Rejection?

Certain factors might lead to rejection when applying for a term insurance plan. Knowing these can help you prepare and address any issues before applying.

Suicide: Most insurance policies include a suicide clause, stating that if the policyholder commits suicide within the first one or two years, the claim won’t be paid. If the insurer suspects the application is an attempt to exploit this, they might reject it.
Self-Inflicted Injuries: Policies often exclude coverage for death due to self-inflicted injuries. If there's evidence that the applicant has a history of self-harm or attempted suicide, the insurer may deny coverage.

How Term Plan is Different From Other Life Insurance Plans?

Here are comparison tables highlighting the differences between term plans and other types of life insurance plans:

Term Life Insurance Vs Whole Life Insurance

Feature	Term Life Insurance	Whole Life Insurance
Coverage Duration	Fixed term (e.g., 10, 20, 30 years)	Lifetime
Premiums	Lower premiums, increase with age	Higher premiums, generally fixed
Cash Value	No cash value	Builds cash value over time
Policy Expires	Expires at end of term	Does not expire as long as premiums are paid
Death Benefit	Paid only if death occurs during the term	Guaranteed payout
Flexibility	Less flexible, no investment component	More flexible, includes investment component
Purpose	Temporary coverage for specific needs	Permanent coverage, estate planning
Cost	Generally more affordable	More expensive due to cash value component
Tax Benefits	Premiums and Death benefits are tax-free	Premiums, Death benefits, and cash value growth are tax-advantaged
Ideal For	Pure protection needs	Long-term protection and savings

Term Life Insurance Vs Pension Plan

Features	Term Life Insurance	Pension Plan
Purpose	Provides financial protection to beneficiaries upon death	Provides regular income during retirement
Duration	Fixed term (e.g., 10, 20, 30 years)	Typically lasts for the lifetime of the retiree
Premiums	Generally lower premiums	Higher premiums, especially if starting later in life
Payout	Lump sum paid to beneficiaries upon death	Regular payments (monthly/quarterly) during retirement
Investment Component	No investment component	Often includes an investment component to grow the fund
Tax Benefits	Premiums may be tax-deductible	Contributions and payouts may have tax benefits
Flexibility	Limited flexibility; coverage ends after term	Can be tailored with various options (e.g., annuities)
Risk	Risk of no payout if policyholder outlives the term	Lower risk; provides guaranteed income
Beneficiaries	Named beneficiaries receive the payout	Policyholder receives the benefits during retirement
Additional Benefits	May include riders for critical illness, disability, etc.	May include options for spouse benefits, inflation protection

Term Life Insurance Vs Endowment Plan

Features	Term Life Insurance	Endowment Plan
Purpose	Provides financial protection to beneficiaries in case of the policyholder’s death	Combines insurance with savings; provides a lump sum on maturity or death
Coverage Duration	Fixed term (e.g., 10, 20, 30 years)	Fixed term or until a certain age
Premiums	Generally lower	Generally higher
Payout	Only on death of the policyholder during the term	On maturity or death, whichever is earlier
Savings Component	None	Yes, includes a savings component
Returns	No returns if the policyholder survives the term	Guaranteed returns on maturity
Risk Coverage	High	Moderate
Ideal For	Individuals looking for pure risk cover at low cost	Individuals looking for a combination of insurance and savings

Term Life Insurance Vs Unit Linked Insurance Plan (ULIP)

Features	Term Life Insurance	ULIP
Purpose	Pure risk cover	Risk cover + Investment
Premiums	Lower premiums	Higher premiums
Sum Assured	Fixed sum assured	Sum assured + Investment returns
Maturity Benefit	No maturity benefit (except ROP plans)	Maturity benefit based on fund performance
Investment Component	None	Invests in equity, debt, or hybrid funds
Risk	Low risk	Market-linked risk
Flexibility	Fixed coverage and term	Flexibility to switch funds
Tax Benefits(subject to conditions)	Premiums and Death benefit are tax-free	Premiums, Death benefit, and maturity benefit are tax-free
Ideal For	Pure protection needs	Protection + wealth creation

Term Life Insurance Vs Savings Plan

Features	Term Plan	Savings
Purpose	Provides financial protection to beneficiaries in case of the policyholder’s death	Accumulates funds for future use
Risk Coverage	High (provides a large sum assured on death)	None (savings are not meant for risk coverage)
Premiums/Contributions	Regular premiums paid for coverage	Regular deposits or contributions to a savings account or instrument
Returns	No returns (except in ROP plans)	Earns interest or returns based on the savings instrument (e.g., bank interest, fixed deposit rates)
Maturity Benefit	No maturity benefit (except ROP plans)	Accumulated savings plus interest/returns
Liquidity	Not liquid (benefit only on death	High liquidity (funds can be accessed anytime)
Tax Benefits	Death benefits are tax-free under current tax laws	Interest earned may be taxable (depending on the savings instrument and tax laws)
Ideal For	Financial protection for dependents	Short-term or long-term financial goals and emergencies

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Terminologies Related to Life Insurance Policy

Policyholder

The Policyholder is the person who buys the insurance and pays regular premiums.

Coverage

The amount of money the policyholder can get from the insurance.

Life Assured

The person whose life is insured. This may or may not be the same person as the policyholder.

Nominee

The person who receives the death benefit or sum assured in case of an unfortunate demise of the policyholder. The policyholder chooses the nominee when taking the policy; however, they can always be changed during the policy term.

Sum Assured

This is the amount of money a nominee receives in case of the policyholder's demise, and it is one of the major factors determining a policy's premium.

Policy Term

The Policy Term is the period during which a policy is active. An insurance policy's benefits and life cover are valid during this period, which differs across policies.

Insurer

The insurer is the insurance provider who offers life insurance plans and handles claims.

Insured

The person who is covered by the insurance policy.

Insurability

Factors affecting a person’s health or life expectancy make them more or less likely to get injured or sick.

Premium

Premium is the amount of money you pay to the insurance company in return for the insurance. It can be paid in various modes: annual, half-yearly, or even monthly.

Death Benefit

The total amount an insurance provider gives to the nominee in case of demise of the life assured. This mostly equals the Sum Assured; however, it might be more when riders are added.

Add-on Benefits (Riders)

Add-on benefits or Riders are additional coverages on your policy that cover specific conditions like critical illness, accidental death, etc. They come at an additional cost over and above your standard premium.

Claim

In the case of the life assured's demise, the nominee should file a claim with the insurance company. It is an intimation to the insurance company about the unfortunate event and the demand for insurance coverage payment.

Maturity Date

When the insurance policy ends and any benefits are paid out.

Maturity Claim

The amount the policyholder receives when the policy ends if it includes a maturity benefit.

Surrender Value

The money the policyholder gets if they end the policy before the maturity date.

Vesting Age

The age at which the policyholder starts receiving regular payouts from an insurance-cum-pension plan.

Beneficiary

The person or entity designated to receive the death benefit from a life insurance policy.

Grace Period

The period after the premium due date, during which the policyholder can still make a payment without losing coverage.

Lapse

The termination of a policy due to non-payment of premiums.

Underwriting

The process by which an insurance company evaluates the risk of insuring a person and determines the premium.

Free Look Period

The policyholder can review the policy terms and cancel the policy without penalty.

Conversion Option

A feature allowing the policyholder to convert a term policy into a permanent one without undergoing a medical exam.

Reinstatement

Restoring a lapsed policy by paying the overdue premiums and meeting other requirements.

FAQs about Term Insurance Policy in India

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General

Policy

Premium

Claim

Coverage

Is there an age limit to buying a Term Insurance Plan?

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.

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

Yes. You can change the nominee during the term of your policy. And you can do this as many times as you want. However, 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.

Can I get Term Insurance if I'm not in a job?

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?

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?

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

Why should I buy Term Insurance when I already have Life Insurance from my employer?

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 if I do not want my Term Cover once I have taken it?

Term Plans generally come with a Free-Look period of 30 days during which you can check the complete details, accept certain terms or cancel the policy altogether.

What is the Contestability Period in Insurance?

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.

What is the difference between term insurance and life insurance?

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.

Does term insurance have maturity?

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.

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

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?

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?

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

Which is the most common type of term insurance?

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?

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.

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

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.

Can I buy more than 1 term insurance policy?

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.

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

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?

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

What is the best kind of life insurance policy?

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 policy term?

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.

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

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 happens at the end of the policy tenure?

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.

Do we get any return in Term Insurance?

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.

How to get low premiums on term insurance plans?

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 are the advantages and disadvantages of each premium payment option?

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.

Is term insurance refundable?

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.

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

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.

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

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.

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

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.

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

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.

How to claim term insurance after death?

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

What are the types of deaths covered in Term Insurance?

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?

a. Any Death that involves self-harm or self-infliction of injury like suicide is not covered under insurance.

b. Death due to driving under the influence of alcohol or drugs is not covered.

c. Death due to participating in hazardous activities

d. 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.

Should we take Riders along with Term Insurance?

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.

What expenses are covered in my term plan?

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?

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.

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

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.