Term Insurance Benefits

Term insurance plans secure your family’s financial future even when you are not around. These plans are considered by many as one of the basic financial necessities of life, especially in today’s times. Term insurance plans also have multiple features and benefits, right from affordable premiums to riders for additional covers.

What are the Benefits of Term Insurance?

Term insurance offers multiple benefits to customers. Here are a few you should be aware of:

Financial Protection
Affordable Premiums
Whole Life Cover
Payout of Sum Insured
Tax Benefits

Financial Protection

One of the greatest benefits of term insurance is financial protection of your family in case of an unfortunate event. The sum assured of your term plan can be sufficient to cover all their needs.

Affordable Premiums

You can get a high-value life cover^!a from a term insurance plan by paying an affordable premium amount. Premium payments can be made either monthly/half-yearly/yearly. The earlier you buy a term insurance plan, the lower the premium amount you have to pay.

Whole Life Cover^!a

Term insurance plans offer substantially longer coverage. Whole life insurance plans offer coverage till the age of 99 years.

Payout of Sum Insured

In case of the unfortunate demise of the person insured, the family members will receive the sum assured as a payout. The policyholder can choose for this payout to be in the form of a lump sum, an income that is either monthly or annual, a combination of lump sum and income or an increasing income at the inception. This will help take care of financial needs and household expenses among other costs.

Tax^** Benefits

You can get tax^** benefits on premiums paid under Section 80C along with premiums paid towards critical illness benefit under Section 80D. The lump sum amount received by nominees as the sum assured/death benefit is also exempted from taxes subject to Section 10 (10D) of the Income Tax Act, 1961.

Understanding Term Insurance Riders

Riders are optional term insurance benefits you can add to your base policy for extra protection. These add-ons provide financial security against various risks, enhancing the coverage of your basic term plan.

What are the different kinds of Term Insurance riders & add-ons?

Accidental death benefit

If the policyholder passes away due to an accident, this rider provides an additional payout on top of the base sum assured.

Permanent and partial disability benefit

The permanent and partial disability rider pays a lump sum if the policyholder suffers a permanent or partial disability during the policy term.

Critical illness benefit

In case of a critical illness diagnosis, such as cancer or a brain tumour, the policyholder receives a lump sum payout with this rider to help with medical and other expenses.

Waiver of premium

If the policyholder becomes permanently disabled or faces certain medical conditions, future premiums are waived under this rider while the policy remains active.

Income benefit

Instead of a lump sum payout, the income benefit rider ensures the nominee receives regular monthly income, helping them manage day-to-day expenses.

Terminal Illness

If diagnosed with a terminal illness, the terminal illness benefit rider allows the policyholder to receive the sum assured in advance to support their needs.

What are the advantages of buying term insurance at an early age?

Below are some benefits of a term life insurance policy if bought early:

Lower Premiums

The premium^~” of a term insurance plan is significantly lower if you purchase one at a young age. Younger individuals are generally healthy and active so the likelihood of a death claim is lower for them. Insurance companies factor in this reduced risk and, as a result, offer a high life cover^!a at more affordable premiums.

Flexibility

Purchasing term insurance at a young age gives you more flexibility in your financial planning. Lower premiums leave room for other goals, helping you balance your insurance needs with other financial priorities.

High sum assured

Buying a term plan early allows you to secure a higher life cover!a at lower rates. This offers better protection for your family without straining your budget.

Longer Coverage

One of the benefits of term life insurance, when bought early, is that you get financial coverage for a longer time, ensuring better financial security for your loved ones.

Financial stability

Buying in a term insurance plan gives you financial stability. It protects your family’s future while offering you peace of mind.

Extended Protection

Buying a term insurance plan at a young age allows you to opt for a longer policy term ranging up to 20, 30 or even 40 years. This ensures that your plan covers your loved ones for a longer time and through all the important stages of your life, such as getting married, raising children, paying off a home loan and more.

Peace of Mind

Buying a term insurance plan at a young age can offer you peace of mind and alleviate your stress. Life cover^!a ensures your loved ones are protected in your absence. Knowing your family is financially protected helps you to focus on your personal and professional growth.

How can a term insurance plan secure your family's future?

A term insurance plan can secure your family’s future in the following ways:

Income Replacement

The death benefit from a term insurance plan can be used to replace the income earned by the deceased policyholder, if alive, and provide crucial financial support to the family. This can help the grieving family manage their expenses and maintain their current standard of living.

Debt Coverage

The money received from a term insurance plan can be used to settle outstanding loans. If you have debt like a home, car or any other loan, it can help to buy a term insurance plan with a life cover^!a that is high enough to cover your loan. This ensures that your loved ones have the necessary means to repay the loan in your absence.

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Why choose the right term insurance plans?

Insurance Coverage Against Uncertainties

One of the primary benefits of term life insurance is the financial coverage it offers. It provides financial support during uncertain times, ensuring that families are financially secure in the event of an unforeseen circumstance.

Provides Add-on Riders

Another key benefit of a term life insurance plan is the option to add riders for enhanced coverage. Policyholders can opt for additional riders to further strengthen their financial protection.

Offers Multiple Payout Options

Term life insurance offers flexibility in how claimants receive their funds with multiple payout options. Payouts can be withdrawn as regular income, as a lump sum or a combination of both, with part of the amount paid as a lump sum and the remainder provided as regular income.

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Term Insurance Calculator

Frequently asked questions

1. What are the tax^** benefits of a term plan?

Term plans offer significant tax benefits. You can claim a deduction of up to ₹ 1.5 lakh under Section 80C** and up to ₹ 25,000 under Section 80D^** of The Income Tax Act, 1961, for the premiums paid toward your term insurance plan. Additionally, the insurance payout is exempted subject to conditions prescribed under Section 10(10D)^** which provides you with further financial advantages.

2. What is the best age to buy term insurance?

The best time to buy term insurance is as early as possible. Purchasing a policy between the age of 18 and your 20s ensures lower premiums and long-term financial security for your loved ones.

3. What are the optional term plan benefits?

Optional benefits of a term plan include riders that can be added to an existing term plan. These provide additional financial protection and the option to customise your plan according to your needs. These flexible options cater to your diverse needs and preferences and enhance the overall value and utility of your term insurance policy.

4. What are the maturity benefits of a Term insurance plan?

The maturity benefits of a term plan do not typically apply to traditional term insurance plans. However, a return of premium term plan is an exception to this rule. In such plans, if the policyholder survives the policy term, all the premium payments are returned. While traditional term plans focus primarily on providing financial protection in case of the policyholder's absence, return of premium plans offer a unique combination of protection and savings. This makes them an attractive option.

5. What are the Benefits of buying a term insurance plan as a Non-Resident Indian (NRI)?

As an NRI, buying a term insurance plan offers several advantages. You can secure the financial future of your family back home, providing them with peace of mind. Additionally, you enjoy term insurance tax^** benefits, which can help you save on taxes.

6. Why is term insurance more affordable than other types of life insurance?

Term insurance is more affordable than other types of life insurance primarily because it provides pure financial protection without any investment or savings components.

7. How does term insurance help with debt repayment?

In the event of your untimely demise, the death benefit from a term insurance policy can be used by your family to settle any debts you may have. This plan provides a lump sum payout that allows your family to clear your dues and protect your financial assets.

8. Are Death benefits from Term Insurance taxable?

No, the death benefit from term insurance are not taxable. These benefits are exempt from income tax under Section 10(10D)^** of The Income Tax Act, 1961. This ensures that the financial support provided to your beneficiaries in the event of your death is received without any tax liability.

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Disclaimer

Please read the terms and conditions of the policy before purchase.

^** Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.

^2a The premium of ₹ 460 p.m. has been approximately calculated for a 18-year-old healthy male life with monthly mode of payment and premiums paid regularly for the policy term of 31 years with income payout option (income for 20 years) with Life Cover of ₹1 crore. Goods and Services tax and/or applicable cesses (if any) as per applicable rates will be charged extra.

^~”The premium for a term plan is dependent on factors like age, gender, Sum Assured, Policy Term, etc. Keeping all other factors constant, the premium for younger ages is lower than that of higher ages

^!aLife Cover is the benefit payable on the death of the life assured during the policy term.

^!jClaim settlement ratio is computed basis individual claims settled over total individual claims for the financial year. For details, refer to ICICI Prudential Financial Information- Business Presentation (FY2025).

^{^^}Tax benefits are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act,1961. Goods and Services tax and Cesses if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details. Tax benefits of ₹ 54,600(₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000 and health premium u/s 80D of ₹ 25,000.

^aThe online discount percentages vary according to age, policy term, premium payment term and sum assured chosen by the customer and can range between 1%-5%. The exact 5% discount appears at the following scenario: ₹ 50 lakh of life cover for a 30-year-old healthy non-smoker male (occupation: non-salaried) for a policy term of 35 years with regular pay and lumpsum payout option. The offline monthly premium inclusive of taxes will be ₹876 & online annual premium inclusive of taxes will be ₹832.

^bA discount as follows will be offered on first year’s premium of Death Benefit (excluding rider premiums, underwriting extra premiums and taxes) to salaried customers:

Premium Payment	Option Discount
Limited Pay	15%
Regular Pay	12.5%

^>1 Day is a working day, counted from the date of receipt of all relevant documents from the claimant, additional information sought by the Company and any clarification received from the claimant. The Company will be calling the claimants for verification of information submitted by the Claimant which will also be considered as part of relevant documents. Working day will be counted as Monday to Friday and excluding National holidays /Bank holidays/Public holidays.

^#Interest shall be at the bank rate that is prevalent at the beginning of the financial year in which death claim has been received. In case of breach in regulatory turnaround time, interest will be paid as per IRDAI regulations
All due premiums in the policy have been paid and the policy has been active for 3 consecutive years preceding life assured’s death.
Mandatory documents to be submitted at Branch Office- Claimant statement form, Copy of death certificate issued by local authority, AML KYC documents- Nominee’s recent photograph, Copy of Nominee’s pan card, Nominee’s current address proof, photo identity proof, Cancelled cheque/ Copy of bank passbook, Copy of medico legal cause of death, Medical records (Admission notes, Discharge / Death summary, Test reports, etc.), For accidental death - Copy of FIR, Panchnama, Inquest report, Postmortem report, Driving license.
Total claim amount of all the life policies held by the Life Assured <=₹1.5 Crore.
Claim does not require any on-ground investigation.

ICICI Pru iProtect Smart Plus: 105N205V01 (A Non-Participating Non-Linked Life Individual Pure Risk Insurance Product)

Advt No.: W/II/2009/2020-21

ICICI Pru claim Settlement Ratio^!j is 99.3% (FY-2025)

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ICICI Pru