Term Insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. With term insurance, you can get a large amount of life cover (i.e. sum assured) at a relatively low premium rate. The benefit amount is paid out to the nominee in case of the death of the person insured during the term of the policy.
COMP/DOC/May/2020/85/3608
Our Top Selling Term Plan1
Life cover with a range of optional benefits to give complete protection to you and your family.
- Life cover at affordable rates
- Get claim payout on the first diagnosis of 34 Critical Illnesses (optional)2
- Accidental Death Benefit up to ₹ 2 Crore (optional)3
- In-built Terminal Illness Cover - you get the full sum assured if you are diagnosed with a terminal illness4
- In-built Premium Waiver on permanent disability due to an accident
- Tax benefits up to ₹ 54,600/- under Sections 80C, 80D 10(10D)5
- Choice of 4 payout options - lump sum, regular income, increasing income and lump sum+regular income
- Get covered till the age of 99 years
Why do you need Term Insurance?
- Financial security for your family: If you are the primary earner, buying a term plan would take care of the monthly financial needs of your family in your absence.
- Secure your Assets: You might have taken a loan like an education loan, home loan, personal loan, or a vehicle loan. The repayment of these loans can financially weigh down your family in your absence. The proceeds from your term insurance plan pay off your loans and ensure that the financial burden does not fall upon your family.
- Risks related to lifestyle: The probability of developing a lifestyle disease increases with age#. Some term insurance plans offer critical illness protection which not only protects your family in case of uncertain eventualities but also during your lifetime. Critical illness2 benefit provides you financial security against various life-threatening health conditions such as cancer & heart attack.
Features of Term Insurance
When you understand the features of a term plan, you can have a clearer idea of the meaning and benefits of term insurance. Some of the hallmark features of term plans include the following:
Affordability: Term insurance policies are some of the most affordable life insurance products. The premiums you have to pay for term plans are usually much lower than other life insurance policies. You can get life cover up to ₹ 1 crore for a monthly premium as low as ₹ 485/-*.
Age of entry: With the minimum eligibility age of 18 years, you can get term plans early in life. Buying a term plan at a young age helps you get sizeable coverage at very reasonable premiums.
Policy Term: Term insurance provides coverage for the specified number of years, known as the policy term. In case of an unfortunate event during this period, your nominee will receive the sum assured in your policy.
Term insurance tenures can start from 5 years and extend up to your 99th birthday if you choose the whole life insurance option. Depending upon how long your loved ones might need your financial support, you can select the right policy term for your needs.
Maturity Benefit: Term insurance provides financial protection to your family in case of an eventuality. It is not meant to be used as an investment instrument. Thus, it does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure.
However, the very absence of this investment component makes term plans so affordable. One of the unique features of term insurance is that your entire premium goes into securing your insurance cover. No part of it is deducted for investment purposes. Thus, you can get substantial coverage, enough to cover the current and future expenses of your loved ones at pocket-friendly premiums.
Also, you can opt for term insurance with a return of premium feature if you want some maturity benefits. After the policy matures, you will get back the entire premium you had paid throughout the policy tenure with such plans.
Flexibility in Premium Payments: You can pay your term plan premiums as per your convenience. Annual, semi-annual, quarterly, or monthly premiums are some of the premium payment frequencies you can choose. Such regular premium payments are ideal for salaried individuals with a stable income.
You can also go for a one-time, lump sum premium payment if you have some surplus funds lying unused. Alternatively, you can go for a limited pay option and pay off your premiums within the initial few policy years. Your life cover remains active for the entire term plan tenure.
Thus, if you are self-employed, with variable cash inflows, you can take advantage of such single pay or limited pay options and keep your loved ones financially protected against life’s uncertainties.
Life cover: A term plan keeps your family secure from financial challenges if an unfortunate event occurs. It provides a life cover of your choice at affordable premiums. With this life cover, your loved ones get an assured sum in case of an unwanted incident during the policy period. The payout can help your family avoid compromising with the lifestyle you want for them in your absence.
Additional add-ons: You can add riders or add-on benefits to your term insurance policy to extend the scope of your base coverage at a nominal cost.
Various types of riders are available with term plans, such as:
- Critical Illness7 Rider
- Accidental Death8 Cover
- Waiver of Premium Benefit in case of a permanent disability9
Increasing term insurance: Term plans allow you the flexibility to update your policy as per the changing financial needs of your life. You can increase the sum assured or add riders to your plan at your life’s key milestone events.
Thus, after marriage, or when you welcome your children into your family, and your financial liabilities increase, you can enhance your coverage. It enables you to provide your loved ones with the right financial backup against unforeseen situations.
Tax benefits: Term plans offer many tax6 benefits. Under Section 80C of the Income Tax Act, 1961, you can claim deductions up to ₹ 1.5 lakh on the premium you pay for your term plan. The payouts are also tax-exempt under Section 10(10D). Moreover, with an add-on health-related rider, you can avail of tax6 benefits under Section 80D on the premium paid for the rider.
Premium waiver: This benefit waives off all your future premiums in the case of a disability9 caused by an accident. Hence, even if you fail to pay the premiums due to any income loss from a disability, you will still be able to keep your family’s future secure.
Get all these features and secure yourself and your family with ICICI Pru iProtect Smart, which ensures a safety net for your family in your absence.
Things to know before buying a Term Insurance Plan
How much life cover do I need?
You can get a simple, quick and clear answer to this question by calculating your Human Life Value or HLV. HLV is an easy-to-use numeric method of calculating the amount of Life Cover that you may need. The basic thumb rule that can be used to find out your HLV is as follows:
| Age In Years | Income multiple |
|---|---|
| 18-35 | 25 times of your annual income |
| 36-45 | 20 times of your annual income |
| 46-50 | 15 times of your annual income |
| 51-61 | 10 times of your annual income |
For example, if a 32-year-old man has an annual income of ₹ 5 lakh, the ideal Life Cover for him would be 25 x 5 lakh = ₹ 1.25 crore.
Human Life Value Calculator
We have made a simple, free online calculator to help you understand how much your life insurance cover should be to keep you and your family secure
FAQs
✅ Who is eligible for term insurance?
✅ What are the factors that affect the Term Insurance premium?
✅ What is a term insurance rider?
✅ What is a terminal illness benefit?
✅ Does term insurance covers death outside India?
✅ Can I buy term insurance for a spouse?
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Disclaimers
1 Top selling term life insurance plan bought by customers through the website with our Zero-Paper-Process. (Source: Company BuyOnline data - Dec 2015 till Mar 2020)
2 The critical illness benefit is an accelerated benefit & the death benefit will be reduced by the critical illness cover paid to the policyholder. To know more about the illnesses covered, please refer to the sales brochure.
3 Available only under Life Plus and All in One option. The maximum amount that can be availed is ₹ 2 Crore and will be paid as a lump sum.
4 For Terminal illness, policy will terminate on payment of this benefit.
5 Tax benefit of ₹ 54,600/- ( ₹ 46,800/- u/s 80C and ₹ 7,800/- u/s 80D) is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000/- and health premium u/s 80D of ₹ 25,000/-. Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 80CCC, 10(10A), (10D) 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, before acting on the above.
6 Tax benefits are subject to conditions under Sections 80C, 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, before acting on the above. Tax benefit of ₹ 54,600/- ( ₹ 46,800/- u/s 80C and ₹ 7,800/- u/s 80D) is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000/- and health premium u/s 80D of ₹ 25,000/-.
7 Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One option. This benefit is payable, on the first occurrence of any of the 34 illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The ACI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about the ACI Benefit and terms & conditions governing it, kindly refer to the sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.
8 Accidental Death benefit (ADB) is up to ₹ 2 crore (subjected to underwriting guidelines). ADB is available in Life Plus and All in One option. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.
9 On diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about the definitions and terms & conditions applicable for permanent disability due to accident, kindly refer to the sales brochure of ICICI Pru iProtect Smart.
* The given premium is applicable for an 18-year-old healthy male life with the monthly mode of payment and premiums paid regularly for the policy term of 18 years with income payout option with Life Cover of ₹ 1 crore. Goods and Services Tax and/or applicable cesses (if any) as per applicable rates will be charged extra.
#Influence of Age on the Association between Lifestyle Factors and Risk of Hypertension - https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3721664/
ICICI Pru iProtect Smart UIN: 105N151V06. W/II/3821/2021-22 .