What is Term Insurance?
What is Term Insurance?
Term insurance is the simplest and most affordable form of life insurance.
Term plans provide peace of mind to you by ensuring that your family is financially secure and independent, in your absence. If you are the person insured, you pay a specific premium amount at fixed intervals during the policy term. In the event of your unfortunate demise during the policy term, your nominees will receive the ‘Sum Assured’ which you had selected while purchasing the plan.
Term insurance is a form of life insurance that is active for a fixed period of time (popularly referred to as the term). These plans are easy to understand and provide financial protection that your family will need if you are no longer around.
New age term plans like ICICI Pru iProtect Smart provide additional protection through optional benefits like Critical Illness Cover and Accidental Death Cover. These benefits can be selected very easily through Term Insurance Premium calculator.
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 first diagnosis of 34 Critical Illnesses (optional)2
- Accidental Death Benefit upto
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 accident
- Tax benefits up to
54,600 under Section 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
5 reasons to buy a Term Insurance Plan
High Life Insurance Amount
Term insurance plans provide a high life insurance amount at affordable premium. For instance, with ICICI Pru iProtect Smart, you can get a Life Cover of
1 crore at a premium of just
490 per month. This premium rate is for
1 Crore life cover for a 25 year old healthy male for a policy term of 21 years with regular income payout option. The annual premium will be
5725 & the monthly premium will be
490. The premium amounts are inclusive of taxes.You can also get critical illnesses cover
Besides protecting your family in your absence, new-age term insurance plans like ICICI Pru iProtect Smart can also provide cover against critical illnesses. By paying additional premium, you can get a lump sum pay-out on first diagnosis of a critical illness like heart attack, cancer, kidney failure, etc.You can also get accidental death cover
You can get additional protection by attaching accidental death benefit to your term plan. With this benefit, your family will get a larger payout in case of your unfortunate demise due to an accident.Tax Benefits6
Term Insurance plans offer tax benefits on premiums paid under Section 80C . New-age Term plans with critical illness cover also offer additional tax benefits on premiums paid under Section 80D. You also get tax benefits under Section 10(10D) on the money that your family receives in case of an unfortunate event.Support In Case Of Disability
In term life insurance plans like ICICI Pru iProtect Smart, the insurance company waives your future premiums in case of permanent disability due to an accident. This ensures that the life cover continues, even if you are unable to pay the premiums.
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 |
51-60 |
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
✅ What are the factors that affect the Term Insurance premium?
The insurance company considers a lot of factors before deciding your premium. The main ones are - age, gender, personal and family’s medical history, geographical location, occupation, BMI index, and lifestyle.
✅ What is term insurance rider?
“Riders” are add-on benefits or amendments attached to your basic term insurance plan. These can be purchased at a nominal rate. They allow the policyholder to customize the plan according to their needs. ICICI Prudential offers these riders - Waiver of Premium, Critical illness, Accident Death, and Permanent or Partial Disability.
✅ What is a terminal illness benefit?
Terminal Illness benefit pays out a lump sum amount to the policyholder if they are diagnosed with an end-stage illness and are expected to die within 12 months. This additional benefit provides cover for an unforeseen disease which is not curable.
✅ Does term insurance covers death outside India?
Yes, deaths outside India are covered in term insurance plans, provided the insurance company is informed about the accident well in time, along with the required details. However, the company may reject the claim if the death occurs due to travelling to unsafe countries. Talk to your policymaker for finer details.
✅ What are the factors that affect the Term Insurance premium?
The insurance company considers a lot of factors before deciding your premium. The main ones are - age, gender, personal and family’s medical history, geographical location, occupation, BMI index, and lifestyle.
✅ What is term insurance rider?
“Riders” are add-on benefits or amendments attached to your basic term insurance plan. These can be purchased at a nominal rate. They allow the policyholder to customize the plan according to their needs. ICICI Prudential offers these riders - Waiver of Premium, Critical illness, Accident Death, and Permanent or Partial Disability.
✅ What is a terminal illness benefit?
Terminal Illness benefit pays out a lump sum amount to the policyholder if they are diagnosed with an end-stage illness and are expected to die within 12 months. This additional benefit provides cover for an unforeseen disease which is not curable.
✅ Does term insurance covers death outside India?
Yes, deaths outside India are covered in term insurance plans, provided the insurance company is informed about the accident well in time, along with the required details. However, the company may reject the claim if the death occurs due to travelling to unsafe countries. Talk to your policymaker for finer details.
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