What is Term Insurance?

Term insurance is the most important 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 our online calculator.


Our Top Selling Term Plan1

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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

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 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 Benefits

    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.

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

25 times of your annual income
20 times of your annual income
15 times of your annual income
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


1 Top selling term life insurance planbought by customers through the website with our Zero-Paper-Process. Source: Company BuyOnline data - Dec 2015 till date.

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. 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 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 Section 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 above.

The above mentioned premium rate is for ICICI Pru iProtect Smart for `1 Crore of 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.

ICICI Pru iProtect Smart UIN: 105N151V03. W/II/2281/2018-19.



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