Whatsapp Icon

A Conclusive Guide on the Best Term Insurance Plans

A Conclusive Guide on the Best Term Insurance Plans

Term insurance plans have been a rage among Indians looking for insurance plans. The reasons are obvious – low premium, good payout, and a very simple documentation process.

There are many Indian insurance companies that offer a wide range of term insurance plans to choose from. However, one might get confused with the number of options that have been offered by these insurance companies, making it difficult to select the best term insurance plan suited for their need.

In this article, we will provide you with a guide on the best term insurance plan.

What is Term Insurance?

Any life insurance policy whose validity is decided on the basis of a certain period of time selected during the inception of the policy is known as term insurance. It is also known as a 'pure protection' policy because it only provides cover against death of the insured.

The sum assured under the policy is paid to the nominee on the death of the life insured during the term of the policy.

How does a Term Insurance Plan work?

A term insurance plan covers death caused by any reason and pays a pre-defined amount upon your demise during a specific period. In case you survive, you do not need to pay any more premium.

However, if you don't survive till the expiry of the policy, then your nominee gets the entire premium spent for that time period as a claim amount.

In simple words, "If you live till maturity – You get nothing. If you die before maturity – your nominee gets the sum assured."

Factors to Consider While Buying a Term Insurance Plan:

There are certain factors that you should consider before buying a term insurance plan. Some of these factors are :

1. Needs and Objectives:

The first step is to identify your needs and objectives. What do you want the policy to achieve? Whether you need life cover for your family or an investment option, different policies cater to different needs.

2. Policy tenure

The next step is to decide the duration for which you would like coverage. Most term plans offer coverage for a period of 10, 20, or 30 years.

3. Sum assured:

The third step is to decide on the sum assured. This is the money you would like your nominee to receive in case of an unfortunate incident during the tenure of the policy.

If the sum assured is high, it will cause a significant increase in premium. However, if the amount is small, it causes an impact on coverage as well as increases the chances of future revision.

4. Rates:

The rates depend upon various factors such as age, gender, and pre-existing medical conditions.

5. Payment Method

You can either pay a single lump sum or decide on regular payments through the EMI option or a combination of both. In the case of regular payments, payment mode may be monthly, quarterly, or yearly depending on your convenience.

6. Premiums:

Term insurance plans have very low premiums. Consequently, you can get coverage for your family at a very affordable amount.

How to Buy Term Insurance Online?

To buy term insurance online, you need to complete four simple steps.

  • The first step is choosing the right plan for yourself or your family. Term plans available in the market cater to different needs of varying ages and income groups, so choose wisely!
  • The second step is to compare various policies available in the market side by side in one place. You can find all major term insurance providers listed on our website along with key information about their plans, including rates, tenure, sum assured, etc. Our website also offers free quotes that help you estimate premium amounts based on age range and sum assured requirement.
  • The third step is to apply for a policy through our website after reading policy documents carefully and understanding all details and terms and conditions. Once your application is submitted, you will be contacted by our representative within 24 hours with a detailed proposal of the term insurance policy you have chosen.
  • Finally, after choosing the right policy for yourself or your family, buy it online in just a few simple steps!

Now that you are aware of the factors to consider while buying term insurance plans compare various policies available in the market and choose one which best suits your requirements.

If you already have a term insurance plan that does not meet your current requirement, you can also switch to another plan without facing any penalty, so feel free to explore options around!


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Shining Stars

  • Non-linked, non-participating limited pay endowment Life Insurance plan
  • Designed to take care of the financial needs of your child.
  • Flexibility to opt between 2 Maturity Payout Options
  • Flexibility in Policy Term/Premium Payment Terms
  • A great short-term investment option for a child insurance policy.