Term Insurance Benefits

Financial security is vital for individuals seeking long-term stability. Term insurance offers a reliable and affordable solution to safeguard your... Read more family’s future, providing reassurance and confidence in the face of life’s uncertainties. In the event of the policyholder’s untimely demise, these benefits ensure that the dependents receive a predetermined sum, helping them maintain financial stability and meet essential expenses and obligations.

Here are the top 10 benefits of Term Plans:

1.  Financial Protection: Protects your family financially.
2. Income Replacement: Secures your family’s future with a considerable life cover.
3. Affordable Premiums: High life cover at affordable rates.
4. Debt Repayment: Covers outstanding loans or debts with a lumpsum life cover.
5. Flexible Payout Options: Option to get the benefits as lumpsum, income or both.
6. Whole Life Coverage: Multiple plans have an option to cover till 100 years of age1, thereby facilitating legacy planning.
7. Optional Riders2: Add extra coverage like critical illness, accidental cover, hospitalization, etc.
8. Terminal Illness Cover: Get advance partial lump sum benefit on diagnosis of terminal illness.
9. Maturity Benefits: Some plans offer a return of premium3 option.
10. Tax Benefits: Premiums paid and maturity benefit quality for tax benefits4Read less

Financial security is vital for individuals seeking long-term stability. Term insurance... Read more offers a reliable and affordable solution to safeguard your family’s future, providing reassurance and confidence in the face of life’s uncertainties. In the event of the policyholder’s untimely demise, these benefits ensure that the dependents receive a predetermined sum, helping them maintain financial stability and meet essential expenses and obligations.

Here are the top 10 benefits of Term Plan:

1. Financial Protection: Protects your family financially.
2. Income Replacement: Secures your family’s future with a considerable life cover.
3. Affordable Premiums: High life cover at affordable rates.
4. Debt Repayment: Covers outstanding loans or debts with a lumpsum life cover.
5. Flexible Payout Options: Option to get the benefits as lumpsum, income or both.
6. Whole Life Coverage: Multiple plans have an option to cover till 100 years of age1, thereby facilitating legacy planning.
7. Optional Riders2: Add extra coverage like critical illness, accidental cover, hospitalization, etc.
8. Terminal Illness Cover: Get advance partial lump sum benefit on diagnosis of terminal illness.
9. Maturity Benefits: Some plans offer a return of premium3 option.
10. Tax Benefits: Premiums paid and maturity benefit quality for tax benefits4. Read less

6Individual Death Claim Settlement Ratio. 7T&C apply.

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    Get Life Cover of ₹1 Crore by paying a premium of

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    ₹8,287/month

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    Tata AIA Life Insurance Sampoorna Raksha Promise (A Non-Linked Non-Participating, Pure Risk, Individual Life Insurance Plan) • UIN: 110N160V7

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    Vishal-Kapoor

    Written by

    Vishal Kapoor

    Desktop-Vishal
    Insurance Expert

    Vishal Kapoor

    Vishal Kapoor, AVP - Brand & Product Marketing at Tata AIA, has over 17 years of experience in the BFSI sector. He is responsible for driving brand strategy, product & channel marketing campaigns.

    Girish-J-Kalra

    Reviewed by

    Girish J Kalra

    Desktop-Girish
    Chief Marketing Officer

    Girish J Kalra

    Girish J Kalra, Chief Marketing Officer at Tata AIA, leading the organizations marketing & corporate communication initiatives..

    What are the key benefits of Term Insurance plans?


    Term insurance offers a wide range of benefits that make it a vital component of financial planning. Below are the term insurance benefits:
     

    • 01

      Financial Protection

      Term insurance ensures financial support for your family in case of your unfortunate demise. It helps them cover living expenses, outstanding liabilities, and future needs, providing long-term financial stability.
    • 02

      Income Replacement

      The death benefit can act as a regular income replacement for your family. Based on the payout option chosen (lump sum, periodic income, or a combination), the funds help meet every day financial requirements without disruption.
    • 03

      Affordable Premiums

      Term insurance is suitable for obtaining high coverage at low premiums. Payments can be made monthly, quarterly, semi-annually, or annually. The premium depends on your age, health, tenure, and coverage amount. Use a term insurance calculator to estimate the cost.
    • 04

      Debt Repayment

      The sum assured, or the death benefit of a term plan, can help your family clear any outstanding debts or liabilities in your absence. This ensures that the burden of loan repayment does not lead to financial stress for your family.
    • 05

      Flexible Payout Options

      Policyholders can choose how the death benefit is paid - lump sum, regular income, or a mix. Some plans also offer increasing income options, offering flexibility to match your family’s financial needs.
    • 06

      Whole Life Coverage

      Certain term plans provide coverage up to 100 years of age1, offering lifelong financial protection. This is especially useful for those seeking extended insurance for estate planning or long-term dependents.
    • 07

      Riders and Add-ons

      You can enhance coverage through optional riders2 such as waiver of premium, critical illness, and disability cover. These add-ons provide comprehensive protection beyond the basic term plan benefits offered in the base policy for a nominal additional cost.
    • 08

      Terminal Illness Cover

      Many term plans provide inbuilt terminal illness cover. In case of diagnosis of a terminal illness, a part of the sum assured is paid in advance and future premiums are waived off.
    • 09

      Maturity Benefits

      Some term plans provide a return of premium benefit, which means user will get their paid premiums back3 if they survive the policy term.
    • 10

      Tax Benefits

      Premiums paid are eligible for tax4 deductions under Section 80C, while the death benefit is tax-free under Section 10(10D), subject to the applicable terms and conditions. This makes it a tax-efficient financial product.

    Best Tata AIA Term plans

    Benefits of purchasing a Term Insurance plan early in life


    Below are the benefits of term insurance plan when purchased early in life:
     

    • 01

      Lower Premiums

      The main benefit of buying a term plan early is securing lower premium rates, since the risk associated with younger individuals is lower. Purchasing a plan later in life can result in paying significantly higher premiums.
    • 02

      Longer Coverage Period

      Your term plan can provide life cover for more years when you buy it at a younger age. Hence, you can benefit from extended coverage duration, which ensures stronger long-term financial protection for your loved ones.
    • 03

      Higher Sum Assured

      As you grow older, securing a higher sum assured may require additional considerations if you purchase a term plan at an older age. However, when you are younger, choosing a high sum assured is more accessible, subject to policy terms and conditions.
    • 04

      Financial Protection

      An early term plan offers assured financial security to your family in case of your untimely demise, ensuring they can meet regular expenses and long-term obligations without financial strain.
    • 05

      Peace of Mind

      Early insurance coverage provides confidence that your dependents are protected against future uncertainties, offering emotional comfort and stability.
    • 06

      Flexibility

      When you start early, you have greater flexibility in choosing the policy tenure, sum assured, and additional riders2 based on future life stages and goals.

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    Tata AIA Sampoorna Raksha Promise

    Get ₹1 Crore life cover @ 501/month5

    Up to 18.5% discount8 (1st year premium)

    Option to get all premiums back3

    How can Term Insurance safeguard your family’s future?

    Term insurance is a cost-effective way to secure your family's financial future. Here’s how it offers protection and stability during uncertain times:

    • Income Replacement:

      If you are the sole or primary earning member, your family depends on your income to manage daily living expenses. In the unfortunate event of your demise, a term insurance policy provides a lump sum benefit to your nominee. This amount serves as a substitute for your lost income, helping your family meet essential expenses such as rent, groceries, and education. It ensures that they maintain a reasonable standard of living, even in your absence. Term insurance can be suitable for individuals who want to secure their family's financial future against the risk of income loss.

    • Debt Repayment:

      Many individuals have financial obligations such as home loans, car loans, or personal loans. In case of your untimely death, your family may face difficulty repaying these liabilities. A term life insurance benefits may help mitigate this burden. The policy pay-out can be used to settle outstanding debts, preventing your family from resorting to asset liquidation or borrowing additional funds. This ensures financial stability and peace of mind for your loved ones.

    Why should you purchase a Term Insurance plan?

    Unforeseen life events can lead to financial instability for your family in your absence. In such a case, a term insurance plan benefits by offering long-term financial security. Here are some key reasons to consider buying one:

    • Financial Security

      Your family receives the protection of a comprehensive life cover throughout the policy term. In your absence, the sum assured is paid as a death benefit, which secures their long-term financial requirements.

    • Affordable Premiums

      Term insurance plans are widely recognized for providing affordable premiums even with substantial coverage. By comparing multiple plans, you can efficiently select a suitable life cover to protect your family without straining your finances.

    • More Flexibility

      Whether it is the term length, premium payment modes, or rider options, term insurance plans offer considerable flexibility. This ensures that a basic term plan can effectively cater to the varied requirements of individual policyholders.

    • Choice of Payout

      Your family may receive the death benefit as a lump sum, regular income, or a combination of both, based on their requirements. You can choose the payout mode considering their anticipated financial needs.

    How to choose the best Term Insurance policy?

    With numerous term plans accessible online, selecting the right policy for your requirements may require some effort. However, with the help of the following parameters, securing sufficient term insurance coverage becomes straightforward:

    • Sum Assured: Check the minimum and maximum limits offered by various policies for the term plan’s sum assured. This provides enhanced flexibility in selecting appropriate coverage for your family’s financial protection.
    • Policy Term: Look for a term plan that offers flexible policy durations. You should have the option to choose a term that aligns with your long-term financial goals. Certain term plans even provide whole life coverage up to 100 years of age, ensuring extended protection for your family.
    • Affordable Premiums: Though term plan premiums are generally affordable, the premium amount may differ across insurers. By evaluating and comparing multiple policies, you can identify a plan that offers cost-effective coverage, ensuring you are not financially strained.
    • Claim Settlement Ratio: The term insurance provider should have a reliable reputation and a consistently high claim settlement ratio. This metric reflects the insurer’s ability to settle claims promptly and efficiently, ensuring your family receives the death benefit without any delays or complications.
    • Rider Options: Your term plan should offer a range of optional riders2. Hence, you can choose additional protection based on specific risks or situations, such as critical illness or hospitalization costs, to enhance your base coverage.
    • Online Process: Look for a term plan that can be conveniently bought online. Apart from a single click access to the policy brochure, you can also customize the coverage digitally and pay premiums through secure online modes.

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    1.What is the primary advantage of term insurance?
    The primary advantage of term insurance is its ability to provide extensive life cover at an economical premium. It ensures financial security for dependents in the event of the policyholder's unexpected demise.

    2.What is the right age to purchase a term plan?
    You should purchase a term plan as early as you become eligible and start working. Purchasing a term plan early in life ensures lower premiums and allows for a longer coverage duration.

    3.What is the right amount for term insurance?
    The suitable term insurance amount depends on your income, financial responsibilities, and long-term goals. It should be sufficient to cover your family’s living expenses, debts, and future needs.

    4.How should I decide on the required term insurance coverage?
    To determine the term insurance coverage, you should consider the following factors:

    ● Your family’s future financial requirements
    ● Long-term financial goals and ongoing commitments
    ● Potential emergency expenses
    ● Outstanding loans and liabilities

    6.What is the difference between the benefits of term insurance and life insurance?
    Life insurance offers both death benefit and maturity benefits to the beneficiary, whereas term insurance provides the benefit of life cover. For more details,read here.

    7.Can I purchase multiple term insurance plans?
    You can buy multiple term plans if needed. However, opting for a single plan with higher coverage offers convenience, simplified premium management, and comprehensive protection for your family’s financial future.

    8.What are the optional term plan benefits?
    Riders are optional add-ons to a term insurance plan that offer enhanced protection against specific risks like critical illness, disability, or accidental death, for an additional but affordable premium.

    9.Can I extend my term insurance to ensure critical illness coverage?
    Yes, some term insurance plans offer critical illness coverage through a rider6, which provides an additional sum if the policyholder is diagnosed with a listed illness, enhancing financial protection beyond the base policy.

    10.What are the benefits of using term insurance to cover outstanding debts?
    Term insurance helps repay outstanding debts in case of the policyholder’s demise, ensuring the family is not burdened financially and can retain assets without the need for loans or sale of assets.

    11.What are the tax benefits in term insurance?
    The premiums paid for a term plan qualify for tax4 deductions under Section 80C, while the death benefit received by nominees is fully exempt from tax under Section 10(10D) of the Income Tax Act.

    12.Are death benefits from Term Insurance taxable?
    No, death benefits received from a term insurance policy are not taxable4. They are exempt under Section 10(10D) of the Income Tax Act, subject to the fulfilment of specified conditions.

    13.What are the benefits of purchasing term insurance online?
    Buying a term plan online saves time and effort. You can compare options, add suitable riders2, and make premium payments instantly through secure digital channels, all from the comfort of your home.

    14.What happens if the policyholder survives the policy period?
    A pure term plan offers no payout if the policyholder survives the term. However, a return of premium plan provides a maturity benefit and provides refunds of the total premiums paid during the policy term.

    15.Does a term insurance plan give maturity benefits?
    If you choose a return of premium term plan and survive the policy term, you will receive a maturity benefit equal to the total premiums paid, excluding applicable taxes.

    16.Can I withdraw funds from my term insurance plan?
    Term insurance does not permit fund withdrawals during the policy term. However, in the event of the policyholder’s death, the sum assured is paid to beneficiaries as a lump sum or regular income.

    Disclaimers

    • Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V07)

    • Tata AIA Maha Raksha Supreme Select - Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V11)

    • 1Not applicable under PoS, please refer sales brochure for more information

    • 2Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.

    • 3Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier.

    • 4Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

    • 5Illustrated premium of ₹501 is the monthly premium excluding taxes for a 20 yr. old female, Standard Life, Non-Smoker for ₹1 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) under Life Promise Option of Tata AIA Sampoorna Raksha Promise with first year premium discount of 10% for digital purchase and 8.5% for salaried person. Please refer Benefit Illustration for more details.

    • 6Individual Death Claim Settlement Ratio is 99.41% for FY 2024-25

    • 7Applicable to only non-early claims with more than 3 years of policy duration, non-investigation cases, up to Sum Assured of ₹50 Lakh. Applicable for branch walk in. Time limit to submit claim to Tata AIA Life Insurance is 2 pm on working days. Subject to submission of complete documents. Not applicable for ULIP policies and open title claims.

    • 8This includes first year digital discount of 10% for Limited Pay/Regular Pay and 8.5% salaried discount. For Single Pay, 1% discount will be available for online purchase and salaried discount each.

    • 9Illustrated Premium of ₹679 is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for 2 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) with Life Secure plan option of Tata AIA Maha Raksha Supreme Select with first year premium discount for digital purchase and salaried person.

    • This product is underwritten by Tata AIA Life Insurance Company Ltd.

    • The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.

    • Insurance cover is available under this product.

    • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.

    • Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.

    • In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.

    • L&C/Advt/2025/Jul/2763