What is a rider in term insurance?

A rider^ in term insurance is an add-on cover that can enhance the financial benefits of term insurance during the policy tenure based on certain scenarios. It can be availed at an additional cost and is apart from the regular life cover offered. For example, a rider that covers critical illnesses can provide a lump sum or regular income for a defined income period when the policyholder is diagnosed with a critical illness such as cancer during the policy period. The rider benefit can be used to pay for the medical or hospitalisation expenses to reduce the financial burden.

What is a term insurance premium?

A term insurance premium is an amount you regularly pay throughout the term insurance policy tenure or as a single payment during policy inception, for which your insurance provider will agree to provide the sum assured to your nominee in the event of your unexpected demise during the policy period.

What are the tax benefits of term life insurance?

Based on Income Tax Act 1961, under Section 80C, the premium you pay for the term life insurance will qualify for the tax# deduction benefits, and under Section 10(10D), the payouts will qualify for the tax exemption benefits, subject to the tax provisions and conditions.

Can I add a rider to an existing term insurance policy?

Riders are added to the term insurance policy during policy inception. However, you can add it to the existing policy if your insurance provider has the option to do so, for example, during the annual premium payment.

What are the documents required to purchase a term insurance policy?

The documents required to purchase a term insurance policy are as follows: Proof of income - Salary slips, ITR Returns filed. Proof of identity - Passport, Aadhaar Card, etc. Proof of address - Aadhaar Card, Ration Card, etc. Medical reports

Can I purchase term insurance for my spouse?

You can purchase a joint term insurance policy and include your spouse for the joint life coverage. In the event of your unexpected death, the term policy will continue to exist, and upon the unexpected demise of your spouse, the benefits will become payable to your nominee.

Does a term life insurance policy cover death outside India?

A term insurance policy covers death irrespective of where it happens, whether inside or outside India.

What is the minimum and maximum age applicable for purchasing a term insurance plan?

The minimum and maximum age can differ between the insurance providers and their term insurance policies. Most commonly, it is 18 years and 65 years of age. This can vary as per the plan option chosen.

Do women need term insurance coverage?

A woman's role in the family is distinct, and her family might depend on her financially or non-financially. In either case, the family will require financial compensation to manage her absence making term insurance coverage necessary. For example, suppose a woman is a housewife responsible for household activities, and she meets with an unexpected demise. In that case, her family will have to find an alternative to manage her responsibilities at home, which becomes a financial liability. A lump sum death payout can help reduce this financial burden.

Can NRIs purchase term insurance in India?

NRIs can purchase term insurance in India. Geographical boundaries do not restrict or pose a hindrance to purchasing term insurance in India. While In India, Life insurance policy can be purchased in India easily through quick, digital process. When outside India, NRI can purchase the life insurance policy online from their current place of residence subject to our Board approved underwriting policy.

Term Insurance vs Whole Life Insurance, which is a better option?

Term insurance provides life cover for a certain period, and whole life insurance provides financial coverage for life until death. The better option among the two will depend on your individual financial commitments. For example, whole life insurance will be a good choice if you have a dependent family throughout your life. On the other hand, if you have a family who can take over your responsibilities or you have sufficient financial resources for future financial commitments, term insurance can be a better choice.

What are the benefits of purchasing term insurance online?

When you purchase term insurance online: You can compare the features and benefits of the different types of term plans and their options to choose a suitable policy. It is cost-effective compared to purchasing it offline. Furthermore, you can get additional discounts when you purchase term insurance online. It is less time-consuming to purchase term insurance online.

What does a critical illness benefit in term insurance?

A critical illness benefit in term insurance is an add-on cover that provides an additional financial benefit during the policy tenure to pay for the hospitalisation expenses if you are diagnosed with a critical illness such as cancer, cardiac arrest, etc. You can receive the payout as a lump sum or a regular income for a defined period.

What is the process for claiming term insurance benefits?

You can claim term insurance benefits in simple steps online: Navigate to the Tata AIA Life Insurance Online Claim Intimation page. Provide the details such as Policy No., DOB, Mobile No., and Email ID of the claimant. Get authenticated for the claim settlement process. Download the applicable claim form based on your requirement, such as death claim form, disability claim form, etc. Fill out the necessary details. Upload the claim request form and the necessary documents, such as the death certificate, FIR for an accident, etc., and complete the claim settlement request process. Upon verification, you will get an intimation of the claim settlement progress. You can also claim the term insurance benefits offline by contacting us at the nearest branch office or our toll-free number.

Is the term life insurance premium refundable?

The term insurance premium is not refundable. However, if you wish to cancel the term policy during the free look-up period, you will receive a refund of the premium paid. Furthermore, you can opt for the return of premium option to receive a refund of the premium as a maturity benefit at the end of the policy tenure if you outlive the policy period.

What is a free-look period in term insurance?

A free look-up period in term insurance is a period of 30 days starting from policy inception provided by the insurance provider if you had purchased the policy online, within which you can terminate the term insurance policy. You can cancel the term insurance policy if you are not satisfied with the policy terms and conditions and receive a refund of the premium amount paid.

Can I increase my term life insurance coverage?

You can increase the coverage for your term insurance plan if it has the option and flexibility to allow for the same. For example, our Tata AIA Life Insurance Sampoorna Raksha Supreme - A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03) provides the option to increase the sum assured at the different milestones~ in your life, such as when you get married, blessed with children, etc.

Can I cancel my term insurance plan at any time?

You can cancel term insurance at any time. If you cancel it during the free look period, you will get a refund of the premium paid. And if you cancel it any time further, you will receive a surrender value that the term policy has generated until that time of the policy period. And the benefit will be less compared to the actual benefits the term policy was designated to provide for the policy tenure. Therefore, cancelling the term insurance policy at any time is not advisable.

How is term life insurance coverage determined?

Term life insurance coverage can be determined in the following ways: Based on Human Life Value - You can determine the coverage required based on your income, expenses, loans and liabilities, and future financial commitments accounting for the inflation rate in this method. You can utilise our Tata AIA Life Insurance Human Life Value Calculator to determine this value. Based on expenses - You can also determine the sum assured based on your expenses, such as routine utility bills, loans and liabilities, and future financial goals. General thumb rule - You can also consider the general thumb of calculating the sum assured as 10 times your current annual income. Term insurance calculator - You can also utilise our Tata AIA Life Insurance Term Insurance Calculator to determine the sum assured and the applicable Term insurance premium for the required policy period.

Is the term insurance premium fixed for the policy period?

The term insurance premium for a regular policy will stay the same unless any changes are made to the tenure, sum assured, coverage, riders, etc., of the policy. Any changes in the inclusive tax rate structure may also change the policy premium.

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What is Term Insurance?

A term insurance plan is a pure protection life insurance policy that offers a death benefit to your nominee if you pass away during ... Read more the policy term. Unlike other life insurance types, it does not offer maturity benefits. A term plan:

1. Pays death benefit to the nominee on the policyholder’s demise during the term
2. Lower premiums compared to other life insurance types
3. Provides fixed term length of 10 to 40 years or till age 100 (in whole-life plans)
4. Allows increasing coverage with riders^ like critical illness or accidental death Read less

A term insurance plan is a pure protection life insurance policy that offers a death ... Read more benefit to your nominee if you pass away during the policy term. Unlike other life insurance types, it does not offer maturity benefits. A term plan:

Here are the top 10 benefits of Term Plan:

1. Pays death benefit to the nominee on the policyholder’s demise during the term
2. Lower premiums compared to other life insurance types
3. Provides fixed term length of 10 to 40 years or till age 100 (in whole-life plans)
4. Allows increasing coverage with riders^ like critical illness or accidental death Read less

Buy Tata AIA Life
Term Insurance Plans Online

Get life cover up to 100 years of age ^*
Increase life cover at important
milestones such as marriage of childbirth
Get your premium amount^$ back

*T&C apply

Get 1 Crore life cover
@Rs. 501/month**

NRI?

Yes

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Written by

Vishal Kapoor

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.

Reviewed by

Girish J Kalra

Chief Marketing Officer

Girish J Kalra

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

Why is Term Insurance Important?

After gaining insight into what is term insurance, let’s learn about it’s importance.

Financial Protection: Secures your family’s financial future in your absence.

Debt Repayment: May help clear outstanding loans or liabilities.

Asset Preservation: Prevents forced liquidation of assets like a home or business.

Health Risk Coverage: Offers critical illness riders^ for added protection.

Comprehensive Security: Ensures stability during life and unforeseen events.

After understanding term insurance meaning and its importance, let's look at some popular Tata AIA term insurance plans.

Popular Tata AIA Term Insurance Plans

Tata AIA

Sampoorna Raksha Promise

Key benefits

Option to get 100% of the premiums back^$
Life cover up to 100 years*
15% lower premium for women

Calculate Premium Know More

Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V07)

Tata AIA

Maha Raksha Supreme Select

Key benefits

Get ₹2 Cr Life cover @768/month¹
Get 18.5% discount² on 1^styear premium
Tax benefits as applicable

Calculate Premium Know More

Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V11)

Who Should Purchase Term Insurance Plans?

Here's a breakdown of who should consider buying a term insurance cover:

Young Individuals

Starting early offers the benefit of lower premiums and longer policy terms.

May be suitable for individuals with education loans, car loans, or other liabilities.

Helps in the repayment of loans after death, preventing financial stress on parents or family.

Fewer family commitments allow more investment in high-cover plans.

Example: A 24-year-old software engineer with a student loan can lock in a ₹1 crore death benefit at a very low premium.

Married Individuals and Young Parents

Marriage and parenthood increase your financial responsibilities significantly.

A term insurance plan provides a death benefit to support your spouse’s and child’s future.

Helps secure key financial goals like home loans, education, or daily living expenses.

Example: A newly married couple planning for children can use term insurance with riders^ like critical illness to stay protected.

Working Women

If your income supports your household in any way, term insurance coverage becomes essential.

Offers financial security for the family in your absence.

Helps cover routine expenses, repay existing loans, and meet long-term financial goals.

Riders^ in term insurance, such as accidental death or critical illness, offer additional protection.

Example:A working mother securing her family’s future while managing EMIs can benefit from a term plan.

Businessmen

Entrepreneurs and business owners often carry significant financial liabilities.

A term insurance plan ensures your family or business partners do not have the burden of unpaid loans.

Offers a death benefit to handle liabilities and business continuity.

Can include riders^ for added risk protection.

Example:A 40-year-old business owner with expansion loans can use term insurance to avoid sale of family assets to repay outstanding dues.

Retired Individuals

You may have responsibilities, even after retirement, especially if you have dependent family members.

May be suitable for retirees supporting a spouse, child with special needs, or any dependent.

Helps cover medical and living expenses in your absence.

Can include riders^ for added risk protection.

Example:A 65-year-old with a dependent spouse can opt for a whole life term plan with affordable premiums and rider benefits.

Why Should You Purchase a Term Insurance Plan?

Understanding term plan meaning can benefit investors in the long run. Moreover, knowing why you should purchase a term insurance plan helps you make informed and future-ready financial decisions.

Secure Family’s Financial Future

A term insurance policy can protect your family’s financial well-being by offering a lump sum death benefit to your nominee in the event of your untimely demise. This amount can help them manage daily expenses and achieve important financial goals such as your child’s education, marriage, and other future needs.
Secure your Assets

During your working years, you may have expanded your asset portfolio by starting a business, or purchasing a house, vehicle, or other valuables. To acquire these assets, you might have taken loans or borrowed funds from various financial institutions. In the event of your untimely demise, your family will be responsible for repaying these liabilities, and if they are unable to arrange the necessary funds, they may risk losing these valuable assets. The death benefit from a term insurance policy can assist your family in settling these outstanding debts, thereby easing their financial burden and helping them retain the assets.
Cover Risks

With the passage of time and social influence, you may develop habits such as smoking or alcohol consumption, which can adversely impact your health. In the event of your untimely demise, this may cause emotional and financial distress to your dependent family members.

In addition, if you are employed in an occupation involving physically demanding or hazardous work, such as in a factory, construction site, or power plant, the risk of accidental or work-related death increases. A term insurance plan can help mitigate such risks by providing a death benefit, enabling your loved ones to manage financial instability in your absence.
Cover Illness and Injuries

Riders^ in a term insurance plan additional financial protection to cover medical and hospitalisation expenses if you are diagnosed with a critical illness or terminal illness or suffer a major injury during the policy term.

Why Choose Tata AIA Term Plans?

Tata AIA Life Insurance stands out as a trusted name in the term insurance sector, offering comprehensive protection, various riders^ and customer-centric features. Here’s why millions choose Tata AIA’s term insurance plans for their family’s financial security:

4-Hour Express Claim Settlement*

Tata AIA ensures fast-track claim processing to reduce your family's stress in difficult times.

With the 4-hour express claim settlement feature, eligible claims are settled swiftly, offering immediate financial relief.

This fast service underlines Tata AIA’s commitment to trust and transparency.

99.41% Individual Death Claim Settlement Ratio

A high death claim settlement ratio reflects the insurer's reliability in honouring claims.

In FY 2024–25, Tata AIA achieved an impressive 99.41% claim settlement, showcasing its commitment to policyholder’s welfare.

Ensures peace of mind that your loved ones will receive the death benefit without hassles.

₹85 Lakh+ Families Protected

Over 85 lakh families have trusted Tata AIA to safeguard their financial future.

This widespread adoption reflects the brand’s credibility and customer satisfaction across India.s.

With growing numbers, Tata AIA continues to extend its promise of term life insurance protection for all.

Affordable Premiums Starting from ₹501/Month**

Entrepreneurs and business owners often carry significant financial liabilities.

You can start your term insurance plan with just ₹501 per month, making it accessible to all income groups.

Affordable pricing allows even young professionals and first-time buyers to get high term insurance coverage early.

Suitable for anyone seeking cost-effective financial protection for their family.

Features of a Term Insurance Policy

A term insurance plan is designed to offer comprehensive life cover with flexible features that help secure your family's financial future. Below are its key features:

Higher sum assured
: A term insurance plan can offer the required life cover to safeguard your family during the policy tenure. Compared to other types of life insurance, a term plan generally provides a higher sum assured for the same premium amount. Therefore, if your primary goal is to obtain pure life protection, a term insurance plan is the suitable option.
Affordable Premiums
: A term insurance policy offers a higher sum assured at an affordable premium. You can further reduce the premium by starting early, opting for a longer policy tenure, and choosing an adequate sum assured based on your financial goals.
Policy tenure
: The policy tenure is a critical aspect of a term insurance plan. It should be selected based on your remaining working years until retirement, the financial dependency of your family members, and their future financial goals. A longer policy duration generally provides greater overall benefits.
Riders^
: Riders^ are optional add-on covers that provide additional financial benefits under specific circumstances. It is advisable to review the riders^ available with your term insurance plan, assess their relevance, and select them based on your lifestyle, medical history of the family, and occupational risks. Riders^ can offer enhanced protection in the following scenarios:
- Accidental death -In case the death is caused by an accident, an additional payout is provided to the nominee. This rider is particularly useful for individuals living in accident-prone areas or those who are frequent travellers or less experienced drivers.
- Total or permanent disability - Total or Permanent Disability Rider:If you suffer from a total or permanent disability due to an accident, the future premiums are waived while the policy continues to offer coverage for the remaining tenure.
- Critical or terminal illnesses -If diagnosed with a critical or terminal illness during the policy period, this rider provides a lump sum amount to help cover medical and hospitalisation expenses, thereby reducing financial strain during treatment.
Long-term Coverage
: A term insurance policy offers long-term protection, typically ranging from 20 to 40 years. Choosing a longer policy tenure often results in a lower and more affordable premium, especially when the plan is purchased at a younger age.

Benefits of Term Insurance

Knowing term insurance meaning provides several financial advantages that ensure your loved ones are protected in your absence. The key benefits of term insurance include:

Financial Security:

A term insurance plan offers a death benefit to your nominee in the event of your untimely demise. This amount can help your family meet their financial needs, maintain their standard of living, and achieve long-term financial goals in your absence.
Flexibility:

Term insurance plans offer enhanced flexibility. You can select the sum assured and policy tenure based on a premium that is affordable over the long term. Additionally, you have the option to choose from various premium payment modes and payout structures, based on your financial preferences and goals.
Premium Payment Options:

You can choose from the following term insurance premium payment options:
- Single Premium Payment:The entire premium amount is paid once at the inception of the policy.
- Limited Premium Payment: You pay premiums for a fixed duration, while the policy benefits continue for the entire policy term.
- Regular Premium Payment: Premiums are paid consistently throughout the policy tenure.
Payout options:

You can choose from the following term insurance payout options, depending on your family's financial needs:
- Lumpsum: If your family requires a one-time amount to meet long-term financial goals or repay outstanding debts in your absence, you may opt for the lump sum payout option.
- Regular Income: If your family may find it difficult to manage a large sum and prefers a steady income for day-to-day expenses and utility payments, the regular income option is more suitable.
- Combination of Lump Sum and Regular Income: This option is suitable if you wish to provide an initial lump sum to settle liabilities, along with a monthly income to support your family’s ongoing financial needs.
Return of Premium (ROP):

Term insurance plans typically do not offer a maturity benefit. However, if you opt for a Term Plan with Return of Premium (TROP), you may receive a refund of the total premium paid (excluding applicable taxes and charges) as a maturity benefit, provided you survive the policy tenure.
^#Tax Benefits:

Under Section 80C of the Income Tax Act, 1961, you can claim a ^#tax deduction of up to ₹1.5 lakh annually for the premiums paid towards your term insurance policy. Under Section 10(10D), the death benefit or maturity proceeds (in case of TROP) are fully exempt from tax, subject to prescribed conditions.
Hassle-free Purchase and Claim Settlement Process:

Term insurance can be conveniently purchased online with a seamless claim settlement process.

While purchasing online, you may compare various term insurance plans, use a Term Insurance Calculator to estimate the premium, and choose a policy that suits your financial needs.

The process for claims is straightforward. You can submit the claim request digitally, upload the necessary documents, and expect timely settlement, ensuring peace of mind during critical times.

How Does a Term Insurance Plan Work?

The term insurance plan operates on a straightforward principle and can be understood through the following key steps:

01

Deciding the Sum Assured

When purchasing a term insurance plan, determine the required life cover based on your family’s monthly expenses, outstanding loans, existing liabilities, and future financial goals such as education and marriage.
02

Select the policy tenure

You should select the policy tenure depending on the number of years your family may remain financially dependent on you. For instance, it may be aligned with your retirement age, the time your children are expected to become financially independent, or the duration of your ongoing financial commitments.
03

Pay the applicable premium

The premium for the term insurance plan is calculated based on the sum assured, policy tenure, and personal factors such as your age, gender, and any riders^ you may choose. You can pay the premium in a single lump sum, through limited-term payments, or as regular payments throughout the policy period, depending on your convenience and budget.
04

Entitlement to payout

In the unfortunate event of your untimely demise during the policy term, your nominee becomes eligible to receive the death benefit, provided all due premiums have been paid. This payout offers your family financial stability and ensures that their immediate and long-term needs are fulfilled in your absence.

Types Of Term Insurance Plans

Term insurance plans come in various forms to suit different life stages, financial goals, and coverage needs. Below are the most common types of term insurance plans:

Level term Insurance Plans

In a level term insurance plan, the premium remains fixed for the entire policy tenure, regardless of age or market conditions. If you have a stable income and are looking to ensure long-term financial security for your family, a level-term insurance plan is a suitable and predictable option.
Increasing Term Insurance

In an increasing term insurance plan, the sum assured increases at predefined intervals while the premium generally remains constant throughout the policy tenure. This option is suitable if you plan to enhance your life cover during key life stages such as marriage, the birth of a child, or purchasing a home, ensuring your coverage keeps pace with your growing financial responsibilities.
Decreasing Term Insurance

In a decreasing term insurance plan, the sum assured reduces gradually over the policy tenure, typically in line with your declining financial liabilities. For example, if you have taken a loan and are regularly repaying the EMIs, you can choose to reduce the life cover at a predefined frequency, matching your repayment schedule. This type of plan is suitable for individuals with short and medium-term debt obligations.
Term Insurance with Return of Premium

A Term Insurance with Return of Premium (TROP) offers a maturity benefit by refunding the total premium paid (excluding applicable charges and taxes) if you outlive the policy period. It provides life cover along with the added benefit of premium return.
Convertible Term Plans

Convertible term insurance plans offer the flexibility to convert the existing term plan into another type of life insurance policy at a later stage. For example, you may start with a basic term plan and later choose to convert it into a whole life insurance plan, depending on your evolving financial goals and long-term protection needs.

Factors That Affect Term Insurance Premium

The premium you pay for a term insurance plan depends on several personal and policy-related factors. Understanding these can help you make a more informed and cost-effective decision.

Age

Age is a key factor that influences the term insurance premium. As your age increases, the likelihood of developing health issues or lifestyle-related illnesses also rises, which in turn increases the risk of mortality. To account for this higher risk, insurers charge a higher premium for term insurance plans at older ages.
Lifestyle and Habits

Habits such as smoking, alcohol consumption, or health conditions like obesity resulting from sedentary work environments may increase your risk of developing critical illnesses. As a result, insurers may charge a higher premium to account for this elevated risk.
Occupation

Some professions involve hazardous or high-risk activities such as working in a factory, power plant, construction site, or any physically demanding role. The working conditions can lead to a higher probability of accidental injury or death, thereby increasing your term insurance premium.
Sum assured

A higher sum assured usually results in a higher premium. However, if you opt for a longer policy tenure, the premium may be lowered even for a larger coverage amount, due to the risk of distribution over time.
Policy Tenure

Choosing a longer policy term helps spread the risk over an extended period, which can result in a lower annual premium. Hence, it is advisable to start your term insurance early, so you can select a longer coverage period at a more affordable premium.

Eligibility Criteria

The eligibility criteria for individual term insurance plans and their policy options will differ and are subject to revisions. Therefore, it is necessary to go through the term insurance policy document carefully before purchasing it for the long term. Usually, the entry age for term insurance plans is 18 years and maximum age can vary depending on policy chosen.