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Term Insurance

Secure Your Family's Financial Future at the Lowest Cost
Term Insurance Plans

Things You Need to Know About Term Plans

The death of a loved family member is painful, especially if he is the breadwinner of the family; it can be even more traumatic, which can cause an emotional and financial turmoil in the family.

To make sure your family does not suffer any financial hardships in your absence, you must have a term insurance plan. Term insurance provides financial support to your family in case of your untimely death.

Riders in Term Insurance

Riders are the additional optional features that enhance the base policy coverage. There are many riders that you can attach to your base term plan. Most companies also offer a few riders as an in-built feature of a term plan. Before buying a term insurance plan, one must see that rider is available as an in-built feature in the same or as an add-on to the policy.

On paying a small amount of additional premium, you can opt for such riders. These riders are highly beneficial as they come with their own standalone coverage amount.

For instance, if the life assured dies due to a road accident, under a standard term plan only the death benefit will be paid to the nominee. But, if there’s an Accidental Death Benefit Rider attached to the base term policy, the insurance company will pay the death benefit plus the rider benefit attached to the accidental death benefit rider.

Types of Riders in Term Insurance

Most common Riders in Term Insurance are:

  • Accidental Death Benefit Rider
  • Accidental Total and Permanent Disability Rider
  • Critical Illness Rider
  • Waiver of Premium
  • Accelerated Death Benefit Rider
  • Hospital Cash Rider

How to Choose the Best Term Insurance Plan

The wide range of term insurance policies offered by insurance companies in India make it a challenge for an individual to make a decision on the policy that will be the best suited for him/her. Not just selecting a reliable insurance company, individuals also have to make up their mind on a term insurance from the wide array of term policies being offered by the same insurer. This makes it important for an individual looking for a term insurance policy to be aware of the parameters that he/she should consider, so that he/she can make a well-informed decision.

The core purpose of opting for a term insurance is to ensure the financial stability and security of your family in case of your unforeseen demise. Therefore, you have to make a conscious decision now, so as to provide for your family in your absence when they will need it the most. If you survive through the policy tenure, it serves as an effective investment tool for fulfilling your future plans like child’s marriage or higher education, higher education for self to improve your qualification, retirement goals, etc.

The best term insurance is one that offers the highest sum assured at the lowest possible monthly premium. This means that it is the best to start early because the younger you are, the lower will be the premium that you can avail for a high sum assured. You should keep a few essential parameters in mind to decide on your sum assured, which will be analysed by the term insurance premium calculator to determine your monthly premium amount.

Let’s discuss the factors you must consider while selecting a term insurance premium calculator. Decide on the coverage you are looking for: It may be difficult for you to decide on the sum assured that you believe would be sufficient to support your family in the future. However, you need to do a rough calculation of our family’s estimated future expenses for maintaining their lifestyle and also meet their liabilities. It is advisable that you aim a bit higher, so that you do not fall short of the desired amount later.

Decide on the policy tenure: Insurance companies usually offer many term options of 5, 10, 15, 20, 25, 30 or more years from which you need to select judiciously as per your financial goals. The tenure that you choose will also determine the benefits that you will become eligible for. It is advisable that you opt for a term that covers you till your retirement age, so that you can avail a wider range of benefits.

Make a conscious decision: There are different types of term insurance policies offered by different insurance companies in India. You need to have an in-depth knowledge of each of their features, benefits and policy terms and conditions, to be able to make an informed decision. Check on the term insurance premium calculator for the premium payable for the coverage and policy tenure of your preference. Compare the quotes minutely before choosing one.

Inflation factor: The constantly rising prices, owing to inflation, have to be considered while deciding on a term insurance plan. As a result of increasing prices, the coverage that appears to be sufficient now may not be the same after the policy reaches its maturity. There are some insurance companies that offer the flexible option of increasing your cover annually by a fixed rate of 5% or 10% to keep up with inflation. However, in such term insurance plans, the premium offered is also comparatively higher than other fixed sum assured term insurance plans.

Compare Term Insurance Plans & Buy the Best Term Plan

It is crucial to compare term insurance plans, as all life insurance companies in the market offer different term life insurance plans. Moreover, each life insurance company offers a number of variants of term plans. And analyzing the right plan for oneself could be a task.

But don't worry. Our tool has transformed such a daunting task into a cake walk.

Online term insurance comparison tool removes all the guess work. Not only that, but it also guarantees you the best term insurance plan at an affordable premium!

Let's have a look at the factors you should watch out for while comparing term insurance plans:

  • Premiums Against Size of Life Cover: Everyone wants to be covered sufficiently. Compare the premiums for the size of the life cover offered by the insurance company. This should be ideally large enough to cover all your debts as well as aid your loved ones to lead a comfortable lifestyle post your demise. Nevertheless, the premium too should be pocket-friendly for the cover you opt for!

  • Features of the Term Plan: Always dig deep into the features and benefits offered by the insurance companies while you compare term insurance online. Watch out if the policy you wish to opt for offers flexibility to choose the tenure of your choice, the sum assured amount, inbuilt features like terminal/critical illnesses, accidental death benefit and the premium payment modes.

  • Additional Rider Benefits: Riders are add-ons that enhance your basic term plan insurance. You can buy term insurance riders at an additional cost. Before buying a term insurance plan online, ensure to compare the riders offered by different insurers. Some of the important riders you may wish to add to your policy are critical illness rider, accidental death benefit cover etc. However, it is recommended to buy one only as per your requirement.

  • Claim Settlement Ratio: Claim settlement ratio of the company replicates the proportion of the total claims settled against the total claims raised. Higher the claim settlement ratio, higher are the chances of your claim getting fulfilled by your term insurance company. It is very important to keep a keen watch on the claim settlement ratio to ensure that your claim gets settled when the need arises. Therefore, keep this important factor in mind while comparing term insurance plans.

  • Term Insurance Company's Reliability: Before buying term insurance policy, ensure that the insurance company you wish to opt for is reliable and stable enough to develop trust among their customers. Basis the company’s reputation and the financial goodwill, you will get a clear picture of its business and the bankruptcy status. Therefore, before you buy term plan insurance online, do not forget to compare the term plan basis the insurance company’s stability.

Term Insurance Premium Calculator: Factors that Affect Your Premium

Term Insurance Premium Calculator

A Term Life Insurance Premium Calculator is a tech-abled tool especially customised to help you calculate your monthly/annual premium for your life insurance policy. It generates results regarding the premium amount that you should pay to get to your desired sum assured, as per your financial objectives.

It automates the process of computing premium, making it hassle-free and seamless, thereby saving time. What’s more, computing e-premium minimises the scope for errors that may occur during manual calculations. Further, it also enables you to regulate the sum that you would like your nominee to receive in case of your absence. The term insurance premium calculator can also be customised according to your preference and convenience.

It might become challenging for you to compare between the wide range of life insurance policies offered by the host of insurance companies in India. It requires you to thoroughly research on the available life insurance policies. You also need to undertake the time-consuming task of making the necessary calculations to find out the monthly premium amount to reach your financial goal at the end of the policy tenure. The term insurance premium calculator makes this process easier and seamless by enabling you to compare between the premium payable for all available life insurance policies. Thus, it not only saves you from the hassle of making calculations for every policy, it also enables you to view and compare the premium payable for all these policies at one glance.

But, do you know, how to use the term insurance premium calculator?

The below mentioned factors are used to calculate your term insurance premium:

  • Age of the insured: Age is the most important deciding factor to derive your term insurance premium. At a younger age, you are less likely to fall prey to lifestyle diseases or death. Insurance company would thereby save money in the near future since the possibilities of making a claim are less.

  • Personal habits: If you are addicted to alcohol, drugs or smoking habits, your insurance company will charge you a bomb for your premium. At times, there are changes of a policy denial too. People who aren’t addicted to these habits pay almost 30 to 70% premium lower than the ones addicted to it.

  • Health record: You will enjoy a lower premium if you have not had a family history of cancer, Alzheimer’s etc.

  • Tenure of the insurance policy: The term insurance premium calculator will be affected adversely if you buy a term plan that covers your retirement age as well as till you pay off all your liabilities.

  • Coverage/sum assured: It is advisable to opt for a coverage as per your requirement. The higher the sum assured, higher would be the insurance premium.

Benefits of a Term Insurance Calculator

The way you do a proper R&D before buying anything online, it does make absolute sense to run through a same research before buying a term insurance online. Here are the benefits of using a term insurance calculator:

  • The term insurance calculator will help you know the exact premium for your chosen coverage amount to safeguard your family in case of your untimely death

  • Your term insurance online shopping becomes a simple and convenient process

  • You become a well-informed customer about the market know-hows

  • You get to see plans of different insurers under one roof

  • You get to compare features and rates of different term insurance plans for the best deals ever!

  • Online term insurance is cheaper and simple to understand

Parameters Considered While Calculating Term Insurance Premium

Term insurance premium calculator has streamlined the process of calculating premium payment for life insurance policies. It has made calculations easy, error-free and hassle-free, while saving time. It also makes comparing between premiums for various life insurance policies available in a few clicks and at one glance. Not just that, it can also be customised to suit your convenience.

The term insurance premium calculator has been automated to show results for premium amount, as per the preferred sum assured, taking into consideration certain parameters:

Age of the insured: Age is the most essential parameter that determines your eligibility for life insurance policies, the premium you can avail and other important parameters. If you are of a young age, the chances of you being diagnosed with a disease or illness are comparatively lower. Therefore, the chances of you making a claim are limited. The scope of you being detected of a disease or chances of death increases with age. Hence, your eligibility for a life insurance and being granted a low premium payment will be higher when you are young. The premium amount increases with age.

Lifestyle habits: Individuals with an excessive consumption of alcohol or who are into drugs or have a regular smoking habit will be offered a life insurance policy on a high premium. In certain situations, applicants may also be denied a life insurance policy. People who aren’t addicted to these habits pay as much as 30% to 70% lower premium than those who are not addicted to these.

History of health: A record of personal history of critical illnesses and family history of diseases like cancer, Alzheimer’s etc., also increase the premium payment amount. This is because such critical illnesses increase the chances of making a claim, arising due to a medical emergency or demise of the policyholder. On the other hand, individuals with no personal or family history of critical illnesses will be able to avail a much lesser premium. Life insurers enlist the diseases that they consider as critical illnesses. The term insurance premium calculator takes this parameter into consideration while computing e-premium.

Tenure of the insurance policy: The term insurance premium calculator will be affected adversely if you buy a term plan that covers you till or beyond your retirement age and till the time you pay off all your liabilities. While the minimum period for term insurance plans is usually 5 years, the fixed options offered are 15, 20, 25 or 30 or more years. Select the term wisely, so that it does not extend past your retirement age.

Gender: According to research, women live longer. This not only improves their chances of being eligible for insurance policies, but they are also offered low premiums as compared to those offered to men.

Estimated sum assured: Last but not the least, the sum assured and premium amount are directly proportional to each other. This implies that higher the sum assured, higher would be the insurance premium.

How to Use a Term Insurance Calculator

  • The term insurance calculator will ask you to enter your personal details like your name, gender, date of birth, mobile number, marital status, annual income, smoking and chewing tobacco habits, your preferred cover amount and the age/period till which your policy should cover you etc.

  • Once you enter these details the term insurance calculator will give you a plethora of term insurance plans offered by different insurers. Select the buy now button on the one you feel would give you the right coverage at the right price .

  • The term insurance calculator will ask you to feed in the details of your address, nominee and finally take you to the payment gateway option

  • You can now make the term insurance payment online using your debit card, credit card or your net-banking facility .

Why Buy Term Insurance Online

Right from clothes to shoes to house-hold items we love to shop online. We like this way of shopping because we get so many choices to pick and choose from. Then why shouldn’t this be applicable to buy term insurance online too? We love exploring all the possible options. Coverfox.com offers you a plethora of term insurance plans under one roof with benefits like unbiased advice and after sales-services! Let’s have a look at the reasons to buy term insurance online:

  • Pocket-friendly: Experts say online term insurance plans are almost 40% cheaper than the offline plans. Now, who doesn’t want to save their hard-earned money? You skip all the intermediary charges like paper-cost, agent’s commission, processing fees etc. The insurance company therefore passes on their benefits to their customers.

  • User-friendly: Don’t worry if you are a newbie to the internet. Coverfox.com has a user-friendly gateway to take you through the process of buying term insurance conveniently. Comparing term insurance with different insurers would help you make a right choice.

  • Expert-knowledge: Any broker is licensed with the Insurance Governing Authority (IRDAI). They offer you the finest approach for all your needs related to insurance. Essential and top-notch services make them more reliable.

  • Back-up of your policy documents: In case you buy a term insurance plan with Coverfox.com, you can login and view your purchased term insurance policy on your online account. Besides, you also receive a soft-copy on your email address that gets saved too!

  • Reminders for renewal: Coverfox.com sends you timely renewal reminders to help you avoid from lapsing your policy.

How Reliable are Online Term Insurance Premium Calculator Estimates?

Digitalisation has simplified lives and it is no different for estimating premium amounts through the term insurance premium calculator. Online term insurance premium calculator has eliminated the hassle of lengthy premium calculations. These manual calculations were not only time-consuming, but also included human errors.

Introducing the term insurance premium calculator has done away with human errors, while saving time and making the process streamlined and seamless. What’s more, it also saves you from the effort of researching on the varied term insurance policies offered by various insurers, calculating premiums, knowing the benefits and features of each one of them and then taking a final call.

All that you need to do is feed the term insurance premium calculator with your details, desired sum assured and preferred policy term to enable it to generate the premium payable for an array of term policies. You can view all your options at one glance, reducing your effort on research and contributing to your convenience.

After you have chosen a term insurance policy according to your financial objectives, you can buy it online. This online facility makes the term insurance premium calculator a cost-effective solution as it removes the role of brokers and other intermediaries.

The process that the term insurance premium calculator follows to generate results emphasises on its reliability. The process may vary from one insurance company to the other. Let’s discuss the standard procedure here:

  • Mention your personal information like name, gender, date of birth, marital status, income, family structure, lifestyle habits and details, etc.

  • Mention your preferred sum assured, type of premium payment – monthly, quarterly, bi-annually or annually, and period of life cover. The premium will then be generated.

  • Fill up the proposal form

  • Purchase the term insurance policy through the available modes of payment - Debit Card and Net Banking.

List of Best Term Insurance Plans in India – 2018

Plan NameOffers
Edelweiss Tokio Life Totalsecure Plus Term PlanThe term plan offers low-cost comprehensive coverage with 35 critical illness cover and a long-term life cover till 80 years of age. The plan offers flexibility in designing your coverage as per needs and has optional additional riders for enhanced protection.
Aviva i life Total Term PlanThe term plan gives you 4 plan options to choose your cover which suits the requirement of you and your family. The plan is packed with great features like inbuilt terminal illness benefit, accidental death benefit, maturity benefit, monthly income and many more.
Canara HSBC OBC iselect term planA pure protection plan that provides life insurance and terminal illness cover along with cover against accidental death/ disability, and the option to secure an income for your family even in your absence. It has 4 benefit payout options viz. Lump Sum, Lump Sum + Monthly Income, Monthly Income for a fixed term, Monthly Income till the end of your policy term.
PNB Metlife Mera Term PlanThis term plan can be customisable as per individual requirement which gives you the flexibility to choose from four pay-out options and also offers coverage for your spouse in the same policy. The plan has been designed to suit individual needs and offers enhanced protection for your family.
Aegon life iterm planThis is an online term plan offering comprehensive insurance benefit for you and your family. The key features of the plan include low cost coverage, flexibility to increase life cover, pay-out on the diagnosis of terminal illness, additional covers for enhanced protection and many more.

Why Coverfox.com – Nominee Assistance Program

Coverfox.com is helping their customer's family at the time of claim, Coverfox.com now offers NOMINEE ASSISTANCE PROGRAM to their Term Insurance Customers.

You and your family can now be rest assured about the full end-to-end assistance throughout the claims process, and also get financial, legal and psychological counselling. All this "FREE of Cost."

We ensure that your loved ones are well-assisted with care in their hour of need.

To help the family of the life assured at the time of claim, they get:

  • Claim Assistance
  • Legal Counselling
  • Financial Counselling
  • Psychological Counselling

Remember: No Extra Cost. You or any of your family member are not charged for this service under Nominee Assistance Program.

Term Insurance Claim Process

Losing your loved ones is devastating. It causes emotional distress and prolonged suffering.

When someone is suffering through such an emotional grief, it is not easy to think of other things, for instance, financial stability or income flow, which may arise because of the unexpected death of the breadwinner.

If the breadwinner has a term plan, it is important to know how to claim the death benefit of a term insurance plan.

How to File a Term Insurance Claim in the Event of Death?

Lodging a Term Insurance Claim

The first step is to lodge a claim. The nominee/claimant must intimate the insurance company and lodge a claim on the death of the life assured. To lodge a term insurance claim, the nominee/claimant needs to contact the insurance through any of their established claim reporting channels like:

  • Visit the claims section on company’s official website for online claim intimation
  • Call the insurance company on their 24 x 7 toll-free claim intimation service
  • Visit the nearest Insurance company’s branch office
  • E-mail them on the claim intimation email id provided

Please Note: A claim will be formally accepted and registered only after the insurer receives a written request of claim settlement with a duly filled claim form and other relevant documents. One must lodge a term claim through a phone call or visiting the insurance company’s branch to quicken the claim process.

Claim Process

The claim process starts when the nominee/claimant lodges a claim with a duly filled claim form along with all the valid and supportive claim documents.

Required Documents to File a Term Insurance Claim:

In case of a natural death

  • Term Insurance policy document
  • Duly signed and filled claim forms (As provided by the insurance company - To download visit their official website)
  • Original or Copy of the Life Assured's Death Certificate
  • Claimant’s statement
  • Any other relevant document as requested by the insurance company.

In case of an accidental death

  • Police FIR report, Police Inquest Form and Final Police Investigation Report
  • Medical attendant's certificate or Attending Doctor’s Statement
  • Hospital Certificate and medical reports including admission and discharge summary of the life assured, death summary, test reports, etc.
  • Post mortem report
  • Claimant’s statement
  • Any other relevant document as requested by the insurance company

The Claims Assistance team of the insurance company will verify all the supportive documents and nominee declaration. The claimant/nominee may be asked to provide other additional documents if necessary.

Approval of Filed Term Insurance Claim and Payouts

Once the insurance company verifies all the documents and accepts the claim, the pay-outs to the nominee will be made as per payment options mentioned in the term plan.

The pay-outs to the beneficiary are usually through ECS, for which, the nominee must submit the bank details – cancelled cheque/photocopy of the bank account passbook (may require to get attested by bank authorities).

Other Important Things Related to Term Insurance Claim Process

  • In case, the nominee dies along with the life assured, the pay-out is made to the next legal heir.

  • In case, the nominee dies before life assured, the policyholder needs to appoint another person as the nominee before the term plan expires.

Please Note: Kindly read the "Exclusions" as mentioned in the policy wordings/document before filing a death claim as it will help you to file a death claim under a term plan without any difficulty.

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Term Insurance Faqs

Before buying a term insurance plan, it is crucial that you understand how it functions and what you need to do to make the most out of it. Here is a look at some of the frequently asked questions about term insurance plans and what they have to offer.

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