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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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*The output generated through calculator are on the basis of the data inputted by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool.

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Get upto 16% Discount on first year premium3

₹ 1 Cr Life Cover @ ₹ 14/day^2

₹ 2 Cr Life Cover @ ₹ 18/day^3

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Free Health Management Services Upto
₹ 31,000/ Year^

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Save Tax Upto ₹46,800$

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Lifelong income for Parents1

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Zero Commission4

LOWEST PREMIUM GUARANTEED#

No Upfront Payment until Policy Approval**

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₹ 1 Cr Life Cover @ ₹ 14/day^2

₹ 2 Cr Life Cover @ ₹ 18/day^3

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Why Bajaj Allianz Life Insurance ?

Bajaj Allianz Life, one of India's leading Private Life Insurers, is committed to offering value-packed and innovative products to help you achieve your Life Goals.

99.29%

Claim Settlement Ratio~

Claim Settlement Ratio
1 Day

Get 1 Day Claim Approval%

One Day Claim Approval
AAA

Stable Rating by CARE$$

CARE Stable Rating
₹1,26,434 Cr

Assets Under Management (AUM)***

Assets Under Management (AUM)
3.78 Cr

Number of Lives Covered##

Number of Lives Covered
359%

Solvency Ratio of 359%^^^

Solvency Ratio
Claim Settlement Ratio 2024-25
Disclaimer:~Individual Death Claim Settlement Ratio for FY 2024-2025 | %99.29% of non-investigative individual claims approved in one working day for FY 2024-25. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices. 96% of non - investigative claims notified were processed within one day in FY’25 | $$For details refer to press release published by CARE | ***All figures as on 31 March, 2025 | ^^^Solvency ratio 359% as at 31 March 2025 against IRDAI mandated 150% | ##Individual and group, as on 31 March, 2025.
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Key Benefits

Accidental Death Benefit2
Accidental Death Benefit will be Extra payout in case of death due to accident
Early Exit Value5
Get back your premiums paid as Early Exit Value 100% (after your need for cover is over) as per terms & conditions of the policy
Premium Holiday
This option helps you to skip your premiums for 1, 2 or 3 years during the premium payment term
Waiver of Premium Benefit on Accidental Total Permanent Disability/Terminal Illness&
If Accidental Total Permanent Disability / Terminal Illness is diagnosed, premiums are waived off during the policy term
Avail Tax benefits6
Tax Benefits available on what you pay & what you or your family receive, as per Income Tax Act
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How does the Plan work?

Choose your Sum Assured:

Decide on the level of protection by choosing the sum assured you need to safeguard your family's future.

Choose your Death Benefit Payment option:

Select how your family will receive the Death Benefit in your absence. A one-time lump sum or Partly as Lump sum & partly as monthly income for 5 / 10 / 20 / 30 / 40 years and monthly income for 5 / 10 / 20 / 30 / 40 years.

Choose your Policy Term and the Premium Payment Term (as applicable)

Select the period for which you want to get life insurance protection and the period for which you want to pay the premium.

Choose your Premium Payment Frequency:

Depending on your convenience you can decide the interval at which you would prefer to pay the premium during the premium payment term.

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Customer Speaks

Helpful, Best Policy
The reason to choose Bajaj Allianz life insurance is because of the claim settlement ratio and the easy after sales support which Bajaj Allianz life insurance provides. The process is speedy and the customer support provides 360 information on term insurance policy. All the term insurance variants were well explained by the Bajaj team with or without accidental death benefit and critical illness benefit.
Ankurjit Singh
5
Seamless experience
I am a happy customer who is satisfied with the after sales service. I have full trust in Bajaj Allianz Life Insurance Company.
Rahul Kumar
4.5
Great experience
Bajaj Allianz Life Insurance provides a seamless experience when it comes to buying term plan. The customer representative explained the term plan product to me in my native language and the doubts regarding Claim Settlement Ratio, Term Premium calculator, Term Plan Premium Payment terms and Exit value. I was completely unaware about the checklist to have while buying term plan but Bajaj Allianz Life Insurance made it very easy , fast & trustworthy process
Aneri Dudhia
4.5
Helpful, Best Policy
Bajaj Allianz Life Insurance Policy purchase journey is quite smooth and fast for buying term plan. Health Check-up and medicals happened quickly and timely. The support team also guides me at each and every step for buying the term plan. All the term plan variants were explained by the sales team and what is recommended as per my income level.
Nandkumar Permumal
5
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Frequently Asked Questions

1.What is the formula for calculating term insurance?

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There is no specified formula for calculating term insurance. You can use the term insurance calculator to find the premium payable for the policy that you choose.

2. What is 1 crore term insurance?

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A ₹1 crore term insurance plan is one which has a sum assured of ₹1 crore.

3. How do you decide the term insurance amount?

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You can decide the term insurance amount based on your income, expenses, assets, liabilities, financial goals, etc. There are term insurance calculators that help in calculating the right sum assured.

4. Is it safe to use a term plan calculator?

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The term plan calculator is an online tool which calculates the premium payable for the policy that you choose. The calculator is a safe tool which you can use to find the premium and even buy a suitable term plan.

5. Is 50 lakhs term insurance enough?

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The adequacy of your term insurance coverage depends on your income, expenses, assets, liabilities, financial goals and requirements. You can use the term insurance calculator to find the right sum assured.

6. What is the premium of ₹50 lakhs term plan?

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The premium depends on your age, medical history, policy term, premium payment term and frequency, riders selected, and other factors. You can use the term insurance calculator to find the premium payable for a ₹50 lakh term plan.

7. What is the premium of 2 crore term plan insurance?

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The premium for a ₹2 crore term plan depends on your age, medical history, policy details, riders selected, and other factors. To find the exact premium, you can use the online term insurance calculator.

8. What is the premium of ₹1 crore term insurance plan?

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The premium of ₹1 crore term insurance plan can be found using the online term insurance calculator. The premium is not same for every individual. It varies based on age, policy details, riders selected, and other factors. The calculator, thus, calculates the exact premium based on these factors.

9. Can a person buy 2 term insurance?

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Yes, you can buy two or more term insurance plans based on your coverage needs. However, when buying multiple plans, it is recommended to inform the insurance company of your existing plans.

10. What is 5-year term insurance?

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A term plan having a coverage tenure of 5 years is called a 5-year term insurance plan.

11. What is the 3-year rule of term insurance?

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The 3-year rule states that the insurer has 3 years for calling a policy in question on the ground of misrepresentation or suppression of facts, from the date of issuance of Policy or date of commencement of risk or date of revival of policy or date of rider of the policy, whichever is later. Once this period of 3 years is over, the insurer cannot call the policy in question. 2 

12. At what age term insurance is best?

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Buying a term insurance plan from a younger age is recommended so that you can enjoy coverage earlier. Moreover, buying young allows you to enjoy lower premiums on the policy.

13. How long should I pay term insurance?

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The premium payment term should depend on your affordability. Term plans might offer regular, limited and single premium payment terms. Assess your finances and choose a term that aligns with your budget.

14. What is the waiting period in term insurance?

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There is no waiting period for natural death or accidental death under term insurance, except for death by suicide. For death by suicide, there is a waiting period of 1 year from policy commencement.3

15. What is a term insurance plan & how does it work?

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A term insurance plan is a simple form of life insurance. Term plans do not have an investment component and hence provide no maturity benefits. The policyholder pays premiums to the insurance company and the insurer in return promises to pay a pre-decided amount to the nominees in the event of the policyholder’s death.

Since term plans do not provide maturity benefits, the plan simply terminates at the end of the policy term. Many customers have expressed their concern on losing out of money if there are no claims made during the tenure of the term insurance plan. To address this Life Insurance companies also offer Term insurance plans with ‘Return of Premium' option. It means that if the policy holder survives the policy term, then the life insurance company returns the premiums paid towards the policy, subject to certain deductions, depending upon the terms and conditions of the policy.
Click to read more about Term Plans.

16. How do I determine my suitable term insurance coverage amount?

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Term insurance coverage may vary according to age. It should be calculated after taking into account the debt, assets and life goals of the family during that particular time. You can use the term insurance calculator as an indicator to get a better idea of your term insurance coverage requirements. However, it is always best to analyse your needs and current lifestyle before deciding the coverage amount required to secure your family’s life goals.

It is good idea to buy a term insurance plan when you are young. The premiums of term insurance are low when the individual is young as young people have a lower chance of contracting life-threatening diseases or death, thus lowering the risk for the insurer. A decision taken early can help you save a sizeable premium over the years simply because you acted on time as the premium in an insurance plan is fixed for the entire duration. The sooner, the better.
Click to read more about Term Plans.

17. What are the documents required for buying term insurance plan?

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You will need a recent photo, identity and address proof, age proof, proof of income and medical reports to buy a term insurance plan.

The requirements may vary and additional documents may be sought depending on underwriting assessment.
Click to read more about Term Plans.

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Know More About Term Insurance Plans
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Term Insurance?

Term insurance has been a critical financial safeguard, but the pandemic further highlighted its importance as more people recognised the need to secure their families against life’s uncertainties. This indeed is something to ponder upon, because the death of an earning member of a family is not just a personal loss but a financial one too. Here, investing in term insurance could be a good decision. Specially designed to support a bereaved family in coping with a sudden loss, term insurance pays a lump sum of money to the policyholder’s nominee in the event of the unforeseen. Let's dig deeper to know how it can help fight a crisis.

What is a Term Insurance?

This is a simple and traditional form of life insurance[1]. Term insurance is basically a financial agreement between the insurance company and the policyholder. Here the life assured i.e. the insured, pays premiums for a pre-specified time frame against which the nominee is entitled to get a pre-defined amount i.e. the sum assured as death benefit if the life assured dies within the policy term. However, a traditional term insurance doesn’t pay anything if the insured, survives the policy term.

Why Do You Need a Term Insurance Policy?

A term insurance policy is designed to provide financial security to the family when the life assured is no more. Suppose, Mr A, a 35-year-old, has a family of a homemaker wife and two kids below 10 years of age and is the sole income earner. Mr A also has a home-loan with a huge outstanding amount. Now, if he suddenly dies at 40, there’s no regular income for the family anymore. His kids are under 15, and awaiting higher studies. At this point, Mr A’s sudden demise can make it quite difficult for his family to make ends meet, clear dues and carry on with the children’s education. This is where a life insurance term plan may emerge as a saviour. If Mr A had bought a policy with a sufficient sum assured, his death benefit would help the family maintain the existing lifestyle, repay all the dues and keep a corpus aside for the life goals like the children’s education, marriage or retirement planning. Hence, for your financial protection; you may find it worthy[2] to purchase a term life insurance. 

Who Should Buy a Term Insurance Policy?

A term insurance policy may act as a financial cushion for a family when an earning member succumbs to a sudden death. The sum assured paid to the nominee can be utilized to sail through the financial crisis by taking care of household needs, repaying debts, and funding life goals. So, if you are someone who has dependent parents or an immediate family, liabilities, and life goals to be fulfilled, term life insurance may be a worthy choice to consider.[3] It may help you create a financial shield for your loved ones that would help them sustain if you are suddenly not there anymore.

How Does a Term Plan Work?

Now that you know what a term plan is, it’s time to understand how it functions[4] before you decide to purchase one. A term insurance policy is basically a contract between two parties—the insurance company and the insured (policyholder). Here, the insured pays premiums, a pre-fixed amount payable in a specific schedule for the specified term of the policy, typically 10, 20, or 30 years. The premium, in a monthly, quarterly, half yearly or yearly payment schedule is charged by the insurer, to provide the insured with a death benefit or any other applicable benefit in exchange. The amount of premium is calculated depending on the policyholder’s age, gender, medical history, occupation, lifestyle, and habits alongside the chosen sum assured, policy term, and riders and usually remains fixed throughout the policy term. If the insured dies before the expiry of the policy, his/her nominee receive the entitled sum assured as a death benefit. But no payment is made by the insurer if the life assured survives the policy term and the coverage of the policy ends with its expiry date. However, the coverage period can be extended, by renewing the policy, but at a revised premium based on the age of the insured at the time of the policy renewal. The premium thus, gets increased as the age increases.

What is a Term Insurance Calculator?

While it’s important to have a sufficient coverage amount in your term insurance policy, it’s equally crucial to figure out if you can afford to pay the premiums for the entire policy term to enjoy the insurance benefits in full. So, to ensure that you choose a term insurance plan that offers coverage matching your needs, without being harsh on your pocket, you need to make the calculations right. Here, a term insurance calculator may be helpful. A term insurance calculator[5] is an online tool that helps in calculating the coverage amount needed, based on inputs of one’s income and savings. Some calculators also help in estimating the premium payable for a specified amount of coverage and the details of the policyholder. The term insurance calculator may be accessed from websites of insurance companies or financial platforms free of charge. Based on the calculated coverage and corresponding premium payable, it may be easier to gauge which of the available term insurance plans is the best-fit choice for you. Based on the calculations, some of the term insurance calculators also suggest which plan matches your requirements and affordability best. 

Features of Term Insurance

To understand term insurance better, clarity of knowledge regarding its features is needed. Here’s are the set of features7[8] that categorizes a term plan:
01

Financial Security

The term plan is designed to financially secure the policyholder’s family if he/she dies an untimely death. It pays the sum assured to the nominee as death benefit. This lump sum amount might save the family from an unwanted financial struggle while coping with a massive personal loss.

02

Long-term Coverage

Term insurances usually have a policy term ranging between 10 and 30 years. This may ensure long-term financial security for your loved ones if anything untoward happens.

03

Large Coverage

Since a term insurance policy pays only the death benefit against premiums for the long policy term, usually the coverage amount is large, which may help a bereaved family build a sufficient corpus to sustain in the event of the unforeseen.

04

Affordability

Since there’s no payout except the death benefit in term insurance, the policies come at a relatively cheaper premium compared to other insurances.

05

Wholesome Protection

Term insurances are designed to financially protect the life assured’s family in the event of his/her untimely death. But in addition to the sum assured in the form of death benefit, the life assured may get enhanced coverages extending to accidents, critical or terminal illnesses, or avail of a waiver of premium facility by opting for additional riders.

Benefits of Buying Term Insurance

With a bunch of benefits, term insurance may be one of the worthy investment choices for those looking to financially secure their loved ones’ future. Here’s how8[9]:

Extensive Coverage at Low Premiums:

Since there are no maturity benefits to be paid, insurance companies offer term insurances for much lower premiums. Hence, you may be able to get a large and extensive coverage, keeping it easy on your pockets too.

 

Tax Deductions for the Policyholder:

Premium payment for term insurance entitles the policyholder to get tax benefits. Under Section 80C of the Income Tax Act, 1961, he/she can get a tax deduction of up to Rs 1.5 lakhs annually for the premiums paid. However, this can only be availed under the old tax regime.

 

Tax-free Benefit:

The death benefit received by the nominee of the policyholder in the event of the unforeseen is completely tax-free under Section 10(10D) of the Income Tax Act, 1961.

 

Peace of Mind:

Everyone looks forward to keeping the loved ones safe from any financial struggle, even when he/she is no more. Term insurance may put the worries to an end by offering a scope to secure the family’s financial future.

Types of Term Insurance Plans

There are different types of term insurance plans catering to varying needs of individuals. Typically, the insurance companies offer policy terms ranging from 10 to 30 years, while a few offer 35 or 40 year policy terms. However, there’s more when it comes to types of term insurance plans in India. Here’s a glance5[6]:
01

Level Term Insurance

In this term policy plan variant, the sum assured remains fixed throughout the policy term.

02

Increasing Term Insurance

In these term insurance plans, the coverage, i.e., the sum assured, increases with time, but at a higher premium. Purchasing these plans may be beneficial at a young age, as both coverage and premiums increase with age and income and can cater to evolving life goals.

03

Decreasing Term Insurance

This variety of term insurance offers a death benefit that reduces over time. For those with less loan or mortgage, these policies may make a good choice as the liabilities of the insured decrease over time, lowering the need for life insurance coverage.

04

Term Insurance with Return of Premium

These policies not only offer a death benefit in the event of the unforeseen, but also return all the premiums paid at the end of the policy term if the insured survives.

05

Convertible Term Insurance

These term life insurances[7] allow the policyholder to convert the policy to a whole life insurance upon maturity of the existing policy plan.

How Much Term Insurance Cover Do You Need?

One of the key decisions while choosing a term insurance plan is determining the amount of coverage, i.e., the sum assured your nominee will receive as death benefit in unforeseen circumstances. According to experts, the amount that suffices to financially protect the life assured’s family should be based on his/her income, household expenditures, outstanding liabilities (if any), and the respective life goals. Thus, an ideal amount [13]may be estimated as at least 10 times the annual income. Another way of arriving at the figure[14] may be by adding 150 times the monthly household expenses, current outstanding liabilities, amount needed to fund specific life goals, amount planned as a retirement corpus, and deducting the total worth of liquid assets from it.

What Are Term Insurance Riders?

Term insurance riders[10] act as an additional layer of protection that are available as options to enhance the coverage of a basic term plan. At an additional premium payment, these optional benefits are designed to extend the coverage to specific areas and take care of emergency situations better. For example, a critical or terminal illness rider may ease the financial stress of such a disease; an accident cover can provide bigger financial help in an accidental death; or a waiver of premium rider can spare you from paying premiums in case of sudden disability due to an accident or a disease. Here, the amount of extra premium payable for the riders depends on the life assured’s age, sum assured, policy term, and payment schedules.

How Does a Term Plan Secure the Financial Future of Your Family?

A term insurance plan may help you provide a financial cushion[11]to your family from hardships due to untoward circumstances. As you pay the premiums throughout the policy term, the nominee remains entitled to get a pre-defined sum assured if you die before the policy expiry. This lump sum amount received as a death benefit may be used by your loved ones in the moment of crisis to sustain the existing lifestyle, pay outstanding dues, and keep a fund aside for life goals like higher studies or marriage of your children.

How To Decide Timeline of a Term Insurance Policy?

While you plan to invest in a term insurance policy, there remains one more concern[12]: How long should you extending coverage for your term life insurance? Usually, the insurance companies offer plans with policy terms ranging between 5 and 40 years[12], or till the policyholder is 99 years old. But experts recommend picking a policy term based on your retirement age and liabilities. So, how does that work?

Suppose you are in your 20s and have at least 40 more years to retire. Experts believe that a policy term of 35–40 years may be helpful here to keep your loved ones secure. Moreover, premiums may be relatively lower at this time because of your age[12].

At your 30’s and 40’s, you may have started a family. That involves a new set of liabilities and life goals and, in turn, the need for building a corpus to fund them. Experts suggest a policy term of 35–40 years at this stage, depending on your income level, financial needs, and retirement plans[12].

If you are in your 50s and 60s, liabilities are likely to have lessened, with children becoming settled and financially independent. As per the experts, here the coverage should focus on retirement goals, and the policy term should ideally be around 15 years[12].

What Are The Factors That Can Affect Term Insurance Premiums?

The premium payable for term insurance varies from person to person depending on certain parameters. Following are the factors that affect the estimate[15]:
01

Age

Usually, young people are expected to live longer and are considered less prone to diseases. Hence, they are offered lower premiums compared to elders.

02

Gender

The higher your number of dependents, such as children, spouses, or elderly parents, the higher coverage you would need to ensure their financial stability.

03

Health Status and Family Medical History

If you are in good health, reflected by your medical records, premiums are likely to be low. However, premiums may increase if you have a family history of serious health disorders or diseases like Cardiac Issues, Diabetes, etc., making you prone to them.

04

Habits

Smoking or rash driving are considered risky habits as they can culminate in critical diseases or accidental death. Hence, the premium payable will be higher if you have these habits.

05

Occupation and lifestyle

Existing assets help to reduce the amount of coverage required, while liabilities, such as debts and loans, can increase it. Your term insurance coverage should be sufficient to meet the financial obligations and outstanding debts.

How To Choose a Term Insurance plan?

Buying the best term insurance plan fitted to your financial needs and affordability needs a careful estimation. For that, there are certain things that need to be kept in mind. Wondering how to choose a term insurance plan?[16] Here’s a checklist that you may consider:

  1. Coverage:

    To protect your loved ones financially if you are suddenly not around, well-calculated term life insurance coverage may be helpful. The maximum amount you can choose as term plan coverage is 20–25 times your gross salary. According to experts, the life cover should ideally be chosen based on one’s financial needs, current lifestyle, and liabilities.

  2. Policy Term:

    Experts suggest that the ideal policy term should extend till your retirement age or till your children are 25 and financially independent. You may benefit more from such a policy.

  3. Riders:

    Carefully check the plan for available rider options to enhance your coverage and ensure comprehensive protection. Coverage for accidental death and critical or terminal illness may be a crucial pick. Another important one is the waiver of premium for disability or pre-specified illness.

  4. Claim Settlement Ratio:

    It’s extremely important to check the insurance company’s claim settlement practice while choosing an insurance term. It would be wise to save your nominees from hassle in case of unfortunate circumstance. The company’s claim settlement ratio (available on the IRDAI website) reflects the percentage of settled claims out of total claims registered in a year. Hence, high ratio, ensures better credibility.

  5. Pre-payment Options:

    You may want to pre-pay the term life insurance premiums before you retire to save yourself from financial burdens post-retirement. Check the term plan for payment schedule and prepayment options while choosing to purchase the policy.

Importance of Sum Assured In Term Insurance

A sum assured in term insurance is the pre-decided amount that the nominee is entitled to receive if the life assured dies within the policy term. A term insurance, the purest form of life insurance, has no other payout than this sum assured, payable as a death benefit in the event of the unforeseen. Designed to financially protect the loved ones of the policyholder in his absence, thus the sum assured in a term insurance plan is crucial[17], as it can be utilized by the family to sail through the crisis, repay debts, sustain the existing lifestyle, and fund life goals. 

When Should You Buy a Term Insurance Plan?

Term insurance is a crucial component that helps in building a financial strategy. By opting for term insurance you lay a foundation towards your long-term financial planning[25].

As suggested by financial experts, buying a term insurance at an early age like in your 20s is preferred as it optimizes the benefits[18]. Here’s how:

  • One is usually in good health in their 20s and believed to have higher life expectancy. Hence, you’ll get relatively lower premium for your term insurance.
  • In your 20s, you have at least 40 years till your retirement, considering the retirement age here as 60 years, and no or less liabilities. So, buying an increasing life-cover at a cheaper cost at this stage may be beneficial as it would grow with your income and affordability.
  • In your 20s, you may have parents either retired or about to retire. It may be a good idea to get a term insurance to financially protect them if you are suddenly no more.
  • Starting early on a term insurance brings you tax benefits from an early age. Premium payment of a term insurance plan fetches tax deductions up to Rs 1.5 lakhs per annum under Section 80C of the Income Tax Act, 1961. This can be availed through the old tax regime.
Documents Required to Buy Term Insurance

To buy a term insurance plan in India, you need to submit a set of documents[19]. The list may vary across insurance companies. Following is a broad checklist:

Photo identity proof Photo identity proof

Photo identity proof

Age Proof

Address proof

Income Proof

Recent photograph

Aadhar card/Voter’s id/Passport/Driving License etc.

Voter’s id/Pan card etc.

Aadhar card/Voter’s id/Passport/Electricity bill/tax bill etc.

bank statement/computation of income/Salary statements/Income Tax document etc.

What Are The Payout Options in Term Insurance?

A term insurance is the simplest form of life insurance. The policy pays only the sum assured to the nominee as the death benefit if the life assured dies within the policy term. If the insured survives the policy term, no amount is payable despite all the premiums being paid. If the insured dies before the policy expires, the nominee may file a death claim with insurance company. Here, the nominee can choose to take the death benefit payout in two options: either as a lumpsum or as installments or annuities payable at regular intervals, depending on the family’s financial situation. The lump sum payout may be helpful in building a corpus while installment or annuity payouts may act as a guaranteed income stream. However, the payout rules vary from insurer to insurer. 

Term Insurance Claim Settlement Process

In case of a term insurance, the only claim to be settled is the death claim in the event of the life assured’s death within the policy term. Therefore, to get the sum assured as the death benefit, you would need to complete the following steps[20]:

  • Claim Intimation

    In the event occurrence of the unforeseen, the nominee may intimate the insurance company about the life assured’s  and file a claim by submitting a filled-in claim form. Details like the policy number, name of the claimant, date, place and cause of the death are to be intimated through the form.

  • Document Submission

    The next step is submitting the necessary documents like the death certificate, original policy papers, claimant’s statement, his/her identity plus address proofs, medical records of the deceased, an FIR copy and the post-mortem report (for accidental deaths) to get the claim processed.

    Once the claim is raised and the relevant documents are submitted, it’s upon the insurance company to decide and settle the claim. As per the recent guidelines by Insurance Regulatory and Development Authority of India (IRDAI)[21], the insurer has to settle the claims within 15 days if no probe is required and within 45 days in case of deaths that needs an investigation.

Common Term Insurance Terminologies

It’s crucial to understand specific terminologies[22] while you read through the policy papers before purchasing a term plan. The following list of common terms may help you:

  • Term Insurance

    It’s a traditional form of life insurance where your nominee gets the sum assured if you die an untimely death within policy term. This death benefit is available against payment of a specified amount of money in a pre-defined schedule for a specific term.

  • Policyholder or Owner

    The one who buys the policy.

  • Policy Term

    The time frame for which the policy is active.

  • Premium

    This the amount of money you may pay to continue the term insurance coverage. It is payable at your preferred schedule of payment: yearly, half-yearly, quarterly or monthly. 

  • Nominee or Beneficiary

    The person chosen by the policyholder to receive a promised lump sum amount from the insurance company in the event of the unforeseen.

  • Life cover or Sum assured

    The pre-defined amount payable to the policyholder’s nominee after his/her demise within the policy term.

  • Death benefit

    It’s the lump-sum payment by the insurer to the designated nominee of the policy, if the insured dies within the policy term. 

  • Riders

    The optional life-cover extensions or facilities for certain specific cases like accidental death, critical or terminal disease, and disability. 

  • Underwriting

    It is the process by which the insurance company assesses the risk involved in providing life cover to a potential buyer and his/her eligibility to get covered. 

  • Surrender Value

    It’s the amount of money you may get, if you surrender the policy before its expiry or death benefit pay-out. 

How to Buy a Term Plan?

Are you looking to financially secure your loved ones through a term plan? To purchase the correct term insurance plan in India for your budget and needs, following the steps below may be helpful[23]:

StepDescription
Estimate Your NeedsCalculate the current household needs, outstanding liabilities and fund needed to fulfil the life goals and retirement plans, even if you are not around. The life cover you choose should sufficiently cover all these in future. 
Opt for Increasing Coverage if NeededIf you are young, a term policy plan with an increasing coverage option may benefit you more[6]. The bigger coverage as you age and grow in terms of income and liabilities can be helpful.
Pick the Right Insurance CompanyDetailed research about the available insurance companies, their rules, customer services and claim settlement practice may benefit you. This can lead to making a well-informed decision of an insurance company. Also, ensure that you read the policy and understand its features thoroughly. 
Compare PremiumsCompare plan options in terms of premiums payable to find the best term insurance plan suited to your needs and budget. A term insurance calculator can be helpful here.
Choose the Policy TermDecide how long you want your life to be covered. Carefully pick the policy term based on your preferred age of retirement, when your children will be financially independent, and your life goals.
Review Claim SettlementThe claim settlement ratio is an indicator of insurer's reliability. The higher the ratio, the better. This simply means that in cases of claim settlement the procedure will be hassle free[23].
Select Riders WiselyEnhance the term insurance coverage through optional riders. Check each rider for inclusions, exclusions, rules, and additional premium payable.
Online PurchaseYou can purchase term insurance online from the insurer’s website. Compare plans, finalize your pick, and make an online payment to buy the policy at a relatively low premium.
Seek Expert AdviceSeek expert guidance to make the term insurance process smoother. Experts can assist you with the complexities of selecting and purchasing a plan.
Get the Documents ReadyCollect documents required for KYC (Know Your Customer) and income details. Ensure all documents are in order before proceeding with the policy purchase.
Medical ExaminationDepending on your age, gender, occupation, and lifestyle, you may need to undergo a medical examination. Keep test records handy.
Payment of Premium / Premium DepositOnce the Insurer communicates the decision of acceptance of proposal, premium needs to be paid. Insurers shall ensure that explicit consent is obtained from the prospect/policyholder for deduction of amount towards premium payment from bank account. Risk Cover shall commence only after receipt of premium. No premium deposit/ proposal deposit is required to be paid to the insurer along with the proposal form except in case of policies issued basis declaration of good health

Key takeaways

It’s now time to highlight the key takeaways[24] regarding the term insurance.

  • Term insurance is the simplest  form of life insurance, that may provide coverage for a long range of period like 10-40 years.
  • The only payout in a term insurance is the death benefit. In case of unfortunate circumstances if the insured is no more, here the nominee would receive financial support to navigate in difficult times.
  • Premiums in a regular term insurance usually stays fixed for the policy term.
  • Some policies offer the option of converting your term insurance to whole life insurance at the time of expiry.

References:

[1]https://www.guardianlife.com/life-insurance/how-term-life-works

[2]https://economictimes.indiatimes.com/wealth/insure/advantage-of-term-insurance-over-other-types-of-life-insurance/articleshow/67955148.cms?from=mdr

[3]https://economictimes.indiatimes.com/wealth/insure/everything-you-need-to-know-about-choosing-the-right-term-plan/articleshow/72121662.cms?from=mdr

[4]https://www.investopedia.com/ask/answers/08/term-life-insurance.asp

[5]https://www.etmoney.com/tools-and-calculators/term-insurance-calculator

[6]https://www.ahmedabadmirror.com/6-types-of-term-insurance-plans-available-in-india/81868518.html#goog_rewarded

[7]https://www.investopedia.com/ask/answers/08/term-life-insurance.asp

[8]https://www.thehansindia.com/business/term-insurance-a-comprehensive-guide-to-affordable-life-coverage-916521

[9]https://economictimes.indiatimes.com/wealth/insure/advantage-of-term-insurance-over-other-types-of-life-insurance/articleshow/67955148.cms?from=mdr

[10]https://www.etmoney.com/learn/insurance/what-are-the-riders-that-are-offered-with-a-term-plan-and-should-i-take-them/

[11]https://www.aninews.in/news/business/how-can-a-term-insurance-plan-protect-your-familys-financial-future20241105151014/

[12]https://www.tickertape.in/blog/ideal-policy-period-for-term-insurance/

[13]https://www.investopedia.com/articles/pf/06/insureneeds.asp

[14]https://www.etmoney.com/learn/insurance/5-things-to-know-before-buying-term-life-insurance-plan/

[15]https://www.investopedia.com/articles/investing/102914/7-factors-affect-your-life-insurance-quote.asp

[16]https://www.livemint.com/money/personal-finance/know-how-to-buy-the-right-term-insurance-plan-11676309619320.html

[17]https://www.forbes.com/advisor/in/life-insurance/sum-assured-meaning/

[18]https://www.business-standard.com/finance/personal-finance/why-are-20s-considered-the-best-time-to-buy-term-insurance-124060700641_1.html

[19]https://www.etmoney.com/help/insurance/term/what-are-the-documents-required-to-buy-a-term-insurance-plan

[20]https://www.lifeinscouncil.org/consumers/ClaimsProcess

[21]https://timesofindia.indiatimes.com/business/india-business/irdai-halves-time-to-settle-death-claims-by-insurers/articleshow/113109639.cms

[22]https://www.marketwatch.com/guides/life-insurance/essential-terms-life-insurance/

[23]https://thelogicalindian.com/finance/steps-to-buy-a-term-insurance-plan-41774/

[24]https://www.investopedia.com/ask/answers/08/term-life-insurance.asp

[25]https://www.businesstoday.in/personal-finance/insurance/story/insurance-watch-why-buying-a-term-plan-makes-sense-for-most-investors-policyholders-448847-2024-10-05

Disclaimer
Plus Symbol
Minus Symbol

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Risk Factors and Warning Statement: Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz Life eTouch II and Bajaj Allianz Life Family Protect Rider are the names of the company and the product/rider respectively and do not in any way indicate the quality of the product/rider and its future prospects or returns. For more details on risk factors, terms and conditions please read sales brochure & policy document of the base product and rider (available on www.bajajallianzlife.com ) carefully before concluding a sale. Bajaj Allianz Life eTouch II- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N198V05) and Bajaj Allianz Life Family Protect Rider – Parental Care option (UIN: 116B056V01) – a Non-linked, Non-participating, Individual, Pure Risk Health Rider. Regd. Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006. IRDAI Reg. No.: 116. CIN : U66010PN2001PLC015959 | Mail us : customercare@bajajallianz.co.in | Call on : Toll free no. 1800 209 7272 | Bajaj Allianz Life eTouch II (UIN: 116N198V05), The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo. All charges/ taxes, as applicable, will be borne by the Policyholder.

35% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency on first year's premium.

2Accidental Death Benefit is available with Life Shield Plus variant

&Waiver of Premium Benefit On Accidental Total Permanent Disability/Terminal Illnessis available for all variant.

6Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy

5Early Exit Value is available with Life Shield & Life Shield Plus variants

^2 Above illustration is for Bajaj Allianz Life eTouch II - A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N198V05) considering Male aged 23 years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | Indian Resident | 1st Year Premium is Rs. 4,705. 2nd Year onwards premium Rs. 5,100. Total Premium Rs. 1,52,605 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

^3 Above illustration is for Bajaj Allianz Life eTouch II- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N198V05) considering Male aged 23 years | Non-Smoker Preferred | Annual Income =>Rs. 15,00,000 per annum | Indian Resident | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 2,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,214. 2nd Year onwards premium is Rs. 6,736. Total Premium is Rs. 2,01,558 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage : 40, Income Payout Percentage : 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

$Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy. Tax Benefit is calculated at the rate of 31.20% after considering deduction of Rs. 150,000/- under Section 80C of the Income Tax Act 1961 (under old tax regime).

#The Premium prices mentioned are the lowest available across all online channels/ platforms for the purchase of this specific version of the product. These rates are subject to in-put parameters7 as required for policy issuance remaining consistent during comparison. No Staff/Partner discount&& can be availed with this product. If a lower premium rate is found elsewhere, under the same conditions mentioned above, the policyholder may choose to cancel their policy and receive a full refund of the premium paid8 during the applicable free-look period. &&Staff includes directors and employees of Bajaj Finserv Group & their spouse, children, and dependent parents. Partner includes employees and agents of intermediaries and their family members. 7Input parameters include age, medical details, qualifications, occupation, income and other factors required for policy issuance. 8Subject to submission of satisfactory documentary proof by the customer. Decision of Bajaj Allianz Life Insurance regarding the validity of the above claim shall be final and binding on the Customer.

**BIMA Applications Supported by Blocked Amount (BASBA)- One- time mandate for blocking the amount towards premium through Unified Payments Interface (UPI mandate) for issuance of life insurance policies. Premium is required to be paid only after the insurer communicates the decision of acceptance of the proposal. Risk cover shall commence only after receipt of premium. Available only for online channel.

4Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

1 Through Parental Care Option available in Bajaj Allianz Life Family Protect Rider (UIN: 116B056V01). Please refer to respective rider sales literature or visit Company website or consult your “Insurance Consultant” for more details and eligibility conditions.

^Get Free Health Management Services up to Rs. 31,000 per year

Health Management ServicesFrequencyCost (₹)

Doctor Insta-Consultations

3 consultations per month = 36 consultations per year

Average cost per session = ₹ 500

Total cost per year = ₹ 500 * 36 = ₹ 18,000

Health Coach
(Diet & nutrition consultations)

1 consultation per month =

12 consultations per year

Average cost per session = ₹ 500

Total cost per year = ₹ 500 * 12 = ₹ 6,000

Emotional Wellness
(Psychologists consultations)

1 consultation per month =

12 consultations per year

Average cost per session = ₹ 500

Total cost per year = ₹ 500 * 12 = ₹ 6,000

Network discounts:

 

Medicines (M) - 10%

Lab-test booking (L) - 10%

Throughout the year

Assumption – Total

expense on these

services throughout

the year

Total discounts that can be availed

throughout the year

M - ₹ 5,000

₹ 500

L - ₹ 5,000

₹ 500

Total per year as per assumption

₹ 31,000

Note: The above mentioned costs are based on estimated average market price for respective services. T&C apply.

Doctor Insta-Consultations and Health Coach Services are unlimited and the above numbers are assumed only for the purpose of calculation of the yearly benefit.

BJAZ-OT-EC-16564/25

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CIN: U66010PN2001PLC015959 | Registered Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune-411006, Maharashtra

Email: customercare@bajajallianz.co.in | Tollfree: 1800 209 7272,

Disclaimer: Images used on this website and the models photographed in them are for representative purposes only and are not indicative of anyone's personal thoughts or ideas.

The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo.

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Claim Settlement Ratio of 99.29%~