Term Insurance Plans

Term insurance plans are a type of life insurance that provide coverage for a specific period of time, also known as the term. These policies do not build cash value and are generally less expensive than permanent life insurance policies. If the policyholder dies during the term of the policy, the beneficiary will receive the death benefit specified in the policy. If the policyholder does not die during the term, the policy will expire and there is no payout. Term insurance is a good option for individuals who have a temporary need for coverage, such as covering a mortgage or providing financial protection for young children. It is important to carefully consider your coverage needs and financial situation before choosing a term insurance policy Read more


Dual tax benefits

u/s 80c, 10(10D)


Life cover Till Age

100 Years


Critical Illness

Waiver of Premium

Compare Term Insurance Plans Online

Sum Assured

Premium Term

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What is Term Insurance?

Term insurance is a pure protection insurance policy which provides coverage for a defined period of time and the amount of premium is also specified for the whole policy term. The family or nominee receives the death benefit in case of an unfortunate event leading to the demise of the policyholder.

Why Should I Buy a Term Insurance Plan From okbima.com?

One should buy a term life insurance plan in order to get coverage for the desired period. The earlier you start, the better it is. One the premium will be on the lower side and two, your life will be stress-free as the family need not worry about the expenses in your absence. You can get hold of all the benefits of term life insurance.

There are a few general reasons why someone might consider purchasing a term insurance plan:



Term insurance policies tend to be less expensive than permanent life insurance policies, making them a good option for those on a budget.



Term insurance policies can provide a high level of coverage at a relatively low cost, making them a good choice for those who need a large amount of protection for their loved ones.



Many term insurance policies allow you to choose the length of coverage that you need, which can be helpful if you have a specific financial goal in mind (e.g., covering the cost of your children's education).



Term insurance policies are generally less complex than permanent life insurance policies, making them easier to understand and select.

Ultimately, the decision to purchase a term insurance policy (or any other type of insurance policy) should be based on your specific financial situation, goals, and needs. It's important to carefully consider your options and choose a policy that meets your needs.

Types of Term Policy?

The different types of term plans are:


Level Term Plan:-

The simplest form of term life insurance plan where the sum assured remains the same during the whole policy tenure. Upon the demise of the policyholder, the beneficiary gets the death benefit. One should buy this type of plan at an early age as the premium will lower and coverage will be for a longer period of time and the sum assured will be on the higher side.


Return of Premium Plan:-

A popular plan which says if the policyholder survives the policy term, he/she will get back the amount that they invested in this term life insurance plan. Also, these policies have options for adding additional riders and making it a comprehensive coverage one.


Increasing Term Insurance Plan:-

As the policy tenure increases, the cover and premium will increase as well.


Decreasing Term Life Insurance Plan:-

In this policy, the sum assured of the policy decreases in a fixed percentage over the tenure of the policy. These policies are often taken to clear mortgage loans or debts.


Convertible Term life insurance Plan:-

You can convert such a plan into other types of plans such as an endowment or type of plan if your priorities change with time.

What are The Variants of an Online Term Insurance?

The variants of a Term Insurance Plans are:

  • Simple Term Life Insurance Plan: The death benefit is provided with the settlement of the lump sum amount at lower premium rates.

  • Term Life Insurance along with Fixed Monthly Income: Offers a stable monthly income along with a lump sum amount to the nominee of the policyholder.

  • Term Life Insurance with growing Income: The offered monthly income grows in a certain proportion along with the death benefit.

  • Term Life Insurance with the return of premium: With death benefit, this policy also offers a return of premiums.

  • Simple Term Life Insurance Plan: The death benefit is provided with the settlement of the lump sum amount at lower premium rates.

  • Simple Term Life Insurance Plan: The death benefit is provided with the settlement of the lump sum amount at lower premium rates.

  • Group Term Insurance: The employer generally takes the plan for its employees. It is a single policy under which each staff member is covered.

Main Benefits of Term Plan

Every Insurance Policy comes with so many benefits and some of them are:

  • Tax exemptions

  • Insurance coverage up to 99 years

  • Affordable premium rates

  • High sum assured

  • Availability of additional riders.

Top Reason to Buy Term Plan

You can avail all the benefits of the term insurance plan with maximum comfort.

  • No documentation: The least stressful thing about buying online is there is no paperwork. The details can be easily filled in.

  • Time-saving: You don't have to run down to the branch each time you have a query. You can use a customer support group and get any information within minutes.

  • No fraud: when you fill in the details directly on the website there is no chance of any fraud as you will be doing it with your own choice with ease and comfort.

  • Easy comparative analysis: An easy comparison can be acquired as soon as you will in your details and requirements and You can compare the best features of each plan.

  • Customization: To top it all, there are so many riders available that you add by paying an insignificant amount and getting wholesome coverage.

How to Choose The Best Term Insurance Plan?

The best way to choose the best term insurance plan is to assess the future needs of your family in each stage of life. You can consider your children’s education, any running illness that requires constant treatment and daily expenses and the increasing costs of everything.

What is Eligibility Criteria to Buy Term Insurance?

The minimum age should be 18 years and the maximum age to buy a term life insurance plan is 65 years

The eligibility criteria for purchasing a term insurance policy in India vary depending on the insurer and the specific policy. However, there are some general eligibility requirements that are common among term insurance policies:

  • Age:Most term insurance policies have minimum and maximum age limits for policyholders

  • Health:Many term insurance policies require the policyholder to undergo a medical examination to assess their health status. Pre-existing medical conditions may affect the availability and cost of coverage.

  • Occupation: Some term insurance policies may have restrictions on coverage for certain occupations that are deemed high risk.

  • Geographical location:Some term insurance policies may not be available in certain geographical regions.

It is important to carefully review the eligibility requirements of a specific term insurance policy before applying. It is also recommended to compare multiple policies to find the one that best meets your coverage needs and financial situation.

What Factors Affecting Term Insurance Policy Premium?

The factors affecting term insurance premiums are:

  • Age: The earlier you buy, the lower the premium as the risk is also lower.

  • Gender: Women are offered a lower premium as there is a low mortality rate of women when compared to men.

  • Family medical history: If there is a hereditary disease that runs in the family, then the premium goes higher or if the policy seeker is presently suffering from any disease that also affects the term insurance premium.

  • Occupation: The occupation of the policy seeker is also important in a term life insurance premium. All those working in industries like shipping, transportation, gas, oil, and mining are open to high risk which in turn increases your premium in comparison to desk jobs.

Term Insurance Premium Payment Options?

There are three ways of term insurance premium payment which are:

  • Regular pay: Here the insured pays the premium regularly for the complete policy term.

  • Limited Pay: The policyholder can make payments for a limited period which is pre-decided. Here the premium paying term is less than the policy term.

  • Single Pay:The assured pays the complete premium in one go when he/she purchases the plan.

What is Term Insurance Rider?

A term insurance rider is an additional benefit that you include in your existing policy for comprehensive coverage. There are different types of riders available that can be advantageous to you.

The different types of term insurance riders are:

  • Accidental Benefit rider: The death benefit will be given to the beneficiary if the policyholder dies due to an accident. Also, an additional Sum assured is given if the death occurs within 90 days of the accident.

  • Accelerated Death Benefit: If the policyholder is suffering from a terminal illness, he/she can receive an advance amount from the sum assured for the treatment. The cost of the rider is very economical and the benefits are highly advantageous.

  • Critical Illness: Such a benefit is provided if the policyholder is diagnosed with kidney failure, heart attack, cancer or any such illness. The cost of the rider is on the lower side and it continues for the whole tenure of the policy.

  • Family income Benefit: The family is entitled to get a fixed income if the policyholder meets an accident or suffers a permanent disability. This rider is most suitable for salaried employees who are the bread earners of the family.

  • Permanent and Partial Disability Rider: The rider sum assured is given upon suffering partial or permanent disability. This rider covers both arms and legs or one arm or one leg or both eyes. If there is a partial disability, then a partial sum assured will be given.

  • Waiver of Premiums rider: with this rider, the future premiums will be waived off when the policyholder suffers a permanent disability or is diagnosed with a critical illness disease or death by an accident occurs.

Key Features of Term Life Insurance Policy

The key features of a Term life Insurance plan are:

  • Cost Effective: One of the most economical plans that offer a high sum assured with lower premium rates.

  • Policy term: The policy term extends up to 40 years of age and allows you to shield your family for a longer period of time.

  • Age: The entry-level is just 18 years. Anyone with a viable income can buy it even at this age.

  • Payment modes: convenient payment modes are available. You can choose between annually, semi-annually, quarterly or monthly according to your preference.

  • Buying process: Both online and offline processes are available.

  • Minimum sum assured: The minimum sum assured offered in a term life insurance is Rs.5 lakhs which is a decent amount against a meagre premium amount.

Why Do I Need Term Life Insurance?

There are a few reasons everyone should buy term life insurance:

The different types of term insurance riders are:

  • To safeguard your family: If you are the sole earning member of the family, then you have to ensure that your family doesn't suffer financially in your absence. The term life insurance offers a huge lump sum amount.

  • Stay financially strong: In case of any uncalled event, the family or the nominee will have financial support to meet their daily expenses.

  • Peace of Mind: There is always peace of mind that remains with the policyholder when he/she knows that he has prepared for his family’s future in their absence. Any type of loan or debt can be paid off using that money.

FAQ's About Term Plans

A term plan provides coverage for a specific length of time. It means that if the policyholder dies within the set time period, the policyholder's nominee is entitled to the death benefit or the specified quantity insured in a lump sum or monthly instalments (as stated by the policy holder). However, if the policyholder lives longer than the policy term, that is, if he lives longer than the term period for which he purchased the policy and coverage, he or his nominee will not be entitled to any benefits.

There are various types of term insurance plans:

  • Return-of-premium term plan- In most term insurance policies, there is no provision for a premium refund, although some companies are now offering plans with a premium refund option at the policy's maturity. Choosing this type of term plan, however, may result in a larger premium than typical.

  • Level term insurance- Along with the premium to be paid, the amount of coverage remains constant during the policy's term.

  • Term plans with survival benefits- Another type of term plan is one in which the policyholder has the right to receive survival benefits, but only if he or she is disabled partially or permanently.

  • Annual renewable term insurance- The policyholder has the option of renewing his coverage on an annual basis. This type of coverage has a cheaper initial price, but it gradually increases when the coverage is renewed year after year. The policyholder's ability to analyse and pay for his needs annually is ensured by the plan.

  • Decreasing term insurance- Under this type, the amount of coverage a policyholder receives decreases as they get older. This type of insurance is appropriate for those who believe their liabilities will diminish as they age.

  • Increasing term insurance- As the policyholder's age rises, the coverage increases while the premium remains same. This type of plan is critical in combating inflation problems and gives policyholders piece of mind that they will not be underinsured in the future. Because of this, the premium charged is more than for other types of term insurance.

When the insurance term ends, the policyholder may or may not be able to obtain the same coverage for the same premium amount. Alternatively, if the premium payment remains constant, the degree of coverage is reduced. The premium rate is determined by a number of factors, including the policyholder's lifestyle and health status, as well as possible death scenarios.

A simple rule of thumb is that you should have at least 10 times your annual income in life insurance. However, your coverage must be sufficient to cover your existing and future liabilities, as well as your financial objectives. If you have a home loan of Rs. 50 lakhs, you should make sure that your life insurance policy is large enough to cover the liability. Remember to factor in inflation when determining future goals.

This, of course, is dependent on how early you get your term insurance coverage. The sooner you get one, the longer you will be protected. The general rule is to buy an insurance for as long as feasible and then cancel it when it is no longer needed. This is especially handy if your policy is designed to pay off a loan while you are away. You can customise your coverage based on how many years you have left to pay your premiums. It's also a good idea to make sure you're protected for the rest of your working life.

Term insurance is a life insurance policy, and insurance companies rely on risk assessments. We charge you a greater premium if you are at a higher risk of developing a critical disease. If you smoke, your premium will be more than if you did not smoke.

Only if the insured dies in an accident does accidental insurance give a death reward. Any type of death is covered by a term insurance policy.

If you get term insurance online, the nominees will be paid an amount assured if something unfortunate happens. When a life insurance policy matures, it pays out benefits.

Yes, the policyholder can claim a tax benefit of up to INR 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Term insurance covers all sorts of death, including natural death, death from an accident, and death from serious illnesses, unless the policy contract provisions specify otherwise.

The insurance plan will expire at the conclusion of the policy term. If there are any survival benefits, they are disclosed.