Term Insurance
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Term insurance is one of the most basic forms of life insurance which provides financial coverage to the nominee for a predefined policy term, in return for a fixed premium, in case of demise of the policyholder.
One of the key benefits is that it offers high coverage for a relatively low premium.
Highlights of Term Insurance Plans
Most Popular Term Insurance Plans
Digio shield plan (level term insurance)
Joint Life Protection
Option to cover your Spouse under the same Policy with Joint Life Protection
Survival Benefit
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
MeraTerm Plan Plus Life
Premium Return
With Return of Premium option to get your Premium back on survival till maturity.
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
iProtect Smart
Enhanced protection
Coverage against death, terminal illness and disability
Premium Rates
Special premium rates for non-tobacco users.
iTerm Comfort
Tax Benefits
Stand eligible for tax deductions under Section 80C for the Income Tax Act, 15D.
Critical Illness Rider
Can add Critical Illness Rider that covers 35 critical illness.
Digio shield plan (level term insurance)
Joint Life Protection
Option to cover your Spouse under the same Policy with Joint Life Protection
Survival Benefit
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
MeraTerm Plan Plus Life
Premium Return
With Return of Premium option to get your Premium back on survival till maturity.
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
iProtect Smart
Enhanced protection
Coverage against death, terminal illness and disability
Premium Rates
Special premium rates for non-tobacco users.
iTerm Comfort
Tax Benefits
Stand eligible for tax deductions under Section 80C for the Income Tax Act, 15D.
Critical Illness Rider
Can add Critical Illness Rider that covers 35 critical illness.
Digio shield plan (level term insurance)
Joint Life Protection
Option to cover your Spouse under the same Policy with Joint Life Protection
Survival Benefit
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
MeraTerm Plan Plus Life
Premium Return
With Return of Premium option to get your Premium back on survival till maturity.
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
iProtect Smart
Enhanced protection
Coverage against death, terminal illness and disability
Premium Rates
Special premium rates for non-tobacco users.
iTerm Comfort
Tax Benefits
Stand eligible for tax deductions under Section 80C for the Income Tax Act, 15D.
Critical Illness Rider
Can add Critical Illness Rider that covers 35 critical illness.
Digio shield plan (level term insurance)
Joint Life Protection
Option to cover your Spouse under the same Policy with Joint Life Protection
Survival Benefit
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
MeraTerm Plan Plus Life
Premium Return
With Return of Premium option to get your Premium back on survival till maturity.
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
iProtect Smart
Enhanced protection
Coverage against death, terminal illness and disability
Premium Rates
Special premium rates for non-tobacco users.
iTerm Comfort
Tax Benefits
Stand eligible for tax deductions under Section 80C for the Income Tax Act, 15D.
Critical Illness Rider
Can add Critical Illness Rider that covers 35 critical illness.
Sanchay Plus
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
Life Long Income
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
POSGoal Suraksh
Avail Loan
Option to take policy loan once policy acquires surrender value
Payment Mode
Option to alter premium payment mode
iProtect Smart
Avail Loan
Option to take policy loan once policyacquires surrender value
Tax Benefits
Stand eligible for tax deduction underSection 80C for the Income Tax Act, 1961.
Sanchay Plus
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
Life Long Income
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
POSGoal Suraksh
Avail Loan
Option to take policy loan once policy acquires surrender value
Payment Mode
Option to alter premium payment mode
iProtect Smart
Avail Loan
Option to take policy loan once policyacquires surrender value
Tax Benefits
Stand eligible for tax deduction underSection 80C for the Income Tax Act, 1961.
Sanchay Plus
Tax Benefits
Stand eligible for tax deduction under Section 80C for the Income Tax Act, 1961.
Life Long Income
Avail Survival Benefit as Monthly Income on attaining age 60to ensure a work -free retired life.
POSGoal Suraksh
Avail Loan
Option to take policy loan once policy acquires surrender value
Payment Mode
Option to alter premium payment mode
iProtect Smart
Avail Loan
Option to take policy loan once policyacquires surrender value
Tax Benefits
Stand eligible for tax deduction underSection 80C for the Income Tax Act, 1961.
Sampoorna Raksha Supeme
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
iProtect Smart
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Smart Secure Plus
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Sampoorna Raksha Supeme
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
iProtect Smart
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Smart Secure Plus
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Sampoorna Raksha Supeme
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
iProtect Smart
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Smart Secure Plus
Personal Medical Case Management
Get complimentary 24x7 health consultation from specialists in just 180 seconds with our free online consultation service
Express 4 hour claim settlement
Experience the efficiency and convenience of 4 hour claim settlement, ensuring swift resolution
Sahi Advice,
Sahi Insurance
Confused about which is the most appropriate plan that suits your needs as per your life stage? Don’t worry! Our IRDAI certified advisors will guide you at every step.
Advice that comes with Experience.
Paybima is the digital arm of Mahindra Insurance Brokers Ltd
20+ years
Experience
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Strong Team
Certified
Advisors
Term Insurance
Everything you Need to Know
The Basics of Term Insurance
Who Needs to Buy a Term Insurance Plan
What are the Main Aspects of a Term Insurance Plan
Key Features and Benefits of a Term Insurance Plan
Type of Term Insurance Plans Available in India
Fundamentals of Buying a Term Insurance Plan
All About Term Insurance Claims
How to Claim a Term Insurance Plan
The Steps for Buying a Term Insurance Plan
Who Needs to Buy a Term Insurance Plan
Term life insurance is crucial for anyone with dependents, particularly those responsible for their family's finances. It's designed to offer financial security to your loved ones. In case of the policyholder’s unfortunate demise, the sum assured is paid to them, helping them manage finances during tough times. Choosing the right plan ensures your family is cared for even after you are gone.
Examples for more clarity:
Sanjeev needs to buy a term plan
Nikita need not buy a term plan
Salman need not buy a term Plan
What are the Main Aspects of a Term Insurance Policy
Death benefit
In case of the unfortunate demise of the insured, the family gets the sum insured as lump sum or instalments, or both, based on the chosen payout.
Policy term
It's the duration your policy covers ranging from 5 years to over 60 years.
Maturity benefit
Regular-term plans don't offer a maturity benefit; they provide a death or critical illness benefit. Some plans have Return of Premium options where premiums are refunded at maturity.
Entry Age
You can buy term insurance at 18 years, with coverage typically not extending beyond 65 years.
How Term Insurance Plans Work
In term insurance, you pay premiums for a set time period to get coverage. In case of your untimely demise, your nominee gets the death benefit. If you outlive the policy term, there are no benefits.
The policyholder needs to decide the following:
- Coverage amount
- Policy term
- Premium paying term
- Frequency of the premium payment
- Benefits of the term insurance plan
Premium Payment
The policyholder has the option of paying a lump sum amount or periodic payments - monthly, quarterly, half yearly or annually.
Policy Term
Coverage begins as soon as the policy is active. In case of the policyholder’s unfortunate demise, the nominee receives the entire coverage and the policy is terminated.
Survival
If the policyholder survives the tenure, there will be no benefits and the policy will be terminated.
Key Features and Benefits of a Term Insurance Plan
High coverage at a low cost
Term plans offer a high sum insured for low premiums.
Safety for loans and liabilities
The sum insured helps pay off debts in case of the policyholder’s demise.
Add-on protection
Riders like critical illness, disability, and accidental death offer extra coverage.
Claims payout option
The policyholder can choose between lump sum or periodic payouts for the family.
Tax benefit
Premiums and rider premiums are tax-deductible under Section 80C. The sum assured is also tax-free.
Premium Waivers
Some plans waive premiums if the insured is permanently disabled after an accident.
Critical illness cover
There is a lump sum payout for diagnosed critical illnesses.
Premium paying mode
There is an option to choose the payment frequency - annually, half yearly, quarterly, or monthly.
Simple Steps and Assistance for Buying a Term Insurance Plan
At Paybima, buying a Life insurance plan is easy and you can opt for an advisor’s help anytime.
Easy-to-follow Steps
Plans for Free
Advisors Anytime
No Force Selling
Types of Term Insurance Plans Available in India
Level term plan
This is the most common term insurance in which a fixed sum assured is paid to the family in case of the policyholder’s demise during the tenure.
Increasing and decreasing term insurance plan
It can increase or decrease the coverage annually. A decreasing term insurance covers liabilities such as a loan, while increasing term insurance helps manage inflation.
Term return of premium plan
Premiums are refunded if the insured survives the policy tenure.
Single-life and joint-life term insurance plan
Both have same benefits; however, a single-life plan is for individuals while a joint-life plan is best suited for couples with children.
Term Insurance Plan – Inclusions
What is covered in a term insurance plan?
Depending on the cause of death or disability, the amount is paid to the nominee or policyholder respectively.
Natural Death
The complete sum assured is paid to the nominee.
Accidental Death
An additional sum assured is paid to the nominee.
Terminal Illness:
A part of the sum assured is paid to the policyholder for medical expenses.
Critical Illness
A lump sum amount is paid to the policyholder if it is covered in the plan.
Disability
A part of the sum assured is paid to the policyholder who is disabled post an accident or illness.
Term Insurance Plan – Exclusions
What is not covered in a term insurance plan?
Term insurance policies typically come with exclusions that limit coverage for certain events or circumstances. The specific exclusions can vary depending on the insurer and the policy's terms and conditions. However, some common exclusions are:
Suicide
If the policyholder’s death occurs by suicide within a certain period of policy issuance (usually two years).
Death due to drug or alcohol abuse
If the policyholder dies due to any kind of substance abuse.
Criminal act
If the insured’s death occurs through any illegal/criminal activities.
Death from a pre-existing illness
A death that occurs due to a condition/illness that already existed before policy commencement.
How to Select the Best Term Insurance Plan
Selecting the best term life insurance plan in India is vital for you and your family’s future. That’s why one must consider several factors before choosing the right plan.
Buy early
Premiums are lower when bought early in your earning life.
Sum assured
Calculate the amount based on family income, liabilities, and expenses using a term insurance calculator.
Coverage
Look for joint life (for spouse), whole life benefits (till age 99), and Return of Premium (ROP) options.
Tenure of the policy
Choose a tenure that matches your financial responsibilities.
Riders
Consider options like accidental death, critical illness coverage and premium waivers.
Payout options
Choose between lump sum or monthly payments or a combination of both.
Insurer
Check for claim settlement ratio, customer care process and overall reputation.
How to Calculate the Term Plan Premium
How Does a Term Plan Premium Calculator Work?
The calculator asks for your basic information and the amount of life cover you want. It considers factors like your finances, dependents, lifestyle, and inflation cost to help you choose enough coverage for your family. You can also see premiums for different payment frequencies and customize the plan to fit your needs. The calculator quickly and accurately shows the premium amount you need to pay.
Cover amount
Choose enough to meet your family's financial needs in your absence, considering a 4-6% annual inflation.
Age
Younger individuals generally have lower premiums due to lower health risks.
Gender
Some policies charge lower premiums for women than men.
Lifestyle
Regular consumption of tobacco or alcohol may increase your premiums.
Policy tenure
Longer terms may have higher premiums but offer better benefits.
Payment tenure
You can choose between yearly, quarterly, monthly, or single payment tenure.
Payment frequency
Usually, monthly and quarterly payments are higher; annual and bi-annual are lower.
Term Insurance - Premium Calculator
The Earlier You Buy, Lesser the Premium
Consumes Tobacco
How to Claim a Term Insurance Policy
Follow this procedure to make claims seamless.
Step 1
Claim intimation
The first step involves reporting your claim. You can report your claims online, at the insurance company’s branches, Mahindra Paybima website, central office, etc., with the physical documents mentioned below to start the process.
Step 2
Claim processing
Once all documents are arranged, submit the same to the insurance company. The company’s special claim care team will assess your claim and inform you if any further documents need to be submitted. Post receiving all the necessary documents, the insurance company will process your claim request.
Step 3
Claim settlement
The insurance company will then verify the claim by reviewing the documents submitted. They may also conduct an investigation, if necessary. Once the claim is verified and approved, the insurance company will inform the nominee about the approval of the claim and the settlement amount. The settlement amount is generally paid to the nominee's bank account directly.
Documents for Claiming Term Insurance Policy
The nominee has to submit the following documents in order to receive the death benefit:
In addition, the below documents are required for accidental/suicidal death:
Term Insurance Plan Claim – How to Avoid Rejections
Here are some of the main reasons for claim rejection:
Non-disclosure or misrepresentation of information
The policyholder failed to disclose important information, such as a pre-existing medical condition or a dangerous hobby.
Lapsed policy
If the policyholder fails to pay their premiums on time, the policy will lapse and the insurance company may reject the claim.
Exclusions
If the policy specifically excludes certain causes of death, such as deaths resulting from drug use or extreme sports, the insurance company may reject the claim.
Unable to provide relevant documents
If nominee details are not provided or your claimant fails to provide relevant documents required at the time of claim, the claim might get delayed or rejected as per the company’s policy.
Suicide clause
If the insured takes their own life within a certain period of time after the policy is issued (usually two years), then the insurance company rejects the claim.
Guaranteed Claim Support
We will guide you from start till end in your ‘claim’ journey. Start your claim process with us to get our support.
How to Buy a Term Insurance Policy at Mahindra Paybima
Buying a term insurance policy online is very simple. You can follow these steps to buy a term insurance policy online at Mahindra Paybima.
Share personal details
Input basic details along with gender, age, coverage amount, annual income, occupation, etc. to begin the policy procedure.
Browse policies
Check the various plans offered by different insurance companies and shortlist the plans.
Compare shortlisted policies
Once you’ve shortlisted 2-3 policies that suit your requirements, compare them online.
Add riders
Select the appropriate riders or add-ons to the policy for additional cover.
Complete and review the proposal form
Enter proposer details for cKYC, medical information and nominee details.
Make payment
Pay for the policy online using credit/debit cards, UPI, wallets, or net banking.
Upload Documents
Provide documents for ID proofs, address proof and salary proof.
Medical examination
The insurance company conducts a medical examination before issuing the policy.
Get the policy
The proposal is submitted to the insurance company for approval. Once approved, you will receive the policy by email.
Documents Needed to Buy a Term Insurance Plan
Benefits of Buying Term Insurance Plans online on Paybima
It is important to compare the best term insurance plans, and here are some of the reasons why:
Best coverage
In a term insurance policy, there are different types of coverage options available. You can easily compare and choose a plan that meets your specific requirements and offers the best coverage.
Get the best rate
You can get a term insurance policy that offers the best value for your money.
Understand the features
You gain a better understanding of the insurance market & learn about the different types of features available in policies.
Safest Choice
While comparing the plans you can compare the claim settlement ratio of the insurance companies and choose the plan with the highest percentage.
Choose from India’s Top Insurers
Buy from India’s Top Insurers
Ask Anything as We Have Answers to Everything in Life Insurance
A term policy is a financial support instrument for your family when they don't have the insured around. It should be long enough, till the age the family has financial dependence on the insured Ideally, it should be in sync with their liabilities, loans, and retirement plans.
If you want to leave a legacy for your loved ones, you can also opt for whole-life coverage of term insurance, where you will be covered up to 100 years as per the plan.
Claim rejection can be avoided by ensuring the below points:
- Make sure that the beneficiaries' list is updated and that they are aware of the active policies. Keep the PayBima Claim Assistance Card with them.
- Ensure that all the information is correctly provided at the time of policy issuance including existing medical conditions, income, age, other declarations, etc.
- Pay policy premium on time to avoid policy lapse
- Read and understand the terms and conditions of your insurance policy thoroughly before purchasing it. Be aware of any exclusions or limitations that may apply to your coverage.
Maintain proper records of all policy-related documents, premium payments, correspondence with the insurance company, medical reports, and any other relevant paperwork. These records can help support your claim if required.
Inform the insurance company promptly about any changes in your personal information or circumstances that may affect your coverage, such as a change of address or change in nominee details
PayBima guarantees dedicated claim support in the insured's absence. We will assist the nominees with all their claim-related queries, claim filing, documentation, etc, for a stress-free claim experience.
Add-ons are optional but including them in the primary policy can be very useful during unexpected events. They provide enhanced life cover at affordable premiums while offering additional benefits within a single policy, like waiver of premium, critical illness benefit, accidental death benefit, additional payout on disability, etc.
