Life is full of opportunities, but it also comes with uncertainties. While we work hard to provide a comfortable life for our loved ones, it is equally important to prepare for unexpected situations. A term insurance plan is one of the simplest and most affordable ways to protect your family's financial future.
A term plan offers life coverage for a selected period in return for regular premium payments. If the life assured passes away during the policy term, the nominee receives the policy benefit. This amount can help the family manage daily expenses, education costs, loan repayments, and other financial responsibilities.
Whether you are starting your career, raising a family, or planning for retirement, term insurance can provide peace of mind by ensuring that your loved ones remain financially secure.
What Is Term Insurance?
Term insurance is the most straightforward and affordable type of life insurance available today. Simply put, it is
a plan that covers your life for a fixed number of years. In return for a small, regular premium, your family
receives a large payout if something unfortunate happens to you during that period.
Think of it as a promise to your family – that no matter what happens to you, they will not have to struggle
financially. Whether it is paying monthly household bills, funding your child's education, or clearing an existing
home loan, a best term insurance plan makes sure your loved ones can keep moving forward even in your absence.
Unlike investment-linked plans, term insurance focuses purely on protection. It gives your family the highest
possible coverage at the lowest possible cost, making it the most efficient life insurance product for anyone
looking for genuine financial security.
How Does Term Insurance Actually Work?
A term life insurance plan works on a simple principle – you pay a fixed premium for a chosen number of years, and
if you pass away within that period, your nominee receives the full sum assured as a death benefit.
Here is a simple example to understand this better:
Meet Rahul
He is 27 years old, non-smoker, and earns Rs.7 lakhs per year. He purchases a
Rs.1 crore term insurance plan for a
30-year policy term.
01
Year 1–30
Rahul pays his premium every year.
02
10th Year
Rahul meets with an unfortunate accident and passes away.
03
After the Event
His family receives Rs.1 crore as the death benefit from the insurer.
04
Going Forward
His family can use that amount to pay off their home loan, manage daily expenses, and secure the children's
education.
If Rahul survives the full 30-year period:
The standard plan does not pay any amount back unless he has opted for a
Return of Premium option, which is also available with some plans.
You can also enhance the base plan with add-ons called riders – these provide extra coverage for situations like
accidental death, critical illness, permanent disability, or terminal illness, all at a small additional premium.
Why Should You Buy a Term Insurance Plan?
A lot of people know they should buy term insurance, but keep delaying it. Here are the real reasons why having a
term plan in place matters:
01
Your Family Stays Financially Secure
If you are the main earning member of your family, your income supports everything – from school fees to
groceries to EMIs. A term plan ensures your family does not have to give up their lifestyle or their goals if you
are no longer there to provide.
02
Your Assets Are Protected
Most people take loans to build assets – a house, a vehicle, a business. If you pass away during the loan period,
those repayments fall on your family. A term plan payout can clear those outstanding debts so your family does
not risk losing what you worked so hard to build.
03
Lifestyle Risks Are Real and Growing
In India, health problems like heart disease, hypertension, and lifestyle-related conditions are affecting people
at younger ages. Term insurance provides a financial cushion for your family when such events lead to an untimely
death.
04
Life Is Unpredictable
Events like the COVID-19 pandemic reminded everyone that life can change without warning. A term plan acts as a
financial backup plan for situations you never saw coming.
05
Big Coverage at Very Low Cost
A Rs.1 crore life cover can often be purchased for a monthly premium that costs less than a family dinner out. No
other insurance product gives you this level of coverage at such an affordable price.
06
Customise with Riders
Add-on covers like critical illness rider, accidental death benefit, waiver of premium on disability, and
terminal illness rider allow you to build a plan that goes beyond just a death payout. These riders give you and
your family extra protection in specific situations at a modest additional cost.
07
Save on Taxes Too
The premium you pay towards a term plan qualifies for a deduction under Section 80C of the Income Tax Act, 1961,
up to Rs.1.5 lakhs per year. The death benefit received by your nominee is also generally tax-free under Section
10(10D) of the ITA, 1961.
Compare The Best Term Plans And Get Covered In Minutes
There is no single plan that fits everyone. Depending on your life situation, income, and goals, there are
different types of term insurance products available in India.
Type of Plan
Who It Is For
Key Benefit
Basic Term Life Insurance
Anyone looking for pure life cover
High sum assured at low premiums; lump sum payout to nominee
Term Insurance with Return of Premium (TROP)
Those who want premiums back on survival
Refund of all premiums paid if you outlive the policy term
Term Plan for Housewives
Homemakers
Coverage based on spouse's income; financial security for the family
Term Plan for Self-Employed / Business Owners
Entrepreneurs & freelancers
Protection against business loans and liabilities
Term Plan for NRIs
Indians living abroad
Buy online with video/tele medical; GST waiver and special premium discounts
Term Plan for Diabetics
Pre-diabetic or Type 2 diabetes individuals
Affordable coverage even with a diagnosed condition
Saral Jeevan Bima (SJB)
Low-income individuals
Simple, no-frills coverage regardless of occupation or education level
Important:
Always compare plan features and premium rates before finalising. A plan that looks cheaper at first glance may
offer less coverage or fewer rider options
Best Term Insurance Plans In India 2026
Explore some of the top best term insurance plans in India in 2026 from leading insurance providers through Okbima.
We have created a list of recommended term plans by considering important factors such as the plan name, claim
settlement ratio (CSR), and coverage amount. You can easily compare different term insurance plans and choose the
one that suits your needs on Okbima.com.
A general rule of thumb – your life cover should be at least
10 to 15 times your current annual income.
Who Should Buy a Term Plan?
The simple answer – anyone who has someone depending on them financially. But let us break it down by life stage
and situation:
Young Professionals (22–30 years)
The earlier you buy, the lower your premium. At a young age, you are healthy, low-risk, and therefore get the best
rates. Buying now locks in that low premium for decades.
Newly Married Couples
When two people build a life together, their finances become intertwined. A term plan protects your spouse from
financial hardship if you are no longer around.
Working Women
Women today are equal contributors to household income. A term insurance for women provides income replacement and
can include riders for conditions like breast cancer or cervical cancer.
Homemakers / Housewives
The contributions of a homemaker – childcare, household management, and more – have a real financial value. A term
insurance for housewives gives their family a financial cushion in case of their untimely loss.
Parents
Your children's education, upbringing, and future goals depend on your financial stability. A term plan ensures
those goals are not left behind even in the worst scenario.
Self-Employed Individuals & Business Owners
Unlike salaried employees, self-employed individuals do not have employer-provided insurance. A term plan protects
their family and also covers any business loans or liabilities.
Home Loan Borrowers
Your home loan does not disappear if you do. A term plan payout can cover outstanding EMIs so your family does not
lose their home.
NRIs and Expatriates
Indian citizens living outside India can purchase term plans from Indian insurers with the added benefit of video
medical check-ups, GST waivers, and coverage up to Rs.20 crore.
Senior Citizens (60 and above)
Even at this stage, if you have a dependent spouse or family members relying on your pension or savings, a term
insurance for senior citizens can offer a layer of protection for them.
Taxpayers
The 80C deduction on premiums is a bonus. For those already looking to reduce tax liability, a term plan is a
smart and productive use of that deduction.
Here is a quick overview of what makes term insurance different from other life insurance products:
Minimum Entry Age of 18 Years
You can start protecting your family from as early as 18 years of age. The younger you start, the more affordable
your premiums will be for the entire policy term.
Coverage Up To 99 Years
Some plans offer coverage that extends all the way to 99 or 100 years of age – ideal for those who want to leave
behind a legacy for their family.
Multiple Premium Payment Choices
You can pay premiums monthly, quarterly, half-yearly, or annually. There are also limited pay options where you
complete all premium payments in a shorter duration but retain coverage for a longer term.
Flexible Sum Assured Options
You can adjust your coverage at key life stages – such as marriage, the birth of a child, or taking a home loan –
through life stage benefit features available in select plans.
Return of Premium Feature
Under certain term plans, if you survive the policy term, you receive all the premiums you paid back. Some plans
also allow an early exit option where you can step out of the policy and still get a refund.
Coverage for Critical Illnesses
Many term plans come with built-in or optional coverage for critical illnesses like cancer, stroke, heart attack,
and kidney failure.
Debt Protection
The death benefit can be used to settle any outstanding home, car, or business loans so your family is not
burdened with repayments.
What Factors Affect Your Term Insurance Premium?
Your term life insurance premium is not the same as someone else's. Several personal and lifestyle factors
determine how much you will pay:
Age
Younger applicants pay lower premiums. Premiums rise with every passing year.
Gender
Women generally pay lower premiums because of a longer average life expectancy
Health Condition
Existing illnesses or poor health can increase your premium.
Family Medical History
A history of serious illness in your family may lead to higher premiums.
Lifestyle Habits
Smoking, alcohol use, or involvement in high-risk activities increases your premium.
Occupation
High-risk jobs like mining or deep-sea diving attract higher premiums.
Policy Duration & Sum Assured
Longer coverage periods and higher sum assured amounts will cost more.
The key takeaway here is simple – buy early, stay healthy, and be honest in your application form. Concealing
information will only create problems at the time of claim.
What Is Covered and What Is Not Covered?
Before you buy, it helps to know exactly what a term plan covers and what it does not.
Situations Covered Under Term Insurance:
Death due to natural causes or illness
Death due to an accident (road accident, workplace incident, etc.)
Death due to natural calamities
Death due to COVID-19 or other infectious diseases
Death due to terminal illness
Situations Generally Not Covered:
Suicide within the first policy year
Death caused by self-harm or illegal activity
Death resulting from an accident while under the influence of alcohol or drugs
Death due to pre-existing conditions that were not declared at the time of purchase
Death due to complications from pregnancy or childbirth
Important:
Being fully transparent in your application is the single most important step to ensuring your family's claim is
never rejected.
What Are Payout Options in Term Insurance Plan?
When the claim is settled, the nominee does not have to receive the entire sum in one go. Most insurers offer
flexible payout options:
Full Lump Sum
The entire sum assured is paid in one go. The nominee can use it as they see fit – pay off debts, invest, or
manage expenses.
Monthly Income
The sum assured is distributed in equal monthly payments over 5 to 10 years. This option works well for families
who need a steady income to replace the loss of earnings.
Lump Sum + Monthly Income
A portion of the sum assured is paid upfront – to cover immediate costs like hospital bills or loans – while the
remainder is paid monthly. This is the most balanced approach.
Rising Monthly Income
The monthly payout increases by a fixed percentage every year. This is a smart option to beat inflation and ensure
the family's purchasing power does not erode over time.
Choosing the right payout option depends on your family's financial structure, any existing liabilities, and how
dependent they are on a regular income flow.
Find The Best Term Plan
Check The Best Term Plan That Matches Your Family's Needs
Term Insurance Riders – What They Are and Why They Matter?
A rider is an optional add-on that you can attach to your base term plan. Think of it as adding extra features to
your base coverage. Riders are available at a small additional premium and can significantly enhance the financial
protection your family receives.
Types of Term Insurance Riders Available:
Accidental Death Benefit Rider
If the policyholder passes away due to an accident, this rider pays an additional amount over and above the base
sum assured.
Critical Illness Rider
On diagnosis of a serious illness specified in the policy – such as cancer, heart attack, or kidney failure – you
receive a lump sum payout. This money can be used for treatment costs, without touching your savings.
Disability Rider
If you become permanently disabled and are unable to earn, this rider provides extra financial support to manage
daily expenses.
Waiver of Premium – Permanent Disability
If you suffer a permanent disability, all future premiums under the policy are waived. Your coverage continues
without you having to pay anything more.
Terminal Illness Rider
If you are diagnosed with a terminal illness and your life expectancy is limited, this rider allows you to
receive a portion of the sum assured in advance to manage your final years with dignity.
Hospicare Benefit Rider
A daily cash benefit is paid for every day you spend in the hospital, helping cover incidental costs not covered
by regular health insurance.
Why Should You Add Riders to Your Plan?
They Give You Broader Protection
A plain term plan only covers death. Riders step in when you face serious illness, disability, or accidents –
events that may not result in death but still cause severe financial disruption.
They Protect Your Income
Some riders ensure your policy stays active even when you cannot pay premiums – for example, if a disability
leaves you unable to work. Your family does not lose coverage just because your income stopped.
They Are Cost-Effective
Buying separate policies for accidental death, critical illness, and disability would cost significantly more.
Riders bundle these protections into one plan at a fraction of the cost.
They Fit Your Personal Risk Profile
A frequent traveller may benefit most from an accidental death rider. Someone with a family history of cancer may
prioritise a critical illness rider. Riders let you personalise coverage around your real-life risks.
Tax Benefits on Certain Riders
Premiums paid for health-related riders like critical illness may qualify for tax deductions under Section 80D of
the Income Tax Act, in addition to the 80C benefit available on the base premium.
How Term Insurance Protects Your Family's Future
A term plan does much more than pay out a claim. Here is how it actively safeguards your family across different
aspects of life:
Income Replacement
The death benefit can be structured as monthly payouts, effectively replacing the regular income that your family
would have lost
Covering Immediate Costs
Funeral expenses, hospital bills, and other immediate costs can pile up at the worst possible time. The lump sum
payout from a term plan handles these without putting pressure on the family's savings.
Clearing Loans & Debts
Outstanding home loans, car loans, or personal loans do not disappear with the policyholder. The sum assured
ensures these are paid off so the family is not chased by creditors.
Protecting Your Spouse
A term plan can be designed to provide regular income to your spouse well into retirement, ensuring they maintain
financial independence even after you are gone.
Securing Your Children's Goals
Education fees, wedding expenses, or starting a business – your children's future plans deserve protection. The
death benefit can fund all of these milestones in your absence.
When Is the Right Time to Buy a
Term Insurance Plan?
There is no bad time to buy term insurance, but some life stages make the need more pressing than others:
A small decision today can secure your family's tomorrow.
When You Start Earning
Your first salary is the right time to start. At this point, your health is at its best and your premiums will
be at their lowest. Starting early locks in these rates for the entire term.
When You Get Married
Marriage increases your financial responsibilities. Your spouse depends on your income, and a term plan ensures
they are not left vulnerable if something happens to you.
When You Become a Parent
A child's arrival is one of the most financially significant life events. From school fees to college education
and beyond, your child's future goals need protection from day one.
When You Take a Loan
Any major loan – especially a home loan – is a long-term liability. A term plan ensures that the loan can be
repaid without your family having to sell the asset you worked hard to buy.
When You Move Abroad
Life abroad comes with new uncertainties. If your family is in India and you are abroad, a term plan from an
Indian insurer gives your family back home a safety net while you are away.
Check And Compare The Best Term Plan Now – Get Free Quote
How Long Should Your
Term Insurance Policy Be?
The policy term should ideally cover the period during which your family is most financially dependent on you.
The right term today secures your family's tomorrow.
A Few Practical Guidelines
01
If you have young children,
opt for a term that lasts until they are financially independent – roughly 20 to 25 years from now.
02
If you have a home loan,
the policy term should at least match your loan repayment period
03
If you plan to retire at 60,
choose a plan where the premium payment ends by 60, so you are not paying premiums from your retirement savings.
04
If you want to protect your spouse for life,
consider a whole-life or long-term plan that covers till 99 years.
The key is to match the policy term with your
real-life financial responsibilities—not just pick an arbitrary number.
Can NRIs Buy Term Insurance in India?
Yes, absolutely. Indian citizens living abroad can purchase term insurance from Indian insurers, and there are
several advantages to doing so:
01
Coverage of up to Rs.20 crore at competitive premium rates
02
Medical check-ups can be completed via video or phone call – no need to travel to India
03
An additional 5% discount is available when premiums are paid in annual mode
04
An 18% GST waiver is applicable as per current tax regulations
05
Special early exit options allow NRIs to step out of the plan and recover all premiums paid under specific
conditions
NRIs in countries like Singapore and the UAE can get term insurance at premiums 20% to 50% lower than comparable
international plans, making Indian term insurance a smart financial choice.
Common Mistakes to Avoid
When Buying Term Insurance
Many people end up with the wrong plan simply because of avoidable mistakes. Here is what to watch out for:
Delaying the Purchase
Every year you wait, your premium goes up. And if your health deteriorates in the meantime, the premium could
increase even further – or coverage could be restricted
Choosing Too Low a Sum Assured
A Rs.50 lakh policy might seem like a lot, but consider your outstanding loans, annual expenses, and future
goals. A typical urban family may need Rs.1–2 crore to genuinely replace the income loss for 20 years.
Skipping Riders
Basic plans cover only death. Riders add protection for illness, disability, and accidents – situations that can
leave your family financially strained even when you are still alive. Not adding them means missing out on
comprehensive protection at a very affordable additional cost.
Giving Incomplete or Wrong Information
Not disclosing your health conditions, smoking habits, or family medical history when filling out the application
may result in your family's claim being rejected. Always be fully honest.
Buying Offline Through Agents
Agent commissions add to the overall premium cost. Buying a term plan online directly gives you access to lower
premiums, and exclusive online discounts that are simply not available offline.
What to Check Before Buying Term Insurance?
Use this checklist to evaluate any term plan before making a decision:
Parameter
What to Look For
Claim Settlement Ratio (CSR)
Choose an insurer with a CSR above 95%
Solvency Ratio
Indicates the insurer's ability to pay future claims
Grace Period
Check the grace period allowed for late premium payments
Free Look Period
You should have at least 15–30 days to review and return the policy
Rider Options
Check what riders are available and their specific conditions
Smart Exit / Special Exit Feature
Option to exit early and get premiums back
Plan Type
Make sure the plan type suits your current life situation
Important Reminder
A higher premium does not always mean better coverage. Compare features, not just prices.
Buying a term plan is straightforward and requires just a few standard documents:
Identity Proof:
Aadhaar Card, PAN Card, Passport, or Voter ID
Address Proof:
Recent utility bills (electricity, water, gas, telephone – not older than 2 months), or property tax receipt
KYC Documents:
Passport, Aadhaar Card, or Voter ID
Medical Proof:
Latest medical reports as required by the insurer
Income Proof
For Salaried Individuals
Last 3 months' salary credit bank statements
Last 2 years' Income Tax Returns
Recent Form 16
For Self-Employed Individuals
Last 2 years' ITR with income computation
Last 2 years' audited balance sheet and P&L statement
Form 26AS
Important:
Having these documents ready speeds up the application process significantly, especially when buying online.
How Term Insurance Works – Step by Step
Here is the step-by-step process of how a term insurance plan operates from purchase to claim:
01
Agreement Between You and the Insurer
When you buy a term plan, you enter into a formal agreement with the insurance company. You commit to paying a
fixed premium, and the insurer commits to paying the sum assured to your nominee upon your death during the
policy term.
02
Fill Out the Proposal Form
Provide accurate information about your age, gender, income, occupation, lifestyle habits (smoking, alcohol),
health history, and family medical background. Accuracy here is critical.
03
Assess Your Coverage Needs
Before selecting the plan, evaluate how much life cover your family actually needs. Consider your income,
liabilities, the number of dependents, and how many years they will need support
04
Pay the Premium
Choose the payment frequency that works best for you – monthly, quarterly, half-yearly, or annually – and set up
your payment.
05
Appoint a Nominee
Mention a nominee (or multiple nominees) who will receive the death benefit. Make sure your nominee is aware of
the policy and knows how to file a claim.
The Term Insurance Claim Process
Knowing how to file a claim is just as important as buying the right policy. Here is how the term insurance claim
process works:
01
Notify the Insurer
The nominee or a family member should inform the insurance company about the policyholder's death as soon as
possible.
02
Submit Required Documents
The nominee will need to provide the completed claim form along with supporting documents.
03
Document Verification
The insurer reviews all submitted documents and may reach out for additional details if needed.
04
Claim Decision
The insurer decides to approve or reject the claim based on the policy terms and the information provided.
05
Claim Settlement
If approved, the claim amount is transferred directly to the nominee's bank account as per the chosen payout
option.
Documents Required for Filing a Term Insurance Claim
The nominee will typically need to submit the following:
Duly filled claim form (available online and offline)
Medical records including death summary, hospital admission notes, and diagnostic reports
Original policy document
Post-mortem report (if applicable)
Death Certificate (issued by the municipal authority)
Photo ID proof of the nominee (Aadhaar, PAN, Voter ID)
Nominee's cancelled cheque and NEFT mandate form for bank transfer
Having these ready in advance and keeping a record of where the policy documents are stored can save the family a
lot of time and stress during an already difficult period.
Buy Term Plan Fast, Simple, And Fully Online – Compare & Buy Now
How Long Does a Term Insurance Claim Take?
The claim processing time depends on how quickly and accurately the documents are submitted:
Standard Timeline
As per IRDAI guidelines, insurers are required to process claims within 15 days of receiving all documents. Many
straightforward claims are settled within a few working days.
Delays Can Occur When
Documents are incomplete, medical records are unclear, nominee verification takes time, or riders like critical
illness are involved and require additional medical review.
Rider-Linked Claims
When add-ons like accidental death or critical illness benefits are part of the claim, additional verification
may extend the timeline slightly.
The best way to ensure a fast settlement is to keep all documents organised and to have provided accurate
information at the time of policy purchase.
Why Buy Term Insurance Online?
Buying term insurance online is not just convenient – it is genuinely the smarter choice for most buyers.
Lower Premiums
When you buy online, there is no agent involved, which means no commission to be paid. Insurers pass these
savings on to customers in the form of lower online premiums.
Easy Comparison
Within minutes, you can compare dozens of plans across multiple insurers side by side – comparing premiums, sum
assured options, rider availability, and claim settlement ratios.
No Paperwork Hassles
The entire process, from filling the form to uploading documents, happens digitally. No visits to branch offices,
no physical paperwork piling up.
Exclusive Online Discounts
Many insurers offer special discounts that are only available on online purchases. These discounts are simply not
accessible if you buy through an agent.
Buy and Manage Anytime
Your policy documents, premium payment history, and renewal reminders are all accessible anytime through the
insurer's website or app.
How to Buy a Term Insurance Plan on Okbima.com
Buying a term plan on Okbima is a quick, simple, and fully online process
Step 1
Visit Okbima.com
Visit Okbima.com and navigate to the "Term Plans" section.
Step 2
Enter Basic Details
Enter your basic details – name, gender, date of birth, contact number, and email address.
Step 3
Select Income & City
Choose your income range and select your city of residence.
Step 4
Provide Additional Information
Fill in your occupation, educational qualification, and lifestyle details such as smoking and drinking habits.
Step 5
Compare & Buy
Browse the shortlisted plans, compare features, choose the one that fits you best, and complete your payment.
Quick Process:
The entire process to buy a term insurance plan typically takes under 2-4 minutes for most applicants.
Why Choose
Okbima for Your Term Insurance?
Okbima is one of India's trusted insurance comparison platforms, with a growing base of families who have secured
their future through its services.
01
Compare the Best Plans in Seconds
Okbima brings plans from leading insurers together on one platform so you can make a well-informed decision
without spending hours doing research.
02
Transparent and Hassle-Free Process
No hidden charges, no pushy agents. Okbima's online platform is clean, transparent, and built around the
customer's needs.
03
Lowest Available Premiums
Okbima works with top insurers to bring you some of the most competitive term plan premiums available in the
market.
04
Expert Customer Support
Have a question about riders, sum assured, or a specific plan feature? Okbima's insurance advisors are available
via phone and email to help you choose wisely.
05
End-to-End Claim Assistance
Okbima's dedicated "City Captain" team provides 100% hands-on support during the claim process – from document
preparation to coordinating with the insurer – so your family is never left to figure it out alone.
Have A Question Or Need Help – Get Expert Advice
What Are the Benefits of Buying Term Insurance?
To summarise everything we have covered, here is a consolidated look at the core benefits of owning a term plan:
Benefit
Details
High Cover at Low Cost
Rs.1 crore cover available for just a few hundred rupees a month
Income Replacement
Family receives regular payouts to replace lost earnings
Loan Protection
Sum assured can clear outstanding home, car, or business loans
Critical Illness Cover
Add-on rider covers major illnesses with a lump sum payout
Disability Benefits
Financial support in case of accidental total or permanent disability
Long Policy Term
Coverage available up to 85 or 99 years of age
Tax Savings
Deduction under 80C on premium; death benefit tax-free under 10(10D)
Return of Premium
Get all premiums back if you outlive the policy term (select plans)
Flexible Payouts
Choose from lump sum, monthly income, or combination options
Frequently Made Mistakes
To protect your family effectively, avoid these common errors:
Buying too late
Premiums increase every year. Act now.
Under-insuring
A Rs25 lakh cover may not be enough for a family with a Rs.60 lakh home loan and two children.
Ignoring riders
They offer significant added protection for a small extra cost.
Hiding health information
This is the number one reason claims get rejected.
Buying offline
Online plans save money and offer more transparency.
Term Insurance for Different Life Situations
For Home Loan Borrowers
A term plan designed around your loan amount and tenure ensures your family never risks losing their home. The
claim payout can directly settle pending EMIs.
For Business Owners and Self-Employed Individuals
Business loans, overheads, and partner agreements create financial risk. A term plan provides a safety net that
keeps the family protected even if the business faces disruption.
For Equity Investors
If your investments are tied up in markets, your nominee may not have immediate access to liquid funds. The term
plan payout provides instant liquidity during a difficult time.
For Freelancers
Freelancers are among the most under-insured segments in India. Even without a steady employer, you can purchase
a term plan with valid income proof and secure your family's future.
For Diabetics
Having Type 1 or Type 2 diabetes does not disqualify you from getting term insurance. Special plans designed for
diabetics are available at reasonable premiums, ensuring everyone has access to life cover.
What Makes a Good Term Insurance Plan?
Not all term plans are built the same. When evaluating options, look for these qualities:
A Claim Settlement Ratio of 95% or higher from the insurer
Clear and fair policy exclusions without too many conditions
Wide rider availability
Flexible premium payment modes
A generous free look period (15–30 days) to review after purchase
A hassle-free online claim process
Good customer reviews and service reputation
Tax Saving Benefits
Term Insurance Tax Benefits
Term insurance is not just a protection product – it also helps you save money on taxes every year:
Section 80C – Premium Deduction
The premium you pay toward a term insurance plan is eligible for a deduction of up to Rs.1.5 lakh per financial
year under Section 80C of the Income Tax Act, 1961. This is available to all individual taxpayers.
Section 10(10D) – Tax-Free Death Benefit
The lump sum amount received by your nominee as a death claim is fully tax-free under Section 10(10D) of the
Income Tax Act, subject to conditions.
Section 80D – Rider Premium Deduction
Premiums paid for health-related riders like critical illness may also be eligible for deduction under Section
80D, depending on the terms of the plan.
Note:
Tax laws are subject to change. Always consult a tax advisor for the most current and applicable benefits.
How Okbima Supports You at Claim Time?
At Okbima, the relationship does not end at the point of sale. Here is how Okbima supports you and your family when
a claim needs to be filed:
STEP 01
Report the Claim
Call Okbima at +91 120 455 5217 or email info@okbima.com to report the claim.
You can also submit your claim request through the Okbima website.
STEP 02
Policy Verification
If your policy was purchased through Okbima, the team already has your policy details and can begin the process
immediately.
STEP 03
Document Submission
Okbima's claim team guides the nominee on the exact documents required for the specific case. Documents can be
uploaded online or submitted physically.
STEP 04
Insurer Coordination
Okbima works directly with the insurance company on your family's behalf – following up on status, answering
queries, and pushing for faster resolution.
STEP 05
Settlement and Follow-up
Once the claim is approved, the amount is transferred to the nominee's bank account. Okbima keeps the family
informed at every stage.
Why Term Insurance Should Be Your First Financial Decision?
If you have people in your life who depend on you – a spouse, children, parents, or anyone else – term insurance
is not optional. It is the foundation of responsible financial planning.
No investment, no savings scheme, and no other product gives you the kind of protection that term insurance does
at the price it offers. A Rs.1 crore life cover for less than Rs.1,000 a month is simply unmatched by any other
financial instrument.
Rs.
Rs.1 Crore Life Cover
Less Than Rs.1,000/Month
The best time to buy was yesterday. The next best time is today.
Compare plans, choose wisely, and buy online for the best prices. Your family deserves a plan that genuinely
protects them – and Okbima is here to help you find it.
Term insurance is a life insurance plan that pays a fixed amount to your family if you pass away during the policy
period. You pay a small premium regularly, and in return, your family gets financial protection when they need it
most.
2What is the right age to buy a term insurance plan?
The earlier the better. Ideally, buy between 18 and 30 years of age. At a younger age, your health is better, and
you get the lowest possible premiums that stay fixed for the entire policy term.
3How much term insurance cover do I actually need?
A common rule is 10 to 15 times your annual income. For example, if you earn Rs.8 lakhs per year, a cover of Rs.80
lakhs to Rs.1.2 crore is a reasonable starting point. Also factor in your outstanding loans, number of dependents,
and future expenses like children's education.
4 What happens if I outlive my term insurance policy?
In a standard term plan, no amount is paid if you survive the policy term. However, if you have opted for a Return
of Premium (TROP) plan, all the premiums you paid are refunded to you at the end of the policy term.
5Can I buy term insurance if I have a pre-existing illness like diabetes?
Yes. Many insurers in India now offer term plans specifically designed for people with conditions like Type 2
diabetes or pre-diabetes. The premium may be slightly higher, but coverage is available.
6Is the death benefit from a term plan taxable?
No. The death benefit received by the nominee is generally tax-free under Section 10(10D) of the Income Tax Act,
1961, subject to the applicable conditions.
7Can I get a tax deduction on my term insurance premium?
Yes. The premium you pay for a term insurance plan qualifies for a deduction of up to Rs.1.5 lakh per year under
Section 80C of the Income Tax Act, 1961.
08What is a rider in term insurance?
A rider is an optional add-on that you can attach to your base term plan for extra protection. Common riders
include critical illness, accidental death, disability, waiver of premium, and terminal illness. Each rider comes
at a small additional premium.
09What is the difference between term insurance and life insurance?
Term insurance is a type of life insurance that provides pure death cover for a fixed period at a low premium.
Other life insurance products like endowment or ULIPs combine insurance with savings or investment. Term insurance
gives the highest cover for the lowest cost.
10Can a housewife buy term insurance?
Yes. Homemakers can purchase term insurance plans specifically designed for them. The sum assured is generally
calculated based on the earning spouse's income. It provides financial security to the family in case of the
homemaker's unfortunate passing.
11What documents do I need to buy a term plan online?
You typically need identity proof (Aadhaar, PAN, Passport), address proof (recent utility bill), income proof
(salary slips, ITR, or bank statements), and medical reports if required by the insurer. The exact list may vary by
insurer.
12Can NRIs buy term insurance from Indian companies?
Yes. NRIs can purchase term insurance from Indian insurers online. Medical check-ups can be done via video or
phone. NRIs also benefit from an 18% GST waiver and may get additional premium discounts depending on the insurer
and policy chosen.
13What happens to my term plan if I stop paying premiums?
If you miss a premium payment, most insurers offer a grace period of 15 to 30 days. If payment is not made within
the grace period, the policy lapses and coverage stops. Some plans allow revival of a lapsed policy within a
specified period.
14Is a medical test required to buy term insurance?
It depends on your age, sum assured, and health status. For younger applicants with lower sum assured amounts,
medical tests may not always be required. For higher coverage or older applicants, insurers may ask for a medical
examination.
15How is the term insurance premium calculated?
Your premium depends on several factors including your age, gender, health condition, family medical history,
lifestyle habits (smoking/drinking), occupation, policy term, and the sum assured amount you choose. Buying at a
younger age and in good health gives the lowest premium.
16What is the Claim Settlement Ratio (CSR) and why does it matter?
The Claim Settlement Ratio tells you what percentage of claims an insurer settled out of all claims received in a
year. A higher CSR means the insurer is more likely to honour your family's claim. Always choose an insurer with a
CSR of 95% or above.
17Can I have more than one term insurance policy at the same time?
Yes. You can hold multiple term insurance policies from different insurers simultaneously. This can be useful if
you want to increase your total coverage beyond what a single insurer offers. Just make sure to disclose all
existing policies in each new application.
18Can I have more than one term insurance policy at the same time?
Yes. You can hold multiple term insurance policies from different insurers simultaneously. This can be useful if
you want to increase your total coverage beyond what a single insurer offers. Just make sure to disclose all
existing policies in each new application.
19What is a free look period in term insurance?
The free look period is a window of 15 to 30 days after you receive your policy documents. During this time, you
can review the policy and return it for a full refund of the premium if you are not satisfied with the terms. No
questions asked.
20Why do online term plans cost less than offline ones?
When you buy offline through an agent, their commission is built into the premium you pay. Online plans eliminate
this middleman cost. Insurers pass on these savings to customers, making online term plans meaningfully cheaper for
the same coverage.
21How do I file a term insurance claim through Okbima?
Contact Okbima at +91 120 455 5217 or email info@okbima.com to report the claim. Okbima's dedicated claim support
team will guide the nominee through document collection, coordinate with the insurer on their behalf, and follow up
until the claim is fully settled.
Real experiences from real people who secured their family's future with Okbima
"Bahut achha experience. Highly recommend."
Ramesh Kumar
Delhi
"Bought 1 crore plan in few minutes. Mr. Suraj ne sab kuch samjha diya pehle hi. Super easy process Thank you."
"As a working woman I always wanted proper financial protection for my family. Khushi from Okbima helped me
understand which plan suits best for me and also explained the critical illness rider in very simple way. No
agent, no office visit, everything done from home."
Sneha Iyer
Bangalore
"Pehle agent ke through liya tha, premium zyada laga. Yahan same coverage kaafi kam mein mili. THANK YOU."
Mohammad Faraz
Hyderabad
Disclaimer
The insurance plans and benefits mentioned in this content are offered by Okbima's insurer partners. Okbima does
not endorse or recommend any specific insurer or plan. For a complete list of registered insurers in India, visit
the IRDAI website at
www.irdai.gov.in. Premiums and tax benefits are subject to
change as per prevailing IRDAI regulations and tax laws. Standard terms and conditions apply. Please read the
policy brochure carefully before making a purchase.
Term life insurance coverage of Rs.1 crore starts at just Rs.17 per day (Rs.516 per month) for a 20-year-old
non-smoker male with no pre-existing medical conditions, with coverage up to 60 years of age.
Any savings or online discounts are offered by insurers in accordance with the terms of IRDAI-approved insurance
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.
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