What is Term Insurance?
A Term Plan pays your nominee a large lump sum if the insured passes away during the policy term. No survival benefit — that's exactly why premiums stay tiny.
Who needs it?
- Earning members with dependents
- Home-loan / business-loan borrowers
- Self-employed professionals (doctors, CAs, consultants)
- Anyone with school-going children
Why it matters
Cover of 15-20x annual income at a fraction of endowment premiums
Optional add-ons: Critical Illness, Accidental Death, Waiver of Premium
Premiums fixed for the entire term
Tax deduction under Sec 80C; payout tax-free under 10(10D)
Common myths, busted
Myth: I get nothing back if I survive.
Truth: That's the point — and exactly why cover is 20x cheaper than endowment.
Myth: Online plans don't pay claims.
Truth: IRDAI publishes claim-settlement ratios. The best online insurers settle 98%+ in days.
Real claim examples
- ₹1.2 Cr claim approved in 11 days; family debt of ₹40 L paid off, balance invested for children's education.