Term Life Insurance
What is Term Life Insurance?
Term life insurance is the simplest and most cost-effective way to provide financial security for your
family in your absence. Unlike other life insurance products that combine savings with protection, a
term plan is a pure protection policy. It provides a high sum assured (life cover) to your beneficiaries
in the event of your untimely demise during the policy term, ensuring they can maintain their lifestyle
and fulfill their dreams.
The primary objective of term insurance is to act as an income replacement for your dependents. Whether
it's paying off a home loan, funding your children's higher education, or covering daily living
expenses, a term plan offers a solid financial foundation. With affordable premiums and high coverage
limits, it is the first step in any robust financial plan, providing peace of mind that your loved ones
will be taken care of, no matter what.
Types of Term Insurance Plans
1. Level Term Plans
The most common type where the sum assured remains the same throughout the policy tenure. The premium also stays constant, making it easy to budget for long-term protection without worrying about increasing costs.
2. Increasing Term Plans
Designed to counter the effects of inflation, the sum assured in these plans increases by a fixed percentage every year. This ensures that the life cover remains adequate as your family's needs and living costs grow over time.
3. Return of Premium (TROP)
While standard term plans offer no maturity benefit, TROP plans return all the premiums paid if the insured survives the policy term. It's a great option for those who want protection but also want their money back if the risk doesn't materialize.
4. Decreasing Term Plans
Commonly used for mortgage or loan protection, the sum assured decreases over the policy term in line with your outstanding loan balance. It ensures that your family isn't burdened with debt in your absence.
Key Features of Our Term Insurance
High Sum Assured
Get substantial life cover (e.g., ₹1 Crore or more) at extremely affordable premium rates.
Flexible Payouts
Option for your family to receive the death benefit as a lump sum, monthly income, or both.
Tax Benefits
Save tax under Section 80C on premiums paid and Section 10(10D) on the sum assured received.
Rider Options
Enhance coverage with add-ons like Critical Illness, Accidental Death, and Waiver of Premium.
Long-Term Cover
Stay protected for a long duration, often up to the age of 85 or even 100 in whole life variants.
Quick Issuance
Hassle-free online application process with tele-medical options for faster policy issuance.
Term Insurance vs Endowment Plans
Understand why Term Insurance is the best choice for pure protection.
| Feature | Term Insurance | Endowment/ULIP |
|---|---|---|
| Primary Purpose | Pure Protection | Protection + Savings |
| Life Cover (Sum Assured) | Very High | Relatively Low |
| Premium Amount | Very Low | High |
| Maturity Benefit | None (except TROP) | Guaranteed/Market-linked |
| Flexibility | High | Moderate |
| Death Benefit | High Sum Assured | Sum Assured + Bonus |
| Complexity | Simple | Complex |
| Best For | Income Replacement | Wealth Creation + Basic Cover |
Term Insurance Coverage
Know the inclusions and exclusions of your term life protection.
What Term Insurance Covers
Primary coverage benefits for the family's security
- Natural Death (due to illness)
- Accidental Death
- Death due to lifestyle diseases
- Permanent Disability (if rider chosen)
- Critical Illnesses (if rider chosen)
- Terminal Illnesses (Accelerated payout)
What Term Insurance Does NOT Cover
Situations where the death benefit may not be paid
- Suicide (within first 12 months)
- Death due to substance/alcohol abuse
- Participation in criminal activities
- Death from hazardous/extreme sports
- Self-inflicted injuries
- War, Invasion, or Terrorism acts
Critical Riders & Add-Ons
Enhance your basic term plan with specialized coverage riders.
Critical Illness Rider
Provides a lump sum amount upon diagnosis of a covered critical illness (like cancer or heart attack), helping you manage expensive medical treatments and lifestyle changes.
Accidental Death Benefit
Pays an additional sum assured over and above the base cover in case the insured dies due to an accident, providing extra financial support for the family.
Waiver of Premium
Ensures the policy remains active without further premium payments if the insured suffers a permanent disability or is diagnosed with a terminal illness.
Terminal Illness Benefit
Accelerates a portion of the death benefit if the insured is diagnosed with a terminal condition with limited life expectancy, helping with immediate costs.
Spouse Cover Rider
Allows you to include your spouse under the same term insurance policy at a discounted premium rate, ensuring protection for both partners.
Factors Affecting Term Insurance Premiums
Your profile details determine the cost of your life protection plan.
1. Entry Age
The younger you start, the lower the premium. Premiums for life insurance increase significantly as you age.
2. Smoking Status
Smokers are charged a much higher premium (often 50-100% more) due to the higher health risks involved.
3. Health History
Pre-existing medical conditions, BMI, and family medical history directly impact the risk assessment and premium cost.
4. Policy Term
The duration for which you want to stay covered affects the total premium. Longer terms usually result in slightly higher annual premiums.
5. Occupation Risk
Working in high-risk environments (like mining or aviation) may lead to an additional load on the basic premium rate.
Smart Ways to Save on Term Insurance
How to get the maximum life cover at the lowest possible cost.
1. Buy Early
Lock in a low premium rate while you are young and healthy. This rate usually stays constant for the entire policy term.
2. Opt for Annual Payments
Paying your premium annually instead of monthly or quarterly can save you up to 5-8% in administrative costs.
3. Maintain a Healthy Lifestyle
Non-smokers and individuals with a healthy BMI and no lifestyle diseases get the best premium rates.
4. Choose Pure Term Plans
If you don't need maturity benefits, stick to pure term plans. They offer the highest coverage for every rupee spent.
5. Buy Online
Purchasing directly through DigiAssure saves commission costs, making the policy 10-20% cheaper than offline modes.
Documents Required for Term Insurance
The essential paperwork needed to secure your family's financial future online.
Identity Proof
- Aadhaar Card
- PAN Card (Mandatory)
- Passport or Voter ID
Address Proof
- Utility Bills (Electricity/Water/Gas)
- Bank Statement or Passbook
- Rental Agreement or Property Tax Receipt
Income Proof
- Last 3 months' Salary Slips
- Latest Form 16 or ITR (Mandatory for high covers)
- Last 6 months' Bank Statement
Age Proof
- Birth Certificate
- 10th/12th Marksheet
- Valid Passport or Aadhaar
Medical Records
- Recent health check-up report (if applicable)
- Existing illness prescriptions
- Medical examination report (if required by insurer)
Nomination Info
- Nominee's Identity Proof
- Relationship proof with nominee
- Bank account details of nominee
Term Insurance Claim Process – A Simple Guide
Step-by-step process for your family to receive the claim amount smoothly.
Intimation of Claim
Beneficiaries should notify the insurer immediately. This can be done online or via our 24/7 claim helpline.
Submission of Documents
Submit the original policy document, death certificate, and identity proof of the nominee.
Claim Registration
A unique claim reference number is provided for tracking the status through our mobile app or website.
Verification & Assessment
The insurer's claim team verifies the cause of death and the authenticity of the documents provided.
Medical Verification
In certain cases, additional information from doctors or hospitals may be requested to confirm the history.
Claim Approval
Once the verification is successful, the claim is approved, and the nominee is notified of the settlement amount.
Final Settlement
The approved sum assured is transferred directly to the nominee's bank account via NEFT/RTGS.
Ongoing Support
DigiAssure provides ongoing assistance for financial planning to the family post-settlement if needed.
Benefits of Term Insurance with DigiAssure
Why Term Life Insurance is the ultimate gift of love for your family.
Maximum Life Cover
Ensure a life cover that is 15-20 times your annual income to provide full financial protection.
Budget-Friendly
Secure a ₹1 Crore cover for as low as ₹500/month, making it accessible for everyone.
Debt Free Future
The sum assured can be used to pay off home loans and other debts, protecting your family assets.
Children's Future
Secure funds for your children's higher education and marriage, ensuring their dreams never stop.
Income Tax Savings
Get tax exemptions on premiums under Section 80C, reducing your overall tax outgo.
Critical Illness Cover
Optional riders pay you a lump sum on diagnosis of serious illnesses, covering treatment costs.
Simple & Transparent
No hidden charges or complex investment jargon. Just pure, reliable life protection.
Digital Policy Management
Access your policy, update details, and pay premiums easily through our secure online portal.
High Claim Ratio
Partnered with insurers who have a 99%+ claim settlement ratio for complete trust.
Peace of Mind
Focus on living your life to the fullest while we handle the uncertainties of tomorrow.
Frequently Asked Questions
Quick answers to common queries about term life insurance policies.
How much term insurance cover do I need?
As a thumb rule, your term insurance cover (Sum Assured) should be 15 to 20 times your annual income. You should also consider your current liabilities like home loans and future goals like children's education.
At what age should I buy a term plan?
The best age is as early as possible. Buying in your 20s or early 30s ensures you get a very high cover at a very low premium that stays constant for the rest of your life.
What is Return of Premium (TROP) term insurance?
A TROP plan returns the entire premium paid (excluding taxes and rider costs) to the policyholder if they survive the entire policy term. It provides the benefits of protection along with a maturity refund.
Are accidental deaths covered in a term plan?
Yes, all term plans cover death due to accidents. You can also add an 'Accidental Death Benefit' rider to get an additional payout over and above the base sum assured in case of an accident.
Do I need to undergo medical tests to buy a term plan?
Depending on your age and the sum assured chosen, the insurer may require a medical check-up. However, many plans now offer tele-medical or no-medical options for healthy individuals with lower covers.
Is suicide covered in term insurance?
Suicide is generally not covered if it occurs within the first 12 months (1 year) of the policy issuance. After one year, the claim is usually settled as per the policy terms.
Can I have multiple term insurance policies?
Yes, you can have multiple term plans. However, you must disclose all existing policies to the new insurer at the time of application to ensure accurate risk assessment.
What happens if I stop paying premiums?
If you stop paying premiums, the policy will lapse after the grace period, and the life cover will end. For pure term plans, no money is returned. For TROP plans, some surrender value may be paid after a few years.