Term insurance is the simplest way to protect your family’s future, but choosing the right plan can be tricky. In 2025, low premiums alone aren’t enough—you need to weigh riders, claim settlement ratios, and hidden costs. Here’s a clear guide for Indian buyers.
India Snapshot
- Premium Range (2025): ₹400–₹2,500/month depending on age & sum assured.
- Riders: Critical illness, accidental death, waiver of premium.
- Claim Settlement Ratios: HDFC Life (99.4%), ICICI Prudential (98.7%), Max Life (99.5%), SBI Life (97.1%).
- Payments: UPI, EMI, NetBanking, Cards.
- GST Invoice: Available with all IRDAI-approved insurers.
Compare term plans from India’s top insurers now:
Check Term Plans on PolicyBazaar
Explore Options on Coverfox
Step 1: Decide Your Coverage
- Rule of thumb: 15–20x your annual income.
- Example: If you earn ₹10 lakh/year, aim for ₹1.5–₹2 crore sum assured.
- Pick a policy term until retirement (60–65 years).
Step 2: Add the Right Riders
- Critical Illness Rider: Pays lump sum on diagnosis of major diseases.
- Accidental Death Rider: Adds extra payout if death is due to accident.
- Waiver of Premium Rider: If you’re disabled/unemployed, premiums waived.
Riders cost extra but protect your family better.
Step 3: Check Claim Settlement Ratio (CSR)
- High CSR = higher chances your family’s claim will be paid.
- Top insurers in 2025: Max Life, HDFC Life, ICICI Prudential.
- Always check IRDAI’s latest annual report for CSR updates.
Step 4: Watch Hidden Costs
- Renewals: Some plans hike premiums after 5 years.
- GST: 18% GST applies on all premiums.
- Add-Ons: Some riders bundled automatically → check before paying.
Pros and Cons of Term Plans
Pros
- Cheapest way to get large life cover.
- Riders improve coverage.
- Tax benefits under Section 80C & 10(10D).
Cons
- No maturity benefit (pure protection).
- Premiums rise with age.
- Hidden costs in riders & renewals.
Quick Checklist for Buyers
- Coverage = 15–20x annual income.
- Add riders (critical illness, accidental death).
- Check insurer’s claim settlement ratio.
- Compare premiums on marketplaces (PolicyBazaar, Coverfox).
- Use UPI/EMI for premium payments.
- Keep GST invoice for tax filing.
Ready to secure your family’s future?
Compare Term Plans on PolicyBazaar
Check Health + Term Options on Coverfox
In 2025, picking a term plan in India is less about chasing the lowest premium and more about choosing the right riders, a trusted insurer with high CSR, and avoiding hidden costs. Do that, and you’ll have peace of mind knowing your family is covered.
