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Term Insurance Plan Starting
@ ₹876/Month@8 for 2 Cr. Life cover
@ ₹876/Month@8 for 2 Cr. Life cover
Term insurance is a great financial protection tool. It is easy to understand and highly cost-effective. When you opt for a term insurance plan , you receive a quote that has various components corresponding to the type of coverage and options you have chosen, while some other are statutory additions. To know how to evaluate a term insurance quote, let us learn more. ...Read More
Trust of 20+ Years in Industry
Written byLakshey Bahl
Insurance Writer
Published 7th August 2024
Reviewed byVaibhav Kumar
Last Modified 7th October 2025
Insurance Domain Expert
Key Ways to Evaluate Term Insurance Quotes
When you receive a term plan quote, it is more than just numbers. It shows the coverage, benefits, and conditions of your chosen term insurance plan. A good evaluation ensures your plan is cost-effective and meets your family’s financial needs
1.Coverage Amount and Policy Term
The first step is to check if the coverage is enough for your dependents.With inflation in place and increasing prices of commodities, opting for at least 1 crore term insurance plan is advisable. It offers a solid financial safety net against future uncertainties.
2.Premium Value
Premiums should be affordable and consistent with your budget. Remember, the lowest premium is not always the best; look for long-term cost-effectiveness instead.
3.Return of Premium Option
There are term insurance plans where you can get your paid premiums back at the end of the policy term, in the form of a maturity benefit. These return of premium plans can be a good choice for someone wishing to recover the paid premiums in case they survive the tenure.
4.Claim Settlement Ratio (CSR)
A high CSR above 99%, indicates that the insurer has a reliable track record of honouring claims, giving peace of mind to your family.
5.Riders and Added Benefits
Riders such as critical illness cover, accidental death benefit, or waiver of premium can boost your term plan's value. When checking an online term plan quote, see what add-ons are available.
6. Flexibility in Payment Terms
Many insurers let you choose how to pay your premium. You can pick from options like limited pay or regular pay. This makes it easier to manage the plan according to your cash flows.
7. Terms and Conditions
Finally, go through the exclusions and policy wording carefully. Understanding these details avoids confusion at the time of claim.
Keep these factors in mind to compare online term plan quotes easily. This lets you pick the option that suits your family’s protection needs best, whether it’s the right term insurance plan for 1 crore or another fitting coverage.
Premium varies with Age
As you age, your "health risk' increases, which increases the risk for the insurers. To offset this risk, insurers charge a higher premium. Hence, it is advisable to buy insurance as early as possible.
The Axis Max Life calculator shows the difference in premium that Mr. Singh (25 years old) and Mr. Sharma (35 years old) will have to pay on a ₹ 25 lakhs cover for a 40-year term policy. Assuming, both are non-smokers, for a life cover of Rs 25 lakhs, over a policy duration of 40 years, Mr. Singh has to pay an annual premium of Rs 2,500 while Mr. Sharma has to pay a premium of Rs. 3,950 for the same cover.
As you can see, Mr. Sharma has to pay a 58% higher premium because he has started 10 years after Mr. Singh. Hence, by planning early, one can easily save the extra premium.
Check the Policy Tenure
When you compare a term plan quote, the policy tenure is one of the first things to look at. Tenure decides how long your coverage will last and influences the amount you pay as a premium. Choosing the right duration helps your family stay financially secure while they rely on your income.
Why & How Tenure Impacts Premiums
The tenure of a policy has a direct connection with its premium. A shorter policy duration often means lower premiums, which can seem appealing at first. However, the coverage may end sooner, maybe before your main financial duties are done. If your family still relies on your income, this can leave them without support.
A longer tenure means the premium is slightly higher, but it keeps the protection going through crucial years of life. While checking an online term plan quote, focus on how the tenure and the premium balance each other.
Paying a little more today could provide long-lasting security for your loved ones in the future. This makes tenure an important factor while deciding the overall value of your term insurance plan.
Evaluate Policy Renewal Costs
When you review a term plan quote, it is important to understand how the renewal cost works. For most term insurance plans, premiums remain fixed for the chosen tenure, which makes them easy to plan for.
However, in the case of renewable term plans, the premium amount can increase at every renewal. As you grow older, factors like age and health risks lead to a higher renewal cost. This can make the plan more expensive in the later years.
While checking an online term plan quote, always read the details about renewability. If the premiums rise sharply after a certain age, it could strain your budget. Checking renewal costs early helps you avoid surprises. It also keeps your plan affordable for its entire duration.
Why Renewal Premiums Increase with Age
As a person grows older, the risk of health complications also rises. Insurance companies calculate premiums based on this risk. In a renewable term insurance plan, the insurer checks your age and health each time you renew. This often leads to a sharp increase in the premium.
For example, the cost at 40 years of age will be much higher than at 30. When comparing term plan quotes, it is important to consider this future impact. A plan that looks affordable today may not remain the same once renewed after 10 or 15 years. Understanding this helps you plan better and avoid unexpected financial strain.
Why Should You Compare Term Insurance Quotes?
Comparing term insurance quotes is important. It helps you find a plan that balances cost and coverage. Premiums for the same coverage can differ from one insurer to another. So, checking several quotes helps you find a more affordable option. You can explore features like riders and payout options. You can also choose a term insurance plan with or without returns.
By comparing carefully, you can choose a plan that fits your financial goals and offers the right protection for your family. Whether you are considering a simple plan or a ₹1 crore term insurance cover, reviewing different options gives you a clear picture of what suits your needs and budget
Check the Riders cost
A 'Rider' is additional coverage with your basic plan. There are various riders you can opt for such as for accidental coverage, critical illness, disability, etc, based on your specific needs.
Check the Base Premium
Base premium is the minimum amount payable for getting the life cover, without the riders and taxes. This is based on the age, gender, and smoking habit of the person to be insured. The base premium for online term insurance plans is generally lower than that for offline plans due to less distribution costs.
Ascertain the Tax Component
Like most other services, life insurance also attracts Service Tax. This is a standard addition across policy types and insurance companies. So whenever you receive an insurance quote, look closely if it is inclusive of the Service Tax component or not.
Currently, the rate of service tax is 14% and the insured can claim tax benefits (under section 80C of the IT Act) for the life insurance premium.
Consider the Lapse Charged Payable for Policy Revival
Insurers have a Policy Lapse clause defined in every insurance policy. The clause states that, if you fail to pay the premium within a certain no. of days from the due date, the policy lapses and no benefits are payable.
The policy can then be revived by paying the stipulated charges. Make note of these charges when you opt for a life insurance policy . The lapse charges include overdue premiums, taxes, late fees (penalty) and interest. These charges can be easily avoided by opting for a Standing Instruction for the premium payments.
Getting a Medical Test and its Implication
If you are over 50 years old or have applied for a high sum assured, you might have to undergo a medical test. If there are no serious health risks, your policy is issued at standard terms. However, if you are not in good health, and if the medical examination highlights a risk, you might receive a counteroffer to either reduce the life cover or pay a higher premium (called Rate Up).
Read the T&Cs in detail and examine a quote closely before finalizing an insurance policy.
Click here to calculate your premium now!
Conclusion
Reviewing a term plan quote in detail is crucial before making a decision. Elements such as premiums, benefits, policy tenure, exclusions, and riders all play a role in shaping how well the plan fits your financial goals. A careful review helps you pick a term insurance plan that is affordable and trustworthy.
It also ensures your loved ones have enough coverage. Whether you are looking for a 1 crore term insurance cover or a plan with added features, assessing every detail helps you secure meaningful financial protection for the future.
Frequently Asked Questions (FAQs)
What are the benefits of a ₹1 crore term plan?
A ₹1 crore term insurance policy provides large coverage at a comparatively lower premium. It ensures your family's big financial needs, like home loans, children's education, and everyday costs, are covered. This helps provide them with long-term security and peace of mind when you're not around.
How is the premium calculated for ₹1 crore coverage?
The premium for a ₹1 crore term insurance plan depends on factors like age, lifestyle, medical history, policy term, and selected riders. Younger and healthier buyers usually pay smaller premiums. However, older age or health risks can raise the premium
Is it better to buy term insurance at a younger age?
Yes, it is economical to purchase a term insurance policy at an early age. Premiums are lower when you are not suffering from lifestyle diseases. An early start gives you long-term financial protection. It helps cover future costs like marriage, loans, and your children's education.
Do I need to pay tax on my term insurance premium?
Premiums paid for a term insurance policy might qualify for tax relief under Section 80C of the Income Tax Act, (only under old tax regime). It's always smart to check the current tax laws or ask a financial consultant for more details.
Is a 2 crore term insurance worth it?
A 2 crore term plan can be ideal for those having greater financial obligations or higher income. It provides extra protection for paying off large loans, covering lifestyle costs, and achieving future family goals. The selection is based on your income, dependents, and future financial strategy.
ARN: Jul21/BG/19
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