Term Insurance

A term insurance policy can be defined is an agreement between a policyholder and an insurance company. As part of this agreement, the insurance company agrees to provide financial protection to the dependent (s) /nominee(s) of the life insured in the form of death and/or income benefits in return for premium payments, if certain specified events occur. Below are the key steps of how a term insurance plan works:

The recent GST changes have brought term life insurance plans GST to 0%, and given a major boost to the insurance industry while encouraging buyers. This will not only lead to higher penetration of insurance throughout India, but also ensure that financial health of every family is protected.

Earlier, policyholders had to pay 18% GST on term insurance premiums, resulting in higher total cost of protection. With GST now removed, term insurance has become more affordable than ever for millions of families.

For example, if someone was paying ₹10,000 (₹8474.60 base premium + ₹1525.40 GST) annually earlier, the same plan could now cost ₹8,474.60. This essentially means overall cost of term insurance premium has become cheaper, especially for young earners and middle-income families.

A country where life insurance awareness is growing but coverage is still low, this GST reform will prove to be beneficial.

Choosing a term life insurance plan means understanding the key details: coverage amounts, premium, benefits, and your rights as a policyholder.

Just like there are various types of life insurance available in the market, similarly, there are different types of term insurance plans available too. While the basic benefits and features remain the same across all term insurance plan variants, there are some additional features that different one from another. These are explained in the table below: 

Choosing the right term life insurance plan means matching the policy type to your life stage, financial goals and risk profile. Let us understand the main types of term plans available for you in detail below.

‘Term life insurance’ or simply ‘term insurance’ is the purest form of life insurance, which offers financial protection for a specific period, typically 60 to 70 years of age, against a periodic premium. Such plans are designed to provide financial protection to your dependents in the event of your death. On the other hand, whole life insurance provides financial protection to an individual for up to 100 years of age as well as includes a component of savings that may accrue a particular cash value.

The following are some general differences between term life insurance and whole life insurance:

Securing your family in your absence should be your top priority and a term life insurance plan is the risk-free way to do so. Term plan ensures that the financial security of your family is maintained even after your death. Moreover, it does not affect your current lifestyle as it can be easily afforded given the coverage you’re opting for.

Also, you can easily understand the policy terms and choose your plan online with different insurance providers such as Axis Max Life Insurance, which offers a variety of term insurance plans in India. You can purchase a best term plan as per your requirements.

Before you decide to get a term insurance plan, it’s important to tick off a few factors that ensure you’re buying protection that works for your needs.

The best time to buy a term insurance plan is as early as possible. When bought at a young age, preferably in one's 20s or early 30s, they can save significantly on the premium. This way, you get coverage for a longer duration at affordable premiums.

A 1 crore term plan bought at the age of 25 years by a healthy, non-smoker female might cost you somewhere around Rs. 1100 per month whereas the same 1 crore term plan purchased at the age of 45 years can cross Rs 3,000 monthly. So, if you delay in purchasing a term policy, you should be prepared to pay a higher premium. Therefore, to gain the maximum benefits of a term insurance plan, you should prefer to lock-in the low rates early in life.

The below table further illustrates why buying a term insurance plan at an early age can be beneficial. The below premium amounts are based on the assumption that the insured individual is covered till the age of 85 years:

Apart from selecting an adequate sum assured, there are several aspects which need to be kept in mind when finalising a term insurance plan. Check them out below:

Getting married, buying a house, having children, and planning for retirement are some of the major life events that not only bring joy but also impact your financial resources. Therefore, it's important to have a term life insurance plan so that your family is prepared to maintain the same standard of living even when you’re not around.

Below are some different life stages and how term life insurance plans help you with each of these:

NRIs can purchase a term life insurance policy in India under the FEMA (Foreign Exchange Management Act). Based on their requirements and demands, Indian insurance companies have customized term insurance plans for NRIs.

Here are the two different ways for NRIs to buy term life insurance in India:

• During their visit to India:

  Once underwriting is completed, a term insurance policy for an NRI is treated the same as one for an Indian citizen. When NRIs visit India, they can complete the underwriting procedure to secure the benefits of a term insurance plan in India.

• Via mail order business:

  If an NRI cannot travel to India, they can still buy a term insurance plan from India while staying in their country of residence. This can be done through a process called Mail Order Business. Under this process, the required documents are verified by authorized officials. These officials may include a notary, an Indian Embassy official, or an Indian diplomat. They help complete the verification required for the term insurance policy.

Buying term insurance is an absolute cake walk. It’s quick and simple for anyone to buy. You should start by comparing different insurance providers and their plans. Look for some deciding factors like premium cost, coverage amount, claim settlement ratio etc. You can also check premium calculators to help you estimate the ideal coverage basis your income and liabilities, and dependents.

If you have decided to go with Axis Max Life Term Insurance, the process is completely digital. You need to fill in some of your personal details and pay online. In some cases, insurer might need you to share your medical reports to determine your premium. This is the step-by-step process to buy term insurance on Axis Max Life website.

This is the step-by-step process to buy term insurance on Axis Max Life website.

Buying term insurance online from Axis Max Life Insurance is quick and easy and can be done in a few simple steps. These include:

Step 1: Go to the top of the page & enter details like Name, Date of Birth, Nationality, Phone Number, & annual income. Click on 'Calculate Now' to move to the next step.

Step 2: Select your gender, lifestyle habit, occupation, education, marital status etc.

Step 3: Now select if you’re diabetic or not, your marital status, and language. Click on ‘Check Coverage’ button.

Step 4: On this screen, you can choose any life cover amount you want, and the duration of your coverage. Now click on ‘Proceed’.

Step 5: Choose a rider or click on ‘Skip’ button. It’s recommended to choose a suitable rider to make your policy cover even more comprehensive.

Step 6: Enter all mandatory details to check your plan eligibility and click ‘Proceed’.

Step 7: In the next step, you have to make the payment. We will verify your documents. The policy document will be emailed to you after approval.

Below are the best term insurance plans available for policyholders, along with their features to help you make an informed decision.

Here’s a quick overview of the Axis Max Life term plans for 2026, highlighting life coverage, age limit, and death claim settlement ratio.

The wide range of term plans with various features might make it difficult or a layman to determine which term insurance policy would be suitable to his/her unique needs. Below are some benefits of a term plan that one should look out for when making the final selection of a suitable term insurance plan:

Given the rising inflation and living costs, your term life insurance coverage should be at least 10 ten times your current income. However, the ideal coverage amount also depends on various factors like, future financial goals, income, age, liabilities, and lifestyle. Here is an overview of what to consider to check the right term life insurance cover for you:

Selecting the right term insurance policy is one of the best ways to provide financial security for your family. Hence, to make an informed term insurance purchase, here are some factors need to be considered:

Term life insurance premiums increase with age because health and mortality risk increases with your age. A person is less likely to die in his/her younger years than when in later life stages. Therefore, the risk of illness and death is increased.

Also, note that, as the customer's age increases, the qualifying medical exams also become stricter. So, it is best to buy a term insurance policy when you are young so that you can enjoy higher benefits for a lower premium.

The final stage of a term life insurance is the claim settlement. However, sometimes, the insurance claim gets rejected even after doing everything right as per you and paying premiums on time. Hence, it is important to take note of these important tips to know how to avoid of an insurance claim rejection later: