Term Insurance

Best Term Insurance Plans in India

• 99.57% Claims Settlement Ratio
• 50 Critical illness Covered^**
• Return on Premiums Payment
• Tax Savings up to 46,800^**

What is Term Insurance?

Term insurance plans are also called pure life insurance plan that provides coverage for a certain period of time or a specified “term” of years. If the insured dies during the time period specified in the policy and the policy is active or in force, then the death benefit will be paid. The premium paid on term life insurance is used to cover the risk of insuring the policyholder. This allows the policyholder to opt for higher sum assured at affordable premiums. Term insurance is the best way to financially secure your family’s future in case of any untoward scenario. It covers the policyholder for a long period of time. Generally, the policy term starts from the age at which the policy is purchased. It ends when the policyholder reaches the age mentioned in the policy. Thus, it is possible to get a term insurance policy for 50 or even 60 years at the affordable premium which may vary during the premium paying term. Term insurance plans also comes with riders which provides additional coverage asides the term insurance benefit. These riders cover additional benefits such as accidental death, accidental disability, critical illness diagnosis, terminal illness diagnosis, waiver of premium and provide extra benefits that are paid out when the conditions are met. Term insurance allows the policyholder to opt for a high sum assured. This policy provides the best way to financially secure your family’s future.

Example of Term insurance

Term insurance is an insurance product that provides financial security to the family members of a sole or co-income earner. It does this by paying a pre-decided sum of money to the family in the eventuality of the breadwinner's unforeseen death. 

The primary aim of term insurance is to extend this insurance coverage in the scenario of death. However, with the inclusion of riders, additional insurance coverage can be availed against debilitating and life-altering eventualities. These include critical illness rider, serious illness rider, accidental death benefit and accidental disability benefit. Here are two examples of how term insurance works through two different term insurance plans:

Term insurance plan without return of premiums (PNB MetLife Term Plan)

Mr A buys a basic term plan that will pay a pre-agreed sum assured to his loved ones on his death, provided the demise is within the tenure. He has the option to add extra riders to his term plan, like the critical illness rider, an accidental disability rider, and others. However, as he chose a base term policy, he will not get any returns of premiums paid in case he survives the term policy.

Term insurance plan with return of premiums (PNB MetLife Term Plus Plan)

Mrs B buys a term plan that will also pay a pre-agreed sum assured to her loved ones on her death, provided her demise is within the tenure. She also has the option to add extra riders to her term plan, like the critical illness rider, an accidental disability rider, and others. But she will receive the premiums paid as returns if she survives the term policy as she chose a term plan with a return of premium option.

In both term plans, the coverage offered remains somewhat similar, except for the riders that are customisable. The core difference is that Mrs B would get her invested money returned to her even if she survives the term plan, ensuring minimal loss.

Term Insurance Calculator

PNB MetLife Term Plan Calculator will help you calculate how much term insurance you need and the premiums payable for that amount. It does this by considering factors like your age, gender, annual income, lifestyle habits, and the desired term insurance cover amount and policy tenure, among other factors.

It considers factors shaping your life and your plan preferences to select term plans that best serve your financial requirements. The term insurance calculator will also suggest the premiums payable for each term plan and give you various premium paying modes to choose from. 

What are the benefits of term insurance?

There are many term insurances benefits that make it an excellent investment to secure the financial safety of your family.

1. Affordable premiums:

One of the major benefits of a term insurance plan is the affordability of premium. It is possible to get a cover of 1 crore Term Insurance without spending a huge amount. Term insurance premiums purely reflect the risk of covering the life of the policyholder. For Non-smokers, premiums are lesser. Insurance companies also charge lesser premiums for healthy policyholders. Women policyholders typically enjoy lesser premiums than men. All these factors make it possible for people to opt for higher covers without it breaking the bank.

2. Policy Tenure:

The tenure for a term insurance plan lasts from the age at which the policy was purchased and continues till the age specified in the policy. The term insurance policy ends when the policyholder crosses that specified age. For example, if the policyholder is 30 when he buys a term plan and the coverage under the policy is till the policyholder reaches 80 years, the policy duration is 50 years. Buy term plan online at a young age will ensure the premium is kept low and the sum assured is high.

3. Riders:

Riders provides an additional coverage that comes along with a term plan. These cover scenarios such as accidental death, disability, critical illnesses etc. These riders have additional premium that has to be paid over and above the term insurance premium. However, they provide additional benefit when the given conditions are met. For example, if a Critical Illness Rider is opted for and the policyholder is diagnosed with one of the specified illnesses, then he will receive a payout for meeting the condition covered under the rider. The rider benefit, like the base policy benefit, will have to be decided at the inception of the policy which determines the min/max coverage term & benefits of the rider.

4. Online Term Insurance Policies:

One of the biggest advantages of a term insurance plan is that these policies are easily available online. It is convenient to buy them directly from the insurance company’s website or with the support of an insurance web- aggregator or form any other insurance intermediary. Once the onboarding formalities are completed, the insurance company issues the policy document.

5. Tax Benefits: 

Term plans are counted as life insurance plans and get a tax deduction for premium paid under Section 80C of the Income Tax Act, 1961. This deduction is limited to Rs. 1,50,000 and it covers premium for self, spouse and dependent children. If the policy is taken for anyone else, a deduction will not be available. This deduction will only be allowed if premium paid is less than 10% of the sum assured. Another point to remember is that any benefit received under a term insurance policy is exempt under Section 10(10D) of the Income Tax Act. This includes payout for a term insurance rider as well. This guarantees the financial security of your family since no tax will have to be paid on term insurance benefits. The benefit can be wholly used for the family’s finances.

Why Should You Buy a Term Insurance Plan?

Benefits of having a Term Insurance Plan are Affordable Premiums, Policy Tenure, Easily Comprehensible with Flexible Payout Options. The below infographic showcases all these features in lucid way.

Who Should Buy a Term Insurance Plan?

Term insurance is for those who want to secure their loved ones in their absence. It provides financial support to the family members of the sole or co-income owner of a family unit in the case of his/her unfortunate death or other unforeseen eventualities. Term insurance plans do this by providing a guaranteed death benefit on the demise of the life insured under the term plan in exchange for premiums paid by the policyholder. These premiums are payable through a one-time lump-sum amount or periodic instalments every month, quarter, half-yearly, or annually. Term insurance policies also provides optional benefits like

a) Lump Sum payment on diagnosis of listed Critical Illness or in case of any terminal illness

b) Benefits when the life insured is permanently disabled due to accident

c) Additional payment (over and above the base sum assured) on death due to accident

Term insurance is especially vital for self-employed individuals, working professionals, married couples, retired persons, and regular tax-payers. Having a term plan can help you reach various milestones of life, such as:

• Funding your child’s higher education or marriage

• Ensuring a retirement corpus for your spouse

• Supporting your family in day-to-day expenses if you are no longer around

Term insurance is the most affordable form of life insurance with an extensive scope of coverage. It is also very flexible and allows one to increase their insurance coverage at different life stages. Term insurance plans from PNB MetLife not only offer the aforementioned benefits but also provide that extra layer of protection through additional riders for enhanced security.

Get 1 crore Term insurance and Much More

A 1 crore term insurance plan pays a benefit amount or sum assured of ₹1 crore to your family members on your unfortunate demise. Term insurance plans that give a sum assured of 1 crore are an increasingly popular choice among buyers as they tend to have affordable premium rates and provide ample financial support in times of distress.

Moreover, as the amount is enough to combat inflation and sufficient to sustain a premium lifestyle, your loved ones will have the safety and strong backup they need in your absence. However, it is wise to use a term insurance calculator and find the exact term insurance you need to avoid getting inadequate coverage.

How Much Term Insurance Coverage You Need?

Before searching for term insurance plans, it is crucial to have a clear idea of how much insurance coverage you need. The death benefit payable under the term plan should be enough to cover your family’s needs for an extended period. Only you can decide how much term insurance you need. You can use any of these 3 methods to calculate this amount:

1. The Human Life Value (HLV) Method:

To find how much term insurance you need through the HLV Method, you need to calculate the total economic value of an individual throughout his/ her lifetime. Take into account:

• Your monthly or annual expenditure

• Any loans or debts

• The number of dependents you have

• The expected future goals and financial responsibilities for each dependent

Add these figures and multiply the total figure with the inflation rate 20 to 30 years down the line. That will be the amount of term insurance you need.

2. The Income Replacement Method:

To calculate term insurance through the Income Replacement Method, multiply your annual income by the number of years left for your retirement. This method highlights how much term insurance will be enough to compensate for your lost income if you cannot earn for your family.

3. The Expense Replacement Method:

This method involves using the HLV method as the first step. After you arrive at the total value, you have to add up the sum of your investments and financial assets. Deduct this sum from the value arrived at by the HLV method, and that will be the amount of term insurance you will need.

What are the Factors that can Affect Term Insurance Premiums?

Term insurance requires the payment of premiums. Premiums are the amount you pay towards the policy for receiving the insurance coverage and benefits in term insurance plans. Premiums are variable and depend on factors that are specific and personal to each buyer. These include:

1. The age of the buyer:

Age is a crucial factor in deciding how much premiums you will have to pay. The older you are, the higher will your term insurance premium be. That is why we recommend starting your search for term insurance plans early in life. The cost of premiums reduces if you are young and the benefits offered are also extensive.

2. The gender of the buyer:

Gender also plays a considerable role in influencing premiums. In general, women pay higher premiums than men as their biology makes them need medical attention more often. PNB offers the best term insurance plans, with special premium rates for women.

3. The medical history of the buyer:

A buyer’s medical history is of importance in deciding the term insurance premium payable. If the buyer suffers from any health issues, has a family history of specific diseases, or works in a profession that carries risk, his/ her premium will be higher than usual. This is because the presence of any health risks increases the liability. To balance the scales, those with a compromised medical history are charged higher premiums.

4. Lifestyle habits:

Lifestyle habits also affect the premiums of term insurance plans. If you smoke (irrespective of how rare or habitual) or drink alcohol (in excess), it can increase the cost of your premiums. Smoking has a larger impact on premiums, but alcohol drinking in limit does not pose a threat to them.

5. The tenure of the term insurance plan:

The term of the term insurance plan also determines the premium price. The longer the term is, the higher premium will be applicable.

Buy Best Term Insurance Online

One of the biggest boons of living in the present age is the comfort of digital purchases, payments, and transactions. Many processes like buying term insurance were time-consuming and required a lot of paperwork back in the day. 

But now, with the shift to everything digital, you can buy the best term insurance online in a matter of minutes. The entire process - from comparing the term policies to finalising one and making the payment is easy, paper-free, and convenient. You can calculate the premiums payable, choose a term plan according to your requirements, submit the documents needed, and make online payments. The whole process is quick and transparent, and you will receive a soft copy of the term insurance policy in a few minutes. 

Best Term Insurance With Premium Return

Broadly put, term insurance is of two types – term insurance with no return of premiums and term insurance with return of premiums. The PNB MetLife Mera Term Plan Plus is a fine example of term insurance with a premium return. 

In basic term insurance plans without premium return, you lose out on your invested money if you survive the term plan. And while you get coverage for the entire tenure, not getting any survival benefits can be disappointing.

But with a term insurance plan that returns the premiums paid by you in full, you can get the dual benefit of life coverage and return of invested money. In addition, choosing this option to pay some extra premiums will ensure that you either get death benefits or maturity benefits, depending upon the situation.

How to Get Low Premium Term Insurance?

Term insurance is one of the most affordable forms of insurance. However, if you want to cut back on premium prices, there are certain things you can do.

1. You can choose a term insurance policy without the return of premium option.
2. You can choose to opt out of adding riders like the critical illness rider, an accidental disability rider, and others to your term insurance policy.
   
3. You can choose a lower term plan duration or tenure.
   
4. You can also choose a lower sum assured, but it should be adequate to cover the costs of living of your family in case of your unexpected demise. 
   
5.  If you indulge in harmful lifestyle habits like smoking and drinking alcohol, you can reduce or eliminate these habits. Policyholders with these habits usually have to pay higher premiums due to an increased threat of mortality.
   
6. If you engage in a hazardous profession, you can do little to change that, but if you engage in life-threatening hobbies, you can definitely minimise those. Hobbies like skydiving, scuba diving, paragliding, and even kickboxing can influence your premium rates.
   
7. Lastly, you can take care of your physical and mental health even if you have a history of family diseases or conditions. You might get charged higher premiums if you have pre-existing lifestyle diseases or have genetic issues.

Save Tax with Term Insurance Under 80C

Term insurance is one of the best tax-saving tools, and the deduction available under section 80C is one of the most popular tax-saving options. Under Section 80C of the Income Tax Act, 1961, you can get a tax deduction on the premium paid towards a term insurance plan. You can claim a deduction of up to ₹1,50,000 in a year. 

You can save further on tax under section 10(10D) of the Act. Under this provision, the death benefit your family receives will be exempt from tax. Moreover, the maturity benefit is non-taxable provided the premiums paid towards a term insurance plan do not exceed 10% of the sum assured or benefit amount for policies purchased on and after 1st April 2012. For policy purchased before 1st April 2012, the premium paid should not be more than 20% of the sum assured to avail the tax benefit on the maturity amount. 

How to choose the right term insurance plan?

Choosing the right term insurance plan is a multi-step process and buying the first term plan you come across is not advisable. To start the process, you need to:

1. Start looking early:

The search for term insurance plans should begin as early as possible. Do not wait for any crisis to strike before you get a term insurance plan. A delay could leave your family without financial protection. It will also make buying term insurance an expensive affair.

2. Assess your needs:

Buying a term plan without assessing your financial needs first is futile. You could end up with inadequate coverage, which will be of little use to your loved ones. Coming to the approximate amount of life insurance coverage, you will need to consider:

• Your monthly day-to-day expenses including:
  • Bills
  • Utilities
  • Ancillary expenses
• The goals and needs of your loved ones such as:
  • Higher education
  • Marriage
  • Vacation
  • Pilgrimage
  • Spouse’s retirement
  • Healthcare expenses
• The number of dependents you have
• Any pending loans or liabilities

You will have to add these figures and multiply the final value with the inflation rate applicable in the last year of your term plan. The sum you arrive at will be the closest amount of insurance coverage you will need.

3. Metrics of the insurance company:

This is a step that most people miss. Where you are buying your term plan from is vital in ensuring that you get your claim settled in promptness when needed. You should consider factors such as the company’s reputation in the insurance industry, its claim settlement ratio (that is, the number of claims settled by it in a year), and its turnaround time for claim settlement. PNB MetLife is a leading insurance company with a remarkable claim settlement ratio of 97.18% in the financial year 2019-2020. We also settle claims within 3 hours, so you can rest assured that your financial needs are in good hands.

4. Features of the term plan:

Lastly, check the benefits offered by term insurance plans in detail. Ensure to read the policy wordings in their entirety before you close in on a purchase.

Why choose PNB MetLife for Term Insurance Plan?

PNB MetLife is one of the topmost insurance companies in the country. PNB MetLife has been in the insurance business since 2001 and has insured 3.16 million people till date. One of the world’s leading insurers MetLife has tied up with Punjab National Bank (PNB) to protect and insure people. With a high claim settlement ratio, buying a best term insurance from PNB MetLife will ensure your claims are honoured and easily settled. Be rest assured, your family’s claim will be speedily paid out. Buying a PNB MetLife policy is very simple and convenient. Moreover, you can completely customize your policy as per your needs and requirements. Whether you require additional riders or upgradation of your sum assured, your needs come first. PNB MetLife offers one of the best term life insurance policies in India.

How Long Should Be the Term of Your Term Plan?

The duration of your term plan should not be too short or too long. Term insurance plans with a shorter duration tend to be inadequate. Those with a long-term period can cost you unnecessary premium payments. There is a simple way to arrive at the ideal term of your term insurance plan. A term plan should be enough to cover you at least up to your retirement age. The older you are, the lesser the plan’s duration will be.

At PNB MetLife, you can avail of an offline or online term plan from any of the term insurance plans available. They are:

• PNB MetLife Mera Term Plan

• PNB MetLife Mera Term Plus Plan

• PNB MetLife Saral Jeevan Bima