Term Insurance

Term insurance is a pure life-cover policy that pays your family a fixed lump sum if you pass away during the policy term. PNB MetLife term plans offer high cover at affordable premiums, optional riders (accidental death, critical illness) and tax benefits under Sections 80C and 10(10D). Cover starts from approximately ₹546/month for 1 crore term insurance, and individual term premiums carry 0% GST since 22 September 2025.

What is Term Insurance?

Term insurance is the simplest and purest form of life insurance. You pay a fixed premium for a chosen period - the “term” - and if you pass away during that term while the policy is active, your nominee receives the full sum assured.

Because a pure term plan has no savings or investment component, almost your entire premium goes towards life cover. That is why term insurance delivers the highest sum assured for the lowest premium of any life insurance product - a healthy young adult or Gen Z can secure ₹1 crore of cover for roughly the price of a monthly OTT-and-coffee budget. The cover lasts only for the policy term; if you outlive it, a basic plan pays nothing, unless you opt for a return-of-premium (ROP) variant that refunds the premiums you paid.

Term plans can run for a fixed number of years or extend as whole-life protection up to age 99, and can be enhanced with riders such as accidental death, accidental disability, critical illness and waiver of premium. In short, term insurance is income-replacement: it ensures the people who depend on you can keep their lifestyle, repay loans and meet goals if your income suddenly stops.

How Does a Term Insurance Plan Work?

A term plan works in three stages: you buy cover and pay a fixed premium; you stay protected for the policy term; and if you pass away during the term, your nominee files a claim and receives the full sum assured. In a pure term plan, there is no maturity payout if you survive the term unless you choose a return-of-premium option.

1. Choose your sum assured, policy term and any riders, then pay a premium monthly, quarterly, half-yearly, annually or as a one-time single payment. Once set, your premium is locked for the full term.: You buy the cover.
2. Throughout the term your family is financially covered. Riders extend that protection to accidents, disability and critical illness.: You stay protected.
3. On an unfortunate event, your nominee intimates the insurer, submits the documents, and the sum assured is paid out. PNB MetLife offers a 3-hour claims promise and ₹3 lakh^ instant payout on intimation.: Your family is paid.

Key Features of Term Insurance Plans

Death Benefit

The sum assured is paid as a lump sum to your nominee on your death during the policy term. You can also structure it as a monthly income or a mix of lump sum plus income to suit your family’s needs.

Non-Linked Plan

A term plan’s sum assured is guaranteed and not tied to equity markets - your cover never falls because of market movements.

Riders for Extra Protection

Add-on covers that strengthen the base policy. Common riders include:

• Accidental death benefit
• Accidental disability (total or partial)
• Critical illness (heart attack, cancer, kidney/liver failure and more)
• Terminal illness
• Waiver of premium (on disability or critical illness)

Policy Tenure & Whole-Life Cover

Cover can run for a fixed term or extend as whole-life protection up to age 99, so you can match the cover to your earning years and beyond.

Medical Tests

Insurers may require medical or tele-medical checks based on age, sum assured and health disclosures. Many high covers can now be issued with video or tele-medicals.

Free-Look & Grace Period

A free-look period of 15–30 days lets you cancel a new policy for a full refund if it does not meet your needs. A grace period of 15–30 days lets you pay a missed premium without the policy lapsing.

Types of Term Insurance

Term Insurance Premium – How Much Does It Cost?

A ₹1 crore PNB MetLife term plan starts at about ₹546/month for a 25-year-old healthy, non-smoking male on a 25-year term, exclusive of taxes. Premiums rise with age, so the same cover costs noticeably more at 35 or 45, which is why buying early locks in the lowest lifetime premium. Individual term premiums carry 0% GST since 22 September 2025.

Indicative Monthly Premium by Age (₹1 Crore, 25-yr term, non-smoker)

Figures are illustrative. Actual premium depends on exact age, health, cover, term and riders. A 35-year-old typically pays ~50% more than a 25-year-old for identical cover; a 45-year-old can pay 3× - the cost of waiting.

Factors That Affect Your Premium

• Age: the older you buy, the higher the premium: so start early.
• Gender: women generally pay lower premiums than men for the same cover.
• Lifestyle: smoking or nicotine use can raise premiums by roughly a third; alcohol in excess also increases them.
• Medical history: pre-existing conditions or a high-risk family history increase the premium.
• Term & cover: longer terms and higher sums assured cost more, but lock protection for longer.

Term Insurance Premium Calculator

A term insurance calculator estimates your premium from your age, gender, income, lifestyle and chosen cover and term. It also shows premium-payment modes so you can budget. Use it before buying to compare cover levels and right-size your plan.

How Much Term Insurance Cover Do I Need?

A common rule is 15–20 times your annual income, adjusted for outstanding loans, the number of dependents and future goals. To be precise, use one of three methods - Human Life Value, Income Replacement or Expense Replacement and prefer a cover that clears your liabilities and funds your family’s goals for at least the next 10-15 years.

1. Human Life Value (HLV) Method

   Calculate the total economic value you provide over your working life - your future income and expenses, outstanding loans, number of dependents and their goals - then adjust for inflation over the next 20–30 years. The result is your ideal cover.

2. Income Replacement Method

   Multiply your annual income by the number of years left to retirement. This shows how much cover is needed to replace your lost earnings.

3. Expense Replacement Method

   Start with the HLV figure, then subtract your existing investments and assets. The gap is the cover you actually need to buy.

Who Should Buy Term Insurance?

Term insurance is for anyone whose income or contribution others depend on. It is especially valuable for:

• Salaried & first jobbers: salaried professionals with EMIs, rent or dependents to support;
• Single, healthy 25–35 year-olds: buy young and lock the lowest lifetime premium, even before you have dependents, it protects co-signed loans and ageing parents.
• Self-employed & business owners: no employer cover and an irregular income make personal term cover essential.
• Women & homemakers: women often pay lower premiums; homemakers can be covered on a household-income basis for the family’s protection.
• NRIs: Indian-origin earners abroad can buy resident-Indian term plans, often at competitive premiums, with GST relief on individual policies.
• Married couples & parents: a term plan funds your spouse’s retirement, your child’s education or marriage, and day-to-day expenses if you are no longer around.

DO I REALLY NEED TERM INSURANCE IF I'M SINGLE?
If anyone relies on your income - parents, siblings, or a loan you have co-signed - yes. And buying while young and healthy locks in the cheapest premium you will ever get, so many single buyers purchase early as a head-start on lifelong protection.

Benefits of Term Insurance

• Affordable premiums: high cover such as ₹1 crore for a small monthly outgo.
• Long, flexible tenure: cover that can run to age 99, matching your full earning life and beyond.
• Riders: extend protection to accidents, disability and critical illness.
• Buy online easily: compare, calculate and buy in minutes, paperless, with instant e-policy.
• Tax savings: 80C deduction up to ₹1.5 lakh, tax-free payout under 10(10D), and 0% GST on individual premiums.

Term Insurance Tax Benefits & GST

Term insurance premiums qualify for a deduction up to ₹1.5 lakh a year under Section 80C, and the death benefit is fully tax-exempt under Section 10(10D). Health-related riders may qualify under Section 80D. Since 22 September 2025, individual term insurance premiums also attract 0% GST (group term still attracts 18%).

• Section 80C: deduction up to ₹1,50,000 per year on premiums for self, spouse and dependent children, provided premium does not exceed 10% of the sum assured.
• Section 10(10D): the death benefit (and rider payouts) your family receives is exempt from tax.
• Section 80D: premiums on critical/serious-illness riders may qualify for an additional health-insurance deduction.
• 0% GST: from 22 Sep 2025, GST on individual life and health insurance premiums is nil, lowering your effective cost by the earlier 18%.

Tax laws are subject to change; benefits depend on your tax regime and conditions under the Income Tax Act, 1961.

Term Insurance vs Whole Life vs Endowment

Term insurance is the purest, cheapest form of life insurance; “life insurance” is the umbrella term that also includes savings-linked products like endowment and ULIPs. If your priority is maximum protection at minimum cost, a term plan wins. If you want a guaranteed maturity value alongside cover, a savings plan may suit - at a much higher premium.

₹1 Crore Term Insurance (and ₹2 Cr / ₹3 Cr)

You can get a ₹1 crore term plan the same way as any term policy — choose the cover, enter your details, get a quote and buy online. A ₹1 crore PNB MetLife plan starts at about ₹546/month, ₹2 crore from about ₹800/month and ₹3 crore from about ₹1,200/month for a healthy 25-year-old.

A ₹1 crore sum assured is the popular entry point because it is enough to clear typical loans and sustain a family for years, at an affordable premium. As your income, EMIs and family size grow, ₹2 crore or ₹3 crore cover keeps protection ahead of inflation. Use the cover calculator to confirm the right figure rather than defaulting to ₹1 crore.

Term Insurance Riders

Riders are optional add-on covers, bought with the base policy at extra premium, that pay out when specific conditions are met - strengthening your protection beyond plain death cover. The most useful riders are:

• Accidental death benefit: extra payout if death is due to an accident.
• Accidental disability: payout (and often premium waiver) on total or partial disability from an accident.
• Critical illness: lump sum on diagnosis of a listed illness such as cancer, heart attack or kidney/liver failure.
• Waiver of premium: future premiums are waived while cover continues, on disability or critical illness.

Term Insurance in India for NRIs

Non-Resident Indians can buy term insurance from Indian insurers, often at premiums comparable to or lower than their country of residence, with a strong rupee sum assured for family back home. Since 22 September 2025, individual term premiums are GST-exempt; NRIs paying from an NRE account can benefit similarly. Medicals can usually be completed in the country of residence or on a visit to India, and disclosures (travel, residency, income) must be accurate to keep the claim valid.

How to Buy Term Insurance Online in 3 Steps

1. Visit pnbmetlife.com, select a term plan and the sum assured (e.g. ₹1 crore) that matches your needs.: Choose your plan.
2. Share date of birth, annual income, pin code and smoker status to calculate your premium. Disclose smoking truthfully - concealment can void a claim.: Enter your details & get a quote.
3. Select riders and payout mode, choose your premium frequency, pay securely online and receive your e-policy in minutes.: Add riders & pay.

Buying online is faster, paperless and usually cheaper than offline, because it removes intermediary costs and gives you a transparent, instant quote.

How to Get Low-Premium Term Insurance

• Buy young - premiums are lowest in your 20s and early 30s and stay locked for the term.
• Choose a non-ROP plan if you only need protection (ROP costs more).
• Quit smoking/nicotine and maintain healthy vitals before underwriting.
• Buy online to save on intermediary costs and avail online discounts (up to 21%).
• Pick a term that covers you to retirement - not unnecessarily longer.
• Pay annually rather than monthly where it lowers the effective rate.

How to Choose the Right Term Insurance Plan

1. Don’t wait for a life event - delay raises cost and risk.: Start early.
2. Use the 15–20× income rule plus loans, dependents and goals to size the cover.: Assess your need.
3. Compare Claim Settlement Ratio, claim turnaround time and solvency ratio (IRDAI minimum is 1.50).: Check the insurer’s metrics.
4. Riders, payout options, whole-life cover and policy wordings - the cheapest premium is not always the best plan.: Read the plan features.

FIRST-TIME BUYER TIP
Don’t shop on price alone. A slightly higher premium from an insurer with a high, consistent claim settlement ratio and fast turnaround is better value than the cheapest plan - because the entire point of the policy is that the claim gets paid, quickly, when your family needs it.

Why Choose PNB MetLife for Term Insurance?

PNB MetLife: backed by Punjab National Bank and MetLife - has protected Indian families since 2001 and insured 3.16 million+ lives. With a high individual death-claims-paid ratio of 99.81%, a 3-hour claims promise and ₹3 lakh instant payout on intimation, your family’s claim is designed to be honoured fast. Plans are fully customisable with riders, ROP and joint-life options.

Term Insurance Claim Process

The 3 Steps

1. Inform the insurer of the death within 90 days, with the death certificate. PNB MetLife lets you download claim forms online in your regional language.: Intimation.
2. The insurer verifies documents and assesses the claim; additional documents may be requested.: Processing.
3. Genuine claims are settled within 30 days of receiving all documents; investigated claims are completed within 90 days of intimation.: Payout.

Documents Required

• Death certificate (local authority)
• Original policy document (or indemnity bond if lost)
• Claimant’s statement and doctor’s certificate
• Nominee’s photo ID & address proof
• Cancelled cheque / bank passbook of the beneficiary

Why Claims Get Rejected (and how to avoid it)

• Wrong information: giving incorrect personal or financial details.
• Hidden medical history: not declaring pre-existing conditions, smoking or drinking.
• Refusing medicals: declining a required medical examination.
• Non-disclosure of existing cover: failing to disclose other term policies.

The single best protection against rejection is full, honest disclosure at the time of buying.

Term Insurance Glossary (A–Z)

Sum Assured: The guaranteed amount paid to the nominee on a valid claim.

Premium: The amount you pay to keep the policy in force.

Rider: An optional add-on cover bought with the base policy at extra cost.

Nominee / Beneficiary: The person who receives the death benefit.

Death Benefit: The payout to the nominee on the insured’s death.

Maturity Benefit: Amount payable at the end of the term (only in savings/ROP plans).

Free-Look Period: 15–30 days to cancel a new policy for a full refund.

Grace Period: 15–30 days to pay a missed premium before the policy lapses.

Lapsed Policy: A policy cancelled for non-payment of premium.

Reinstatement: Reviving a lapsed policy as per the insurer’s conditions.

Claim Settlement Ratio: Share of claims an insurer settles in a financial year.

Solvency Ratio: An insurer’s financial strength; IRDAI minimum is 1.50.

Underwriting: The insurer’s risk assessment that decides your premium.

Return of Premium (ROP): A variant that refunds premiums if you survive the term.

Waiting Period: Time before certain benefits can be claimed.

Suicide Clause: Limits the payout if death is by suicide in the early policy years.