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Aditya Birla Sun Life Insurance Company Limited

Is a 25-year Term Insurance Policy right for you?

September 15, 2026

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Disclaimer : ABSLI Nishchit Aayush Plan (UIN No 109N137V12) is a non-linked non-participating individual savings life insurance plan.
^ Provided 0 year deferment & Annually in Advance payout frequency is chosen at the time of inception of the policy. Annually in Advance payout frequency is only available in "Annual" premium payment mode. ^*Male- 25 yrs invests in ABSLI Nishchit Aayush Plan with Level Income + Lumpsum Benefit. He chooses premium payment term 10 yrs , policy term 40 years, benefit option -Long Term Income, Sum Assured 7 times of Annualized Premium and Deferment Period 0 years. Annualized Premium is ₹1,00,000 (Exclusive of GST.). Annual Income of ₹ 32,750 (32,750*40=  13,10,000) + Maturity Benefit (₹20,00,000)= ₹ 33,10,000 ADV/3/24-25/3076.

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What would you think if we told you that a band-aid and term insurance work the same way? We know it sounds bizarre, but stay with us here:

Both intend to make a worse situation better in their own way.
The need and requirement seem only temporary, though significant.
You hope and wish that you never have to use it! Life can put you in circumstances where the need for both becomes crucial. While a band-aid can heal your wound, a term life insurance policy can financially compensate your family for your loss. When you set out to buy term insurance policy, you can customise its policy term, i.e., the number of years you want the policy to be active for. This depends on your future financial goals, unpaid loans/liabilities, how long it’ll take your family to be financially independent, and other factors. In this article, we’ll discuss what happens if you choose a policy term of 25 years, how much it costs, and whether it’s the right choice for you. Let’s go!

What is Term Insurance?

Term insurance is a contract between you and the insurer to provide your family with a sum assured, in case you pass away during the policy term. For the policy to stay active, you make timely premium payments. It ensures a financial safety cushion for your family members and ensures that they don’t compromise on their financial goals and lifestyle. Let us now know more about a 25-year term life insurance policy.

What is 25-Year Term Life Insurance?

As the name implies, a 25-year term life insurance policy provides life cover for a period of 25 years. The policy will protect your family against unfortunate circumstances by providing them with a death benefit, i.e., a sum of money if you pass away during the policy term. This money can be used to meet their financial obligations and spend on their future needs. For example,
Daman is a 27-year-old IT employee who stays with his dependent spouse and son. He bought a new house by securing a housing loan and wishes to put his son into a prestigious university for his higher education. Daman buys a term insurance policy with a duration of 25 years and a sum assured of Rs. 50 lakhs and nominates his wife as the nominee. If in case Daman passes away during the policy term, his wife will receive a death benefit of Rs. 50 lakhs. She can use this money to pay off the housing loan and send her son for higher education to fulfil Daman’s dreams.

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Frequently asked questions

What happens if I outlive my 25-year Term Plan?

The policy pays nothing and the cover ends when the term expires. Unless you have specifically chosen a ROP variant, premiums paid during a policy you survive are not refunded.

Can I choose a term other than 25 years?

Yes. Term Policy terms are flexible and can typically be set anywhere within the insurer's minimum and maximum limits, so you can pick a tenure that matches your own Loan repayment period, your children's timeline to independence, or your planned retirement age instead of a fixed 25 years.

Does a 25-year Term Plan cost less than a lengthy Term Plan?

A shorter policy term for the same sum assured is generally affordable than a longer one, since the insurer covers you for fewer years, but the exact premium depends on your age, health and the specific insurer's rate table. Compare an actual quote for the term lengths you are considering rather than assuming a fixed difference.

Can I add riders to a 25-year Term Plan?

Most Term Plans, including 25-year tenures, allow you to add riders such as accidental disability or critical illness cover on top of the base death benefit, subject to the insurer's underwriting and the specific plan's rider list.

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^*LI Age 21, Male, Salaried, Non Smoker, Option 1: Level Cover, PPT: Regular Pay, SA:  ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Death Benefit Payout as Lumpsum. Annual Premium: ₹ 6900/- ( which is ₹ 575/month), 1 Cr SA is paid and the policy terminates. 
ABSLI Super Term Plan - This Policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non-participating individual pure risk premium life insurance plan. UIN: 109N153V02