Tips to choose the right Term Insurance Plan in 2026

Choosing the right Term Insurance Plan is one of the most important financial decisions you will make in 2026. Aditya Birla Sun Life Insurance (ABSLI), regulated by the Insurance Regulatory and Development Authority of India (IRDAI), offers customizable Term Plans built to protect your family's future. With the 2025 Budget retaining the ₹1.5 lakh Section 80C (Section 123 of the Income-tax Act, 2025) deduction under the old tax regime and IRDAI tightening claim-settlement transparency, this guide breaks down exactly how to pick a plan that fits your needs.

As per annual audited figures submitted to IRDAI for the period FY26 for individual death claims paid, ABSLI’s individual claim settlement ratio was 98.86%, making insurer reliability easier to verify than ever. This blog simplifies the process by offering practical, up-to-date tips on how to choose a Term Insurance Plan that provides the financial security your family needs.

How to choose the right Term Insurance Plan?

1. Assess your coverage needs
Before comparing plans, determine how much coverage you need. Consider your income, financial obligations, dependents' goals, and existing debts. A good rule of thumb is 10 to 15 times your annual income. In 2026, ₹1 crore has become the baseline adequacy benchmark for most urban earners, with ₹2 crore increasingly common for those with Home Loans or young children. Use the Term Insurance calculator to size your cover.

Source: https:/lifeinsurance.adityabirlacapital.com/life-insurance-basics/term-insurance-module/how-much-cover-do-i-need/

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2. Consider the policy term
The policy should cover the period when your family is most financially vulnerable, ideally until you retire or your children become financially independent. Factor in your age and your dependents' ages to decide.

3. Compare premiums
Compare premiums across insurers, but don't decide on cost alone. Weigh features, benefits, and exclusions. A slightly higher premium may offer better long-term value through riders or stronger claim performance.

4. Check the insurer's claim settlement ratio
The claim settlement ratio (CSR) shows the percentage of claims an insurer paid out. A consistently high CSR signals reliability. As per annual audited figures submitted to IRDAI for the period FY26 for individual death claims paid, ABSLI recorded a 98.86% individual claim settlement ratio.

5. Review policy exclusions and terms
Understand what your Term Insurance Plan does not cover. Read the terms carefully to know the exclusions and the situations under which a claim might be denied.

6. Choose riders that add value
Enhance your plan with riders suited to your needs. Critical illness riders are especially relevant in 2026. Common add-ons include critical illness, accidental death, and waiver of premium riders.

What is ABSLI claim settlement ratio FY 2025-26?

As per annual audited figures submitted to IRDAI for the period FY26 for individual death claims paid, ABSLI settled 98.86% of individual death claims.

Source: ABSLI website, Claim Settlement page, which states 98.86% as the claim settlement ratio of ABSLI for FY26, as per annual audited figures submitted to IRDAI for the period FY26.

Why choose ABSLI Term Plans?

• Comprehensive coverage options: Plans tailored to different life stages and financial needs.
• Competitive premiums: ₹1 crore cover from approximately ₹575/month for eligible profiles.
• High claim settlement ratio: 98.86% individual claims settled for FY 2025-26, reflecting consistent reliability.
• Value-added riders: Critical illness, accidental death and disability, and waiver of premium.
• Trusted parentage: Backed by the Aditya Birla Group and Sun Life Financial Inc.
  
  

Explore the ABSLI Super Term Plan or estimate your cover with the HLV Calculator.

Product Disclaimer: It is a Non-Linked Non-Participating Life Individual Pure Risk Premium Plan. The UIN is 109N153V02. Life Insurance Coverage is available in this product.

Conclusion

The right Term Insurance Plan is the foundation of your family's financial safety net. Assess your needs, compare insurers on claim settlement and value rather than price alone, and act early, premiums are lowest when you are young and healthy. With flexible cover, competitive premiums, and a 98.86% individual claim settlement ratio for FY 2025-26, ABSLI is a strong contender for securing your family's future.

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