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Aditya Birla Sun Life Insurance Company Limited

Term Insurance: Top 7 benefits in 2026

August 19, 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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Term Insurance is the simplest and most affordable form of Life Insurance and in 2026 it offers more value than ever. Aditya Birla Sun Life Insurance (ABSLI), regulated by the Insurance Regulatory and Development Authority of India (IRDAI), offers Term Plans that protect your family's future at a low cost. With GST on individual Life Insurance premiums cut from 18% to 0% (effective 22 September 2025) and the 2025 Budget retaining the ₹1.5 lakh Section 80C (Section 123 of the Income-tax Act, 2025) deduction under the old tax regime, term cover is now cheaper.

As per IRDAI and insurer disclosures for FY 2025-26, ABSLI settled 98.86% of individual claims, making it a reliable choice. A Term Plan pays a fixed sum (the death benefit) to your nominee if you pass away during the policy term. It is pure protection, no investment component, which is exactly why it delivers high cover at a low premium. Below are seven benefits worth assessing before you buy.

What are the key benefits of a Term Insurance Plan?

Financial protection for your dependents

The core purpose of Term Insurance is to replace your income. The payout helps your family cover everyday expenses, outstanding Loans, and future goals, keeping their lifestyle intact in your absence.

High cover at affordable premiums

Term Plans offer large cover for a small premium. In 2026, a healthy 30-year-old non-smoker can secure ₹1 crore cover for roughly ₹9,000-12,000 a year and with 0% GST on individual premiums, you pay only the base amount. This makes the ₹1 crore baseline adequacy now standard for urban earners genuinely affordable.

Premiums locked for the full term

When you buy young, your premium is fixed for the entire policy term. Buying early locks in a low rate based on your current good health, no matter how your age or health changes later.

Tax benefits

Premiums are deductible under Section 80C (Section 123 of the Income-tax Act, 2025) up to ₹1.5 lakh a year, and the death benefit is tax-free under Section 10(10D) (Section 11 read with Schedule II of the Income-tax Act, 2025), subject to conditions. Note that 80C/123 benefits apply under the old tax regime. Confirm eligibility based on the regime you choose.

Flexible payout options

ABSLI lets your nominee receive the death benefit as a lump sum, a regular monthly income, or a combination, so your family gets money in the form that suits them best.

Customisation with riders

Enhance your base plan with riders such as critical illness (searches up 40% year-on-year in 2026), accidental death and disability, and waiver of premium, each at a nominal extra cost, with no separate paperwork.

Whole-life and return-of-premium options

Modern ABSLI plans offer flexible cover durations and a return-of-premium option that refunds your premiums if you outlive the term. The ABSLI DigiShield Plan and ABSLI Super Term Plan both offer these flexible features, with cover available up to age 100 under the DigiShield Plan's whole life options and up to age 85 under the Super Term Plan.

ABSLI claim settlement ratio vs. leading insurers (FY 2025-26)

A Term Plan's biggest benefit, the payout, depends on the insurer honouring claims. As per IRDAI and insurer public disclosures, ABSLI settled 98.86% of individual claims in FY 2025-26:

Insurer	Claim Settlement Ratio (FY 2025-26)
Axis Max Life	99.78%
HDFC Life	99.72%
ICICI Prudential Life	99.34%
Aditya Birla Sun Life Insurance (ABSLI)	98.86%
LIC	97.55%

Source: IRDAI and insurer public disclosures (Form L-40) for FY 2025-26. ABSLI's own disclosures report a CSR of 98.86% for FY 2025-26.

Estimate your premium and cover with the ABSLI Term Insurance Calculator, or explore all options on the ABSLI Term Insurance page.

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Frequently asked questions

What are the main benefits of Term Insurance in India in 2026?

The main benefits in 2026 are high cover at low cost, income protection for your family, fixed premiums locked at a young age, tax savings under Section 80C and 10(10D) (Section 123 and Section 11 read with Schedule II of the Income-tax Act, 2025), and customisation through riders. With GST on individual premiums now 0% (from 22 September 2025), a ₹1 crore plan is more affordable than ever, and insurers like ABSLI settle over 98.86% of individual claims (IRDAI and insurer disclosures, FY 2025-26).

Is Term Insurance worth buying if I survive the term?

Yes, Term Insurance is worth it for anyone with financial dependents, because its value is the protection it provides during the years your family relies on your income. If you prefer to get money back on survival, a return-of-premium option refunds your premiums at maturity. For most buyers, though, a pure Term Plan plus investing the difference delivers better overall value.

How much Term Insurance cover do I need?

A common rule is cover worth 10-15 times your annual income. For most urban salaried earners in 2026, ₹1 crore has become the baseline adequacy benchmark, with ₹2 crore common for those with home loans or young children. Factor in outstanding debts and future goals such as children's education when deciding your sum assured.

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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