Term insurance
Term insurance is the affordable life insurance policy that offers financial cover for a fixed term. The policy ensures financial protection for the family after the life insured passes away. The insurance plan takes responsibility for helping dependents maintain lifestyles and fulfill their dreams.
₹1 Crore term insurance at just ₹542/month1
Large life cover at affordable premium
4% discount online
Covers COVID-192 life claims
What is term insurance?
Importance of term insurance
Term insurance policy helps families to protect them after the demise of the life insured. In case of the death of the sole breadwinner, a sudden financial crunch makes the family members feel helpless. They often have to compromise their living standards and give up their dreams. So protecting the family with term insurance is very important. Everybody needs a term plan because it helps in:
Financial Planning
Term life insurance is a part of financial planning, especially when you aim at financial planning for the family’s security.
Loan payment
Term insurance pays the sum assured to the nominee after the death of the life insured. The claim amount received helps the family in paying off loan liabilities to clear financial obligations like home loans/ car loans/ education loans, etc.
Regular cash flow
There are options to receive the sum assured as a monthly income. This can help the dependents to cover the day-to-day financial needs without compromising the lifestyle.
Peace of mind
Buying term insurance, ensures that the dependents in the family will be financially supported by the insurance company in case of the death of the life insured.
Financial stability
Nothing is more important than the family’s security. Term insurance is a plan that provides high life cover at cost-effective premiums. A life insured can choose the sum assured, in term insurance, depending on their requirements. The term plan provides for the financial needs of the family when the steady income stops after the death of the life insured.
Benefits of term insurance
A term insurance policy provides financial security for the family .Buying a term insurance plan brings many benefits. Below are the details:
High life cover at affordable premium:
Term insurance offers huge life cover (e.g., a life cover of ₹1 Crore) at a pocket-friendly premium (₹542/month1 to be paid regularly). The plan helps families in uncertain times.
Inbuilt terminal illness cover:
ABSLI DigiShield Plan covers terminal illnesses. If diagnosed with a terminal illness during policy years, the policyholder can receive 50% of the sum assured.
Life cover till 100 years:
ABSLI DigiShield Plan provides an whole life coverage i.e. up to 100 years of age. If Rahul is 25 now and buys this term plan, he can cover himself for the next 75 years.
Premium Waiver:
If the policyholder suffers through a critical illness or permanent disability during the policy period, all the future premiums are waived off. However, term insurance policy benefits continue.
Tax Benefits:
Term insurance policy makes life insured eligible for income tax benefits3 under section 80C. The claim amount received is tax exempted under section 10(10D).
Wider coverage with riders:
Term insurance offers multiple rider options. You can pay a little extra for wider coverage. For example, Rahul has a ₹1 Crore term insurance with accidental death benefit rider worth ₹50 lakhs. If any major accident leads to his death, Rahul’s nominee will receive a sum assured of ₹1.5 Crore.
Worry-free retired life:
There are options to receive a monthly income after the life insured turns 60 with ABSLI DigiShield Plan. This regular income ensures a comfortable life after retirement.
Enhanced Life Stage Protection:
The life insured can choose to increase protection owing to different life needs like marriage or birth of child. The sum assured will increase without any fresh medical examination. For example: Rahul owned a term plan of ₹1 Crore. He had opted for Enhanced Life Stage Protection at the policy inception. After his marriage the total sum assured under the policy will be ₹1.5 Crore. For the event of marriage, 50% of the sum assured subject to a maximum of ₹50 lakhs will increase.
Ease of buying:
Buy term insurance online with just a few clicks. No need to step out of your home. Buy now.
Covers spouse:
ABSLI offers an opportunity to get joint-life protection with term plans. Under a single term plan, both the life insured and the spouse can get life coverage, at discounted rates.
Our Term Insurance Plans
ABSLI DigiShield Plan
Life cover up to 100 years of age.
Covers Covid-192
Covers Terminal illness
4% online discount
Survival benefit after age 60
Life Cover
₹1 Cr.
Premium:
₹542/month1
Buy online
ABSLI Life Shield Plan
Term plan to protect your loved ones financially.
Cover your spouse
Covers Covid-192
Return of premium option
Terminal Illness Benefit
Life Cover
₹1 Cr.
Premium:
₹575/month4
ABSLI Saral Jeevan Bima Yojana
Simple term insurance plan for securing family’s future.
Lump-Sum benefit
Affordable Premium
Accidental Death Benefit Rider
Flexible Premium Payments
Life Cover
₹25 lakh
Premium:
₹2939/month8
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Why ABSLI term plans?
Our term insurance plans are designed to cater your life plans. We have multiple plan options to suit any individual’s varying needs. With the legacy of Aditya Birla Group, we care for you and offer:
High Claim Settlement Ratio:
Based on claim payments in the year 2020-2021, our claim settlement ratio is 98.04%5. As responsible insurers, we spare no effort to protect you and your family.
Wider Plan Options:
We offer 3 types of plans: ABSLI DigiShield Plan, ABSLI Life Shield, and ABSLI Saral Jeevan Bima. Based on your requirements you can choose what suits you the most.
Return of premium option:
In term insurance plans, there is an option to choose return of premium (ROP). That means the sum of premiums paid till date will be returned to life insured on the policy maturity date in case of surviving the policy term.
Easy Claim Process:
Everything is online. It just takes three steps!
Fast Turnaround Time (TAT):
Our average claim settlement time post receiving all the claim documents / requirements is 3.5 days6 for individual business.
Terminal Illness Benefit:
If the life insured is affected by Terminal Illness during the policy term, 50% of applicable sum assured is paid immediately. The maximum terminal illness benefit payable is ₹2 crore. All future premiums will be waived off.
Affordable Premiums:
The term insurance policy offered is available at affordable premiums. You can get a ₹1 Crore term insurance at just ₹542/month1
Presence across the country:
We have 363 physical offices in India. It enables us to serve and help the customers quickly.
Features of term insurance
The concept of term insurance is to help the financially dependent members of life insured stay strong and financially stable against life’s uncertainties. This enables the loved ones to fulfill their financial needs and achieve their goals, even in the absence of life insured. A few features are:
Low Entry Age:
Anyone above 18 years of age can buy a term plan.
Long Policy Coverage:
Covers up to 100 years of age.
Easy to buy:
Simple online steps to buy.
Easy Premium Payment:
Monthly, Quarterly, Half-yearly, or Yearly
Adjustable Cover:
Increase or decrease the sum assured basis your needs
Easy to understand:
This is a simpler investment option to understand.
Flexible Pay-out option:
Lumpsum/ Monthly payout/ combination of both
Who should buy term insurance?
In a world of uncertainties, term insurance is for everyone. This is cost-effective and offers large life cover. However, individuals are often unsure of availing of a term plan. So below are the individuals, term insurance is essential for:
Taxpayers:
Taxpayers can benefit from a term insurance plan. The premium paid for a term plan is eligible for tax deductions under section 80C of Income Tax Act, 1961. You can save up to ₹1.5 lakhs every year.
Self Employed:
Self-employed and business owners are likely to have more loan liabilities and financial responsibilities. So to protect their families financially, term insurance is a must for these individuals.
Parents:
Parents should buy term insurance to safeguard their children’s future. Term plan ensures financial support to help the children pursue their goals in case of the parents’ untimely demise.
Married Couples:
Marriage brings a lot of responsibilities to any individual. When a married couple begins a new phase of life, they have many financial goals. Chances are there that they may take up a loan to buy a house or a car. So securing their future with term insurance is very important.
Young Professionals:
Buying a term insurance policy as soon as you start working is meaningful. At this age, life is just beginning, and new responsibilities are yet to be set. Such individuals should buy the term insurance as the premium will be less. Also, it allows the professional to create support for dependent parents.
Approaching retirement:
Individuals approaching retirement are generally free from most of the liabilities, and the children are settled. They can buy term insurance that will start paying them a monthly income immediately after retirement. Plus, this ensures adequate funds for the spouse in case anything unfortunate happens.
How term insurance works?
Suppose Rohit, aged 25 years purchased a ₹1 Crore term insurance policy. The policy term he chose was of 30 years for ABSLI DigiShield Plan with level income option. After paying the premium for 20 years, Rohit passed away. Rohit’s wife Geeta was declared as the nominee under the policy. She received the life cover amount of Rs.1 crore as death benefit. Geeta used the amount to pay off the loan her husband had taken for their luxury car. She could manage and support her son’s education. The term plan helped them manage unexpected financial instability in life.
What is covered in term insurance?
Term insurance is a life insurance product. Hence, the sum assured is paid to the nominee in case of policyholder’s death during the term period. But death can be caused by many situations. So let’s understand what type of deaths are covered under term insurance:
Death due to accident:
Accidental deaths are covered in a term insurance plan. The death may happen due to a sudden and involuntary event caused by external force.
Natural Death:
Term plan covers natural death, implying that the policyholder dies from natural causes such as old age or diseases.
Death due to a medical condition:
Death due to critical medical conditions is covered in the term plan.
Terminal Illness:
The medical cost to treat any terminal illness is super expensive. The illness indicates that the life insured has sustained illness that will lead to death within 6 months. In such a case, term insurance can protect the saving of any individual by paying 50% of the sum assured, subject to a maximum of ₹2 crore.
Suicide:
If the policyholder commits suicide within 12 months of the term policy inception, the premium paid till date is paid back to the nominee.
Covid-19:
The term plan will provide the life cover amount if the policyholder dies due to Covid-192 infection.
Factors Affecting Term Insurance Premium
Generally, term insurance premium depends on the policyholder’s life risk, among other factors. Higher is the life risk, higher is the premium. Below are the factors that determine the amount of term insurance premium:
Chosen sum assured:
Term insurance premium is directly proportional to the sum assured you choose. Higher is the sum assured; higher will be the premium.
Age:
The premium for term insurance is less when you are young. When young, you are healthy and have less probability of acquiring the disease. Basically, life risk is low. Hence, the term insurance premium is less.
Gender:
Women have to pay less premium than men for term insurance. It is because studies⁷ have shown that women live longer than men.
Policy Term:
The policy term will affect the premium amount. Generally, longer policy terms come at higher premiums. It is because when the duration of the policy is longer, it applies the the cover is lengthy for higher premiums.
Health Conditions:
If you have been suffering from a major illness or suffer from lifestyle diseases, the term insurance premium will be higher. The lifestyle diseases include hypertension, diabetes, sugar, thyroid, etc.
Family Medical History:
In case, the proposer (you) have a large family medical history of illnesses like kidney ailments, heart attack, stroke or cancer, the insurance company may choose to decline the proposal (your request). They may insure you at a higher premium rate to cover higher risk.
Profession:
If your job demands you to work in an environment associated with higher life risk, then the premium will be higher. For example, in a risky profession like racing, or other adventurous activities, or mining, etc. the premium will be higher than normal.
Smoking / Drinking Alcohol:
Smokers and regular alcohol consumers will have to pay a higher premium. The habits can increase your chances of falling sick or suffering from life-threatening conditions. This results in a higher premium.
Premium payment frequency:
There are multiple ways to pay the premium for term insurance, such as monthly / quarterly / half-yearly / yearly, etc. The higher the payment frequency, the higher will be the premium. In simple words, a monthly premium payment is costlier than a yearly payment.
Term insurance riders
Riders are additional covers that can be purchased along with a term insurance policy. Riders broaden the scope of coverage under a basic term insurance at a nominal premium amount. There are multiple options one can choose as per the requirement.
ABSLI Accidental Death and Disability Rider
UIN: 109B018V03
Get additional protection for accidents leading to death or disability at a nominal cost.
Download Brochure
ABSLI Accidental Death Benefit Rider Plus
UIN: 109B023V02
Get additional protection for accident leading to death at a nominal cost.
ABSLI Critical Illness Rider
UIN: 109B019V03
Get benefit amount as a lump sum upon diagnosis of any of the 4 specified critical illnesses.
ABSLI Hospital Care Rider
UIN: 109B016V03
Get daily cash benefit, additional ICU benefit and lump sum recuperating benefit upon hospitalization.
ABSLI Surgical Care Rider
UIN: 109B015V03
Get a lump sum benefit amount to cover surgical expenses.
ABSLI Waiver of Premium Rider
UIN: 109B017V02
All future premiums waived in case of permanent disability, death or 4 specified major illnesses.
Tips to choose the best term insurance policy
You may have multiple questions in mind before buying a term insurance plan. Even if not, you can check these tips before making the final purchase.
Features offered by the plan:
Check for the features before selecting the term plan. See whether the features suit your requirements and then buy.
Premium Paying Capacity:
You must evaluate the premium paying capacity. It is the amount you are willing to pay for a certain life cover amount and the premium paying term.
Policy Term:
Another important factor is the policy term for which the person is buying a term plan.
Sum Assured:
Evaluate the sum assured to be chosen as it will cover the financial needs of the family in life insured's absence.
Claim Settlement Ratio:
The claim settlement ratio tells you about how many claims have been settled against the total claims made. For Aditya Birla Sun Life Insurance, the claim settlement ratio is 98.04%5
Rider Options:
Before finalizing the term insurance purchase, check whether the insurance company offers a rider or not. If yes, then see what are the best options of rider covers.
Solvency Ratio:
Find out the solvency ratio of the life insurer as it indicates whether the insurer will be financially capable of settling the claim. As specified by IRDA, the solvency ratio must be 1.5.
Looking for Assistance?
Need help with your existing policy?
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Call us on our toll-free no. for quick response!
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Frequently Asked Questions
Find out more about term insurance plans and explore how it will benefit you.
A term life insurance plan is a cover that provides financial protection for a specified period defined as a ‘term’. If the policyholder passes away during this time, the family will get the death benefit. The death benefit will be equal to the sum assured or as specified in the policy.
Yes, a term insurance plan covers death due to Covid-192. The family gets death benefit if the person covered dies within the policy term.
A term plan is the insurance plan that pays the dependents in the family when the life insured is not around to take care of the family’s financial expenses. Second, term insurance is the most affordable form of insurance that provides a high life coverage. Get Rs.1 crore cover for ₹542/ month¹. A term plan is suitable for those who want high life cover security at less premium.
Traditional life insurance cover also known as whole life insurance provides multiple benefits. The insurance policy provides fixed income returns, safety and tax benefits. Traditional life insurance policies are risk-free as they give fixed returns. You can buy the policies when you are saving for a fixed purpose in life like a child's higher education, house, marriage, etc.
Traditional life insurance cover also known as whole life insurance provides multiple benefits. The insurance policy provides fixed income returns, safety and tax benefits. Traditional life insurance policies are risk-free as they give fixed returns. You can buy the policies when you are saving for a fixed purpose in life like a child's higher education, house, marriage, etc.
Smoking can cause chronic diseases such as lung cancer, heart diseases, and bronchitis. Smokers have a higher probability of contracting infection which affects their life expectancy. Life Insurance companies have higher risk of underwriting in case the proposer is a smoker. This is the reason smokers have to pay a higher premium.
If the life insured starts drinking/smoking heavily after taking the policy, the insurance company might have to reconsider the policy they have issued. The insurance company might choose to revise the premium for the remaining term. It is because alcohol tends to reduce the life expectancy of the person consuming it.
These are the factors one must consider before buying a term insurance plan:
- The features that are offered by the term insurance plan.
- The amount of premium to be paid.
- Check whether the plan allows one to choose a flexible payment term.
- Verify the rider/additional covers available with the term insurance plan.
- Find out the claim settlement ratio of the insurance company.
- Check the insurer’s solvency ratio.
When you are young and buying term insurance, the premium will be less.
Generally, once you choose a term period and life cover amount and other details, the premium stays fixed throughout the term policy period.
Young individuals are healthy and have a lower life risk as compared to when they grow old. Hence the life insurance companies offer life cover to younger people at a low premium rate due to the low life risk involved. And this premium stays fixed while they grow old. So opting for term insurance at a younger age comes with the benefit of enjoying a low premium rate till the end of the policy term.
Check out when is the best age to buy a term insurance plan?
Generally, once you choose a term period and life cover amount and other details, the premium stays fixed throughout the term policy period.
Young individuals are healthy and have a lower life risk as compared to when they grow old. Hence the life insurance companies offer life cover to younger people at a low premium rate due to the low life risk involved. And this premium stays fixed while they grow old. So opting for term insurance at a younger age comes with the benefit of enjoying a low premium rate till the end of the policy term.
Check out when is the best age to buy a term insurance plan?
Maturity benefit is the sum assured that the policyholder gets for surviving the complete policy tenure. Generally, term insurance plans are not designed to offer maturity benefits, being pure life cover policies. However, under ABSLI term insurance, you get to choose the plan option with a maturity benefit, that is, Return of premium benefit.
As per the rule of IRDAI, insurance companies are supposed to settle the claim in 30 days from the date of claim intimation and submission of the required documents. There could be cases which need investigation before reaching the final decision. The claim settlement time for these cases may extend to 120 days. You are in safe hands if insured with ABSLI as we have a track record of settling the claim in 3.56 days with a claim settlement ratio of 98.04%5.
The Term Plan gives tax benefits3 under section 80C and section 10 (10D) of the Income Tax Act 1961. One can save up to ₹1.5 lakh on the premium paid for term insurance.
Generally, policy term allowed in term insurance policies ranges from 10-55 years and you can choose the number of years you want to be covered for. Keep in mind that the maximum age till which you can get covered up to is 100 years under the ABSLI DigiShield term insurance policies.
You can buy a term plan anytime between 18 years to 65 years. It is suggested you buy a term plan as soon as you start earning and get independent in your 20s. Under a term plan, the premium is less when the individual is young. So it is better to buy a term plan at an early age as the premium increases when you grow old.
If you plan to buy a term insurance policy, you can do it either online or offline. For offline mode, you can contact advisors or financial specialists who recommend you the most suitable plan. Then, fill the proposal form and submit the relevant documents. On the other hand, follow these steps if you want to buy the plan online:
- Go to the website Aditya Birla Sun Life Insurance https://lifeinsurance.adityabirlacapital.com/term-insurance
- Select the plan that meets your requirements.
- Fill up personal details such as name, gender, date of birth, policy term, smoking habit, city of residence, sum assured, mobile number, email id, etc.
- The insurer would generate a quote based on the details, which will let you know about the monthly/annual premium to be paid to get the term covered.
- If you are satisfied with the quote, you would need to provide additional details such as the nominee's name, health and employment details, among others.
- Make a payment online through any of the digital payment modes.
- Upload scanned copies of KYC documents and others as required.
- The soft copy of the insurance policy will be mailed to your registered email id.
You can buy a term insurance online as it :
- It is paperless. You can buy it any time from anywhere
- It is cost-effective. Because when you buy a term insurance online it helps you save various related expenses like the distribution cost, intermediate agent commission, etc.
- It helps you save time as you do not have to visit the insurance office in person.
Term Insurance does not expire till the end of the term. The policy continues till the policyholder is alive or unless the claim is received. To keep the policy in force, one must pay the premium regularly.
The premium for the policy term depends on factors like age, gender, lifestyle habits, occupation, term period, etc. Understand that the term plan will help the family of the policyholder to pay off the financial liabilities after the demise. If you are a 25 years old and healthy male, non-smoker and want a policy term for 30 years. You can select a plan option- Level Cover option, Sum assured - ₹1 Cr, and option of regular pay. Check here for more details when buying a term insurance policy.
The company coverage you get may not be enough to meet the family's financial requirements in your absence. This is why you need a term insurance policy purchased for yourself. Also, when you change jobs, the cover ceases to an end. However, having a term insurance plan for personal interest is always better.
For example, if the cover provided by your employer is ₹10 Lakh, that may not be enough to keep your family secure for even a year. This is why you may need to buy 75-80% of your life insurance coverage personally through a term plan and ensure you & your family are covered under all conditions.
For example, if the cover provided by your employer is ₹10 Lakh, that may not be enough to keep your family secure for even a year. This is why you may need to buy 75-80% of your life insurance coverage personally through a term plan and ensure you & your family are covered under all conditions.
The family / nominee of the policyholder should know about the term plan. Making them aware that they can file a claim is the responsibility of the policyholder. Following are the steps for filing a claim:
- Step 1: After the unfortunate death of the policyholder, the nominee must intimate the insurance company immediately by filing a claim and providing policy details.
- Step 2: Submitting the details of the death event is the next step.
- Step 3: In the last step the nominee has to fill and upload relevant documents such as death certificate, etc.
The policy term offered by most of the term insurance plans ranges between 10 to 55 years. One must opt for the term of a policy according to his / her retirement age. The retirement age would differ from person to person basis the occupation. If a person purchases a term insurance plan till age 60 years, then by that age most of his/her liabilities & responsibilities are cleared. You need term insurance to secure your family's lifestyle, until your dependents become financially independent. It implies that the family should be able to afford the rent, school/college fees, pay off the loans, and live a comfortable life.
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Disclaimer
1ABSLI DigiShield Plan scenario: Female, non smoker, Age: 21 years, level Term Insurance, Premium paying Term: regular pay, policy term: 25 years, Pay frequency: Annual Premium of ₹6500/12 months = ₹542/month)(offline premium).
2Our life insurance policies cover COVID -19 claims under life insurance claims, subject to applicable terms & conditions of policy contract and extant regulatory framework.
3Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details.
4ABSLI Life Shield Plan Scenario for female Age: 21 years, level Term Insurance, Premium paying Term: regular pay, policy term: 25 years, Pay Frequency: Annual, Annual Premium: ₹6904/12 months = ₹575/month (excl GST).
5As per annual audited figures submitted to IRDAI for the period FY 20-21
6As per annual audited figures submitted to IRDAI for the period FY 20-21
7Source: https://www.health.harvard.edu/blog/why-men-often-die-earlier-than-women-201602199137
8ABSLI Saral Jeevan Bima Yojana scenario: Male, Entry age: 30. Policy term: 40 years. sum assured: ₹25,00,000. Regular premium payment, Premium: ₹2938.75/month
ABSLI Life Shield Plan (UIN: 109N109V06) is a non-linked non-participating individual life term insurance plan. All terms and conditions are guaranteed throughout the policy term. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations, etc. The insurance cover for the life insured will commence on the policy issue date.
ABSLI DigiShield Plan (UIN: 109N108V08) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 9 (Level Cover with Survival Benefit) and Plan Option 10 (Return of Premium [ROP]) this product shall be a non-linked non-participating individual life savings insurance plan. All terms & conditions are guaranteed throughout the Policy Term. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws.
ABSLI Saral Jeevan Bima is a Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan (UIN: 109N128V01). GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws.
ADV/3/21-22/2481
