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What is a Term Insurance?
A term insurance plan is a pure life insurance product designed to provide financial protection to your beneficiaries if you pass away during the policy term. Unlike traditional life insurance policies, a term life insurance plan does not offer any savings or investment component. Its primary purpose is to provide a high sum assured at low premiums.
When you buy a term insurance policy, you select a coverage amount (sum assured) and a term. If you survive the term, the plan ends without any payout unless it includes a Return of Premium (ROP) feature. However, if the insured event occurs during the policy term, the insurer pays the sum assured to the nominee.
Many plans offer flexibility in choosing riders, such as critical illness, disability, and waiver of premium. With the availability of online options, comparing and selecting the best term insurance plan is now quicker and easier.
- Offers high coverage at an affordable term insurance premium.
- No maturity benefit unless Return of Premium (ROP) is chosen.
- Suitable for those seeking pure protection without investment components.
Why Should You Buy a Term Insurance Plan?
A term insurance plan is a simple yet powerful way to protect your family’s financial future. Here’s why it makes sense to invest in one:
To Safeguard Your Family’s Future
If you’re the primary earner, your family relies on your income for their daily needs and long-term goals. A term insurance plan ensures that your loved ones are financially supported in your absence, helping them maintain stability without compromises.
To Protect Your Assets
In the event of an untimely demise, your outstanding liabilities, such as home loans or personal loans, can become a burden on your family. Term insurance can help repay these debts, protecting your assets and preserving your legacy.
To Reduce Lifestyle Risks
Without adequate cover, your family may struggle to sustain their current lifestyle. A term plan provides the financial backing needed to help them continue living comfortably, without disruptions.
To Be Prepared for Uncertainty
Life is unpredictable. A term insurance plan prepares you for the unexpected, offering peace of mind that your family will be taken care of financially, no matter what happens.
Low Premium and High Coverage
Term insurance offers a large sum assured at a relatively low premium, especially if you buy it early. It’s an affordable way to obtain substantial life insurance that meets your family’s needs.
Option to Add Comprehensive Riders
You can customise your policy by adding riders like critical illness cover, accidental death benefit, permanent disability cover, and waiver of premium. These add-ons strengthen your overall financial protection.
Tax Benefits
Premiums paid towards your term insurance plan are eligible for tax deductions under Section 80C, and the death benefit is exempt under Section 10(10D), as per prevailing tax laws.
Our Term Insurance Plan At A Glance.
Most Popular
ABSLI Salaried Term Plan
UIN: 109N141V03
KEY FEATURES 
- Flexible coverage options
- Coverage up to 70 years of age
- Inbuilt Terminal Illness Benefit
Life Cover
₹25 Lakh
Premium
Starts at ₹10,000/ Year3
ABSLI DigiShield Plan
UIN: 109N108V11
KEY FEATURES - Get ₹1 Crore cover starting at ₹542/month1
- Stay covered for up to 100 years of age
- Get survival benefit after 60 years of age
Life Cover
₹1 Crore
Premium
₹542/Month1
Types of Term Insurance Plan
Aditya Birla Capital offers different types of term insurance plans tailored to suit your changing financial needs. Each plan comes with specific features to provide flexibility, protection, and peace of mind at different stages of life.
Basic Term Plan
This plan offers a life cover paid as a lump sum to your nominee in case of an unfortunate event during the policy term. It does not include any maturity benefit.
Term Insurance with Critical Illness Cover
Along with life cover, this plan includes an optional critical illness benefit. A payout is made if the policyholder is diagnosed with any of the listed critical illnesses such as cancer, heart attack, or stroke.
Term Insurance with Accidental Death Cover
This plan provides an additional payout in case of death due to an accident. It adds an extra layer of financial protection for unforeseen mishaps.
Term Insurance with Limited Pay Option
You can finish paying all your premiums within a limited number of years while enjoying full policy benefits throughout the entire policy term.
All-in-One Term Plan
This comprehensive plan combines life cover with optional critical illness and accidental death cover. It offers extensive protection under a single policy.
Term Insurance with Monthly Income
Instead of a lump sum payout, this plan offers monthly income to your nominee. It ensures a steady stream of income to manage daily expenses, EMIs, and long-term goals.
Term Insurance with Premium Break Option
This plan allows you to pause your premium payments for a fixed period during the policy term. It ensures uninterrupted coverage during times of financial stress.
Term Plan with Return of Premium
You receive life cover during the policy term, and if you survive the term, all premiums paid are returned to you as a survival benefit.
Group Term Life Insurance Plan
Designed for organisations, this plan covers a group of people under a single policy. It offers standard life insurance benefits and is commonly used by employers for their employees.
Add Riders for Extra Protection
ABSLI Accidental Death and Disability Rider
ABSLI Accidental Death Benefit Rider Plus
ABSLI Critical Illness Rider
ABSLI Hospital Care Rider
ABSLI Surgical Care Rider
ABSLI Waiver of Premium Rider
Steps to Buy a Term Insurance Plan Online
Buying a term insurance plan online is quick, secure, and easy to complete from the comfort of your home.
Choose the Right Term Plan
Visit the insurer’s official website or open the ABCD app. Explore available options and select a term insurance plan that aligns with your financial goals and family’s needs.
Calculate Premium and Coverage
Use the term insurance calculator to estimate how much coverage you need and check the corresponding premium. This helps you plan better and avoid over- or under-insurance.
Fill in Personal and Lifestyle Details
Provide basic information like your age, gender, income, health status, and lifestyle habits. Choose your desired sum assured and policy term.
Customise Your Plan
Add optional riders such as critical illness or disability, and select your preferred payout method – lump sum, monthly income, or a combination of both.
Upload Documents and Make Payment
Submit the required documents, pay the premium securely online, and schedule a medical check-up if needed. Once approved, your policy is issued digitally.
Check Your Eligibility
Eligibility Criteria
- Age 18 to 65 years
- Citizenship Indian citizen residing in India at the time of purchase
- Income Varied criteria depending upon plan
- Medical tests Underwriting of genuine medical history
- Education & Occupation The level of occupational risk needs to be assessed
- Smoking & Alcohol habits Affect your premium
Documents Needed
- Proposal form
- Recent photographs
- Age proof
- Photo identity proof
- Address proof
- Medical report
- Income proof
- PAN/ Aadhaar card
Customer Satisfaction Stories
Aditya Birla Sun Life Insurance Customer
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
ABCD - One app for
Secure yourself and your loved ones financially with life insurance. Buy online through the ABCD app and get instant coverage.
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Range of insurance policies to choose from -
Online premium payments
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Few clicks to buy the plan
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Understanding Term Insurance
What is a Term Plan?
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A term plan offers pure protection with no savings or investment component, making it highly affordable. It provides coverage for a specified duration, also known as the ‘term’.
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In case of your untimely demise during the term, your nominee(s)will receive the ‘death benefit’ – a specified amount paid out as a lump sum or in regular instalments.
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It provides coverage for a specific period, typically ranging from 10 to 30 years. Once the term expires and you survive, the policy ceases, and there is no payout. There are also Return of Premium plans, which refund the premiums paid when the policy matures
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Term Plans also include several "riders" or add-on benefits that can enhance the coverage offered by the plan at an additional cost-effective price.
How does Term Insurance work ?
A term insurance plan offers financial protection in exchange for a regular premium. Here’s how it works from start to finish:- Coverage amount: You start by selecting a sum assured that matches your lifestyle, current income, and financial responsibilities—like loans, children’s education, or retirement planning.
- Policy term: Next, choose a policy duration that aligns with your long-term financial goals. Ideally, it should cover your income-earning years to ensure your dependents are protected.
- Premium Payments: Premiums can be paid monthly, quarterly, semi-annually, or annually. The amount depends on factors such as your age, coverage, tenure, and any add-on riders.
- Claim Filing: In the unfortunate event of your demise during the policy term, your nominee can file a claim online or offline with the necessary documents.
- Claim Settlement: Once verified, the insurer disburses the death benefit—a tax-free lump sum or monthly payout as chosen—offering financial stability to your loved ones.
- Policy Renewal: Some insurers may offer renewal options after the initial term ends, although the premiums might be revised based on age and health conditions.
Who Can Benefit from Term Insurance?
A term insurance plan is not just for one stage of life—it’s for anyone with financial responsibilities. Whether you're just starting or managing a family or business, here are those who can benefit:
Young Earners
Starting early ensures low premiums. Even if you don’t have dependents yet, a term plan protects your parents from any burden, especially if you have education or home loans.
Newly Married Couples
Term insurance helps provide a financial cushion to your spouse. It’s a smart step if you’re planning to build a family or take on new financial commitments.
Parents
If you have children, a term plan ensures they are cared for in your absence. It can fund their education, upbringing, and future milestones like marriage.
Primary Breadwinners
Being the main income source comes with responsibility. A term plan replaces your income and secures your family’s lifestyle if something happens to you.
Business Owners
For entrepreneurs, a term insurance plan can protect business loans, ensure smooth succession, and offer continuity for your enterprise.
What are the Payout Options in a Term Insurance Plan?
Term insurance plans offer flexible payout options so your loved ones can receive the claim amount in a way that suits their financial needs.
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Lump Sum Payout
This is the most common option where the entire death benefit is paid as a one-time amount. It gives your nominee immediate access to funds, which can be used to pay off debts, cover daily expenses, or invest for future needs.
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Monthly Income Payout
Here, the death benefit is distributed as a fixed monthly income over a chosen period—say 10, 20, or 30 years. This option ensures your family receives a steady cash flow, helping them manage long-term living costs.
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Hybrid Payout
This combines both: part of the payout is given as a lump sum, while the rest is paid out monthly. It offers immediate liquidity and consistent income support.
What should be the duration of your Term Plan?
The ideal term insurance duration depends on your life stage, financial responsibilities, and future goals. Here's how to choose the right policy term:
Young Adults
If you're in your 20s or early 30s with no dependents but ongoing loans, consider a policy term of 40–50 years. This ensures your liabilities, like education or home loans, are covered.
Newly Married or New Parents
If you've recently married or have a young child, opt for a 25–30-year term. This will help cover future expenses like your child’s education or wedding, and protect your spouse financially.
Parents with Older Children
If your kids are nearing financial independence, a 15–20 year term may suffice. Factor in any remaining loans or commitments.
Empty Nesters
If your children are independent, focus on securing your spouse’s future. A 10–15 year policy term could provide peace of mind during retirement. Choosing the right duration ensures your family stays protected—no matter what stage of life you're in.
What are the key benefits of Term Plans?
Term insurance is a simple yet powerful way to protect your family’s financial future. Here’s why it makes sense for most individuals:
High Protection at Low Cost
Term plans offer high coverage at affordable premiums, making them ideal for individuals seeking maximum protection without straining their budget.
Financial Security for Your Family
In case of your untimely demise, the death benefit can help your loved ones manage living expenses, pay off loans, and maintain their lifestyle without disruption.
Flexible and Customisable
You can tailor your plan based on your needs—choose the policy term, coverage amount, payout mode (lump sum, monthly income, or both), and add optional riders for extra cover.
Zero Investment Risk
Being a pure protection plan, term insurance comes with no market risks or investment complexity.
Peace of Mind
Most importantly, term insurance gives you lasting peace of mind, knowing your family will be financially secure—even in your absence.
Tax Benefits*
Enjoy tax deductions on premiums under Section 80C and tax-free death benefits under Section 10(10D)** of the Income Tax Act, 1961.
What are the tax benefits* of Term Insurance?
Term insurance plans not only offer life cover but also help you reduce your annual tax burden. Here’s how you can benefit:
Tax deduction under Section 80C
Premiums paid towards term insurance are eligible for deductions of up to ₹1,50,000 in a financial year under Section 80C of the Income Tax Act, 1961.
Who can claim this benefit?
You can claim this tax deduction for policies purchased for yourself, your spouse, or your dependent children.
Tax-free payout under Section 10(10D)
The death benefit received by your nominee is fully exempt from tax under Section 10(10D), subject to certain conditions.
Dual advantage of savings and protection
These provisions make term insurance a smart financial planning tool—offering both protection and tax savings in one plan.
Do Term Plans offer maturity benefits?
Most term plans are meant to offer only death benefits, but there are options for those looking for a return at the end of the policy. Here's what you need to know:
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No maturity benefit in pure term plans
Standard term insurance plans do not offer any payout if the policyholder survives the policy term.
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Return of Premium (TROP) plans
With TROP options, your total premiums (excluding GST and rider charges) are refunded if you survive the policy term.
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Example – ABSLI DigiShield Plan
ABSLI DigiShield Plan – Option 10 offers 100% return of premiums on survival, offering both life cover and financial reassurance.
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Best of both worlds
TROP plans are ideal for individuals who want life protection along with the comfort of getting their money back if no claim is made.
What are the factors that can affect Term Insurance premiums?
The premium for your term insurance plan depends on several personal and policy-related factors. Here's a closer look at what influences the cost: Age at the time of purchase
Younger individuals are charged lower premiums since they are typically healthier and pose a lower risk to insurers. As you age, the cost of coverage increases significantly.
Lifestyle and health habits
Tobacco use, alcohol consumption, obesity, and lack of exercise can all lead to higher premiums. Insurers also assess your medical history and current health conditions when determining the premium.
Income and cover amount
Your income affects how much life cover you can opt for. A higher sum assured means greater protection for your family—but it also results in a higher premium.
Policy term and plan type
Longer policy durations and add-ons like Return of Premium or critical illness riders will increase your premium. Choosing a basic term plan with a fixed term is usually more affordable.
How to choose the best Term Insurance plan?
Selecting the best term insurance plan goes beyond just the premium. Here are key points to help you make a well-informed decision:
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Check the claim settlement ratio (CSR)
A high CSR (above 95%) indicates that the insurer reliably pays out claims. It reflects the company's credibility and trustworthiness during critical times.
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Review solvency and financial strength
The solvency ratio reveals how financially secure an insurer is. Choose companies with a ratio above the IRDAI-prescribed minimum of 150%.
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Evaluate riders and benefits
Consider customising your plan with riders like critical illness or accidental death. They add value and offer additional financial security.
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Consider service and digital accessibility
Look for insurers with responsive service, a seamless online journey, and good customer reviews to ensure smooth policy management.
Why buy Term Insurance online?
Buying term insurance online offers unmatched convenience, flexibility, and potential cost savings.-
Enjoy Lower Premiums
Online plans are generally more affordable than offline ones, as they eliminate agent commissions and branch overheads. This means you get the same cover at a reduced cost.
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Compare Plans Instantly
Digital platforms allow you to review multiple insurers, features, premiums, and benefits side-by-side. This helps you make an informed decision without relying solely on an agent.
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Use Multiple Secure Payment Options
You can pay premiums safely through a range of digital payment methods such as credit/debit cards, net banking, and UPI—making the process quick and hassle-free.
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Save Time with a Seamless Process
Online applications can be completed in minutes with minimal documentation. You can upload documents, complete verification, and get policy approval—all from the comfort of your home.
What is a Term Insurance Rider?
Term insurance riders are optional add-ons you can include with your base term plan to increase its protection. They help customise your policy to cover more risks—at a minimal additional premium.- Key Riders & Their Benefits
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Accidental Death Benefit
Pays an extra sum if death occurs due to an accident. Example: If your base cover is ₹1 Cr and rider cover is ₹25L, your nominee gets ₹1.25 Cr.
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Accidental Disability Rider
Offers regular payouts in case of permanent disability from an accident. Example: A ₹15L rider payout can help cover lost income and treatment.
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Critical Illness Rider
Provides a lump sum on diagnosis of illnesses like cancer or heart attack. Example: Use the payout for medical costs so your savings remain untouched.
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Waiver of Premium
Future premiums are waived in case of disability or critical illness, but your cover continues.
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Hospital Cash Rider
Gives a daily payout if you're hospitalized. Double payout for ICU stays.
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Terminal Illness Rider
Pays part or all of the cover if diagnosed with a terminal illness, helping you access better treatment.
Solutions-Oriented Retirement Fund
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Lock-in period for targeted funds
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Equity returns for attractive investments
Health and Wellness Plans
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Variety of plans available
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Complete coverage for protection
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ABCD Insurance is a licensed insurance broker providing access to a variety of term life insurance plans from IRDAI-approved insurers. Policy features, benefits, eligibility, and premiums are subject to the underwriting guidelines of the respective insurance provider. This content is intended for general awareness and educational purposes only and should not be construed as financial advice. Please refer to the official policy brochure and consult a qualified financial advisor before purchasing any term life insurance plan.