Term Insurance Policy in India

A term insurance policy is a legal contract between you and the insurer that defines coverage amount, policy duration, premium obligations, and claim conditions. Understanding how a term insurance policy works is essential to avoid surprises later. This page explains the key features of term insurance policies in India and what to check before buying one.

What Is a Term Insurance Policy

A term insurance policy provides life cover for a specific period. If a valid claim occurs during the policy term, the insurer pays the agreed sum assured to the nominee. If the policy expires without a claim, no maturity benefit is paid.

Key Components of a Term Insurance Policy

Policy term
Sum assured (coverage amount)
Premium amount and payment frequency
Nominee details
Exclusions and conditions

Each component affects how the policy performs over time.

Policy Term vs Premium Term

Component	Meaning
Policy Term	Duration for which coverage is active
Premium Term	Duration for which premiums are paid

These two are not always the same and must be chosen carefully.

Common Policy Conditions to Review

Disclosure requirements
Medical test conditions
Grace period rules
Claim documentation

Most claim issues arise from misunderstanding policy conditions.

Frequently Asked Questions

What is a term insurance policy?

It is a contract that provides life cover for a fixed period in exchange for premiums.

Does a term insurance policy have maturity benefits?

No. It pays only on valid claims during the policy term.

What is the policy term?

The number of years for which coverage remains active.

What happens if the policy expires?

Coverage ends and no benefit is paid.

Can policy terms be changed later?

Usually no. Changes require a new policy.

Is nominee mandatory in a policy?

Yes. A nominee receives claim benefits.

Can nominee details be updated?

Yes. Updates are allowed during the policy term.

What are policy exclusions?

Conditions under which claims may not be paid.

Is suicide covered under term insurance?

Typically excluded for an initial period as per policy terms.

Does policy validity depend on city or state?

No. Policies are valid nationwide.

Are premiums fixed under a policy?

Yes. Premiums remain fixed once issued.

What happens if premiums are not paid?

Policy may lapse after the grace period.

Is medical test part of policy issuance?

Often yes, depending on age and coverage.

Can multiple policies be held?

Yes, subject to eligibility.

Does policy term affect premium?

Yes. Longer terms usually lower annual premiums.

Are riders part of the base policy?

No. Riders are optional add-ons.

How is a claim made under the policy?

By submitting required documents to the insurer.

Does policy issuance take time?

It depends on verification and medical requirements.

Is term insurance policy transferable?

No. It is personal to the insured.

How should I choose the right policy?

Match policy term, coverage, and conditions to your financial needs.

Customer Reviews

“I paid more attention to exclusions after reading this.”

Meera Nair, Trivandrum

“The explanation made policy rules clearer.”

Sahil Verma, Meerut

“Knowing the difference between policy term and premium term helped.”

Ritu Bansal, Ludhiana

Compare Term Insurance Policies

Related Resources

You may also want to to compare different plan structures.

You may also want to to understand how insurers differ.

You may also want to to understand where to buy and get support.

Term Insurance Policy In India