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How to Evaluate a Term Insurance Quote

How to Evaluate a Term Insurance Quote

Term Insurance Quote

One of the first things that you ought to get yourself when you become financially independent is a term insurance plan. A term plan is a very basic form of insurance plan. It is a worthy tool for financial protection. It provides you with a large sum assured at a low premium cost. Nowadays, some insurers have even started providing lucrative options like return of premium, a factor that eluded most term plans and discouraged people from them earlier. Of course, term insurance tax benefits are another encouraging factor.

When you are looking for term plans, you get a quote with various components such as the type of cover, options, and some statutory additions. Here are a few things to keep in mind for evaluating a quote you receive from a potential insurer.

The age factor

With age, your health risks increase, which is basically increased risk for your insurer. This makes them increase your premium amount. It thus makes sense to buy a term plan as early as possible. However, later is better than never. Since term plans generally carry lower premium rates, it won’t come as a huge blow to your financial planning.

Base premium

Base premium, as the term suggests is your basic amount of premium, minus taxes and minus riders. This amount is usually lower for online term plans than for the offline ones, thanks to a saving in distribution costs for the insurer. The base premium of a term insurance plan depends not just on your age, but also on your gender and your smoking habits. Since smokers carry much bigger health risks, the premium goes up for them. Whereas if you are a non-smoker, you could be rewarded with a lower base premium.


Riders are additional covers to your basic plan. The different riders that you can pick from include accident cover, critical illness cover, disability cover, etc. Your choice of riders should depend on your lifestyle. For example, a Child Support Benefit rider makes sense for couples with children.

Policy duration

Your total policy cost depends on your policy duration too. This duration depends on the following factors.

  • Age
  • Expected retirement age
  • Current income
  • Expected income hike in the next few years
  • Present and future financial responsibilities
  • Present and future financial responsibilities

Tax Component

You can take advantage of the following term insurance tax benefits, and factor them into your financial planning while evaluating quotes.

  • Deduction on yearly premium under Section 80C
  • Exemption on maturity amount under section 10(10D)

Lapse charges

Every plan has a Policy Lapse clause. If you do not pay your premium within a specific duration from your due date, you lose policy benefits. You can then revive your policy by paying some charges. It is crucial to take them into consideration while choosing a policy.

Medical test

Every company won’t mandatorily ask you to take a medical test. However, it is always advisable to take on nevertheless. If your test shows you in good health, your term insurance premium can reduce. If there are health problems that aren’t revealed at the right time, it may cause a problem with claim settlement later.

Comparing quotes

It would be best to take your time with policy quotes and compare them to select the one that suits you best. It is very easy to do it online. Remember that the claim settlement ratio of the insurers you consider should be at least 90%.


Make sure that you look beyond just term insurance tax benefits and evaluate the entire quote in detail, compare quotes, and choose a plan wisely. After all, it is an investment of a lifetime that is going to benefit your family even after your lifetime.

iSelect Star Term Insurance Plan

You can check out a flexible plan like Canara HSBC Oriental Bank of Commerce Life Insurance's iSelect Star Term Plan. This plan can be customized to suit your individual needs - there is a variety of add-on covers ranging from child support to accidental death benefits. You can choose to receive the income in a lump sum form, a monthly form or a part-lump sum/part monthly form. This is a plan that this built for your utmost comfort and convenience.

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Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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