Term Insurance Benefits - Top 10 Benefits of Term Insurance

Term Insurance Benefits - Top 10 Benefits of Term Insurance

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A term insurance plan provides financial protection to your family in case of your untimely demise. It offers a high life cover at an affordable premium, ... Read more making it a practical option for long-term financial planning. You can also customise your policy by adding optional riders 8 based on your protection needs. This article covers the key term insurance benefits. Read less

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10% discount on 1st year premium is applicable on online purchase. This discount is auto-applied and can’t be removed

8.5% discount on 1st year premium is applicable for salaried personnel. You will need to share your corporate email ID if you opt for this discount. This discount is auto-applied if you select ‘Salaried’ as your occupation and can’t be removed

Applicable only if the policy is bought digitally. Some discounts will not be available when this option is selected.

1% discount on 1st year premium for all payments paid through any permissible electronic mode debited through an auto-debit mandate. Maximum discount capping: ₹100 over the year.

2% discount on 1st year premium on these milestones

*Policy issuance eligibility for female customers will be determined by Board Approved Underwriting Policy (BAUP)

The above milestones cannot be clubbed to avail more discount, Such discount shall be capped to a maximum of ₹500 over the year.

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Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N176V12 )

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Rated by 1,28,237 customers

Data as of 6th July 2026, 4.7/5 from 1.25 lakh+ ratings across Android and iOS Tata AIA app.

1 20 year old female (Standard Life, Non-Smoker), regular pay, 20 year policy term

Vishal Kapoor, AVP - Brand & Product Marketing at Tata AIA, has over 17 years of experience in the BFSI sector. He is responsible for driving brand strategy, product & channel marketing campaigns.

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Term insurance offers a wide range of benefits that make it a vital component of financial planning. Below are the term insurance benefits:

One of the key benefits of term life insurance is that it provides financial support to your nominee in case of your untimely demise, helping them manage future financial responsibilities.

The claim amount can help replace the policyholder's income, allowing family members to manage regular expenses, outstanding liabilities, and future financial commitments more comfortably.

Many term insurance plans allow you to choose how the claim amount is paid to your nominee. You may opt for a lump sum payout, regular monthly income, or a combination, depending on your family's financial needs.

You can enhance your policy by adding optional riders8 such as accidental death, critical illness, or waiver of premium. These add-ons provide broader financial protection by covering specific risks beyond the base policy.

With an optional critical illness rider 8 , you can increase the financial support available to your nominee if death occurs due to a covered accident. It offers an additional payout over and above the base sum assured, as per policy conditions.

An accidental death benefit rider 8 can increase the financial support available to your nominee if death occurs due to a covered accident. It offers an additional payout over and above the base sum assured, as per policy conditions.

Eligible premiums paid towards a term insurance plan may qualify for tax deductions 5 under the applicable provisions of the Income Tax Act. In addition, the death benefit received by the nominee is generally tax-exempt 5 , subject to prevailing tax laws.

Term insurance is available in different variants, including level term, increasing term, decreasing term, return of premium, and convertible plans. This allows individuals to choose coverage based on their financial goals and protection requirements.

Get 1.5 Cr life cover @678/month 1

Up to 18.5% discount 6 (on 1 st year premium)

Option to get all premiums back 2

Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V13)

Get 2 Cr life cover @683/month 7

Waiver of premium if diagnosed with terminal illness

Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V16)

If you purchase the plan early in life you can avail the following term life insurance benefits:

Purchasing a term life insurance early helps you lock in a lower premium. Since age and health influence premium calculations, buying a policy in your 20s or early 30s may help reduce the amount payable throughout the policy term.

Starting early also increases the likelihood of choosing a longer policy tenure. For example, someone purchasing a plan at 25 may be able to stay covered until 85 or 90 years of age, while a person buying later may have a comparatively shorter coverage period.

Buying early may also improve your eligibility for a higher sum assured. Younger applicants with fewer health concerns are often considered lower-risk, allowing them to secure a larger life cover based on the insurer's underwriting guidelines and financial eligibility.

Term insurance is a cost-effective way to secure your family's financial future. Here’s how it offers protection and stability during uncertain times:

If you are the sole or primary earning member, your family depends on your income to manage daily living expenses. In the unfortunate event of your demise, a term insurance policy provides a lump sum benefit to your nominee. This sum helps your family pay for expenses like rent, groceries, and school fees by replacing your lost income. It ensures that, even when you're not around, they continue to live comfortably. For those who wish to protect their family's financial future from the possibility of income loss, term insurance may be quite appropriate.

Many people have debts, including personal, vehicle, and home loans. Your family might find it difficult to pay back these debts if you pass away unexpectedly. Benefits from a term life insurance policy could lessen this load. By using the policy payout to pay off outstanding debts, your family won't have to liquidate assets or take out new loans. As a result, your loved ones will have peace of mind and financial stability.

You should purchase a term insurance policy that has all the features and benefits you need, along with a lower premium. Ideally, your coverage should equal or exceed 10–15 times your annual income. As an example, if your income is around Rs 15 lakh per year, a suitable life insurance policy would range between Rs 1.5 crore and Rs 2.25 crore. For enhanced protection, individuals with higher financial responsibilities or goals may also consider a Rs 5 crore term insurance plan.

Unforeseen life events can lead to financial instability for your family in your absence. In such a case, a term insurance plan benefits by offering long-term financial security. Here are some key reasons to consider buying one:

One of the primary reasons to buy a term insurance India policy is to protect your family's finances against unforeseen events. In case of the policyholder's untimely demise or, where applicable, disability covered under the policy or rider 8 , the financial payout may help your loved ones manage household expenses, future goals, and outstanding liabilities.

Many term insurance plans allow you to enhance your policy with a critical illness rider 8 . If you are diagnosed with a covered critical illness during the policy term, the rider may provide a lump sum benefit that can help manage treatment costs without significantly affecting your savings.

Apart from life cover, you can customise your policy by adding optional riders 8 such as accidental death benefit, accidental total and permanent disability, waiver of premium, or critical illness cover. These riders provide additional protection based on your financial responsibilities and changing life needs.

A term insurance plan also offers tax advantages, subject to prevailing tax laws. Eligible premiums may qualify for deductions 5 under the applicable provisions of the Income Tax Act, while premiums paid towards eligible health riders 8 may also qualify for additional tax 5 benefits. Further, the death benefit payable to the nominee is generally tax-exempt 5 , subject to applicable conditions.

Most insurers offer flexible premium payment frequencies, including monthly, quarterly, half-yearly, annual, or single premium options. This flexibility allows you to choose a payment schedule that aligns with your income and financial commitments while keeping the policy active throughout the selected term.

Selecting the right term insurance policy involves evaluating your financial responsibilities, future goals, and coverage requirements. Let’s understand how to choose the best term insurance policy:

Choose a sum assured that can adequately support your family's financial needs in your absence. As a general guideline, the life cover may be around 10–15 times your annual income. For example, if you earn ₹15 lakh annually, a cover of ₹1.5 crore to ₹2.25 crore may be suitable, depending on your financial obligations.

Look beyond the premium and compare the policy's features, available riders 8 , claim settlement process, payout options, and flexibility. Choosing a plan that aligns with your long-term financial needs can provide more comprehensive protection.

While an affordable premium is important, it should not come at the cost of insufficient coverage. If you have higher liabilities, multiple dependants, or long-term financial goals, you may consider opting for a higher sum assured, such as ₹5 crore, provided it suits your financial situation.

Our experts are happy to help you!

A term insurance plan is one of the simplest ways to strengthen your family's financial security against life's uncertainties. From affordable premiums and flexible coverage to optional riders 8 and tax benefits 5 , it offers protection that can be tailored to different financial needs. Choosing the right plan after carefully assessing your income, responsibilities, and long-term goals can help ensure your loved ones remain financially supported, while giving you greater confidence about their future.

1. What is the primary advantage of term insurance? The primary advantage of term insurance is its ability to provide extensive life cover at an economical premium. It ensures financial security for dependents in the event of the policyholder's unexpected demise.

2. What is the right age to purchase a term plan? You should purchase a term plan as early as you become eligible and start working. Purchasing a term plan early in life ensures lower premiums and allows for a longer coverage duration.

3. What is the right amount for term insurance? The suitable term insurance amount depends on your income, financial responsibilities, and long-term goals. It should be sufficient to cover your family’s living expenses, debts, and future needs.

4. How should I decide on the required term insurance coverage? To determine the term insurance coverage, you should consider the following factors: ● Your family’s future financial requirements ● Long-term financial goals and ongoing commitments ● Potential emergency expenses ● Outstanding loans and liabilities

5. What is the difference between the benefits of term insurance and life insurance? Life insurance offers both death benefit and maturity benefits to the beneficiary, whereas term insurance provides the benefit of life cover. For more details, read here .

6. Can I purchase multiple term insurance plans? You can buy multiple term plans if needed. However, opting for a single plan with higher coverage offers convenience, simplified premium management, and comprehensive protection for your family’s financial future.

7. What are the optional term plan benefits? Riders 2 are optional add-ons to a term insurance plan that offer enhanced protection against specific risks like critical illness, disability, or accidental death, for an additional but affordable premium.

8. Can I extend my term insurance to ensure critical illness coverage? Yes, some term insurance plans offer critical illness coverage through a rider 2 , which provides an additional sum if the policyholder is diagnosed with a listed illness, enhancing financial protection beyond the base policy.

9. What are the benefits of using term insurance to cover outstanding debts? Term insurance helps repay outstanding debts in case of the policyholder’s demise, ensuring the family is not burdened financially and can retain assets without the need for loans or sale of assets.

10. What are the tax benefits in term insurance? The premiums paid for a term plan qualify for tax 4 deductions under Section 80C, while the death benefit received by nominees is fully exempt from tax under Section 10(10D) of the Income Tax Act.

11. Are death benefits from Term Insurance taxable? No, death benefits received from a term insurance policy are not taxable 4 . They are exempt under Section 10(10D) of the Income Tax Act, subject to the fulfilment of specified conditions.

12. What are the benefits of purchasing term insurance online? Buying a term plan online saves time and effort. You can compare options, add suitable riders 2 , and make premium payments instantly through secure digital channels, all from the comfort of your home.

13. What happens if the policyholder survives the policy period? A pure term plan offers no payout if the policyholder survives the term. However, a return of premium plan provides a maturity benefit and provides refunds of the total premiums paid during the policy term.

14. Does a term insurance plan give maturity benefits? If you choose a return of premium term plan and survive the policy term, you will receive a maturity benefit equal to the total premiums paid, excluding applicable taxes.

15. Can I withdraw funds from my term insurance plan? Term insurance does not permit fund withdrawals during the policy term. However, in the event of the policyholder’s death, the sum assured is paid to beneficiaries as a lump sum or regular income.

Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V13)

Tata AIA Maha Raksha Supreme Select - Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V16)

1 Illustrated premium of ₹678 is the monthly premium excluding taxes for a 20 yr. old female, Standard Life, Non-Smoker for ₹1.5 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) under Life Promise Option of Tata AIA Sampoorna Raksha Promise with first year premium discount of 10% for digital purchase and 8.5% for salaried person. Please refer Benefit Illustration for more details.

2 Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier.

3 Applicable to only non-early claims with more than 3 years of policy duration, non-investigation cases, up to Sum Assured of ₹50 Lakh. Applicable for branch walk in. Time limit to submit claim to Tata AIA Life Insurance is 2 pm on working days. Subject to submission of complete documents. Not applicable for ULIP policies and open title claims.

4 Not applicable under PoS, please refer sales brochure for more information

5 Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000 as per old tax regime. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. The Tax-Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax

Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above

No Goods and Service Tax shall be applicable on Individual life insurance products as per prevailing laws. Tax laws are subject to amendments from time to time. If any imposition (tax or otherwise) is levied by any statutory or administrative body under the Policy, Tata AIA Life Insurance Company Limited reserves the right to claim the same from the Policyholder.

6 This includes first year digital discount of 10% for Limited Pay/Regular Pay and 8.5% salaried discount. For Single Pay, 1% discount will be available for online purchase and salaried discount each.

7 Illustrated Premium of ₹683 is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for 2 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) with Life Secure plan option of Tata AIA Maha Raksha Supreme Select with first year premium discount for digital purchase and salaried person.

8 Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.

This product is underwritten by Tata AIA Life Insurance Company Ltd.

The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.

Insurance cover is available under this product.

For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.

Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.

In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.

L&C/Advt/2026/Sep/5036

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