Term life insurance guide
Term Insurance Plans in India – Protect Your Family's Financial Future
Protect Your Family's Future with Term Insurance
Term insurance can help provide financial protection for your loved ones if you are no longer around. Explore available life cover options, understand policy features and premiums, and make an informed decision based on your family's financial responsibilities.
- How term insurance works
- Choosing your cover amount
- LIC term plans compared
Why Consider Term Insurance?
Term insurance is the simplest form of life insurance. You pay a premium for a chosen period, and if you die during that period while the policy is in force, the insurer pays the sum assured to your nominee. Here is what that money can do for a family.
Financial protection for dependants
A lump sum, or instalments if the policy allows, that can replace part of the income your family relies on.
Household expenses and commitments
Help with day-to-day living costs, rent and other regular commitments while your family adjusts.
Outstanding loans and liabilities
Cover sized to a home loan or other debts can stop those repayments from falling on your family.
Children's education goals
Money set aside for school and college fees that would otherwise depend on your future earnings.
High cover for a comparatively affordable premium
Because a pure term plan has no savings element, a large sum assured usually costs far less than the same cover in a savings plan. The actual premium depends on age, health, cover, term and underwriting.
Cover and term chosen to fit you
You choose the sum assured and the policy term within each plan’s limits, for example to last until a loan is repaid or children become independent.
Standard cover vs extras: the core benefit of a pure term plan is the death benefit during the policy term. Riders, such as an accident benefit rider, and features like increasing cover or return of premium are separate options that are available only under certain plans and cost extra. Every proposal is subject to the insurer's underwriting, so cover is not guaranteed for every applicant.
How Term Insurance Works
The idea is simple: a known premium buys a defined amount of protection for a defined period.
Choose cover and term
Decide how much life cover you need and for how long, within the plan's age, term and sum assured limits.
Apply and complete underwriting
Fill in a proposal form with accurate health, lifestyle and income details. The insurer may ask for medical tests before deciding.
Pay premiums to keep cover active
Pay regularly, for a limited number of years or once, depending on the plan. Missing premiums can cause the policy to lapse.
Your nominee claims if you die during the term
The death benefit is paid to the nominee as per the policy. A pure term plan pays nothing if you survive the term.
How Much Term Insurance Cover Do You Need?
There is no single right number. A suitable amount depends on what your family would need to stay financially secure without your income. Consider:
- Your current income and how many years of it your family would need
- Monthly household expenses
- The financial needs of your spouse, children or parents
- Outstanding loans, such as a home or car loan
- Children's education goals and other future commitments
- Life insurance you already have, including any employer group cover
- A premium you can comfortably keep paying, and the cover you are eligible for
Rules of thumb based on a multiple of income can be a starting point, but they do not suit everyone. It is better to add up your family's actual needs, subtract existing savings and cover, and choose a term that lasts as long as those responsibilities do.
Not sure where to start?
Share your age range and the cover you have in mind. We can help you work through the numbers and explain which plans and options could fit.
Request Personalised GuidanceExplore Term Insurance Options
LIC currently lists several term assurance plans. Two that suit many families looking for high cover are compared below, using details from LIC's published brochures and policy documents.
| Feature | LIC Bima Kavach | LIC Yuva Term |
|---|---|---|
| Plan number / UIN | Plan 887 / 512N360V01 | Plan 875 / 512N355V02 |
| How it is sold | Offline through LIC agents and intermediaries, and online | Offline through LIC agents and intermediaries |
| Entry age | 18 to 65 years | 18 to 45 years |
| Age at maturity | 28 to 100 years | 33 to 75 years |
| Basic Sum Assured | Minimum ₹2 crore; no maximum, subject to underwriting | Minimum ₹50 lakh; maximum ₹5 crore (higher considered case by case) |
| Premium payment | Regular, limited (5, 10 or 15 years) or single | Regular, limited (10 or 15 years) or single |
| Death benefit options | Level or Increasing Sum Assured | Level or Increasing Sum Assured |
| Notable extras | Life Stage Option (conditions apply); optional Accident Benefit Rider | Death benefit payable in instalments, if opted |
| Maturity benefit | None | None |
| Full guide | LIC Bima Kavach guide | LIC Yuva Term guide |
LIC Bima Kavach (Plan 887)
High-cover pure protection from ₹2 crore, with cover available up to age 100 and a choice of how long to pay.
LIC Yuva Term (Plan 875)
An offline term plan for younger earners, with cover from ₹50 lakh and premium illustrations for ₹1 crore.
Other LIC term plans
LIC's list also includes plans such as Digi Term, New Tech-Term, Saral Jeevan Bima and Jeevan Raksha. Ask us which may suit you, or see LIC's term assurance plans page.
- Our earlier Jeevan Amar guide (this plan does not appear on LIC's current term plan list)
- LIC Jeevan Sathi guide
Plan features are summarised for general information and can change. Product details on this page were checked against LIC's documents in October 2026; refer to LIC's current sales brochure and policy document before applying.
What Affects Your Term Insurance Premium?
Two people buying the same cover can pay very different premiums. These are the main factors insurers consider:
Age at application
Premiums are generally lower the younger you are when the policy starts.
Life cover amount
A higher sum assured costs more, although some plans offer a rebate on larger covers.
Policy term
A longer term usually means a higher premium, because cover runs to an older age.
Health and medical underwriting
Your medical history and test results can affect the premium or the terms offered.
Tobacco use and other risk factors
Smokers usually pay more. Some plans offer non-smoker rates only after a cotinine test.
Occupation and lifestyle
Hazardous occupations or activities may lead to extra premium or other conditions.
Riders and additional benefits
Optional riders and features such as increasing cover add to the cost.
Premium payment arrangement
Regular, limited and single premium options, and yearly or half-yearly modes, change what you pay and when.
Actual premiums depend on the insurer's underwriting rules and your circumstances, so only an official quotation or benefit illustration is reliable. Our Bima Kavach premium section and Yuva Term premium section show worked examples with their assumptions.
Request Term Insurance Guidance
Not sure how much life cover you need? Share your basic requirements to receive guidance on suitable term insurance options, policy features and the factors that may affect your premium.
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Frequently Asked Questions
What is term insurance?
Term insurance is a type of life insurance that pays a death benefit to your nominee if you die during the policy term while the policy is in force. A standard pure term plan has no savings element and no maturity value.
How does term insurance protect a family?
If the life assured dies during the term, the sum assured is paid to the nominee. Families typically use it to replace lost income, pay off loans and fund goals such as children's education.
How much life cover should I consider?
It depends on your income, expenses, dependants, loans, future goals and existing cover. Add up what your family would need, subtract savings and existing insurance, and choose cover you can afford to keep. We can help you work it out.
What factors affect term insurance premiums?
Mainly your age, the sum assured, the policy term, your health and medical results, tobacco use, occupation, any riders or extra features, and how you choose to pay premiums.
Can I choose a policy term based on my financial responsibilities?
Yes, within each plan's limits. Many people choose a term that lasts until their loans are repaid or their children are financially independent. Each plan sets its own minimum and maximum term and maturity age.
What is the difference between term insurance and traditional life insurance savings plans?
A term plan provides only life cover, so premiums are lower for a given sum assured. Savings plans such as endowment or money-back plans combine smaller cover with a maturity or survival payout, which makes them more expensive. Standard pure term plans do not pay a maturity benefit; return-of-premium variants, where offered, have their own terms and higher premiums.
Are riders available with term insurance?
Some plans allow optional riders for an extra premium. For example, LIC's Accident Benefit Rider can be added to Bima Kavach under regular or limited premium. Rider availability, conditions and costs vary by plan.
What information may be required when applying?
Usually a completed proposal form, proof of identity, age and address, and income proof for higher covers, along with details of your health, habits, occupation and existing insurance. The exact list depends on the plan and the cover.
Is medical underwriting required?
Often, yes. The insurer decides what is needed based on factors such as your age, the sum assured and your health disclosures. Large covers usually involve medical tests. Honest, complete disclosure is important, because it affects claims.
How can I request guidance on suitable term insurance options?
Fill in the enquiry form on this page, or use our Contact Us page.
Term Insurance Guides and Articles
Ready to Plan the Right Cover for Your Family?
A few minutes now can help you understand how much protection you need, which term plans fit, and what your premium may depend on. Ask us for guidance; there is no obligation to buy.
LicAgent.co.in is the website of an LIC advisor and is not the official website of Life Insurance Corporation of India. Information on this page is general and educational, not financial or tax advice. Plan details are summaries; refer to LIC's official sales brochure and policy document for full terms and conditions. All proposals are subject to underwriting. Insurance is the subject matter of solicitation.
