Is Buying Term Insurance a Good Idea?

Term life insurance is one of the best ways to secure your family financially in case of your untimely demise. Term insurance coverage provides a fixed amount of sum as a death benefit if you meet with life’s eventuality during the policy period. It is a good idea to buy a term insurance policy as you only need to pay small annual premiums against a considerable sum. Moreover, the term insurance premium is also subject to tax deductions, which adds the cherry on the cake. For example- You bought an online term insurance coverage worth Rs. 1 Crore for a 30-yearpolicy term. In the event of your untimely demise (within the policy term), your family will receive the entire 1 crore Sum Assured as a death benefit, subject to terms and conditions. The term insurance coverage amount, thus, enables the insured’s loved ones to lead a decent life and achieve all their goals even in the absence of the breadwinner. Moreover, buying riders like ”Accidental Death Benefit Rider” helps to make the term plan more comprehensive. These additional benefits are available on payment of additional premium. Therefore, buying the term insurance plan is a good way to offer financial security toyour family, after you are no longer with them.

How Much Does Term Insurance Cost?

The cost of a term insurance plan varies depending on various factors such as age, annual income, the amount and tenure of insurance coverage, health condition, and whether you are a smoker/non-smoker.Affordability of a policy is often one of the criteria that prospective policyholders use when selecting the best term insurance plan for themselves.

What Is the Maximum Age For Term Life Insurance?

The maximum age to purchase term life insurance can be up to 60 years. If you choose to purchase Axis Max Life Smart Plan with Return of Premium optional benefit, the maximum duration that you can buy this plan is 50 years. This means, incase you are buying the term insurance plan at the age of 25 years, then you can get coverage for upto 75 years.If you purchase it at the age of 35, you can get coverage upto 85 years. However, as the maximum age for coverage is 85 years, if you buy term insurance at the age of 40, you can get coverage only for 45 years, that is, till you turn 85

Is natural death covered in term insurance?

Term insurance does pay your family in the event of death, both natural and accidental. Term insurance provide your family with a certain amount of money, irrespective of the reason of death. However,you should know about some exclusions like Suicide , non-disclosure of rightful facts, that can lead to the decline of a term insurance claim. To know more about such exclusions, please refer to the term insurance policy document and term Conditions.

Can I have two Term Insurance Policies?

Yes, you can have multiple term life insurance policies. You can take all policies from either one insurer or multiple insurers. With age, your lifestyle changes and liabilities increase, hence buying an extra life cover makes sense. The maximum coverage, be it single or all plans combined, that one can avail is calculated basis his income, age, assets, and financial liabilities. While buying multiple term insurance policies, you keep in mind these two important points: Disclose all the existing policies that you currently own to the new insurer from whom you are buying the additional policy. This will help them assess your eligibility life cover. Read the policy documents very carefully to understand all the features, inclusions, and exclusions. For example, in case of death due to accident or suicide, your nominee may receive the entire lumpsum from one insurer while receiving no money at all from the other insurer. This will be the case when the latter does not cover death due to accidents or suicide.

Which Is the Best Term Insurance Plan in India?

Since every person might have different life insurance requirements, there is no single correct answer to the question – “which is the best term insurance plan in India”. So, when buying a term insurance plan, you must check for the following pointers to make sure you have bought the term life insurance policy that is best suited to your needs - Claim Settlement Ratio or claims paid ratio– This is the number of claims settled against total claims received by the insurer. You must choose the insurer with a higher claims ratio. The regulatory body, IRDAI, publishes this for each life insurer in its Annual Report. The claim settlement ratio for Axis Max Life Insurance is 99.65%^ for individual business policies.(Source: Individual Death Claim Paid Ratio as per audited financials for FY 2023-2024) Solvency Ratio– This ratio shows the financial ability of an insurer to pay it’s short-term as well as long term debts. Choose the insurer with a higher solvency ratio as it shows the strong financial strength of a company. It can be found in IRDAI’s annual report For Axis Max Life Insurance, solvency ratio is 172% for FY 2023-24. (Source: Public Disclosure FY 2023-24) Product Features– After shortlisting the top insurers, you must read the product features in detail and pick the one that meets your personal needs and financial goals.

How Does A Term Insurance Plan Work?

Term plan offers a sufficiently large amount i.e. sum assured to the family at the time of death of policy holder. The plan covers your family from the risk of death for alimited period called a policy term. Term insurance takes care of the family in such unfortunate times.

What documents should I have to buy term insurance plan online?

List of documents which are required while buying a term insurance plan are: OfficiallyValid Documents: Passport Voter’s ID Job card issued by NREGA duly signed by an officer of the State Government Aadhaar Card National Population Register containing details of name, address and Aadhaar number Or any other document as notified by the Central Government PAN Card/Form 60 in addition If the officially valid documents do not contain an updated address, you also need the following documents: Utility Bill (Not more than two months old) of any service provider (electricity, telephone, postpaid mobile connection, piped gas, water) Property or Municipal Tax Receipt Pension or family pension payment orders (PPOs) issued to retired Employees by Government Department or PSUs, if they contain the address Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, PSUs, scheduled commercial banks, financial institutions, and listed companies Income Proof for Salaried Individuals Bank statement showing salary credit for the latest three months Latest 2 years Income Tax Returns Latest year Form 16 Latest 2 years Income tax returns not filed in the same year along with Computation of income If Computation of income not available: Latest 3 years Income tax returns not filed in the same year CA certified Audited balance sheet and profit loss account for the latest 2 years Form 26 AS While purchasing a term insurance policy online, you just need to upload the attested copy of the above documents.

Are Term Insurance plans available online?

Yes, Term plans can be purchased directly from the website from most of the insurers, in a matter of minutes. Buying online gives you convenience and speed to buy term insurance plans. Research shows that in some cases, term insurance plans available online can cost up to 8% lesser than offline plans with the same features and benefits. Key factors that influence the cost of buying term insurance online is the absence of an insurance advisor (distribution costs and commissions is saved) and savings from overheads (documentation, logistics, stationery, etc.). To pay term insurance premiums online, you can choose from a whole host of fast and secure payment options like net banking, debit cards, credit cards, and more. Because all payments are instantly processed through a secure gateway, you are ensured peace of mind. The payment process is quick, hassle-free, and provides an instant online receipt. This is especially ideal for times when you need to furnish documents for claiming tax exemptions quickly.

How much risk cover should I opt for my term insurance plan?

It entirely depends on your annual income, your age and other factors. Ideally, the risk cover should be 10-20 times of your annual income.

Do Term Insurance Plans Offer Tax Benefit?

A term insurance policy also offers tax deductions to lower your tax outgo. As per Section 80C of the Income Tax Act 1961, the premium paid towards term insurance policy gets a tax deduction for up to Rs 1.5 lakh. Similarly, for critical illness benefits, you can get tax benefits under Section 80D. Moreover, the benefits received by your family will also be tax-free. For any tax-payer, these tax benefits are like icing on the cake.

Can term plan be used for repayment of financial liabilities?

Yes. A term plan can be used to repay liabilities like home loan and personal loan. The nominee who receives the benefits of a term insurance policy is free to use the amount to maintain family’s lifestyle while also reducing financial burden of any kind.

What is term life insurance?

Term life insurance is a type of life insurance policy that offers the insured individual life cover for a fixed period of time known as policy term. The premium once decided at the time of policy purchase stays the same throughout the policy duration. With a pure term insurance plan, you get only life cover benefits payable on death of the insured individual whereas maturity benefit is not included. However, you can amplify the coverage with riders and add-ons such as a critical illness rider or a personal accident cover at nominal costs.

Do we get money back in term insurance?

In a pure term insurance policy, money-back option is not provided. However, nowadays special features, like a return of premium with free of cost special exit value~ 1 , may be offered at additional cost.

Can I have 2 term insurance policies?

Yes. In India you can have more than one term insurance policy in your name at the same time and this allows for a higher life cover along with added applicable benefits.

Does life insurance cover all deaths?

No. Life insurance does not cover deaths of all types. Usually, life insurance policies cover natural death due to illness, accident, and violence etc. Death due to suicide is generally not covered by life insurance policies in India before the waiting period is over. This period usually spans over an year from the date of policy commencement. Also, death due to engaging in life-threatening activities like sky-diving and cliff-jumping, are also not covered against.

What are the exclusions in term insurance?

Basic exclusions in term insurance include death due to pre-existing conditions, self-inflicted injuries, engaging in life-threatening sports/activities, war, and nuclear accidents etc. However, suicidal death may be covered against in a life insurance after a minimum period of 1 year from the policy commencement date.

Does term insurance cover accidental death?

Yes, accidental deaths are covered by term insurance. Life insured can choose for their nominee to receive the sum assured as a lump sum or monthly pay-outs or both in parts. All these conditions are mentioned in the policy document which must be read carefully at the time of purchase and referred to, when required.

What is the biggest advantage of term insurance?

The biggest advantage of term insurance is getting good life cover at affordable premium rates. Term insurance plans in India are the cheapest forms of life insurance one can lay their hands on. Also, the premiums paid up to Rs 1.5 lakhs per annum ( u/s 80C ) as well as the sum assured received is exempt from taxes u/s 10 (10d) of the Income Tax Act, 1961.

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Term Insurance Plans

Term Insurance

Name: Best Term Insurance Plan
Brand: Axis Max Life Insurance
Rating: 4.3 (50228 reviews)

Best term Insurance Plan Starting
@ ₹952/Month^@2 + 2 Cr. Life cover

Term insurance is the simplest and purest form of life insurance, offering financial coverage to the policyholder against fixed premiums

Tax savingsup-to Rs 46,800

AdditionalCritical Cover

GuaranteedReturns

99.65%Claims Paid

Best term Insurance Plan Starting
@ ₹952/Month^@2 + 2 Cr. Life cover

Term insurance is the simplest and purest form of life insurance, offering financial coverage to the policyholder against fixed premiums

Term Insurance Plans by Axis Max Life

Check Premium

Term Insurance Calculator

With Special Exit Value^~1

Free of Cost Benefit

Price Increasing Soon

₹1 Crore Term Plan

Price Increasing Soon

₹2 Crore Term Plan

Upto 20% Lower Premiums^~3

Term Insurance (Women)

Term Plans for NRI

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What is Term Insurance?

Term insurance is a pure life insurance product, which provides financial protection to the policyholder. In case of death of the insured during the policy period, the beneficiary receives a death benefit as defined under the chosen term insurance plan.

Example

Policy StartsYou Pay ₹730 / Month

Age30

Pays the Premium Regularly

Age60

Unfortunate Death

After Claim

On death Nominee gets₹ 1 Crore

Axis Max Life Smart Secure Plus Plan

Example

Policy StartsYou Pay ₹730 / Month

Age30

Pays the Premium Regularly

Age60

Unfortunate Death

On death Nominee gets₹ 1 Crore

Axis Max Life Smart Secure Plus Plan

Axis Max Life Term Insurance Plans

Why buy Term Insurance?

People from all walks of life realise the importance of life insurance, and this leads them to look for the best term insurance plan based on their requirement. Amidst the fast pace of life and rising uncertainties, every family needs financial protection under a term plan to deal with the financial impact of losing a loved one, especially the breadwinner. It also helps the family in paying off the debts, such as car loan and home loan, if any. Here are a few reasons why buying pure term insurance is worth it:

To Secure Your Family's Future

Being an earning member of your family, you are responsible for the overall well-being of your spouse, parents, and children.
Buying term insurance is essential to ensure that you meet the obligations for your loved ones even when you are not around.

To Protect Assets

You might have built assets like a home, office, or vehicles through loans. With a term insurance plan by your side, you can ensure that the load of these borrowings will not cause any hardship to your loved ones after you.

To Minimise Lifestyle Risks

The unfortunate demise of the breadwinner in a family can turn their life upside down, making it difficult to make ends meet.
While even the best term insurance plan cannot make up for the loss of a loved one, it can help reduce the financial strain of losing the family's breadwinner.

Stay ready for uncertainties

Uncertainties in life can affect us in non-familiar ways. This can be well understood while witnessing the current global Coronavirus pandemic. The best term insurance plan should equip us to be prepared financially to overcome a wide range of life's unavoidable adversities.

Who Should Buy Term Insurance?

Death, disability, disease, all The realities seldom talked about. However, all three are realities we cannot possibly overcome with certainty. Term insurance is one tool, which can save you and your family from the financial hardships brought upon by these three and similar disastrous conditions.
Hence, all individuals who have financial dependents should buy a term insurance policy. They can be:

Parents

Becoming a parent is a joyous occasion however, this does lead an increase in responsibilities. Purchasing a term insurance policy will act as a source of financial support for the children, ensuring that they are financially secure even in your absence and do not miss out on life’s opportunities. So parents with dependent children should definitely consider purchasing a term plan with adequate life cover and applicable riders/add-ons to enhance their little ones’ financial security should the unexpected occur.

Young Individuals

When you are young, the financial liabilities tend to be few. What’s more, age plays a major role in determining the premium of term insurance plans in India. Purchasing a term policy early in life enables you to lock-in a lower premium for the entire premium payment term. This is because the term insurance premium calculated at the time of policy inception stays the same throughout the policy tenure. This is the case for not just salaried but also young professionals and self-employed individuals. They too can benefit from lower premiums of term insurance plans if they are purchasing a term plan early in life.

Newly Married

With a term insurance plan, you can secure the financial future of your spouse, giving her a truly long-lasting gift.
Consider, for example, a family of four, where the father is the primary breadwinner & has bought a term insurance policy. The family needs about Rs.50,000 a month to fund regular expenses like rent, food, other groceries, electricity, water, education fee, etc. Debts, if any, are over and above this.
In case of an unfortunate event, life continues, and so do these quintessential expenses. The family will still need Rs. 30,000 to 40,000 a month to meet all their needs. In such an eventuality, opting for the best term insurance plan can provide your loved ones with adequate financial support in the following ways:
• A lumpsum to meet their immediate needs
• A regular income to meet their household expenses (if opted)
The loss of life cannot be compensated. However, a term insurance plan can help to tide over the financial requirements of a family.

Senior Citizens

Senior citizens i.e. individuals aged 60 years or older can enhance the financial security of their loved ones and dependents, such as spouse by purchasing a term insurance policy. This additional protection can help dependants maintain the lifestyle they deserve even in the absence of the insured individual. While it is always preferable to purchase a term policy early in life, there are term plans that one can purchase later in life such as after retirement to ensure that their dependents can reap the benefits offered by such plans.

Housewives

Gone are the days when housewives were the contributors of the household work only. While housewives might not be bread winners, in light of the unique contributions they make to the family, term insurance for housewives that adds an extra layer of financial security for the family is definitely the need of the hour. A good option is to have term insurance for housewife and as well as for the husband with different life covers and premium costs. This way, a larger life cover is available in case the unexpected occurs and one can save taxes on both policies.

Women

Term Insurance for women can provide extra financial security as more and more women are contributing to the family income. But beyond income replacement benefits, working women purchasing a term policy can also avail the additional benefits such as cover against critical illnesses, accidental death, dismemberment along with applicable tax benefits of term insurance as per current tax laws. What's more women in India can also avail various discounts on premium charged for term insurance plan that can increase the affordability of a term insurance policy.

Self-employed

Self-employed individuals and professionals are eligible for the same benefits as salaried individuals when it comes to term insurance plans in India. So self-employed individuals should also consider purchasing term plans in order to provide financial security of their loved ones and dependents if an unforeseen adverse event occurs. The life cover amount of such plans can be obtained either as a lump sum or as a monthly pay-out to act as replacement of income if an adverse situation occurs.

SIP Investors

Term insurance for SIP investors can be a great choice, given the fact that it provides financial protection to the policy nominee in case of the investor’s demise. The benefits reaped from the policy can help ensure that SIPs continue for the future of the beneficiaries.

NRIs

Term Insurance for NRis has been a great choice over the past few years owing to the ease, accessibility, and affordability in India. NRIs living in UAE and Singapore can avail term insurance coverage of up to 5 Crore in India for as cheap as 30-50%, and that too with facilities like video medical check-ups.

Gig Workers

Gig workers in India are largely under-insured or have no health or term life insurance due to unstandardised wages, despite having long-term commitments to their current job roles. Such individuals are not provided with employer-borne insurance policies, but they can purchase term insurance, provided they produce valid income documents.

Home Buyers

Term insurance for home buyers can prove to be a great investment option, as the policy ensures that the future of the nominee(s) is protected financially, even in the absence of the loan-bearer. The benefits received from the policy can help ensure that SIPs investments continue for the future of the beneficiaries.

Benefits of Buying Axis Max Life Term Insurance?

High Life Cover at Affordable Premiums

Term insurance plans offer significant life cover at a premium you can afford. Also, the earlier you buy a term plan, the lower premium you will need to pay for sceptic life cover.

Protection from Illnesses

Term insurance plans offer significant life cover at a premium you can afford. Also, the earlier you buy a term plan, the lower premium you will need to pay for sceptic life cover.

Long Term Coverage

Choose long-term insurance coverage up to age 85 (with a maximum policy term of 50 years) to leave a legacy for your family at an affordable price. This extended coverage is crucial when choosing the best term insurance policy.

Disability Benefits

Accidents can happen unexpectedly and may lead to temporary or permanent disability Disparity benefit with a term plan will provide you financial support in case of accidental disability available on payment of additional premium).

Income Options in case of Unfortunate Events

Protection Against Liabilities

The sum assured offered under a term plan will ensure safety for dependents from your financial liabilities like a loan and any other debt. They can easily pay off the debt from the insurance benefits received.

Riders for Additional Benefits

Term plans come with add-ons/riders that you can select to get additional insurance benefits. For instance. Axis Max Life Waiver of Premium Plus Rider (UN: 104B029V04) offers the benefit of waiver of all future premiums based on conditions specified in the term insurance policy document. The availability and affordability of riders like these can influence the choice of individuals seeking one of the best term insurance plans in India,

Multiple Premium Payment Options

With term insurance plans, you also get the flexibility to choose the premium payment tenure. You can either choose regular pay through the policy period or limited pay options with your term plan.

Tax Benefits

A term insurance policy offers tax savings up to ₹ 1.5 lakh on the premium paid under section 800 on Income Tax, as per prevailing tax laws. Also, the lump-sum benefit paid under a term plan is tax-exempted u/s 10(100).

How does a Term Plan Work?

A term insurance policy can be defined is an agreement between a policyholder and an insurance company. As part of this agreement, the insurance company agrees to provide financial protection to the dependent (s) /nominee(s) of the life insured in the form of death and/or income benefits in return for premium payments, if certain specified events occur. Below are the key steps of how a term insurance plan works:

How Does Term Plan Works

20 Years

Amrit, a non-smoker, selects a Life Cover Policy with a coverage amount of ₹1 crore for a term.

20 - 60 Years

Amrit consistently pays the premium on time.

60 Years

After his unfortunate death, the Life Cover is payable to the Nominee.

Amrit's Wife

The Nominee gets ₹1 crore amount in one go.

After Claim

His wife can use the benefit amount to keep up with her current lifestyle.

Step 1

Fill the Proposal Form : The individual who wishes to purchase an insurance policy for self or on behalf of a family member needs to fill out the proposal form with details of prospective life insured individual. Key details that need to be provided in this document include:

Identity, address and demographic details such as age, gender

Medical history and current medical conditions, if any

⁠Life style habits such as tobacco usage, alcohol intake, etc.

⁠Profession/trade and annual income

The above information will need to be supported by applicable documents such as Government-issued ID, medical certificates, salary slips, Income Tax Return, job appointment letter, etc. as per the documentation requirements specified by the insurance company.

Step 2

Determine the Extent of Coverage You Need : This step requires the prospective purchaser of a term plan to determine the extent of coverage that they need as well as the need to purchase any optional add-ons/riders to enhance the protection offered by the base plan. Examples of such add-ons are accidental death and disability rider, critical illness rider, terminal illness rider, return of premium, etc. Related factors to consider when purchasing a term plan include:

Size of Life Cover - It is suggested that the term insurance plan cover should be at least 10 times the annual income of the life insured. However, a higher life cover amount of up to 20 times the annual income is preferable for enhanced coverage.

Duration of Policy Term - A longer policy term means that the interests of your dependent (s) /nominee(s) will be protected for a longer period of time. However, the premium payable will also be higher for longer policy terms. So one needs to weigh the affordability of the plan versus benefits for extended periods when making the decision.

Premium Payment Term - Currently, term plans in India are offered with various premium payment terms such as regular pay. pay till 60 years, limited pay 10 years, limited pay 5 years and so on. If a shorter premium payment term is chosen versus require.

Payout Options - The payout options available with a term insurance policy can be broadly classified into 3 categories lump sum payout, periodic income payout (monthly, quarterly, bi-annually, etc.) or a combination of both. Depending on the protection needs of your loved ones, you can choose any of these.

Once you have provided the above details into an insurance premium calculator, you are view and compare quotes.

Step 3

Generate Your Insurance Quote :Based on your inputs, the term insurance premium calculator will generate a quote for the premium payable in order to avail the customised term plan you have chosen. At this stage you can make changes to any of the criteria such as changing sum assured, including/excluding add-ons, changing premium payment term/policy term, etc. to check how it affects the premium you are liable to pay for your chosen plan.
Comparing multiple quotes is allowed online free of charge, so one should compare the quotes for different customisation in order to choose ones that meet the unique needs of the policyholder or life insured.

Step 4

Pay the Due Premium Amount :After you have chosen the term plan customisations that suit your need for protection and affordability adequately, you need to pay the first premium accrued to process the purchase. Additionally, you also need to mention the nominees) for the policy along with proportion of payout in case there is more than one nominee for the plan.
Currently family members such as spouse, parents, siblings, etc. are the most common examples of nominees for a term plan.
Death benefits of a term insurance policy are payable to the nominee (s) of the term plan subject to key term and conditions such of submission of applicable documentation such as death certificate of life insured, identity proof and bank details of the nominee, etc.
Apart from death benefits, other benefits may also be applicable to a term policy based on the selections made at the time of policy inception. These include, increase in life cover based on milestone age/life events such as marriage, birth of first child, etc., lump sum payout if specified critical/terminal illness is diagnosed, special exit value, surrender value, etc.
Once your term plan is in effect, key benefits may include the following based on selections made at the time of purchase:

A lump sum payout tone nominee (s) in case of death of the life insured during the policy term.

Receipt of regular monthly income instead of/along with lump sum payment based on the variant opted.

Payout from riders opted to enhance protection in case of accidental death, disability, or diagnosis of specified critical illnesses.

Features of a Term Insurance Policy

Term insurance is that form of life insurance that is most easy to understand. There are several advantageous features of a term plan that you should know before buying one.

Save Tax U/S 80C & 80D (Income Tax Act 1961)

The premium you pay for your term insurance plan can save tax for you. Critical illness premium paid under the term insurance policy saves tax for you u/s 80D, while term insurance premium is counted u/s 80C of Income Tax, subject to conditions. Tax benefit are as per prevailing tax laws which are subject to change.

Long Policy Term

You can opt for a longer term for your term plan to stay protected. You can stay covered for up to 50 years with a term life insurance of Axis Max Life.

Low Entry Age

Most term insurance plans have a minimum entry age of 18 years; that is, you can buy term insurance cover as soon as you hit adult age.

Death Benefit as Regular Income

Modern term insurance plans allow you to give your dependents a regular income along with the lumpsum benefit in the event of your unfortunate demise.

Premiums Returned on Survival

You can now receive all your money back if you survive the term insurance tenure. Term insurance plans with the return of premium benefit offer to return all the paid premiums on the policy as survival benefit.

Disability Benefit with Term Insurance Plan

Any kind of disability due to accident or illness can affect your income earning capacity. You can add disability benefit rider with your term insurance plan at affordable prices. The disability cover is available on payment of additional premium with the base term insurance premium.

Cover Against Life-Threatening Diseases

Cancer, heart attack, renal failure are some curable diseases that can be life-threatening. Don't let money concern you on the way to the cure from these diseases. Critical illness cover is available with term insurance plans on payment of additional premium.

High Maturity Age

Of all life insurance plans, term insurance offers the life cover for the highest age bracket. You can continue term insurance cover up to the age of 85 with term insurance plans from Axis Max Life Insurance.

Types of Term Insurance Plans and Their Benefits

When it comes to finding the best term insurance plan, there is no one-size-fit-all policy. You must align your needs with the available options to find what suits your requirements the best. The following is a list of term insurance plans offered by Axis Max Life Insurance along with their key benefits:

No.	Plan	Benefits
1.	Term Insurance	Offers financial protection to your dependents at low premium rates in the event of your death
2.	Term Insurance with Critical Illness	Offers financial security to your family in case of your unexpected demise, helps in wealth creation, retirement planning, and more You get additional protection against 64 critical illnesses subject to the rider you choose
3.	Term insurance with Return of Premium	Offers financial protection to your dependents at low premium rates in the event of your death You are entitled to the return of all premiums paid if you outlive the policy term
4.	Term insurance with Waiver of Premium	You get a waiver of all future premiums in case of a covered dismemberment and diagnosis of a covered critical illness. Ensures peace of mind by helping you bear various life expenses
5.	Term insurance with Accidental Disability & Death Cover	You get coverage against death due to accident
6.	Group Term Life Insurance Plan	Financial security is one of the essential needs of your employees. Group term life insurance plan is the most affordable way to ensure financial security for your employees families
7.	Group Term Life Insurance Plan	Financial security is one of the essential needs of your employees. Group term life insurance plan is the most affordable way to ensure financial security for your employees families
8.	Term Insurance Plan with Monthly Income	A term insurance plan with monthly income gives you the option to ensure a regular stable income to your family apart from a lump sum death benefit.

Factors that affect Term Insurance Premiums

Your term plan premium depends on various factors. Some of it may work in your favor while some of them may swell your insurance premium. Let's take a glance

Age

Buying Term insurance at young age is always a prudent decision. Paying Lower premiums for your term plan is one of those many benefits as an early buyer. Young Individuals are generally considered healthy and chances of disease are also lesser.

Health Status

Your term insurance premium also depends on your lifestyle and eating habits. People suffering with diabetes, hypertension, thyroid etc. end up paying higher insurance premiums.

Gender

Various researches suggest that the average life expectancy of women is higher than men in India. Thus women can avail of lower premium as they continue with their term insurance policies for a longer tenure.

Smoking Habit

It’ proven that smokers are most likely to develop certain diseases like lung cancer and heart diseases than non-smokers. Particularly, for men developing lung cancer, the risk is 25 times higher. So, if you are a smoking man then you will be paying higher premiums than your female counterparts.

Occupational Risks

Definition of ‘Career’ varies for person to person. For some it’s low to no risk while for some it’s very risky (like factory workers, pilots, armed forces etc.). The risk profile of your occupation has a direct bearing on your term plan premium.

Chosen Sum Assured

Higher sum assured attracts higher premiums and It’s a no brainer. Always choose a term plan suiting your financial and family needs.

Premium Payment Tenure

Your payment tenure has a major say in the premiums you pay for your term plan. The longer tenure and payment frequency you choose the more premium you have to pay for your term plan.

Age

Sample Premium Rates

Here are the applicable premiums for a sample nonsmoker male aged 30, with coverage until age 70, paying annually for the Axis Max Life Smart Total Elite Protection Term Plan online:

For the Life Cover Amount ₹2 Cr

Payment Plans

Single Pay
Pay for 5 year
Pay for 10 year
Pay for 12 year
Pay for 15 year
Pay for 60 year

Smoker

₹ 7.2 lac/yr
₹ 1.5 lac/yr
₹ 7.9 k/yr
₹ 6.7 k/yr
₹ 5.7 k/yr
₹ 3.9 k/yr

Non-Smoker

₹ 4.5 lac/yr
₹ 9.8 k/yr
₹ 4.9 k/yr
₹ 4.2 k/yr
₹ 3.5 k/yr
₹ 2.4 k/yr

Term Plan Calculator

Gender

Male

Female

Do you smoke / consume tobacco?

Yes

Your Age

Life Cover of

1Cr

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Term Insurance Cover₹ NaN

Monthly Premium₹ NaN / month

You can Protect your family from outstanding Debts. Buy an additional Term plan to cover your loans!

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Term Insurance Plan Variants

Just like there are various types of life insurance available in the market, similarly, there are different types of term insurance plans available too. While the basic benefits and features remain the same across all term insurance plan variants, there are some additional features that different one from another. These are explained in the table below:

No.	Plan Variants	Benefits in Brief
1.	Basic Term Plan	Death benefit in a lump sum amount for an affordable premium
2.	Term Insurance with Monthly Income	Regular stable income for family along with death benefit
3.	Term Insurance with Growing Monthly Income	Growing income for family along with death benefit
4.	Term Plan with Return of Premium	Return of premiums paid on maturity, along with death benefit during the policy period
5.	Group Term Insurance	Life cover for a group of people under one policy

5 Year Claim Settlement Ratio of Axis Max Life Insurance

Claim settlement ratio or individual death claim paid ratio is one of the key metrics that prospective policyholders can use to compare the term plans offered by different life insurance companies in India. Below is the claim settlement ratio track record of Axis Max Life Insurance Company over the past 5 years:

No.	Year	Individual Death Claims Paid Ratio
1.	FY 2023-24	99.65%
2.	FY 2022-23	99.51%
3.	FY 2021-22	99.34%
4.	FY 2020-21	99.35%
5.	FY 2019-20	99.22%
6.	FY 2018-19	98.74%
Source: IRDAI Annual Report FY 18-19, FY 19-20, FY 20-21, FY 21-22, FY 22-23, and FY 23-24

Add-Ons Available with Axis Max Life Term Insurance Plans

An add-on or a rider can be defined as an amendment or attachment offered with a term insurance policy that enhances the benefits offered under the basic term plan. Typically, add-ons have to purchased separately along with the base policy and may require the payment of an additional premium.
Term plans offered by Axis Max Life Insurance allow policyholders to benefit from various add-ons such as:

Terminal Illness Rider

Waiver of Premium Plus Rider

This add-on provides the benefit of future premiums of the term plan being waived in case the life insured is diagnosed with a critical illness or faces dismemberment/disability due to an accident or illness. Subsequent to applicability of the waiver, all policy benefits including death or income benefit will continue uninterrupted for the remainder of the policy term.

Critical Illness and Disability Rider

This is an add-on designed to protect the finances of the policyholder if he/she is diagnosed with specified critical illnesses. This term insurance policy add-on ensures that a lump-sum payout for a specified amount is made to the policyholder upon diagnosis of any critical ailment specified by the rider. This payout occurs in addition to the death benefits applicable to the policy and requires payment of an additional premium to avail.

Accidental Death Cover

This add-on offered with Axis Max Life Insurance Term Plans in liue of additional premium payment allows for an additional payout to be made to the policy beneficiaries if the life insured dies due to an accident. This payout is made as lump sum to the nominee (s) of the term policy and is payable in addition to the death benefit available with the policy.

Total and Permanent Disability Cover

If you opt for this add-on, the life insured can receive financial benefits up to the sum assured if you are disabled during the policy term. Such disability may be due to an accident or a debilitating disease and leads to loss of income due to the life-insured's inability to work and earn an income. This benefit can be availed only once during the lifetime of the insured individual

How to buy Term Insurance?

Step One

Estimate Your Sum AssuredAnalysis of financial need and visit the website and click on Calculate Premium to start the process of term insurance purchase. The first form of our term insurance calculator only asks a few basic questions related to age, contact information, smoking habits, and annual income.

Step Two

Choose Your Benefits & Get a QuoteYou can select multiple benefits of term insurance plan like, such as the regular monthly income payout option, return of premium option, critical illness benefit.

Step Three

Fill the Details & Pay the PremiumOnce you are satisfied with your choices of benefits under our term insurance plan, you can pay the premium and fill the additional details. After filling the details, submit the documents required to complete your application of buying a term life insurance policy.

Benefits to look for when purchasing a Term Plan

The wide range of term plans with various features might make it difficult or a layman to determine which term insurance policy would be suitable to his/her unique needs. Below are some benefits of a term plan that one should look out for when making the final selection of a suitable term insurance plan:

•

Increasing Sum Assured

Term plans may come with the option to increase the sum assured by a fixed percentage up to a certain extent over the policy term. Such increases may be linked to policy anniversary or the completion of life milestones such as marriage, birth of child. etc. You should opt for this in case you foresee your protection needs increasing in near future.

•

Accident Benefit Rider

This is a popular add-on that can enhance the protection provided by a pure term plan. Accident-related benefits of a term plan can include additional death benefit or lump-sum payout in case of complete or partial disability/dismemberment due to an accident. This add-on is definitely something to consider in case you are a frequent traveler.

•

Terminal Illness

Term insurance plans that provide this feature give financial protection to the life insured and nominee (s) if a terminal illness is diagnosed. On such a diagnosis, typically the base sum assured of the term plan is payable in an accelerated manner as such a diagnosis implies eventual and untimely demise of the life insured.

•
Critical Illness and Disability

This is an add-on to pure term plans and enhances the benefit if the insured individual is diagnosed for specified critical illnesses or is disabled as a result of such an illness. This benefit typically requires the payment of an additional premium to avail and the insured individual gets a lump sum payout if specified events related to diagnosis of a critical illness/onset of disability.

• Accelerated Critical Illness Benefit

Accelerated critical illness benefit in a term plan provides a lump sum payout to the insured on diagnosis of specified critical illnesses. Such a payout can help the life assured with financing of necessary medical treatment for various critical illnesses.

• Long Coverage Duration

Since a term plan provided coverage i.e. protection for a limited period of time, a longer coverage duration would enhance protection. This is especially beneficial in case you have family members who are going to be financially dependent on you for an extended period of time. However, such extended coverage offered up to the age of 85 years or beyond should be weighed against the affordability of the additional premium payable.

• Cover Continuance Benefit

This a unique feature that a select few term plans in India provide. In case you are faced with income loss due to unforeseen circumstances during the premium payment term, this benefit allows you to defer your due premium payment for a predetermined period of time. During this deferment period, all benefits of your term plan included add-on benefits will counting

• Flexibility to Choose Premium Payment Term

Opting for a term plan that allows you to choose between different premium payment terms such as regular pay. pay till 60. pay for 5 or 10 years can help you save on the total premium payable. This flexibility can also be beneficial in case you want to retire early and pay-off your premium liability ahead of time.

• Return of Premium Option

Traditionally, pure term plans did not offer maturity benefits, but plans with Return of Premium Option are different. Also marketed as Zero Cost Term Plan, term plans with this benefit allow the insured to receive their premiums back after a predetermined period of time subject to key terms and conditions. The amount that you can receive back with this add-on is mentioned at the time of policy purchase and termed as special exit value or early exit value. Subsequent to this payout, the plan terminates and its benefits can no longer be availed.

• Worldwide Coverage

In case you travel overseas frequently or plan to be employed in a foreign country in the future, opting for a term plan with worldwide coverage is definitely desirable. This would ensure that you and your loved ones/nominee(s) get the protection they deserve irrespective of your or their geographic location.

• Grace Period & Revival Period

If you have irregular income, there is increased risk of missing regular term insurance premium payments. In such cases, policies that come with a longer grace period and revival period can come in handy. These term plan features can help ensure that you can revive your insurance policy within a specified time by paying a minimal fee and can continue to avail all applicable term plan benefits post-revival

• Free Look Period

As per current mandate of IRDAI, insurance companies have to mandatorily offer a free-look period of 15 days in the case of newly purchased life insurance policies. In some cases, this period can be extended to 30 days. A longer free-look period is preferable as policies that are cancelled within this period are eligible to get a full refund on any premiums paid. You should consider availing a term plan with a longer free-look period as it gives you more time to make an informed decision.

• Discounts on the Premiums

Life insurance companies currently offer discounts on premiums to individuals such as salaried policyholders. Do check if such discounts can be availed in order to reduce the overall premium payable for your term insurance company.

• Lower premium rates for Female and Non Smokers

Protection plans are pure risk policies. So individuals who are perceived as lower risk policyholders such as individuals who are more likely to outlive the policy term get the benefit of paying lower premiums. This is why female and non-smoker applicants of term plans typically pay a lower premium that men and smokers with otherwise similar risk profiles.

• High Sum Assured Discounts

Typically, a higher sum assured requires the policyholder to pay a higher premium. However, some term plans in India do offer discounts in case of high sum assured policies. One should opt for such affordable term plans that give you the most value for your money.

• Surrender Value

As already mentioned, term plans typically do not offer maturity benefits. Similarly, if you plan to surrender your policy before the end of the pre-determined term, you might not get any of your premiums back. In such a situation, a term plan with surrender value can be beneficial as you will get at least of the premiums you have already paid back.

• Video Medical Test/Home Medicals

In the case of many term plans, it is mandatory to complete a medical test by visiting a clinic registered with the insurance company. However, a handful of insurers are now allowing video medical tests and/or home medical tests in some cases, If you qualify for this benefit, it will enhance your convenience and you will also save some time when purchasing a term insurance policy.

• Insta-Payment on Claim Intimation

This benefit of term insurance policies enables immediate payout of a pre-determined portion of the death benefits on receipt of a death claim.

Above are only a few of the key term insurance policy benefits that individuals should consider when comparing different term insurance policy options. One should keep in mind that very few, if any term plans in India currently offer all of these benefits, so one should take some time to consider factors such as affordability, insurance needs, financial goals, etc. before making the final decision.

How to Choose the Best Term Insurance Plan?

Whether it is buying a new car, clothes or a house, we tend to compare all available options before selecting the best one that we can afford. So it is only logical that we find ways to compare available options to seek out the best term insurance plan that we can afford. While selecting a term insurance plan, you need to look for the following factors and ensure that your family has the best financial protection under the term life insurance policy:

Check Claim settlement/paid record of the Insurer i.e. claims paid ratio

The claim settlement record of a life insurance company indicates the ultimate moment of truth for the customer. It can be assessed through a percent number (Claim Settlement Ratio) released by IRDAI (Insurance Regulatory and Development Authority India) every year.
The claim settlement record of a life insurance company indicates the ultimate moment of truth for the customer. It can be assessed through a percent number (Claim Settlement Ratio) released by IRDAI (Insurance Regulatory and Development Authority India) every year.
Axis Max Life's claim paid ratio for the year 2023-24 is 99.65%. ^ (Source: Individual Death Claim Paid Ratio as per Audited Financials for FY 2023-2024 ^)

Know the Existing Customer Experience

Buying a term insurance plan is usually only the start of the story. You need to manage your term insurance policy to maximise the benefits. While the best term insurance plans can be feature-rich and affordable, the importance of providing a good customer experience cannot be overstated.
The customer service from life insurers can help the policyholders stick with them longer. Persistency Ratio declared by IRDAI annually can help you judge the insurer's service quotient.
Axis Max Life's 13th-month persistence has been 89%, which is a testament of the customer's satisfaction and loyalty towards the company*
(Source: Public Disclosure FY 2023-24)

Check Solvency Ratio

Solvency ratio, as per its basic definition, the solvency ratio of an insurance company is the size of its capital relative to all risks it has taken. In other words, it represents the financial situation of the insurer as per solvency norms.
By checking solvency ratio of an insurer, you can identify whether the company has enough funds to settle claims in both long and short term.
Axis Max Life Insurance has a solvency ratio of 172%, which is way above the IRDAI mandate of 150% **.
(**Source: Public Disclosure FY 2023-24)

Choose Term Insurance Riders Carefully

Death is not the only risk you need to cover against. Apparently, disability and life-threatening diseases can also damage your financial health. Adding rider which covers these benefits into your term insurance plan along with few additional value-added riders like 'critical illness cover' can ensure better financial backup.
Axis Max Life Insurance offers the benefit of Critical Illness coverage against 64 life-threatening health conditions as an additional benefit with Axis Max Life Smart Secure Plus Plan (A Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan (UIN: 104N118V08). Also, term insurance premiums are not as high compared to other types of life insurance plans. Hence. adding these rider as added benefits to your term insurance plan does not burden your pocket much.

Look for Regular Income Payout of term insurance plan

Traditionally life insurance policies have been paying a large sum of money to the dependents of insured in case of any unforeseen circumstances. Often the dependents are not equipped to handle such a large sum of money to meet all their needs and goals. Term insurance plans also offer option to choose variant which offer as regular income options along with the lump sum so that they can look after their immediate needs while investing the lump sum for future goals.Thus, selecting a regular income payout option while buying a term insurance plan may save a lot of hassle for your dependents later.

Consider Service Quality and Online Availability

Service quality is yet another parameter that you must consider while choosing an insurer to buy term insurance. You must know and ask about this quality from your peers or check online reviews to ensure that you are dealing with a renowned insurance company.
Also, you should check the online availability of the customer support team of an insurer for faster resolution of queries.

Check Awards & Recognition Received by The Insurer for Term Insurance Plans

Another factor you can use to determine one of the best term insurance plan for yourself is on the basis of awards and recognition that a specific term insurance plan or insurer has received from reputed organisations. For example, Axis Max Life Insurance has been awarded 'Best Term Plan Company' for Axis Max Life Online Term Plan Plus and 'Product of the Year'®️ award for Axis Max Life Smart Term Plan in the Term Life Insurance category in 2020.

Choose Sum Assured Suited to Your Need

In order to ensure your family's protection and preserved their lifestyle, it is essential to choose a higher sum assured within your budget. Get started with selecting the right sum assured for your term plan. Click on a tab below to begin.

Term Insurance ₹ 50 lakhsStating from

₹ 15 /day

Term Insurance₹ 75 lakhsStating from

₹ 23 /day

Term Insurance₹ 1 CroreStating from

₹ 25 /day

Term Insurance₹ 1.5 CroreStating from

₹ 37 /day

Term Insurance₹ 2 CroreStating from

₹ 37 /day

Term Insurance₹ 5 CroreStating from

₹ 88 /day

Term Insurance

₹ 50 lakhsStating from

₹ 15 /day

Term Insurance

₹ 75 lakhsStating from

₹ 23 /day

Term Insurance

₹ 1 CroreStating from

₹ 25 /day

Term Insurance

₹ 1.5 CroreStating from

₹ 37 /day

Term Insurance

₹ 2 CroreStating from

₹ 37 /day

Term Insurance

₹ 5 CroreStating from

₹ 88 /day

Disclaimer: ^%* Standard daily premium for 24-year old healthy male, non-smoker, 25 years policy term, 25 year premium payment term (exclusive of GST) for Axis Max Life Smart Total Elite Protection Term Plan (UIN: 104N125V06). ARN: C/SA/011024

Why Buy Term Insurance Online?

Buying term insurance online comes with a host of benefits. Along with impeccable accessibility and ease of comparison, premium for online term insurance plans are cheaper too. Let’s learn about the advantages of online purchasing term plans:

Affordability

When purchased online, most of the insurers offer a discount on the premium of the term insurance, making it cheaper than a traditionally bought term plan. A lower premium is better on any given day and thus, it is a great benefit of buying term insurance online.

Multiple Premium Payment Modes

When purchasing a term insurance online, customer gets the option to pay it via any of the following modes – UPI, Internet Banking, Debit Card, Credit Card, Digital Wallet and more.

Ease of Comparison

It is an easier way to compare different types of term plans available in the market online as compared to offline. When online, you can simply visit the insurance company’s website and check the features and benefits of the different term plans. Also, visiting another insurance company is just a click away. Whereas, when taken the offline route, you need to either talk to different agents on call or visit offices of different insurance companies separately, which is indeed troublesome and time-consuming.

Quick and Easy

Buying term insurance plans online is a very quick and easy process. All you need to do is visit the insurer’s official website on mobile or computer and fill in the requirement form with your basic details. You can choose to receive a call from the agent/customer care staff who will guide with further steps so that your online purchase goes seamlessly.

Affordability

Ease of Comparison

When Should I Buy a Term Insurance Plan?

The best time to buy a term insurance plan is as early as possible. When bought at a young age, preferably in one's 20s or early 30s, they can save significantly on the premium. This way, you get coverage for a longer duration at affordable premiums.
A 1 crore term plan bought at the age of 25 years by a healthy, non-smoker female might cost you somewhere around Rs. 1100 per month whereas the same 1 crore term plan purchased at the age of 45 years can go up to around Rs 2,500 monthly. So, if you delay in purchasing a term policy, you should be prepared to pay a higher premium. Therefore, to gain the maximum benefits of a term insurance plan, you should prefer to lock-in the low rates early in life.
The below table further illustrates why buying a term insurance plan at an early age can be beneficial. The below premium amounts are based on the assumption that the insured individual is covered till the age of 85 years:

Age of the Life Insured	₹1 crore life cover for healthy female non-smoker	₹1 crore life cover for healthy female smoker	₹1 crore life cover for healthy male non-smoker	₹1 crore life cover for healthy male smoker
25 years (PPT: 60 yr)	Total: 1038/Month Premium Payable: 7.08 lakh	Total: 1661/Month Premium Payable: 11.33 lakh	Total: 1223/Month Premium Payable: 8.34 lakh	Total: 1956/Month Premium Payable: 13.34 lakh
35 years (PPT: 50 yr)	Total: 1729/Month Premium Payable: 7.08 lakh	Total: 2766/Month Premium Payable: 11.33 lakh	Total: 2138/Month Premium Payable: 8.34 lakh	Total: 3421/Month Premium Payable: 13.34 lakh
45 years (PPT: 40 yr)	Total: 3012/Month Premium Payable: 7.08 lakh	Total: 4820/Month Premium Payable: 11.33 lakh	Total: 3946/Month Premium Payable: 8.34 lakh	Total: 6314/Month Premium Payable: 13.34 lakh
55 years (PPT: 30 yr)	Total: 6013/Month Premium Payable: 7.08 lakh	Total: 9621/Month Premium Payable: 11.33 lakh	Total: 8166/Month Premium Payable: 8.34 lakh	Total: 13065/Month Premium Payable: 13.34 lakh

Disclaimer: For Sum Assured of 1 crore the above calculations are based on Axis Max Life Smart Total Elite Protection Plan (A Non Linked Non Participating Individual Pure Risk Life Insurance Plan, UIN:104N125V06). Monthly premium amounts are excluding GST and before any applicable discounts assuming Regular Pay and monthly payment mode. From the table, we can infer that as one ages, their premium keeps getting higher. Thus, it is wise to purchase your term insurance plan as early in life as possible to reap the maximum benefits while ensuring affordability of the premiums payable.

How Long Should the Term Insurance Policy Period Be?

In the case of most term insurance plans in India, you can buy a term insurance policy for a minimum period of 5 years and maximum till you reach the age of 100 years. However, the duration of term insurance cover depends on a number of factors that are unique to the life insured and their outstanding obligations.
For some, by the age of retirement, a major portion of the financial obligations have already been met and there is a high probability that your dependents having gained their own livelihood. However, this might not be the case for every individual. In such a situation, one might need to opt for a longer coverage in order to ensure the financial security of dependants post-retirement.
Choosing the right tenure for your term plan can be streamlined if you consider the following factors:

Your Current Age

Age plays a vital role in any term insurance plan. Be it for the insurer for calculating your premium or you for determining the policy period. If you are in the early stage of your life, say in your 20s, it is wiser to opt for a longer policy tenure so that you are at least covered till retirement. Similarly, if you are currently 45 years old, it might be wise to opt for a relatively shorter policy term to match your planned retirement age or till the time your loan accounts are active.

Age of Retirement

Although the normal retirement age in India is 60 years, it can be different for you. If you wish to retire sooner, you must take into account that when deciding the right duration of your term insurance policy. If you plan to retire as you turn 50 years old, may consider keeping the policy term of your term plan around that only. However, if you expect to have financial commitments such as a loan repayment or dependent family members post retirement, having a term plan in place longer can enhance the financial security of your loved ones.

Financial Obligations to Dependents

If you’re a parent purchasing a term plan, it is of utmost importance that you analyse your child’s financial necessities like their educational goals and even marriage expenses. Alternatively, you might have other family members such as your spouse, parents, siblings, etc. who will continue to be financially dependent on you later in life. In such as case, opting for a longer tenure term policy might definitely be the preferable option.

Tenure of Your Outstanding Loans

We take a term insurance plan to provide for our families, irrespective of our presence. This includes ensuring that you loved ones are not burdened by any outstanding loans and liabilities you might leave unpaid. It might not be feasible to take a term plan for 10 years while your loan account(s) are active for a longer period. Matching the duration of your outstanding loans and liabilities to the tenure of your term plan is a wise way to decide the tenure of your term insurance policy.

Documents needed to buy Term Insurance

There are three key types of documentation required when purchasing a term insurance plan. These are KYC (Know-Your-Customer) proofs (which include ID proof, age proof, residence proof and photographs), Income Proofs and Medical Proofs. Let's have a look at the types of accepted documents for each category for purchasing term insurance plans:

Identity proof

It can be of the following documents to validate the identity of an individual:

Passport
Voter ID
Aadhar Card
PAN Card

Address proof

Electricity, gas, phone or water bill not more than 2 months' old
Property tax receipt

Medical Proof

Last Medical Report by Axis Max Life Insurance

Income proof

Salaried Individuals

Bank statement showing the credit of salary
Last 2 years Income Tax Returns
Recent year form 16

Self - Employed

Last 2 years Income tax returns which have not been filed in the same year and income calculation
Form 26AS
Last 2 years of audited balance sheet and profit loss document verified by a CA

KYC Documents for Term Insurance (Eligibility for Individuals)

Apart from the PAN of the individual, which is mandatorily required to submit, the following is the list of KYC documents accepted as ID proof as well as address proof:

Passport

Voter’s ID Card

⁠Driving License

⁠Aadhaar Card

KYC Documents for Term Insurance with Eligibility for Legal Entities

The following are the list of KYC documents and other documents needed to validate a term insurance contract between the insurer and the concerned legal entity:

No.	Types of Legal Entities	KYC Documents
1.	Hindu Undivided Family (HUF)	Registration Certificate of HUF KYC documentation of Karta of HUF (as mentioned in the previous section) PAN of HUF PAN of Karta of HUF
2.	Company	Incorporation Certificate MOA PAN of Company or Master policyholder PAN of Beneficiary Board of Director's resolution Power of Attorney (copy) Beneficiar's Declaration Form Beneficiary's KYC Documents (same as that of an individual)
3.	Partnership Firms, Trusts, etc.	Certificate of Registration PAN of Partnership Firm PAN of Beneficiary Partnership Deed Consent, duly signed and stamped, by all partners regarding the premiums to be paid Power of Attorney (copy) Beneficiary's Declaration Form KYC documentation of all the participants of the insurance policy Trust Deed (in case of trusts and foundations)

Relatable Examples Based on Life Stage of Policyholders

Below are a few instances of individuals who should consider purchasing a term insurance policy considering their unique life stage or milestone event:

Manish, 36, and Meena, 32, Recent Homeowners

Manish and Meena both have stable jobs and have recently purchased their first house funded partially through their savings but they do have a substantial home loan amount currently outstanding. Apart from ensuring they are on track to pay off their loan, they also have to ensure the financial security of their 8 years old girl. In this situation, a joint term plan with an adequately high life cover and applicable add-ons can maximise the financial protection of the family at an affordable cost.

Harish, 30, and Pooja, 28, New Parents

Harish and Pooja have just become the proud parents of a baby boy and like all parents want him to get the best of everything. They had considered purchasing a term plan some time earlier, but never got around to actually completing the process. Now that their family has grown, they should definitely not delay any longer. As both of them have regular income, a joint term plan with a suitably high life cover would be a good fit. In their case, such a term policy will ensure that the survivor and/or their baby boy get adequate financial protection in case either or both of them dies unexpectedly and/or is no longer able to work due to an illness or disability.

Ashish, 28 and Mira, 24, Recently Married

Prior to getting married, Ashish had already bought a term plan with his parents as nominees. Since his parents are not dependent on him financial, Ashish should consider Mira to be added as a nominee to his existing term insurance plan and consider whether the life cover is sufficient considering his financial responsibilities have now increased. Since Mira is homemaker, Ashish can also consider purchasing a term plan for housewife which can further augment the financial protection for the newly-wed couple.

Joydeep, 30, sole provider for parents.

Joydeep is a salaried individual working with a reputed accounting firm and is the sole provider in his family. He lives with his parents who are financially dependent on him and he also plans to get married in the near future. To protect his parents from any loss of income due to his untimely demise or a disability/dismemberment that renders him unable to work, he should definitely consider purchasing a term plan. He should take into account the current household expenses as well as potential future increase in inflation when determining the life cover amount that would be sufficient to secure the finances of his parents.

Nandini, 24, Just Started Her First Job

Fresh out of college, Nandini has just started her first job. She has an education loan outstanding, which she plans to pay off in the next couple of years, and her parents are not dependent on her financially. This is arguably the perfect time for Nandini to purchase a term insurance policy with adequate life cover and suitable add-ons/riders. Purchasing term insurance early in life will enable her to lock-in a low premium rate for the entire policy payment term. This will ensure she protects the financial interest of her loved ones at an affordable cost in the face of unforeseen problems.

Term Insurance FAQs

ARN: PCP/TIP/131224

Common Customer Queries Resolved

Customer Reviews

Axis Max Life Term Plan

“Axis Max Life has helped me to identify the best term plan with adequate Life Cover for protecting my family’s future financial and giving me the peace to enjoy my present existence in this earth. Axis Max Life has helped me to save through Endowment plans, thereby giving me a Guaranteed money at different stages of my life”

P. Kesavan

Axis Max Life Term Plan

“Over all online policy purchase process was easy and purpose form filling process was easy and online premium payment process was easy”

Zaid Anwar

Axis Max Life Term Plan

“Axis Max Life Term Plan is first proper Term Plan to take care of me and my Family. With Max, I am at Peace of Mind with Axis Max Life. I trust you and your Processes. I am Happy to have this Relationship. Manoj”

Manoj Chandwani

Axis Max Life Term Plan

“Life Insurance Products provide arrangements for future events and there are various requirements at different life stages. For events that are to occur beyond 10 yrs, Life Insurance products are the only option. Keeping above in mind, I have Term Insurance, Endowment products taken almost 19 yrs ago and they will give Tax Free Lump sum amounts; I have Guaranteed Income Products and also Annuity Plan. For little better return on my investment I have ULIP plans. I have products, that will provide 25 - 50 thousand every year on my Grand Children’s birthdate - Annual Gift from grandparents when we will not be around”

Ashok Shah

Axis Max Life Term Plan

“I had one endowment plan and one term plan with axis-maxlife and I believe in making the difference with the help of AXIS-MAXLIFE”

Satish Kumar

Axis Max Life Term Plan

“Thanks for the opportunity to secure life with Axis Max Life, the best term plan comparatively in the market which i opted today and seen that, this plan assisting many with the good claim settlement ratio by Axis Max Life a trusted term insurance company.”

Naresh Vattela

Axis Max Life Term Plan

“My experience has been great with Axis Max Life Term Plan. I truly believe that it is the best term insurance that I have chosen for financial security.”

Roshni Mudliyar

Axis Max Life Term Plan

“I bought the best Axis Max Life Smart Secure Term Plan! from your team. Thanks for the assistance. ”

Kiran K

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Key Takeout -Term Life Insurance

Features

Primary Benefits

Types

Payment flexibility: Policy holder can decide how they want to pay their premiumsdepending their financial capabilities, the choice being annual, semi-annual, quarterly,weekly or monthly. There are plans that also offer a choice between single pay or limited premium

Rider Add On: In order to enhance your coverage and protection, every term plan gives you an option to add additional riders in case of injury, accident, disease or disability that come with some extra charges

Low entry age: With minimum entry age of 18 years, you can buy term insurance as soon as you become an adult.

Covered against life threatening diseases: Cancer, renal failure, heart attack, etc. are covered under term insurance on payment of additional premium.

Common Term Insurance Terminology

, ,

Term Insurance

Term Insurance Plans by Axis Max Life

What is Term Insurance?

Axis Max Life Term Insurance Plans

Why buy Term Insurance?

To Secure Your Family's Future

To Protect Assets

To Minimise Lifestyle Risks

Stay ready for uncertainties

Who Should Buy Term Insurance?

Parents

Young Individuals

Newly Married

Senior Citizens

Housewives

Women

Self-employed

SIP Investors

NRIs

Gig Workers

Home Buyers

Benefits of Buying Axis Max Life Term Insurance?

High Life Cover at Affordable Premiums

Protection from Illnesses

Long Term Coverage

Disability Benefits

Income Options in case of Unfortunate Events

Protection Against Liabilities

Riders for Additional Benefits

Multiple Premium Payment Options

Tax Benefits

How does a Term Plan Work?

Step 1

Step 2

Step 3

Step 4

Features of a Term Insurance Policy

Save Tax U/S 80C & 80D (Income Tax Act 1961)

Long Policy Term

Low Entry Age

Death Benefit as Regular Income

Premiums Returned on Survival

Disability Benefit with Term Insurance Plan

Cover Against Life-Threatening Diseases

High Maturity Age

Types of Term Insurance Plans and Their Benefits

Factors that affect Term Insurance Premiums

Age

Health Status

Gender

Smoking Habit

Occupational Risks

Chosen Sum Assured

Premium Payment Tenure

Sample Premium Rates

For the Life Cover Amount ₹2 Cr

Smoker

Non-Smoker

Term Plan Calculator

Term Insurance Plan Variants

5 Year Claim Settlement Ratio of Axis Max Life Insurance

Add-Ons Available with Axis Max Life Term Insurance Plans

Terminal Illness Rider

Waiver of Premium Plus Rider

Critical Illness and Disability Rider

Accidental Death Cover

Total and Permanent Disability Cover

How to buy Term Insurance?

Step One

Step Two

Step Three

Benefits to look for when purchasing a Term Plan

Increasing Sum Assured

Accident Benefit Rider

Terminal Illness

• Critical Illness and Disability

Critical Illness and Disability

How to Choose the Best Term Insurance Plan?

Check Claim settlement/paid record of the Insurer i.e. claims paid ratio

Know the Existing Customer Experience

•
Critical Illness and Disability