Question 1

What is term insurance?

Accepted Answer

Term insurance is pure life cover for a fixed period. If the policyholder dies during the term, nominees receive the sum assured. There is no maturity payout — premiums stay low compared to endowment or ULIP plans.

Question 2

How much term insurance cover do I need?

Accepted Answer

A common approach is 10–15 times your annual income, plus outstanding loans and goals for children’s education. Review cover when income, dependents, or liabilities change.

Question 3

Is term insurance premium tax-deductible?

Accepted Answer

Premiums paid for life insurance qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year (old tax regime rules apply).

Question 4

What is claim settlement ratio (CSR)?

Accepted Answer

CSR is the percentage of claims an insurer settled in a year. IRDAI publishes annual CSR data. A higher ratio indicates better reliability, but also compare grievance data and product terms.

Question 5

Can I buy term insurance online?

Accepted Answer

Yes. Most insurers offer digital proposal forms, medical underwriting (if required), and e-policy issuance. Compare plans on FinWiz24 before you apply.

Term Insurance Plans in India

Term Insurance plans

Frequently Asked Questions