Term insurance is one of the most essential financial products that provide life coverage at an affordable premium. With the rise of digital insurance platforms, it has become easier than ever to buy term insurance online in India in 2025 without the hassle of physical paperwork or agent involvement.
If you are looking for a cost-effective way to secure your family’s financial future, this guide will walk you through how to buy term insurance online in India in 2025, key factors to consider, the best platforms, and tips to choose the right policy.
What is Term Insurance?
Term insurance is a pure life insurance plan that provides financial security to your family in case of your untimely death during the policy term. Unlike traditional life insurance policies, term plans do not offer maturity benefits, making them highly affordable and efficient.
Key Benefits of Buying Term Insurance Online
- Lower Premiums: Online term insurance plans are cheaper as they eliminate middlemen.
- Quick & Hassle-Free Process: No paperwork, instant policy issuance, and easy documentation.
- Flexible Coverage Options: Choose a plan based on your age, income, and family needs.
- Riders for Additional Protection: Add-on benefits like critical illness, accidental death, and disability cover.
- Tax Benefits: Premiums paid for term insurance are eligible for tax deductions under Section 80C & 10(10D) of the Income Tax Act.
Step-by-Step Guide to Buy Term Insurance Online in India in 2025
Step 1: Assess Your Insurance Needs
Before buying a term plan, consider:
- Your annual income and financial liabilities (loans, debts, etc.).
- The number of dependents and their future financial needs.
- The ideal sum assured (typically 10-15 times your annual income).
Step 2: Compare Term Insurance Plans Online
Several insurers offer competitive term insurance plans with varying coverage and benefits. Use online comparison platforms like:
- Policybazaar
- Coverfox
- ET Insure
- BankBazaar
Compare premium costs, claim settlement ratio (CSR), additional riders, and policy tenure before making a decision.
Step 3: Choose the Right Coverage Amount & Policy Term
- Coverage Amount: Select a sum assured that is at least 10-15 times your annual income.
- Policy Term: Choose a term that covers you till at least 60-65 years of age to ensure maximum protection.
- Premium Payment Option: Opt for monthly, quarterly, or annual premium payments based on your preference.
Step 4: Select Riders for Additional Protection
You can enhance your term insurance policy by adding riders such as:
- Critical Illness Rider: Provides a lump sum amount if diagnosed with a severe illness.
- Accidental Death Rider: Extra payout in case of accidental death.
- Waiver of Premium Rider: Waives future premiums if the policyholder becomes disabled.
- Income Benefit Rider: Ensures a steady monthly income for dependents after the policyholder’s death.
Step 5: Fill in the Online Application Form
- Provide basic details (name, age, occupation, income, and medical history).
- Choose your nominee(s) who will receive the benefits in case of your demise.
- Upload necessary documents like Aadhaar card, PAN card, income proof, and medical records.
Step 6: Undergo Medical Tests (If Required)
Many insurers require a medical check-up for policies with high coverage amounts. Some companies also offer instant policy issuance for young applicants with no pre-existing health conditions.
Step 7: Pay the Premium Online & Get Policy Issued
- Choose a secure payment method (credit/debit card, UPI, Net Banking, or digital wallets).
- Once the payment is successful, the policy document will be issued instantly and emailed to you.
- Review the policy document carefully to ensure all details are correct.
Best Term Insurance Plans in India in 2025
1. LIC Tech Term Plan
- Sum Assured: ₹50 lakh – ₹1 crore
- Claim Settlement Ratio: 98.6%
- Key Benefits: High claim settlement ratio, flexible premium payment options
2. HDFC Click 2 Protect Super
- Sum Assured: ₹50 lakh – ₹2 crore
- Claim Settlement Ratio: 99.4%
- Key Benefits: Life-stage protection, accidental rider, critical illness benefit
3. ICICI Pru iProtect Smart
- Sum Assured: ₹50 lakh – ₹3 crore
- Claim Settlement Ratio: 98.9%
- Key Benefits: Terminal illness cover, waiver of premium option
4. Max Life Smart Secure Plus Plan
- Sum Assured: ₹50 lakh – ₹2.5 crore
- Claim Settlement Ratio: 99.3%
- Key Benefits: Income benefit rider, accidental death cover
5. Tata AIA Sampoorna Raksha Supreme
- Sum Assured: ₹50 lakh – ₹5 crore
- Claim Settlement Ratio: 98.1%
- Key Benefits: Whole-life coverage option, premium return benefits
Factors to Consider Before Buying Term Insurance Online
- Claim Settlement Ratio (CSR): Always choose insurers with a CSR above 95% for a hassle-free claims process.
- Premium Affordability: Compare premium rates and choose a plan that offers maximum benefits at the lowest cost.
- Flexibility in Payout Options: Some plans offer a lump sum payout, monthly income, or a mix of both.
- Exclusions & Terms: Read the policy exclusions carefully to avoid claim rejections in the future.
- Customer Support & Reviews: Check customer feedback and insurer responsiveness before finalizing your policy.
Advantages of Buying Term Insurance Online in India in 2025
- Lower Costs: No agent commissions mean cheaper policies.
- Transparency: Full access to policy terms, exclusions, and benefits before purchase.
- Instant Coverage: Get policy approval within minutes for basic coverage plans.
- Paperless Process: Digital documentation saves time and effort.
Conclusion
Buying term insurance online in India in 2025 is now faster, easier, and more affordable than ever. With numerous digital platforms and competitive policy offerings, you can compare, choose, and secure a high sum assured at low premiums in just a few clicks.
By following this step-by-step guide, you can confidently choose the best term insurance plan that provides maximum protection for your family’s financial future. Ensure you compare policies, check claim settlement ratios, and select the right coverage before making a final decision.