Let us face it – life is full of uncertainties. You cannot prevent what is going to happen in future.  Yet if you act smart, you can safeguard the future of your family members, even if you are not around. This is the basic idea behind Life Insurance Policies. Millions of people around the world are wise enough to take Life Insurance Coverage, at the proper time. As of today, you have an excellent option for Life Insurance Coverage – popularly known as “term plan”.

What is the difference between Life Insurance and Term Plan?

The simplest answer is both are one and the same from the Insurance angle – but with differences in premiums, factors, features, facilities, and advantages. In the olden days, Life Insurance field was monopolistic and was in the hands of the Government Sector. Even today, you can see the Government Sector is engaged in insuring people’s lives on a mass-scale.

But there was an increasing demand from the public for various types of Life Insurance policies. This created a juncture for opening up the vistas and avenues of Private Insurance Companies, following the footsteps of foreign countries. As a result, many insurance companies sprang up. As of today, you can see the presence of a plethora of insurance companies, if you go online.

These Companies vied with each other in attracting customers with innovative and interesting types of Life Insurance policies. One such innovation is “term plan” which gives the insured complete and comprehensive option, to choose the “term period” during which they want coverage for their Life.

Life Insurance is a contract between an individual and the insurer that in the event of the death of the insured, a certain amount of money (Sum Assured) will be paid to the nominee; and if the insured lives beyond the Policy period, the maturity benefit is paid on the Policy.

In the case of term insurance plan online, the Policyholder selects the tenure of the policy period – say for 5, or 10 or 20 years. Only in the event of a death of the insured, a lump sum (Sum Assured) will be paid to the nominee. At the close of the term period if the insured lives no return of premium is paid – generally.

Apparently, the term plan looks inferior to General Life Insurance Policy. But the case is entirely different if you go into the details.

Advantages accruing by selecting a suitable term plan:

  • You as the Policy Holder have the complete liberty to choose the term period
  • You can provide the highest returns to your family members, by paying the lowest amount as premium
  • Normally, term plan premiums are the lowest because they assure only death benefit
  • The term plan policy conditions are very flexible since they can be altered at any time during the Policy Period
  • You can start with lower premiums when you are young, for a considerably huge payment in return, and can still increase the Sum Assured when years go by and your earnings increase
  • You can even opt for Return of Premium (ROP) Rider in your Policy, for a slightly increased premium amount
  • Term Plan policies are easy for youngsters to take, since they can assure their families a fortune in the unlikely event of any untoward happening to them, by paying a small amount of premium. For example, the Policy Holder may need pay only Rs. 515 per month for a Sum Assured of Rs.1,00,00,000/-

How to select the best term plan?


  • Select the most beneficial insurance company online. Nowadays, there are so many top-notch insurance companies that offer very lucrative features and benefits, as well as flexibility in taking a term plan.
  • Think well before you take the right Policy, by calculating your financial ability to pay the premium; the financial need of your family members in your absence; and also take into account the inflation factor etc.
  • Determine the coverage you want, the features and flexibilities offered by the insurance company for their term plan policies. This will help you to avail maximum benefit at the minimum cost.
  • Compare the Claim Settlement Ratio of the insurance companies by checking it online on This is an important factor because if their CSR Ratio is high, you can be confident that your family members will be paid the expected sum promptly without hassles.

Remember to inform all your family members about taking the term plan policy, and keep the policy and other details safe and traceable.

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