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Term Insurance Calculator
Compare annual premium across LIC, Max Life, HDFC Life, ICICI Pru, Tata AIA, Bajaj Allianz, SBI Life, PNB MetLife — with Claim Settlement Ratios from IRDAI Annual Report FY 2024-25.
Your details
Premium estimates calibrated to May 2026 published rate cards. Final premium varies by exact age (months), gender, profession, city, and medical underwriting. CSR = Claim Settlement Ratio FY 2024-25 (IRDAI Annual Report).
8 major insurers — annual premium
For ₹1.00 Cr cover, 30-year term, age 30, non-smoker. Sorted cheapest first.
How much cover do you need?
- • 15-20× annual income as a baseline (we suggest 17×)
- • Add outstanding home loan + child education corpus
- • Subtract existing investments & assets
- • Cover till retirement age (60-65), not lifelong
CSR vs premium — pick by
- • CSR ≥ 98% → safe choice (all 8 listed pass)
- • CSR by amount matters more than count
- • Disclose every medical condition honestly
- • Avoid policies with sub-3-year exclusion clauses
Tax benefit
Term insurance premium qualifies for Section 80C (₹1.5L cap, old regime only). Death claim is always tax-free under Section 10(10D). No deduction under new regime.
FAQs
How much term insurance cover do I really need?
Rule of thumb: 15-20× your annual income. For a salaried person earning ₹15L p.a., that means ₹2.25-3 Cr cover. Add outstanding loans (home / education) + future child education corpus, subtract existing investments and life-stage assets. Cover should last till retirement (typically age 60-65), not lifelong.
Which is the cheapest term insurance in India in 2026?
Bajaj Allianz eTouch II is currently the most competitively priced among major insurers, followed by Max Life Smart Secure Plus and HDFC Click 2 Protect Super. LIC Tech Term is typically 15-20% more expensive than private insurers for the same cover.
What is Claim Settlement Ratio (CSR) and why does it matter?
CSR = (claims paid / claims received) × 100, reported annually by IRDAI. Look at both: (1) by number of claims and (2) by claim amount. CSR by amount often differs because insurers may settle small claims quickly but contest large ones. All 8 listed insurers have CSR ≥ 98% by number.
Should I buy term insurance from LIC or a private insurer?
LIC has the longest track record and government backing but is 15-20% more expensive. Private insurers like Max Life, HDFC Life and Tata AIA have CSRs above 99% and better digital experience. Premium difference over a 30-year policy can be ₹1-2 lakh.
Term insurance vs endowment / whole life — what should I pick?
Term insurance is pure cover — you pay a small premium, get a large death benefit, no maturity payout. Endowment / whole life mix insurance with investment, which usually delivers 4-6% post-cost returns. Better to buy term + invest the difference in mutual funds for 10-12% returns.
What add-on riders should I take?
Critical Illness rider (covers 30-40 illnesses, payout on diagnosis) is the most useful. Waiver of Premium (premium waived if you become disabled) and Accidental Death Benefit (extra payout on accidental death) are secondary. Avoid bundled "saving" riders.
What happens if I skip a premium?
30-day grace period to pay without penalty. After that, policy lapses but can be revived within 5 years by paying outstanding premium + interest + medical re-evaluation. Don't let your term policy lapse — it's the cheapest cover you'll ever get at your current age.
Are smoker premiums really 40% higher?
Yes, tobacco use (including chewing tobacco, gutka, e-cigarettes) leads to 30-50% premium loading across all major insurers. Insurers verify via cotinine test during medical examination. Lying triggers claim rejection — declare honestly.
Is term insurance tax-deductible under the new tax regime?
No. Section 80C (₹1.5L) is available only under the old regime. Under the default new regime (FY 2026-27), term insurance premium does NOT qualify for any deduction. Death claim remains tax-free under Section 10(10D) in both regimes.