Family Term Insurance in India 2025

Life changes. So should your insurance. As families grow and responsibilities shift, term insurance isn't just about covering one individual anymore—it's about protecting a unit. In 2025, family term insurance plans in India are evolving to match the needs of modern households—dual-income setups, dependent parents, young children, and everything in between. These plans offer a streamlined way to ensure collective security through a simplified policy.

In this blog, we look at how family term plans are changing, what makes them worth considering in today's context, and how to identify one that works best for your situation.

What are the Features of Family Term Insurance?

• Single Policy Coverage: This offers life cover for multiple family members—usually the earning member, spouse, and children—under one consolidated plan.
• Fixed Sum Assured: Guarantees a lump-sum payout to the nominee(s) in case of the insured's demise during the policy term.
• Affordable Premiums: These are more cost-effective than buying separate term policies for each family member.
• Customisable Riders: Options to enhance coverage with add-ons like critical illness, accidental death, or waiver of premium riders.
• Flexible Policy Terms: You can choose from varying policy durations and coverage amounts based on your family's needs and life stage.
• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C, and death benefits are tax-free under Section 10(10D).
• Online Access and Management: Most plans offer digital platforms for easy purchase, policy tracking, and claims processing.

How Does Family Term Insurance Work?

Family term insurance provides life cover to multiple family members under a single policy. The primary policyholder—often the earning member—is insured, and coverage can extend to the spouse and dependent children. In the event of the insured's death during the policy term, the nominee receives the predetermined sum assured.

Some policies allow for joint life coverage or add-ons for other family members. The plan ensures financial stability for the surviving family members by covering major expenses like debts, education, and daily living costs. Premiums are paid regularly to keep the policy active.

Benefits of Choosing Aviva India's Family Term Plans

Comprehensive 3D Protection

Aviva's Signature 3D Term Plan provides coverage against Death, Disability, and Disease, offering well-rounded protection for your family.

Flexible Payout Options

You can choose from a lump sum, regular monthly income, or a combination of both—depending on what suits your family's financial needs.

Preventive Wellness Package

Some term plans benefits include wellness perks like smart devices and AI-powered nutrition tracking encouraging proactive health management.

Return of Premium Option

Some plans offer a return of up to 125% of the premiums paid if the policyholder survives the term—merging protection with savings.

Customisable Riders

Add-on riders like critical illness cover, accidental death benefit, or premium waiver allow you to tailor the policy further.

Tax Benefits

Premiums qualify for tax deductions under Section 80C, and death benefits are exempt under Section 10(10D) of the Income Tax Act.

High Sum Assured at Affordable Premiums

Aviva offers significant life coverage at competitive prices, making securing your family’s future easier without overspending.

What are the Different Types of Term Insurance Plans for a Family?

• Level Term Plan: Offers a fixed sum assured throughout the policy term, ideal for predictable financial coverage.
• Increasing Term Plan: The sum assured increases annually to match rising expenses or inflation.
• Decreasing Term Plan: Coverage reduces over time and is often used for liabilities like home loans.
• Joint Life Term Plan: Covers both spouses under one policy, with a payout on the first or second death based on the plan.
• Return of Premium Plan: Term Insurance with Return of Premium (TROP) refunds all premiums paid if the policyholder survives the policy term, combining life coverage with a savings benefit.

Family Term Insurance Related FAQs

Which is the best life insurance policy for a family?

The best policy depends on your family's needs, income, and future goals. Look for a plan that offers comprehensive coverage, flexible riders, and reliable claim settlement. Aviva’s family term plans with 3D protection and return of premium are strong options for balanced security and savings.

What should be the Sum assured required for my family?

A good thumb rule is 10–15 times your annual income. Consider ongoing expenses, loans, future goals like education, and inflation. This helps ensure your family can maintain their lifestyle and meet key financial milestones even in your absence.

Can I take a loan against term insurance for my family?

No, term insurance doesn't offer loan facilities because it has no cash value. It's a pure protection plan. If you need a policy with loan options, consider endowment or whole-life insurance, which builds a savings component over time.

Is it possible for a housewife to purchase term insurance for a family?

Yes, but coverage for non-earning members like homemakers is often limited. Some insurers offer plans with lower Sums assured for spouses. Joint life term plans can also be considered, covering both partners under a single policy.

What are the steps to purchasing term insurance for a family online?

1. Compare plans on insurer or aggregator websites.

2. Choose coverage, riders, and terms based on your needs.

3. Fill in personal and health details.

4. Complete KYC and medicals (if required).

5. Pay the premium and receive policy confirmation digitally.

Related Articles:

1. Term Plan- The best gift for your family

2. Term Insurance Age Limit

3. What is Term Insurance?

AN May 63/25

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