The services and policies given by Aviva are excellent, and would definitely recommend everyone to buy a policy with them!
Mr. Dinesh Nair
A term insurance plan is the most basic form of life insurance. It offers a high cover amount at a very nominal premium and is one of the cheapest forms of life insurance. Term insurance plans take care of all the financial needs of your family when you are not around. Think of it the way you cast a blanket over your sleeping child, the term insurance plan casts a safety net over your loved ones in the future. You may not be physically present to finance their future goals, but the term insurance can and will.
“Why should I buy term life insurance,” you must be thinking. We have discussed the benefits you and your family recieve when you buy term life insurance.
Also Read: Is Term Insurance For Me?
Before we talk about how it works, you should know that a term insurance plan is a legal contract or agreement between the policyholder and the insurance company. The owner (policyholder) agrees to pay for a desired term and the insurance company agrees to pay a specific death benefit to the beneficiary or beneficiaries listed in the policy. The benefits are tax-free if they meet the certain conditions. Now, let’s take a look at step-by-step breakdown of how a term insurance plan works.
Let’s take a detailed look at the features of term insurance plans.
The best term life insurance in India will be the one that fits your needs. Compare the features, riders, and specifications to have a better understanding.
The unforseen demise of a bread-earner can take a huge toll on their family, emotionally as well as financially. And if you have taken loans and debts, your family will have to fend for the money to repay your debts after you.
With term insurance with maturity benefits, your family can repay your debts without having to lose their financial security.
Term Insurance Plans by Aviva Life Insurance
It’s not just a term insurance plan – it’s a safety net you cast around your loved ones
Buying term insurance is simpler than ever, especially with online platforms. Here's a step-by-step breakdown:
Assess Your Needs
Compare Plans
Choose the Right Insurer
Customize Your Plan
Fill the Application Form
Pay the Premium
Receive Policy Documents
The general rule is to buy a term life insurance as early as possible because the premium is likely to increase with age and increasing medical conditions.
Here’s how a term life insurance plan can help you at every stage of life.
In your 20s
In your 30s
In your 40s
In your 50s and beyond
Don’t keep waiting for a sign. If you are able to find an insurance that fit your needs, you should purchase it. Additionally, depending on the policy and insurer, there will be minimum entry limit and maximum age limit. Take that into consideration and other terms before making the final choice.
Consider the below aspects to select the right duration for your term life insurance plan.
1. Cover Your Financial Responsibilities: Choose a term that lasts until your major financial obligations are covered like your child’s education, marriage, home loan or any other long-term debt.
2. Until Your Children Are Independent: If you have young kids, your term should last until they become financially independent, often around age 22–25. For example, if your youngest child is 3, a 20 or 25-year term insurance plan would be appropriate.
3. Until Retirement Age: Many people choose a term that lasts until they retire or expect to have built enough savings and assets. If you are in your 30s or 40s, you can choose term plan lasting up to 60 or 65 years.
4. If You’re Young and Just Starting Out: Locking in a 20 or 30-year term while you’re young and healthy can help you get lower premiums.
While these are general guidelines, the ideal duration for a term life insurance policy depends on your personal and financial circumstances. Find a balance between your future goals and present conditions to choose the right policy term.
Your term insurance premium may depend on the following factors:
When purchasing a life insurance, make sure to maintain transparency throughout the situation. Do not hide any medical condition or habit that you’re involved in, as it can even lead to denials later.
Here are the documents you will have to submit if you’re planning to buy term life insurance plan.
It’s not just a term insurance plan – it’s a safety net you cast around your loved ones
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All you need to know about Term Insurance
Secure your family financially in your absence, with a term insurance plan.
A term insurance plan compensates the beneficiary in case of an unfortunate death.
Term insurance is a commitment to the people who matter the most.
Life is rarely certain and unwanted events can create havoc with the best laid plans. The absence of a family member causes extreme turmoil - physically, emotionally and financially. Your life is precious, especially if you are the breadwinner of the family. A term insurance policy takes care of the monetary needs of your family even when you are not around. It helps your family settle unpaid debts & loans, fund the child’s education and deal with day to day living expenses.
Buying the term insurance plan online is really simple – just make a note of the following documents you need to attach with your application form:
Please check whether your insurer offers the following benefits before buying a term plan:
Aviva term plan offers you the best term insurance plan with the multiple benefits:
There is no defined formula to identify the amount of life cover you should opt for; it varies from person to person.
The table below gives broad guidelines which can be used as a rule of thumb.
Age Band |
Cover |
20 – 25 years (single) |
8-10 times the annual income plus any outstanding liabilities |
25 – 30 years (newly married) |
12 – 15 times the annual income plus any outstanding liabilities |
30 – 45 years (with young kids) |
15 – 20 times the annual income plus any outstanding liabilities |
45 – 55 years (post responsibilities) |
8-10 times the annual income plus any outstanding liabilities |
A term plan is the most elementary form of life insurance. By purchasing a term insurance policy, you, as the ‘policyholder pay a nominal amount as ‘premium’ for a certain period or tenure. The earlier you purchase a term plan, the lesser will be the premium (per year) you have to pay. In case, you meet an unfortunate incident resulting in loss of your life, your family or ‘nominee’ is given the ‘sum assured’ or ‘cover’ - large lump sum amount to meet your financial liabilities. In case you wish to have a additional coverage beyond just life cover, you can choose riders, such as critical illness and disability.
Like all life insurance products, term insurance also offers tax benefits. Primarily, you get tax rebates for the premiums paid under your policy. Premium paid for a term plan will offer tax benefits under sec 80C of the Income Tax Act. Any payout made to the beneficiaries is tax free.
Death cover under all circumstances except the following: