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Term Insurance Calculator – Calculate Your Term Insurance Premium Online - TheOrtus

🧮 Term Insurance Premium Calculator

Get an instant estimate of your term insurance premium based on your age, income, and coverage needs.

📊 Your Estimated Premium

Monthly Premium
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Annual Premium
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Sum Assured
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* This is an indicative estimate. Actual premiums may vary by insurer, health conditions, and policy terms. Please consult TheOrtus for a detailed quote.

What is Term Insurance?

Term insurance is the simplest and most affordable form of life insurance. It provides a large sum of money — called the Sum Assured or Death Benefit — to your family (nominees) in the unfortunate event of your death during the policy term. If you survive the term, no maturity benefit is paid under a pure term plan.

Think of it as a financial safety net: you pay a small, regular premium, and in return, your family is protected with a substantial amount if something were to happen to you. For example, a 30-year-old non-smoker can get a ₹1 crore cover for as little as ₹600–₹700 per month — that’s less than the cost of a daily cup of coffee!

💡 Quick Fact: Term insurance gives you the highest life cover at the lowest premium compared to any other type of life insurance product in India.

How Does Term Insurance Work?

1

Choose Your Coverage

Decide the Sum Assured (e.g., ₹1 crore) — ideally 10–15 times your annual income — and the policy term (e.g., 20–30 years).

2

Pay Your Premium

Pay premiums monthly, quarterly, or annually. The premium amount remains fixed throughout the policy term for most plans.

3

Stay Protected

As long as you pay your premiums, your family is covered. In case of your untimely demise during the term, the insurer pays the full Sum Assured to your nominees.

4

Policy Expiry

If you outlive the policy term, the policy expires with no payout (pure term). Some plans offer Return of Premium (ROP) options where premiums are refunded on survival.

Key Benefits of Term Insurance

💰 Affordable Premiums

Term plans offer the highest coverage at the lowest cost. A ₹1 crore cover can start from just ₹500–₹700/month for a young, healthy individual.

🛡️ Large Life Cover

Secure your family’s future with a substantial payout that can cover loans, education, living expenses, and more.

🏥 Rider Benefits

Enhance your plan with add-ons like Critical Illness Rider, Accidental Death Benefit, Disability Rider, and Waiver of Premium.

📋 Tax Benefits

Premiums paid are eligible for tax deduction under Section 80C (up to ₹1.5 lakh), and the death benefit is tax-free under Section 10(10D).

🔄 Flexible Payout Options

Choose how your nominee receives the money — lump sum, monthly income, or a combination of both for better financial management.

🧘 Peace of Mind

Knowing your family is financially secure lets you live and work with confidence, without worrying about unforeseen circumstances.

Term Insurance vs Other Life Insurance Plans

Feature Term Insurance Endowment Plan ULIP Whole Life Plan
Premium Very Low High High Moderate–High
Life Cover Very High Low–Moderate Moderate Moderate
Maturity Benefit None (Pure Term) Yes Yes (market-linked) Yes
Investment Component No Yes Yes No
Best For Pure Protection Savings + Protection Investment + Insurance Lifelong Coverage
Tax Benefit (80C) Yes Yes Yes Yes

How Much Term Insurance Cover Do You Need?

A common rule of thumb is to have a life cover of at least 10 to 15 times your annual income. However, you should also consider:

Outstanding Liabilities: Add up all your loans — home loan, car loan, personal loans. Your coverage should be enough to pay these off completely.

Future Goals: Think about your children’s education, their marriage, and your spouse’s retirement. Estimate the funds needed for these milestones.

Existing Assets: You can subtract your current savings, investments, and existing life insurance covers from the total required amount.

📌 Example: If your annual income is ₹8 lakhs, you have a ₹30 lakh home loan, and need ₹20 lakhs for your child’s education — you should ideally opt for a cover of at least ₹1.5 to ₹2 crore.

Factors That Affect Your Term Insurance Premium

Age

The younger you are, the lower your premium. This is because younger individuals carry a lower mortality risk. Buying early can save you lakhs over the policy term.

Gender

Women generally pay lower premiums than men because statistically they have a higher life expectancy.

Smoking & Lifestyle

Smokers pay significantly higher premiums — often 25–50% more — compared to non-smokers. Alcohol consumption and high-risk occupations also affect pricing.

Health & Medical History

Pre-existing conditions like diabetes, hypertension, or heart disease can increase premiums or lead to exclusions.

Policy Term

Longer policy terms generally mean higher premiums, but locking in a rate early for a long term often works out cheaper overall.

Sum Assured

The higher the coverage amount, the higher the premium. However, the rate per lakh of coverage often decreases as the sum assured increases (economies of scale).

Frequently Asked Questions

What happens if I stop paying premiums? +
If you stop paying premiums, your term insurance policy lapses after a grace period (usually 30 days for monthly payments). A lapsed policy provides no coverage. You can revive it within a specified period by paying due premiums with interest, subject to insurer’s terms.
Can I buy term insurance online? +
Yes! Buying term insurance online is easy, faster, and often cheaper than buying offline because of lower distribution costs. You can compare plans and apply directly through insurer websites or aggregator platforms like TheOrtus.
Is a medical test required for term insurance? +
For high sum assured amounts (typically above ₹50 lakhs) or older applicants, a medical test is usually required. Some insurers offer non-medical term plans for smaller cover amounts, especially for younger applicants.
What is the claim settlement ratio and why does it matter? +
The Claim Settlement Ratio (CSR) is the percentage of claims an insurer has settled out of the total claims received. A higher CSR (above 95%) indicates the insurer is reliable in paying claims. Always check an insurer’s CSR before buying a policy.
Can I have multiple term insurance policies? +
Yes, you can hold multiple term insurance policies from different insurers. However, your total life cover should be proportionate to your income and liabilities. You must disclose all existing policies when applying for a new one.
What is the right age to buy term insurance? +
The best time to buy term insurance is in your 20s or early 30s when you are young and healthy — premiums are at their lowest. However, it’s never too late. Even if you are in your 40s, a term plan still provides critical protection for your family.

Ready to Secure Your Family’s Future?

Compare the best term insurance plans in India and get expert guidance from TheOrtus.

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