Term Insurance in India 2025 – How Much Cover You Need & Step-by-Step Buying Guide

Friends, we will start this video with the story of a family in Jaipur, and this family is of Amit Chauhan. Amit Chauhan, who is 37 years old, used to work in an IT company in Gurugram, Haryana, which is 250 km away from Jaipur. His salary was Rs 1.5 lakhs per month, due to which neither his parents nor his wife and children had to face any financial problem. He had a hefty salary, so his children also studied in a high-class school in Jaipur. But one day, on the way back from Gurugram to Jaipur, he had an unfortunate event. Now the biggest problem in front of his family was that apart from Amit Ji, there was no one else in his family to earn. Due to which, slowly, financial challenges began to arise in front of this family. Now in such a situation, what could Amit Ji have done if he had time, so that his family would have been financially secure in today's date? So I'm going to tell you about a protection shield that becomes critical in such a situation, which is called term insurance. That is, if Amit Ji had taken a term insurance for himself if he had time, then the situation of the family would have been much better today. Now from this whole incident, we understand that our life is uncertain and term insurance is very important for us. But many people think that term insurance is very expensive. And according to a data, only 31% of the people have secured their life. Now let's understand exactly what term insurance is. Now let's understand this and at the end of this video, I will also purchase a term insurance plan for you so that things will be more clear to you about term insurance. And the term plan that I will buy for you, for that I will have to pay only Rs. 578 every month and I will also get a cover of Rs. 1 crore. Term insurance is such a plan that if something unfortunate happens to a person, then his family gets a lot of financial support. One more thing, term insurance is such a product that the less it is taken at the age, the better it is. Because the premium on which you have purchased term insurance, that premium goes to the entire policy. That is, if someone takes a term insurance plan for himself at the age of 18, then his premium will be the lowest. And the good thing is that once the premium is fixed, it goes to the entire policy tenure. That is, that premium never increases. For example, suppose an 18-year-old person takes a term insurance of Rs. 1 crore and he wants to be secured with Rs. 1 crore until he is 75 years old. And suppose at the age of 18, his premium is Rs. 500, then every month until he is 75 years old, he has to pay only Rs. 500. This will never be more than Rs. 500 because the premiums in the term plan become low. On the other hand, if a 45-year-old person thinks of taking a term insurance for himself, then his premium will become expensive. And if he has any disease at that time, then it is possible that the company may not give him a term plan. That is why it is said that the less age and the more fitness age, if you take a term plan for yourself, then this is the best and best way to take a term plan. But now the question is, which company is in today's date to take a term insurance plan? Now, the insurance company depends on many factors, in which the most important thing is to check the claim settlement ratio. But what is this claim settlement ratio? Now see, in simple and easy language, claim settlement ratio means how many claims came to the company and how many claims did the company settle? We simply call this claim settlement ratio. For example, if a company gets 100 claims and passes 95 of them, then its claim settlement ratio will be 95%. Now keeping this parameter in mind, the best term insurance that has come in our research is Axis Max Life Insurance, whose claim settlement ratio is 99.70%. That is, if 100,000 people raise the claim, then this company has approved the claim of 99,700 people. If we talk about brand value, then it is a very big brand in itself. And looking at all this, the term insurance plan that is going on in the industry right now is Axis Max Life's Smart Term Plan Plus. The best thing about this plan is that if a salaried class purchases this term plan, then he will get a 15% discount on the first year's premium. If a woman buys this plan, then she will get a 15% discount on premiums for the rest of her life. If a woman is a salaried employee herself, then she will get a 15% discount for the rest of her life. Also, since the woman is salaried, she will get a 15% discount on the first year's premium for the salaried class. This is the only insurance company that takes a guarantee to settle genuine claims in 3 hours. And along with this, they also have a special exit value benefit. There is also another amazing feature of this plan, which is called Smart Cover. This feature says that if there is an unfortunate event with the policyholder within 15 years of taking the policy, then his family will get 1.5 times more money than the sum insured. For example, if someone purchases a term plan worth 1 crore, and if there is an unfortunate event with him within the first 15 years, then in this case, his family will get a claim of 1.5 crore instead of 1 crore. Now, a question arises, how much term insurance should we take? To understand this, we will have to go back to where we started the video, that is, in the life of Amit Chauhan. Now, first of all, at least Amit Chauhan should have had a term insurance of 15 times the annual salary of Amit Chauhan. Now, as we saw at the beginning of the video, Amit Chauhan's monthly salary was 1.5 lakh rupees. That is, 1.5 lakh multiplied by 12, that is, his package was 18 lakh rupees. That is, Amit Chauhan used to earn 18 lakh rupees annually. Now, multiply 18 lakh by 15, that is, 18 lakh multiplied by 15, this will be 2 crore 70 lakh rupees. That is, at least, Amit Chauhan should have had a term insurance of 2 crore 70 lakh rupees. Now, let's take a different scenario. Suppose, if Amit Chauhan was young, where he did not have any financial responsibility. For example, if he did not have any loan, if he was unmarried, if he was not dependent, then in this case, a life cover of 1 crore rupees would have been more than enough for him. And going forward, if he felt that with the increasing age, responsibilities are also increasing, then he could have increased his cover as well. All these options are also available. Anyway, after seeing all this, now I will show you by purchasing a live term insurance plan. This term insurance plan of 1 crore rupees, I will show you by purchasing it live. By purchasing this, what I will show you, you will get more information. Now, we have understood everything about what a term insurance plan is. Now, when I will show you by purchasing this, your knowledge will increase even more. Now, the link to apply for term insurance, I have given you in the description box below. When you click on that link, you will see some interface like this. Here, you will reach the official website of Axis Max Life Insurance. So, here you will see some interface like this. Now, the person for whom I am purchasing is a known person. So, I know him. I had a talk with him. He was asking about term insurance. So, I said, let's make a video on this. At least, I will tell you what exactly term insurance is. So, he wanted to purchase it. So, I will show you by purchasing it live. So, here I have entered his name, Rajat Batra. Here, I have entered his date of birth. Here is his date of birth. So, he is 31 years old. Then, he is asking about NRI. So, he is Indian. So, I have selected No. Are you an NRI? So, he is not an NRI. So, I have selected No. Here, I have entered his mobile number. Then, he is asking about annual income. So, his package is for a year. He works in a small company. It is an IT company. He just started. So, his package is around Rs. 5,25,000. So, I will select between Rs. 5,00,000 to Rs. 7,00,000 in annual income. Because his annual package is Rs. 5,25,000. So, here I will click on the option of Calculate Now. He is asking about basic details. Like, gender, male, tobacco. We have selected No. Because he is neither a drinker nor a smoker. He does not consume anything. Occupation, salary, education. He has completed his graduation. He selects preferred language, Hindi. And then, here we click on check coverage. So, I think coverage of Rs. 1 crore is more than enough. Because he does not have too many expenses. And his family's lifestyle is very grounded. So, he does not have a high-tech or luxury life. He is a middle-class good family. So, I think coverage of Rs. 1 crore is enough. We will not go for Rs. 2 crore. Because he does not have a high salary. But the children of Rs. 1 crore are also very small. So, we will select plan for Rs. 1 crore. So, here age, coverage. How much should I take? If I take it for 60 years, then I have to pay Rs. 1012 every month. If I take it for 65 years, then I have to pay Rs. 1113 every month. But there is a point here. If I take it for 75 years, then you can see the free of cost here. It says that if I take the plan for 75 years, then I will have to pay Rs. 1428 every month. If I take it for 75 years, then it means that he is 31 years old today. If anything happens to him from the age of 31 to 75, then the family will get Rs. 1 crore. But I will select the age of 75. Now, what is written here? If from 60 to 71 years, it is not written here, from 62 to 60 to 71 years, if they feel that I am financially free, I do not have any problem, now there is no problem. I am settled with my children. In that situation, if they feel that all the premiums I have paid, I want to close this term plan. From the age of 60 to 71 years. When is the policy covered? Till 75. As soon as the age of 60 is covered, from 60 to 71 years, if they feel that I want to close this term plan, then you can select this plan free of cost. Secondly, let's say they felt like it at the age of 61. So, for the next 30 years, whatever premiums they will pay, they will get 100% back. They will not get GST, but whatever premiums they have paid, they will get 100% back. So, it is better that he is giving me free of cost. He is not taking money. So, I will take it for 75 years. By the way, you see for how long you need it. Take term insurance only till you feel that your family is dependent on you. Till you feel that your family will be dependent on you you can purchase term insurance. So, I will select 75 years here. So, pay till 75. Below, it is written that you have to pay Rs. 1428 every month. One more thing, here I have different options. If I want, then every month, as I have selected here, pay till 75. So, in this, I will pay Rs. 1428 every month. If I say, pay till 60, that I will be insured for 75 years, but my premiums, as soon as I reach the age of 60, should be over. Till the age of 60 to 75, during that time, I don't have to pay premiums. Here, I have to pay Rs. 1724 every month. If I want, till the age of 46, my premiums should be over. In that case, I have to pay Rs. 2522 every month. That means, from the age of 46 to 75, I don't have to pay any premium. There are one more option. There are many options. If I want till 41, that's it. If I want one time, I can pay Rs. 4,03,000 today. And till 75, I will be insured. If anything happens, my family will get Rs. 1 crore. So, there are different options. I can do one go, pay Rs. 4,00,000, that's it. I can pay every month. That's your choice. As per your expenses, that's fine. That's your choice. You can pay Rs. 4,00,000 every month. That's your choice. So, I will select this. These are the complementary health benefits. These are the different health benefits. These are free of cost. I have shown you everything. These are the options. I have selected them. I will click on the proceed option. Are you diabetic? No. These are the add-ons. There are some riders. This is the first one. We are paying Rs. 1,428 every month. After that, it says, add Rs. 205 per month. If I select this, my premium has increased from Rs. 205. But it says, if anything happens to me, till Rs. 5,00,000, I will get as a health insurance benefit. Do you understand? For this, I have to pay Rs. 205 every month. And for the 64 critical illnesses, this will work as a rider. The next option is accidental death and disability rider. If something happens to me, it says, add Rs. 531 every month. If I select this, my premium has increased from Rs. 531. But instead of this, if something happens to me, like Mr. Rajat, if something happens to me, my family will get an insurance of Rs. 1,00,000. Along with that, I will get Rs. 50,00,000. If you want, you can select this. Or if a person has a disability, God forbid, in that case also, the family will get Rs. 50,00,000. Then this is the sum insured booster. If I add this, my sum insured will increase by 2%. You can take whatever you want from this. If you want to take, select it. If not, you can proceed without selecting. I will click on skip here. Then I have to fill in all the details. I have filled in my name, email address, annual income, PIN code, etc. Then I have to click on proceed. After clicking on proceed, you will see an interface like this. It is asking me to make a payment. You can make a payment in any way. It has shown all the details. If I want to make a payment, I can enter UPI ID. I can also enter their QR code. If I click on it, I can scan it. Let me scan it. I have scanned it. Finally, you can see that the payment has been successful. The payment has been successful. You can see an interface like this. You can see the message that the payment has been successful. You can download the receipt from here. I have downloaded the receipt. Let me show it to you. This is the payment receipt. It has come to me. My term plan has started. One more thing, you can select auto pay. So that every month, you can pay with your account. This is an easy process. So that you can pay every month with your account. There should be no break. Otherwise, it will be a problem. If something happens at that time, then you can set auto pay. It was a simple process. It is easy to purchase term insurance. Many people are scared that it is a complicated process. It is the easiest process. I have shown it to you in 2 minutes. I have given the link of AXIS Max Life Insurance Smart Term Plan Plus in the description box and pinned comment. You can purchase a term plan easily from there. I hope you found this video informative. This is the end of the video. If you found this video informative, then please like the video and subscribe to the channel. See you in the next video. This is the end of the video. Thanks for listening.