Term Insurance

The documents you require are:

• Age proof (Passport, Driving License, School Leaving Certificate, PAN Card)
• Address proof (Passport, Driving License, Aadhaar Card, Voter ID, Electricity Bill, Gas Bill, Telephone Bill, Ration Card)
• Identity proof (PAN Card, Aadhaar Card, Passport, Driving License, Voter ID)
• Passport size photographs
• Income proof (Salary slips, ITR - V for the past 3 years)
• PAN/ Form 16 (compulsory)

Here are some pointers to consider before choosing the perfect term insurance policy

• It is better to get a term life insurance cover which is at least 10 times your annual income. This will ensure your family’s expenses for the next 10 years are met. It is best to check your family’s financial needs and upgrade the sum assured as and when required.
• Be sure to add liabilities to your family’s needs since they will have to pay liabilities after your unfortunate demise. Consider this while fixing your sum assured.
• Be sure to check the insurer’s claim settlement ratio before buying a term plan. Claim settlement ratio is the ratio of number of claims raised to the number of claims settled.
• Another ratio to check is the company’s solvency ratio. This indicates the financial health of the insurance company. As per IRDAI regulations, the minimum solvency ratio must be 1.50
• If you have a history of health problems in the family, it is better to get a term insurance policy with critical illness riders.
• If your family’s income needs are fixed, you can structure the death payout in the form of a monthly income scheme.
• It is best to invest in an insurer who provides all details including charges and fees upfront. Be sure to read the offer document carefully before investing.
• Remember, the cheapest premium does not equate to the best term insurance plan. Read through the brochure and contact the company representatives to get things clarified before investing.

The insurance company calculates premium for your insurance policy based on several factors such as:

• Age
• Sum Assured
• Gender
• Smoker or non-smoker
• Yearly income
• Medical test reports

The term insurance premium is an indication of the risk that the insurance company has to bear to insure the life of the policyholder. These premiums are calculated by the company using actuarial tables to assess risk. However, each insurance company also has a term insurance premium calculator on their website that will let you know an approximate premium for the given inputs entered by you. The final decision is left to the insurance companies but using a term insurance premium calculator will give you an estimate of how much premium you can be expected to pay. Using this calculator will help you budget for yearly premiums in your finances.

It is possible to buy family term insurance as well. Several term plans also include a joint life benefit. A joint life benefit includes coverage for the spouse as well. This covers the life of both the policyholder and the spouse. Even if either the policyholder or the spouse dies, the term insurance policy continues till the death of the other. Getting a term plan for your family or a group term life insurance policyis an excellent choice. A family’s finances are interconnected and buying a term plan can ensure high coverage and financial security in case of any emergency.

A term plan also comes with an option to return the premiums on maturity. The premium for such plans is slightly higher than pure term insurance policies but opting for such policies can help meet family expenses on maturity of the policy.

A

Age limits This is the maximum or minimum age for availing a life insurance policy

Annuity Plans Annuity plan is an insurance product that helps you plan for your retirement. This plan provides you with guaranteed income after retirement and for the rest of your lives

Assignee An assignee is a person who is assigned to the title, rights, and benefits of a life insurance policy

Assignor Assignor is the person who transfers the title, rights, and benefits of the life insurance policy to the assignee

Applicant / Proposed The person who applies for the insurance policy and becomes part of the insurance contract after a policy is issued is known as applicant

Assured / Insured Insured/assured is the person who is legally entitled to avail benefits covered under a policy

B

Beneficiary A beneficiary is someone eligible to receive the payouts from an insurance policy when the policyholder dies

Bonus Bonus is the extra amount of money which one gets over the basic sum assured during the policy term

C

Claim Amount It is the amount which is to be paid to the insured or beneficiary by the insurance company at the maturity of the policy or upon the death of the policyholder

D

Death Benefit It is the amount of money paid to the stated beneficiary or nominee of a life insurance policy upon the death of the policyholder

Deferment Period This is the time between the date of policy inception to the vesting date

Deposit Term Insurance There's no involvement of 'deposit' as such. This is a type of term insurance where premiums paid in the starting year are more than the premiums to be paid in the forthcoming years

E

Endowment Policy This is a type of insurance policy that offers the dual benefits of insurance and savings under one single policy. You can avail lump-sum amount in the form of maturity benefits when the policy term comes to an end

G

Group Insurance It covers a group of people who are involved in common activities such as employees of a particular organization, members of a particular society, etc. It provides insurance protection to several people under one policy

Guaranteed Addition This is a guaranteed benefit added to your basic sum assured and is payable at the time of maturity or death of the policyholder

I

Insurability It is the degree of an individual's vulnerability to risk factors that are based on their health, susceptibility to different contingencies, and local factors affecting life expectancy

Insurable Interest It refers to the continuous financial benefit that is derived from the insured person, which after his death would get void. For self-insurance, the presumptive insurable interest is unlimited

K

Keyman Insurance This is a type of insurance where the employer buys a life insurance policy and pays the premium but the life to be insured is that of the employee

L

Lapsed Policy A policy that has been canceled for not making premium payments on the due date or even within the grace period

Life Assured The life assured is the one whose life is being insured under a life insurance policy

Loyalty Additions Loyalty additions are the additional benefits that an insurance company offers to a policyholder if they stick to the policy throughout the term

M

MaturityThis refers to the date on which a policy matures

Maturity Claim The amount of money that the policyholder receives at the end of the policy term is called a maturity claim

N

Nomination Nomination is a process whereby the policyholder nominates a person or persons to receive death benefits in case the insured dies

P

Policy It's a contract between the policyholder and the insurance company wherein the policyholder pays premium during the policy term and in return, the insurance company offers financial coverage

Policy Period This is the time period during which your policy is valid

Premium Notice This is the notice issued by the insurance company to notify a policyholder that a premium will be due on a given date

Paid-up Value This is the reduced amount of sum assured paid by the insurer in case you fail to pay your premiums on time and policy lapses

Premium A premium is a payment or installment made by the policyholder to the insurance company for covering his/her risks

R

Reinstatement The process of renewing a lapsed policy is known as reinstatement. As per this clause, a lapsed or terminated life insurance policy can come in to force again

Risk Risk is a danger or threat covered by the insurer when a policy is issued. This is an event or happening that may occur to the insured and can lead to huge financial losses

Rider A rider is an add-on cover added above your insurance policy. These are additional coverage options that come in to force along with the policy at an extra cost

Rebating Rebating is defined as an offering given to a prospective insurance buyer as an inducement to buy a policy. This practice is strictly prohibited under law

Reinsurance Reinsurance is a practice where insurance companies buy insurance from other insurance companies to protect themselves against financial losses

Renewable Term Insurance This is a type of term insurance policy that allows you to renew your policy at the end of the policy term regardless of your current insurability

S

Solvency Margin Solvency margin determines the net worth of an insurance company. As per IRDA, insurance companies need to maintain a solvency margin i.e., the surplus of capital over the number of liabilities

Suicide Clause This is a clause in the policy contract stating that the insured person's beneficiary or nominee will receive no death benefits if the policyholder commits suicide in the initial years of the policy

Sum Assured This is the amount that an insurance company pays to the policyholder at the time of maturity or in case of any eventuality such as death

Surrender Value This is the amount of money that insurance company pays to the policyholder when he/she decides to discontinue the policy before its maturity

Survival Benefit This is the amount that an insured person will get if he/she lives till the end of the policy term and the policy is still in force

T

Term The time period for which a life insurance policy is in force and offers coverage to the policyholder

Term Life Insurance As the name suggests, term life insurance is a pure protection plan that offers financial coverage to the policyholder for a defined time period

U

Underwriting This is the process where insurance companies assess the risks associated with the prospective policyholder. Also, they evaluate their insurance needs and how much a policyholder needs to pay for it

Uninsurable Risk Risks that are not covered by an insurance company, either because it is not appropriate or not eligible to be insured

V

Void Contract A contract or policy that has no legal validity. Under a void contract, no claim is payable and no return of premium shall be made

W

Waiting Period This is the time during which you cannot claim any benefit offered by an insurance company

Y

Yearly Renewable Term This is a type of short-term insurance policy that offers insurance coverage for a period of one year. Here, the insurance premium is quoted for one year

There are a variety of insurance products that can help you financially secure your life. A term life insurance is the simplest and the most basic type of insurance. It guarantees the payment of a death benefit in case the insured passes away during the policy term. A term life insurance plan generally does not have any savings component, which makes it one of the cheapest life insurance plans. A term life insurance cover ceases to exist after the expiration of the policy tenure. Some term life insurance plans also offer ‘riders’ which handily provide the policyholder enhanced coverage at a low cost.

In case of an unfortunate event, if the need arises, it is exceptionally easy to file an insurance claim. There are three distinct steps to filing a term insurance claim.

Intimation: The first step while filing a claim is to inform the insurer about the death of the insured. The insurance company has to be intimated within 90 days of the death of the insured with relevant documents like death certificate. With PNB MetLife, you can download the claims form online in your regional language and send the duly filled form to the company.

Processing: Upon receiving the claim forms, the insurance company verifies the documents and assesses the claim’s merit. The insurer can ask for additional documents or choose to examine the claim further. The exact documents slightly vary depending on the type of policy and the insurer. The documents required to file a claim with PNB MetLife are as under:

• Copy of Death Certificate (issued by the local authority)
• Original Policy Document or Indemnity Bond in case the Original Policy Bond is lost
• Claimant’s Statement
• Doctor’s Certificate (in the specified format)
• Photo ID proof and address proof of the nominee
• Cancelled cheque leaf or bank passbook of the beneficiary under the policies

The basic documents remain the same but may vary slightly in the case the policy covers accidental death or critical illness.

Payout: The claim is processed within 30 days of the submission of relevant documents. In case of an investigation, the investigation is completed within 90 days from the intimation of the claim. The final decision on the claim is taken by the PNB MetLife within 30 days of the completion of the investigation. What is term insurance plan premium? Term insurance is essentially an agreement between the insured and the insurance company. The insurance company promises to pay the insured a pre-decided death benefit on the condition that he/she regularly pays a mutually decided premium. The insurance company uses the premium to provide the death benefit. Insurers very often provide flexibility in premium payments. Generally, term insurance premiums can be paid on a monthly or yearly basis.

Term insurance is essentially an agreement between the insured and the insurance company. The insurance company promises to pay the insured a pre-decided death benefit on the condition that he/she regularly pays a mutually decided premium. The insurance company uses the premium to provide the death benefit. Insurers very often provide flexibility in premium payments. Generally, term insurance premiums can be paid on a monthly or yearly basis.

A term insurance plan takes into account the potential risks to the insured and the premium is calculated accordingly. A high-risk individual will have to pay a higher premium when compared to an individual with moderate risk. Risk can be of various types; for instance, occupational risk. Nicotine use is also a type of risk. Continuous use of nicotine can result in respiratory illness, heart diseases or even cancer. Since many term insurance plans cover critical illness, heart diseases and cancer, insurers naturally charge a higher premium from nicotine users. While buying a term insurance plan online, you have to clearly state your history of nicotine use. If an individual is a nicotine user, his/her premiums maybe a third higher than a non-user. Concealing nicotine use while buying a term insurance plan could lead to the rejection of the claim.

A term insurance policy guarantees monetary payout to the nominee in the event of the insured’s death. Besides the death benefit, term insurance plans generally do not provide other monetary benefits. However, you can claim tax benefits on the premiums paid for a term insurance policy. The premiums paid for yourself, your spouse and children are eligible for a tax deduction of up to Rs 1.5 lakh in a year under Section 80C of the Income Tax Act, 1961. Some best term insurance plans also return the premiums paid after the end of the policy term.

If the insured does not die within the policy tenure of a term insurance plan, the policy simply ceases to exist. Term insurance policies do not have a savings component and hence there are no maturity benefits. The insured can also choose to renew the plan. Policies with the ‘return of the premium’ clause pay back the premiums paid during the policy term.

Buying a term insurance plan with a Sum Assured which is significantly more than you need can be a drain on your finances. Similarly, being underinsured can be counterproductive. The optimum cover depends on your annual income, liabilities and your financial goal. As a thumb rule, you should have a term insurance cover equal to 15-20 times your annual income. To get a better idea of the required term insurance cover, you can use the ‘protection calculator’ in the ‘tools’ section of www.pnbmetlife.com.

If the insured does not die within the policy tenure of a term insurance plan, the policy simply ceases to exist. Term insurance policies do not have a savings component and hence there are no maturity benefits. The insured can also choose to renew the plan. Policies with the ‘return of the premium’ clause pay back the premiums paid during the policy term.

Term insurance plans pay the sum assured in the event of the death of the insured. However, people seeking better coverage can opt for riders, which essentially enhances the basic policy. You have to specifically opt for such riders while buying the policy. Term insurance policies with riders have higher premiums when compared to basic policies. Some of the riders offered with best term insurance plans are:

• Accidental death
• Accidental disability which includes total or partial disability
• Heart attack and cancer
• Other critical illnesses such as kidney and liver failure
• Spouse cover
• Increasing cover with life cycle

Even though a term life insurance policy is designed to cover death, there are certain types of death that are not covered by term life insurance policies. Deaths due to the following reasons are not covered by term insurance.

• Murder of the policyholder
• Death due to involvement in criminal activities
• Death under the influence of alcohol
• Death due to participation in hazardous activities, which includes adventurous sports like paragliding and bungee jumping
• Suicidal death
• Death due to pre-existing health issues
• Death due to childbirth
• Death due to natural disaster

Term life insurance is bought to financially secure the life of our loved ones, however, some intentional and unintentional mistakes can defeat the purpose of taking the policy. Insurance companies reject term insurance claims due to several reasons.

Giving incorrect details: While filling the form for term life insurance, ensure that you provide correct details. Insurance companies take concealment of information or providing incorrect information very seriously and it could lead to the rejection of the claim.

Hiding medical history: Not disclosing medical history is valid ground for ejection of the claim. If it is found that the insured had a pre-existing disease which was not declared in the insurance form, the insurer may reject the claim. Some people also hide their smoking or drinking habit to reduce the premium. It could also result in the rejection of the claim.

Refusing to undergo medical test: While buying a term life insurance plan, you are required to undergo a medical examination. The insurance company uses the medical test to assess the risk. Refusal to undergo medical examination could lead to the rejection of claim later.

Not disclosing existing policies: When you buy new term insurance, you are required to provide information about any existing policies. Failure to reveal existing policies can result in the rejection of the claim.

Yes, you can have multiple term insurance plans. However, it is not wise to buy more than two term insurance policies. Most people get multiple term insurance policies because they fear they may face claim rejection. Even though buying multiple term insurance policies provides more security, it increases the total amount of premiums you have to pay. This is not feasible in the long run as you could end up putting a strain on your financial resources. It is advisable to stick to one term insurance policy from a reliable and trusted insurance company like PNB MetLife.

We have a reputation for settling a large part of our term insurance claims - and only within 3 hours! Our claim settlement ratio of 97.18% in the financial year of 2019-2020 is a testament to the value we place on our customers’ lives. It would also be prudent to remember that you cannot buy two term insurance plans from the same insurer. Moreover, when you get your second or third term insurance policy, always disclose the fact of your purchase to the previous insurer to avoid any claim rejections in the future.

Yes, the term insurance plans of PNB MetLife cover COVID-19 death claims. These include:

• PNB MetLife Mera Term Plan
• PNB MetLife Mera Term Plus Plan
• PNB MetLife Mera Mediclaim Plan

We also cover COVID-19 hospitalization expenses and COVID-19 death claims in our PNB MetLife. PNB MetLife Mera Mediclaim Plan is a one-of-a-kind insurance product that provides the dual protection of life insurance and health insurance.

Term insurance is the purest form of life insurance offering limited benefits. Life insurance is an umbrella term for various kinds of life insurance products. Here are the main differences between term insurance plans and life insurance plans:

• Death benefit:
  Term insurance plans only offer a death benefit in case the life insured under it dies. However, life insurance plans offer a death benefit along with several other benefits.
• Maturity benefit:
  A maturity benefit is the return of all premiums paid along with interest if applicable at the end of the life insurance plans. Pure term insurance plans do not provide this benefit. So, if the life insured survives the term insurance plan, he/she will not get any maturity benefit, unless it is a term plan with return on premium.
• Premium price:
  Term insurance plans have the edge over life insurance plans when it comes to the price of premiums. They provide extensive coverage at affordable rates. Life insurance plans require the payment of higher premiums for the additional benefits offered under them.
• Surrender benefit:
  Term insurance plans are easier to exit from compared to life insurance plans. So, if the buyer stops paying term insurance premiums, his/her term plan will lapse automatically. Surrendering life insurance plans can cost the buyer the returns accumulated under them, but he/she will be able to recover the surrender value (return of premiums paid). However, life insurance plans acquire a surrender value only after all the premiums have been paid for the first two years of the policy and the surrender value as well as the charges can be different for each life insurance plan.

Buying term insurance or life insurance plans depends on your needs and budget. Both term insurance and life insurance plans have unique benefits to offer. If you want a simple life cover that provides extensive financial support to your beneficiaries in times of need, you can go for a term plan. The premium price of a term plan is also nominal and affordable, and exiting it is far easier than cancelling a traditional life insurance plan. Buying an online term plan also helps you save on premiums as they remove the costs of any administration or agent’s fees.

Traditional life insurance plans are also convertible. But there may be cancellation charges applicable for switching over to a term plan. They have an edge over basic term insurance plans as they offer the dual benefit of life insurance protection and maturity benefits and so, the premiums are on the higher side. You can get both term insurance and traditional life insurance plans online from the comfort of your home.

Term insurance plans offer single and regular modes of premium payment. The single pay requires you to pay the entire premium amount at one go. The regular pay gives you the freedom to pay in instalments every month, quarter, half-yearly, or annually. You can switch between the two payment modes but only on the renewal date of the term insurance plan. You can contact us via our registered details available on our customer service page to know more about the same. Paying in instalments can be more convenient than paying a one-time lump sum. However, lump-sum payments can cost you lesser premiums in the long run.

You can get a term plan that offers coverage of ₹1 crore in the same way as other term insurance plans. It is better to buy an online term plan than offline as doing so will save you money and time. A 1 crore term plan offers a high death benefit for an affordable premium price. PNB MetLife’s Mera Term Plan is a simple term insurance plan that can offer you this amount. The premium amount, however, will depend on the policy term, the premium payment term, etc. However, before you choose a term insurance plan, you should assess your needs and calculate the approximate amount of funds your family will need in your absence. Sometimes, a cover amount of ₹1 crore might not be enough. Unforeseen expenses can arise anytime, so it is prudent to get a sum assured that fits your needs. Moreover, with inflation on a continuous rise, this amount might not be enough to meet the then-current rate of things. Term insurance plans with a ₹1 crore cover are affordable and convenient.

The working of a term insurance plan is simple. It is the most basic form of life insurance and provides a guaranteed death benefit to the family members of the life insured in case of his/ her demise. Term insurance plans are well-known for providing extensive insurance protection at affordable prices.

The coverage provided only lasts during the term of the term insurance plan. In pure term insurance plans, if the life insured survives the term, he/she does not receive any maturity benefit. However, PNB MetLife’s Mera Term Plan Plus is the best term insurance plan as it returns the premiums paid as a survival benefit. This way, you do not lose out on your hard-earned investment and also remain covered for the entire term.

Term insurance plans also come with additional riders for an added layer of financial protection in case unforeseen events arise. These include accidental death, permanent disability arising due to an accident, and diagnosis of a critical or terminal illness. So, in the event the life insured suffers from any of the above scenarios, his/ her family will receive extra financial support to ensure there is no threat to their stability.

The premiums of term insurance plans need to be paid on time to keep the term insurance plan in force. However, sometimes you can miss a payment due to a time crunch or any unforeseen expenses. You can also simply forget that your payment date is near. In such cases, we provide a 30-day grace period to complete payment.

If you fail to make payment even during this period, your term insurance plan will lapse. The best way to avoid this hassle is to set a fixed reminder for your payment date. Moreover, you will also receive reminders from us from time to time to make the payment on time. Another way you can avoid defaulting is by making a one-time lump-sum payment for your term insurance plan.

We understand the devastating impact of the coronavirus outbreak across the globe. Vowing to be your life insurance partner at all times, we will walk with you every step of the term insurance claim journey.

It is best to invest in a term insurance as early as possible. Once the premium has been decided on a term insurance plan, it does not change for the entire policy duration. To keep premium costs low even with a high sum assured, it is recommended to buy a term life insurance as soon as possible.

There are many different insurers offering term insurance policies in India. The best term insurance plan is one that meets all your needs and gives you the flexibility to choose. However, with PNB MetLife, you can customize your term plan.

There are 6 different types of term plans available:

• Return of Premium Plans:
This term plan comes with a feature to return the premium paid during the term plan duration.

Under this option, the sum assured keeps increasing either after the passage of time or after certain life goals such as marriage, birth of the first child, the birth of the second child etc. Under these plans, the premium amount stays the same but the sum assured keeps increasing.

• Term Plans with Riders:
Term riders provide additional coverage over and above a term insurance policy. The sum assured under a term rider is paid out when the conditions mentioned in the term rider are met. Term policies are issued with riders to provide additional coverage.

A term plan covers the risk of death of the policyholder, critical illness rider. If you opt for term riders, you can get additional coverage in case of accidental death or critical illnesses.

Yes, term insurance plans do offer tax benefit. A term insurance plan for self, spouse, and children gets a deduction under Section 80C of the Income Tax Act up to Rs. 1, 50,000.

The general eligibility criteria for securing term insurance are:

1. You must be a citizen of India.
2. You must be between 18 to 65 years of age.
   
3. The maximum maturity age in a term insurance plan is 99 years (for the joint-life option, the maturity age is 75 years for the primary and secondary life).
   

Term insurance is one of the most famous tax-saving instruments. Under Section 80C of the Income Tax Act, 1961, you can get a tax deduction on the premium paid towards a term insurance plan. You can claim a deduction of up to ₹1,50,000 in a year. 

You can save further on tax under section 10(10D) of the Act. Under this provision, the death benefit or sum assured your family receives will be exempt from tax. Moreover, the maturity benefit is non-taxable provided the premiums paid towards a term insurance plan do not exceed 10% of the sum assured or benefit amount for policies purchased on and after 1st April 2012. For policy purchased before 1st April 2012, the premium paid should not be more than 20% of the sum assured to avail the tax benefit on the maturity amount.

Additionally, you can also save tax indirectly under section 80D of the Act by adding health-related riders to your term plan. Adding riders like the critical or serious illness rider, for instance, can help you claim a deduction on the tax paid during the year. 

Smoking is a detrimental habit that reduces your lifespan and threatens to bring upon a host of debilitating diseases like cancer, heart disease, and others. Therefore, insurers consider it a direct risk to your lifespan and an increased liability in providing you insurance coverage. 

When a person is in the pink of health, has no harmful lifestyle habits like smoking, and has lower threats of carrying on hereditary illnesses, they have a higher chance of living longer. A person having a better shot at a better lifespan automatically reduces the liability of insurance companies compared to a person who smokes and exposes themselves to significant health issues. In some cases, smokers get charged higher premiums. 

Term insurance riders are extra add-on covers that provide additional financial protection over and above the base coverage in a term insurance plan. The base coverage in a term plan is the death benefit, or sum assured payable to a family on the policyholder's demise. 

However, other unforeseen situations in life can threaten to bring everything to a halt. For instance, the diagnosis of a critical illness or a permanent disability caused due to an accident are serious eventualities that can impact the quality of your life. 

Term insurance riders protect you against the aftermath of such scenarios by providing additional financial support in the form of a rider pay-out. This rider pay-out ensures your family continues to achieve their goals, sustain their lifestyle, and you have enough for getting back on your feet. 

Some of the most popular riders include critical illness rider, accidental disability benefit, accidental death benefit, and serious illness rider.