Term Insurance – Compare & Apply Online
Financial security is one of the most important responsibilities you have towards your family. A term insurance policy ensures that your loved ones have financial support if something unfortunate happens to you. With My Mudra, you can compare multiple options offered by the leading insurance providers in one place and choose the best term insurance plan online. Compare coverage, premiums and policy features and make the right choice.
Last Updated: Jan 9, 2026
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What is Term Insurance and How Does It Work?
As long as the policy remains active and premiums are paid on time, the insurer provides the agreed term life insurance coverage.
A term insurance policy is a type of life insurance that provides financial protection for a fixed period. This is known as the policy term. If the insured person passes away during this period, the insurer pays a death benefit to the nominee.
This policy can help your family:
- Replace your lost income
- Manage household expenses
- Repay outstanding loans
- Fund children's education
- Meet future financial commitments
- Maintain financial stability during difficult times
Since every individual's financial needs differ, you should check various term insurance plan details, including:
- Policy terms
- Premium payment options
- Optional riders
Why Choose Term Life Insurance?
Choosing a term insurance plan is one of the simplest ways to create a financial safety net for your family. Here’s why you should opt for this:
Financial Protection for Dependents
If your family relies on your income, a term insurance policy can provide financial assistance to your nominee after your demise. This helps your family manage regular expenses and other long-term obligations.
Affordable Premiums
Compared to many other life insurance products, term policy premium amounts are generally lower. You get the life cover and protection you need at a lower price.
Flexible Policy Tenure
Most insurers offer flexible policy durations. As a result, you can align the coverage period with your other financial responsibilities.
High Sum Assured Options
You may be able to opt for significant life insurance coverage that matches your family's financial needs. However, this depends on your eligibility and your insurer's guidelines.
Optional Riders
Many insurers allow policyholders to enhance their term life insurance policy with optional riders. This can include protection against critical illnesses, accidental death or disability.
Term Insurance
Coverage Options
Not every family has the same financial requirements. As a result, you can choose the term insurance cover according to your needs.
Level Term Insurance
The sum assured remains unchanged throughout the policy term. This is one of the most commonly chosen forms of life insurance term coverage.
Increasing Cover
Under this option, the sum assured increases periodically during the policy term. This can be a good option if you want to have rising financial responsibilities over time.
Decreasing Cover
In this type of plan, the sum assured gradually reduces during the tenure of your policy. They can be considered if you want to align your coverage with decreasing financial liabilities.
Return of Premium Option
Some insurers offer plans with a return of premium option. Here, eligible premiums paid during the policy term are returned at maturity if the policyholder survives until the end of the policy term.
Joint Life Term Insurance
Some insurance companies also provide joint life policies. These plans cover two individuals under a single policy. The exact coverage and claim structure depend on the insurer's product design.
Comparing these term insurance plan details helps you identify a policy that aligns with your financial goals and protection requirements. Compare coverage from multiple insurance providers on My Mudra.
How Term Insurance Premium is Calculated
The premium you pay for a term insurance policy depends on several factors. Insurers generally calculate premiums individually rather than offering a fixed price for everyone.
In most cases, insurers multiply your annual income by a specific factor based on your age. This may vary between insurers and age groups. For example, the term insurance monthly premium can be 20x or 25x your income.
If you already have an existing life insurance policy, the sum assured under that policy is generally deducted from the maximum coverage you are eligible for.
Term Insurance Policy Calculation
Maximum Term Life Insurance Coverage = (Income Multiplier × Annual Income) − Existing Life Insurance Cover
Premium Payment Frequencies
Some insurers also allow applicants to choose between different premium payment frequencies. You can make payments monthly, quarterly, half-yearly or annually.
The total term policy premium may vary depending on the payment frequency selected.
Example
Suppose Anmol is 30 years old and earns ₹25 lakh per year. She already has a whole life insurance policy with a sum assured of ₹2.25 crore. The insurer she's applying to uses an income multiplier of 25x for applicants in this age group.
Her maximum eligible term insurance cover would be calculated as: [(25 × ₹25 lakh) − ₹2.25 crore] = ₹6.25 crore − ₹2.25 crore = ₹4 crore
In this example, the maximum term life insurance coverage Anmol can apply for is ₹4 crore.
Note
The income multiplier and underwriting guidelines differ from one insurer to another. The final sum assured approved will depend on the insurer's assessment.
Factors Affecting Term Insurance Premium
Insurance companies look into various factors while determining the premium of your term insurance plan. They generally are:
| Factor | How It Affects Your Premium |
|---|---|
| 1Age | Age is one of the biggest factors affecting premiums. Individuals who purchase a policy at a younger age generally receive lower premium rates. This is because they are considered to be of lower risk for the insurer. |
| 2Sum Assured | A higher life cover generally results in a higher premium. This is because the insurer assumes that you are a greater financial liability. |
| 3Policy Tenure | Longer policy terms may influence premium calculations differently. This depends on the insurer's pricing policy and the applicant's age. |
| 4Medical History | Applicants with existing medical conditions may undergo additional underwriting. Certain health conditions may lead to higher premium rates or additional policy conditions. |
| 5Lifestyle Habits | Smoking, tobacco consumption, and excessive alcohol intake may increase your premium. This is because these habits are associated with higher health risks. |
| 6Occupation | People working in high-risk professions may be charged higher premiums, depending on the insurer's underwriting policy. |
| 7Overall Health | Your height, weight, blood pressure and general health condition may also affect premium calculations. |
| 8Premium Payment Option | The premium payable may differ depending on the premium frequency you choose. You can opt for monthly, annual, or limited premium payment options. |
How to Choose a Term Insurance Plan
Carefully consider all term insurance options before making a choice. Here are a few factors you should look into:
Coverage Amount
Your term life insurance coverage should be sufficient to help your family manage household expenses, outstanding loans, children's education, future financial goals and daily living costs.
Policy Tenure
The policy duration should align with your major financial responsibilities. Choose a tenure that covers your working years or until significant liabilities end.
Premiums
Premiums vary from one insurer to another for the same level of coverage. Comparing multiple options at My Mudra helps you understand the available choices before making a decision.
Available Riders
Optional riders can expand your protection depending on your financial needs. You can opt for a critical illness rider, accidental death benefit rider, permanent disability rider or waiver of premium rider.
Other Policy Features
Review the complete term insurance plan details, including premium payment options, waiting periods (if applicable), claim process, policy renewal process and policy exclusions.
Terms and Conditions
Always review the term insurance terms and conditions before purchasing a policy. Understanding the policy wording can help you avoid any confusion during future claims.
How to Buy Term Life Insurance Online
If you're planning to buy term life insurance online, comparing policies before applying can help you understand the available coverage options and premiums required. My Mudra simplifies this process by helping you compare insurance products from multiple insurers in one place. Here's how you can purchase term life insurance online:
Step 1
Compare available term insurance plans.
Step 2
Select your preferred sum assured and policy tenure.
Step 3
Review all premium options and policy features.
Step 4
Complete the online application form.
Step 5
Upload the required documents as requested.
Step 6
Complete any medical examinations, if requested by the insurer.
Step 7
Receive the underwriting decision from the insurer.
Note
- Since every insurer follows its own underwriting process, approval timelines may vary depending on documentation, medical requirements, and policy type.
Term Insurance Application Process
Here’s how you can apply for an online life insurance term plan on My Mudra:
Step 1: Visit My Mudra
Click on “Apply Now” to start your term life insurance application.
Step 2: Enter Your Mobile Number
Register using your active mobile number. Accept the ‘Terms and Conditions’ to continue with your application.
Step 3: Select the Family Members to Be Covered
Choose the family members you want to insure. Based on the gender you select, the relevant family member options will be displayed. Select one or more options and click on “Proceed”.
Step 4: Enter the Age of the Insured Members
Select the age of each family member who will be covered under the term insurance plan. Make sure that the details entered are accurate before moving to the next step.
Step 5: Select Your City of Residence
Choose your current city of residence from the available options and again click on “Proceed”.
Step 6: Verify Your Mobile Number
An OTP will be sent to your registered mobile number. Enter the OTP to verify your profile and continue with the application.
Step 7: Get Suitable Term Insurance Plans
Once you've submitted your details, My Mudra's dedicated team of financial experts will review your profile. We will connect you with eligible term insurance plans that best match your requirements.
What Does Term Insurance Cover?
A term life insurance policy primarily provides financial support to your nominee if the policyholder passes away during the policy term. Generally, your cover may include:
Note: The exact life insurance term coverage depends on the insurer and the plan selected. Always review the policy wording carefully before purchasing.
Death Due to Natural Causes
If the policyholder passes away due to illness or natural causes during the policy term, the nominee may receive the applicable death benefits.
Accidental Death
Most standard term insurance policies cover accidental death. Some insurers also offer enhanced accidental death benefits through optional riders.
Terminal Illness Benefit
Certain insurers provide a faster payout if the insured is diagnosed with a terminal illness covered under the policy.
Optional Rider Benefits
Depending on the insurer, you may be able to enhance your policy with additional riders. These are generally available at an additional premium and have separate policy terms.
Exclusions & Terms and Conditions
Term life insurance policies have specific exclusions, limitations, and policy conditions. Understanding the term insurance terms and conditions before purchasing a policy is essential.
Non-disclosure or misrepresentation of material facts during the application process
Fraudulent claims
Lapsed policies due to non-payment of premiums
Exclusions specified under optional riders
Waiting periods or other policy-specific conditions, where applicable
Certain policies may also include provisions relating to suicide
Contestability periods
Other specific exclusions applied by the insurer
Before purchasing a policy, carefully read the policy brochure and policy wording to understand the exact scope of coverage. Also review all exclusions, waiting periods, claim requirements, and other applicable conditions.
Why Compare Term Insurance Plans?
My Mudra helps you compare insurance products from multiple insurers easily. Some of the key benefits of comparing plans include:
Premium Variation
The premium for the same insurance cover can vary across insurers based on various factors and the underwriting process. Compare all plans to find a policy that offers suitable coverage at a premium that fits your budget.
Insurance Coverage Features
Every insurer offers different policy features and benefits. Comparing plans helps you understand coverage options, benefits and additional features so you can choose a policy that fits your financial needs.
Claim Settlement Ratio
An insurance company’s claim settlement ratio reflects its claims settlement performance. Comparing this can help you shortlist providers that have a good record of settling claims.
Policy Terms and Conditions
Policy exclusions, waiting periods and other term insurance terms and conditions generally differ between insurers. Understanding these details helps you make a more informed decision.
Customer Service and Support
The quality of customer support can vary from one insurer to another. Comparing insurers based on their service can help ensure a smoother experience throughout the policy lifecycle.
Riders and Add-ons
Most insurers offer optional riders, such as critical illness, accidental death, or waiver of premium benefits. Comparing all the available riders and their costs helps you customise your policy according to your protection requirements.
Flexibility and Customisation
Different insurers offer varying levels of flexibility in terms of premium payment options, policy tenure, and customisation features. Comparing plans allows you to choose one that can better adapt to your changing financial needs over time.
Frequently Asked Questions
Compare Term Insurance Plans with Confidence
Find the Right Term Insurance Plan for Your Family. Review premiums, coverage options, policy features, and eligibility from multiple insurers in one place. Whether you're buying your first policy or looking for better coverage, make an informed decision with My Mudra.
Instead of reviewing multiple insurer websites individually, compare plans and get the best term insurance policy that suits your needs.
My Mudra simplifies the comparison process by helping you explore insurance products in one place. Our dedicated team of financial experts are here to help you throughout the entire process.
Families Securedwith Term Insurance
See how My Mudra has helped individuals protect their families' financial future with the right term insurance plans.
Rohan Sharma
"As the sole earner, I wanted to make sure my family stays financially secure no matter what. My Mudra helped me pick a high-cover term plan at an affordable premium within minutes."
Amount
₹1 Cr Cover
Purpose
Family Protection
Priya Patel
"I compared several plans and was confused about which one to choose. The team at My Mudra explained everything clearly and got me the best premium for the coverage I needed."
Amount
₹75 Lakh Cover
Purpose
Income Replacement
Amit Verma
"Buying term insurance felt complicated until I came to My Mudra. The process was completely paperless and I secured a ₹1.5 Cr cover for my family without any hassle."
Amount
₹1.5 Cr Cover
Purpose
Long-Term Security
Neha Kapoor
"With a home loan and two kids, I needed a safety net for my family. My Mudra's advisors helped me choose a term plan with the right riders at a premium that fit my budget."
Amount
₹1 Cr Cover
Purpose
Loan & Family Cover