Cheapest Life Insurance India 2025

With rising health risks, unpredictable accidents, and growing financial uncertainty, term life insurance has become a must-have for every earning individual or anyone with dependents in India. In a country where one’s income often supports an entire family, securing their future without overburdening your finances is more important than ever.

As this awareness spreads, even young professionals, freelancers, and small business owners are beginning to appreciate the value of affordable term insurance. While many are initially drawn to the cheapest life insurance India options, it’s essential to look beyond just price and evaluate what you’re truly getting in return. 

(Also, please remember that term insurance plans are already one of the most affordable financial products offering security in times of dire necessity. So, while we offer you a list of the cheapest life insurance policies in India, don’t consider this to be the sole decider when picking an option. After all, a term insurance plan is supposed to act as your financial replacement if something catastrophic happens that leads to your unfortunate absence.)

If you need help choosing the right policy, feel free to chat with us on WhatsApp or book a call at a convenient time—no spam — just honest insurance advice.

Overview: Cheapest Life Insurance India 

What is Term Life Insurance?

Term life insurance is the most straightforward and affordable form of life insurance. You pay a fixed premium for a chosen duration (called the policy tenure), which could range from 5 to 30 years or more. 

Ditto’s take: Now, there is no one-size-fits-all to decide either the tenure or the coverage for your term insurance plan. Thus, we usually suggest that you factor in aspects like - 

1. Your retirement age 
2. No. of dependents 
3. Existing loans and their tenures 

-before deciding upon the ideal term insurance tenure for your policy.

In the unfortunate event of your death during this period, your nominee receives a lump sum payout, known as the sum assured. This amount helps your family cover essential expenses, such as loan repayments, education, and daily living costs, ensuring their lifestyle remains stable in your absence.

So, by now, you know that term insurance plans are affordable, right? But why is it so? (With any financial product, especially a long-term one, this should be a mandatory question because what if the offer is “true good to be true?” However, in the case of term insurance plans, the offer is that good!)

• With no investment or maturity benefit, it’s purely a risk cover. 
  Unlike traditional life insurance policies that combine savings with life cover, term insurance focuses solely on protection. This keeps premiums significantly lower.
• Low premiums even for high coverage. 
  Even with a modest monthly or annual premium, you can secure a high sum assured, enough to cover your family’s long-term needs.
• Flexible term durations 
  You can choose the policy term that best suits your life stage, whether it's 10, 20, or even 30 years or more.

These features make term plans the cheapest life insurance option in terms of cost-to-benefit ratio. However, choosing the right policy involves more than just picking the lowest premium.

Benefits of Buying the Cheapest Term Insurance Plan

Here’s a closer look at why these plans are particularly beneficial, especially for families with limited resources or single-income households.

• Financial protection for loved ones at a low cost
  One of the most compelling advantages of opting for a low-cost term insurance plan is the financial safety net it provides. These plans offer substantial life coverage at minimal premiums, making them ideal for individuals whose families rely on a single source of income. By paying a small monthly or annual premium, you can ensure that your family remains financially stable even if something happens to you. 
  
  Moreover, the affordability of these plans means you don’t have to sacrifice your current lifestyle or financial goals just to gain insurance protection. This balance between cost and coverage is beneficial for people managing tight household budgets.
• Peace of mind without straining finances.
  Knowing that your loved ones will be taken care of, without putting your finances under stress, offers immense emotional relief. Term insurance, especially the most affordable plans, allows policyholders to secure their family’s future even with limited income. This sense of assurance can be exceptionally comforting for those with young children, elderly parents, or financial dependents.
• Higher sum assured with minimal premium.
  One of the key benefits of term insurance is the high sum assured it provides, compared to the premium you will have to pay for the plan.
  
  For example: 
  
  For a 30-year-old salaried, non-smoking male, insured for ₹ 1 crore for a term of 35 years. 

This high coverage is crucial for replacing lost income, covering future expenses such as education or marriage, and maintaining the standard of living your family is accustomed to. The cost-to-benefit ratio makes these plans an ideal starting point for those building their financial safety net.

• Suitable for young earners, small business owners, and single parents.
  
  These plans cater exceptionally well to 

1. Individuals who are early in their careers, managing unstable income, or supporting dependents single-handedly. 
2. For young professionals, locking in a low premium at an early age ensures cost-effective protection as their financial responsibilities grow. 
3. Small business owners or freelancers with fluctuating income streams benefit from having consistent coverage without having to commit to expensive premiums. 
4. Single parents, too, can find security in knowing that their children’s future won’t be left uncertain due to financial constraints.

• Liabilities and loans taken care of
  In the unfortunate event of the policyholder’s death, term insurance ensures that outstanding debts, such as home loans, car loans, or personal loans, do not become a burden on surviving family members. This protection prevents a potentially devastating financial situation. Additionally, it helps preserve the family's wealth and assets, as they won’t have to sell off property or dip into savings to repay loans. As a result, plans like children's education, marriage, or even retirement for the spouse can remain on track.

Whether you're just starting your career or managing a household on a single income, a budget-friendly term insurance policy offers a reliable foundation for long-term financial security.

Types of Low-Cost Term Insurance Plans in India

There are many types of low-cost term insurance plans in India, each tailored to different life stages and needs. Understanding the key features and suitability of each type can help you make an informed decision that doesn't compromise on protection.

• Normal/ Level Term Plans
  This is the most straightforward and widely recommended type of term insurance. In a level term plan, both the premium and the sum assured remain constant throughout the policy term. This predictability makes it easier to plan long-term finances, as there are no surprises in premium payments or coverage value. 
  
  Ideal for individuals who have a clear idea of their future financial needs, these plans are especially suited for salaried professionals or those with stable income patterns.
• Return of Premium Plans (TROP)
  TROP plans offer to return the total premiums paid if you survive the policy term, making them initially appear attractive. 
  
  However, this benefit comes with significantly higher premiums, ranging from 70% to 100% higher, compared to regular term plans. In most cases, the additional cost outweighs the benefit of receiving premiums back, especially when considering the time value of money. 
  
  While these plans may appeal to those who dislike the idea of “losing” money if they outlive the policy, they're typically not considered cost-effective in the long run.
• Decreasing Term Plans
  As the name suggests, the sum assured in a decreasing term plan reduces gradually over time. These are typically structured to match a declining liability, such as a home loan or business debt, which decreases with time. 
  
  Although these plans come with lower premiums, they may not be ideal for most individuals since it’s difficult to predict how your liabilities or financial responsibilities will decline. A mismatch could leave your family underinsured when they need support the most.
• Increasing Term Plans
  In contrast to decreasing plans, increasing term insurance provides coverage that increases annually, typically at a fixed rate (commonly 5% to 10%) or in line with inflation. This feature makes it suitable for young earners or individuals expecting to take on growing financial responsibilities, such as a growing family or rising living costs. 
  
  However, it is essential to note that this increase typically has an upper cap, often up to 100% of the original sum assured, and premiums are generally higher from the outset compared to level term plans. While it offers a way to keep pace with inflation, policyholders should carefully assess whether the higher initial and ongoing costs align with their long-term financial plans.

Each type of low-cost term insurance plan in India has its pros and cons, depending on your financial circumstances, age, and long-term goals. While level term plans are ideal for most due to their simplicity and affordability, increasing term plans can offer future-proof coverage.

Factors Affecting the Cost of Term Insurance

When considering term insurance, several key factors can influence the cost of premiums. Insurance companies assess these factors to determine the level of risk associated with providing coverage to an individual. Understanding these elements can help individuals make informed decisions and secure the most suitable and affordable policy for their needs.

1. Age: Younger applicants pay lower premiums.

Age is one of the most crucial factors that determine your term insurance premium. Simply put, the younger you are, the lower the risk for the insurer. 

1. Younger applicants are typically healthier and statistically less likely to face life-threatening health issues in the near future. This lower mortality risk translates into more affordable premiums. 
2. As you get older, however, the likelihood of developing medical conditions increases, and so does the cost of coverage. Insurance companies adjust premiums accordingly to account for this heightened risk. The advantage of buying early doesn’t end with just lower rates. In most cases, your premium is locked in for the entire policy term. 

That means if you purchase a plan in your 20s or early 30s, you can enjoy the benefit of significantly lower premiums for decades, even as health risks and insurance costs rise with age.

2. Health status: Pre-existing conditions may result in higher premiums.

An individual's health history is another crucial factor influencing insurance costs. Those with pre-existing conditions, such as diabetes or hypertension, are considered higher risk for insurers, which often results in higher premiums, which are also called loading charges in insurance jargon. Insurers consider the potential need for medical treatment and the likelihood of a claim (demise) being filed. For this reason, individuals in poor health may be charged significantly more for the same coverage compared to healthier applicants.

3. Occupation: High-risk jobs lead to higher rates.

The nature of a person’s occupation also affects the premium rates of term insurance. Occupations that involve a higher level of physical danger, such as construction work or deep-sea diving, pose a greater risk for insurers. 

Due to the increased likelihood of accidents, individuals in high-risk professions often face higher premiums compared to those in safer, desk-based jobs. This ensures that the insurance company can cover the potential costs associated with accidents or fatalities in high-risk professions. While the high premiums might seem discouraging, please remember that the insurer is merely covering the high risk associated with your job profile.

4. Lifestyle and hobbies: Smokers or enthusiasts of extreme sports may pay more.

Lifestyle choices such as smoking or engaging in extreme sports can significantly increase the cost of term insurance. Smoking, for example, is linked to a variety of health issues, including respiratory diseases and cancer, leading to a higher risk for insurers. 

Similarly, individuals who participate in extreme sports, such as skydiving or rock climbing, are seen as more likely to be injured or killed in an accident, prompting insurers to raise their premiums to account for these risks.

5. Sum assured and tenure: Higher coverage and longer terms mean slightly higher premiums.

The sum assured (the amount your nominee receives in the event of your death) and the policy tenure (how long the coverage lasts) are two significant factors directly influencing your term insurance premium. A higher sum assured increases the insurer’s financial liability, which typically leads to higher premiums. 

However, this rise isn’t always proportional; for instance, while a ₹1 crore cover might cost ₹10,000 annually, a ₹2 crore cover may cost between ₹14,000 and ₹18,000 due to slab-based pricing or volume discounts offered by insurers. 

Similarly, opting for a longer tenure increases the premium, as the insurer is exposed to risk over a longer period. The older you get, the higher the risk of mortality, making policies that extend to age 80 more expensive than those ending at 60.

In conclusion, the cost of term insurance is influenced by various factors, including the applicant’s age, health, lifestyle, and occupation.

Who Should Consider Buying a Low-Cost Term Insurance

Term insurance is particularly beneficial for individuals seeking a cost-effective way to provide coverage without the complexity of more expensive life insurance policies. In this context, there are specific groups of people who should seriously consider buying a low-cost term insurance policy to safeguard their financial future.

• Young professionals who are just starting their career
  For young professionals starting their careers, low-cost term insurance offers a straightforward and affordable way to secure coverage. At this stage, individuals typically have fewer financial responsibilities, but obtaining insurance early allows them to lock in lower premiums, as there are lower chances of an immediate payout. Term insurance can act as a safety net while they build wealth and economic stability over time, ensuring that their families or loved ones are protected if the unexpected occurs.
• Married couples or single parents with dependents.
  For married couples or single parents with dependents, a low-cost term insurance policy offers peace of mind by ensuring that their family members are financially supported in the event of their death. With children or other dependents relying on their income, maintaining adequate life insurance coverage is crucial. Term insurance offers an affordable option to protect the financial needs of dependents, including education, daily living expenses, and future goals.
• Homemakers, especially those whose unpaid work holds value.
  Homemakers often overlook the importance of insurance coverage, but their unpaid contributions to the household are invaluable. If something were to happen to them, the cost of outsourcing childcare, cooking, cleaning, or other household responsibilities could become a significant financial burden. A low-cost term insurance policy can provide financial relief by compensating for the loss of these essential services, ensuring that the family can maintain stability during a difficult time.
• High-risk professionals, such as construction workers or pilots.
  High-risk professionals, such as construction workers, pilots, or those working in hazardous environments, face a higher risk of accidents or fatalities due to the inherent risks associated with their jobs. For these individuals, term insurance serves as a crucial safeguard to protect their families in the event of a tragic occurrence. Despite the higher risks they face, low-cost term insurance remains an affordable way to ensure financial security for their loved ones without incurring significant costs.
• Small business owners, freelancers, and gig workers.
  Small business owners, freelancers, and gig workers often lack employer-sponsored life insurance or other financial safety nets. As the primary earners for their families or businesses, these individuals need to ensure that their absence would not disrupt the economic stability of their dependents or enterprises. Low-cost term insurance provides an affordable option for self-employed individuals to protect themselves and their families, eliminating the need for complex or expensive insurance plans.
• NRIs seeking straightforward, tax-efficient Indian coverage.
  Non-resident Indians (NRIs) seeking simple and tax-efficient insurance solutions may find low-cost term insurance to be an ideal choice. These policies often offer tax benefits under Section 80C of the Indian Income Tax Act, providing a way to reduce tax liability while securing financial protection for their families in India. 
  
  For NRIs who want to ensure their loved ones are covered without the complexities of international insurance policies, a low-cost term insurance policy in India can be an easy and effective solution.

By securing coverage early, you ensure that your loved ones are protected, regardless of what the future holds.

3 Tips to Make Term Insurance More Affordable

While term insurance is generally more affordable than other types of life insurance, there are still ways to make it even cheaper. By adopting a few strategic approaches, you can secure the cheapest life insurance India options without compromising on coverage. Here are three practical tips to help make your term insurance more affordable.

• Compare quotes across multiple insurers. 
  One of the most effective ways to ensure you're getting the cheapest life insurance is by comparing quotes from various insurers. Even slight differences in premiums can add up over time, potentially saving you hundreds or even thousands of rupees in the long run. 
  
  Each insurance provider uses different criteria to assess risk and set premiums, so it is essential to shop around and choose the one that offers the best value for your specific needs. 
  
  Moreover, purchasing policies online often comes with added advantages: while the core service remains the same, insurers frequently offer digital-exclusive, occupation-based, or gender-based discounts that further lower your premium.
  
  You can use our comparison tool or other online tools available. 
• Opt for a shorter term if needed.  
  Choosing a shorter policy term can be an effective way to reduce your term insurance premium, especially if your primary financial responsibilities are expected to decrease by a certain age. 
  
  For instance, a plan that covers you until 65 will generally cost less than one that extends to 75. Since expenses like loan repayments or children’s education often taper off around retirement, a shorter term may still offer sufficient protection. However, when adjusting the tenure, it’s essential not to compromise on the sum assured —the core coverage amount your family would rely on in your absence. 
  
  The goal should be to align your policy term with your expected financial obligations, ensuring both affordability and adequate security for your dependents.
• Improve your health to get better premium rates. 
  Your health plays a crucial role in determining the premium you will pay for term insurance. Insurers carefully assess your medical history, lifestyle habits, and any existing conditions to evaluate your mortality risk. If you're in good health, you're considered a lower-risk applicant and are rewarded with more affordable premiums. 
  
  Conversely, factors like smoking or unmanaged conditions such as diabetes or hypertension can lead to loading (additional) charges that can increase your premium by 30% to even 70%, depending on the severity. 
  
  While premiums naturally rise by about 5–10% annually due to age and inflation, the jump caused by health-related loadings is often far steeper. If you're actively working on improving your health, it may be worth waiting a few months before purchasing a policy to secure better rates. 
  
  In the long run, investing in your health before buying term insurance can result in meaningful savings, benefiting both your physical well-being and financial future.

In conclusion, securing the cheapest life insurance in India doesn’t have to be a complicated process. 

When is the Right Time to Buy a Term Insurance Policy

• Buy early for the lowest premiums.
  The earlier you purchase term insurance, the lower your premiums will be. As discussed above, starting at a younger age locks in lower rates, as insurers view younger individuals as less risky and less likely to claim soon.
• Young and healthy applicants get the best rates.
  Applicants in good health typically receive the most affordable premiums. Insurers offer the best rates to those who don’t have pre-existing conditions, as healthier individuals are considered lower-risk.
• The earlier you start, the better your long-term, inflation-adjusted coverage will be.
  Buying term insurance early offers a significant advantage: locking in a low premium for the entire policy term. Once the policy is issued, your premium remains fixed, allowing you to secure high coverage at an affordable rate, even as inflation drives up insurance costs in the future. Starting early also ensures that your coverage grows in value over time, providing long-term protection that keeps pace with rising living expenses.

Best and Cheapest Life Insurance Options in India 2025

In India, several top insurers offer competitive term insurance plans that strike a balance between affordability, coverage, and reliability. Below, we explore some of the best and cheapest life insurance options available in 2025.

Let’s consider an example of a 30-year-old salaried male, a non-smoker living in Delhi, with a term of 35 years. 

Note: The first-year premium includes a digital and salaried profile discount.

Disclaimer: This data is indicative; please verify the latest premiums. 

• Axis Max Life Insurance Smart Term Plan Plus
  Axis Max Life Insurance Smart Term Plan Plus stands out for its flexibility and customization options, offering seven different coverage options. The "Smart Cover" variant is especially ideal for those who want extra coverage during high-risk years, as it provides 1.5 times coverage for the first 15 years. The plan also includes useful add-ons, such as accidental death benefits, coverage for 64 critical illnesses, and a waiver of premiums in the event of disability or critical illness. While it doesn't offer inflation-linked top-ups or flexible coverage adjustments over time, the customizable options and affordable pricing make it a solid pick for individuals seeking a versatile plan.
• Bajaj Allianz Life eTouch II
  Bajaj Allianz Life eTouch II offers affordability, strong claims performance, and competitive rider benefits, making it one of the best and cheapest life insurance plans in India. The plan includes a zero-cost option for refunding premiums, critical illness coverage for up to 60 conditions, and a relatively short waiting period of 90 days. With a claim settlement ratio of 99.11% and an amount settlement ratio of 93%, the insurer's reliability is also noteworthy. While the plan does not offer inflation-linked coverage adjustments, it strikes a strong balance between price, features, and reliability, making it a compelling choice for those seeking value and simplicity.
• TATA AIA Sampoorna Raksha Promise
  TATA AIA Sampoorna Raksha Promise is a solid and affordable term insurance plan suitable for individuals with lower annual incomes who still require substantial coverage. With a 98.9% claim settlement ratio and a 92.7% amount settlement ratio, it offers reliable service. The plan includes essential add-ons such as critical illness cover, accidental death, and total permanent disability benefits. Additionally, the life stage benefit allows for coverage increases after significant life events. While this plan lacks a zero-cost option in its non-return-of-premium variant and automatic inflation adjustments, it remains an excellent choice for those seeking a dependable, well-priced term insurance policy with strong claim performance and a reasonable range of add-ons.
• ICICI Prudential iProtect Smart
  ICICI Prudential iProtect Smart is a balanced and affordable option for many, especially salaried individuals and smokers. With a claim settlement ratio of 97.52%, the plan offers solid value. It includes useful in-built features, such as the Zero Cost Option, which refunds premiums if you exit the policy within a specified window. Additionally, it provides critical illness cover for 34 specific diseases and offers immediate payouts upon diagnosis. While it may not have inflation-linked top-up options or payout for total permanent disability, the plan's affordability and thoughtful features make it an excellent choice for those seeking basic protection with flexibility at a reasonable cost.
• HDFC LIFE Click 2 Protect Super
  HDFC Life Click 2 Protect Super is a highly customizable term insurance plan offering extensive coverage and robust add-ons. With a remarkable Claim Settlement Ratio of 99.2% and a low complaint ratio of 2 per 10,000 claims, this plan ensures reliable service. It offers valuable add-ons, including accidental death benefits, critical illness coverage, and a waiver of premium in the event of disability or critical illness. While this plan includes some premium features, it may not be the most affordable option for all profiles. The plan’s key highlights include coverage for 60 critical illnesses, with a shorter waiting period of 90 days, and a zero-cost option that allows for a premium refund if you exit during a specified window. However, its premium costs might be higher, making it more suitable for those who prioritize comprehensive coverage and a reputable insurer over cost savings.

Is the Cheapest Term Plan Always the Best Choice?

While finding an affordable term insurance policy is essential, choosing the cheapest option isn’t always the wisest decision. A term plan should offer not only low premiums but also dependable coverage, efficient claim settlement, and valuable features.

• Claim settlement ratio (CSR)
  The claim settlement ratio indicates the percentage of claims an insurer successfully settles out of the total received in a year. A low-cost policy is meaningless if the insurer fails to pay out when it matters. A higher claim settlement ratio, typically 97% or above, indicates that the insurer is more reliable and customer-friendly in processing claims. This should be a top priority because it's the most direct indicator of whether your nominee will receive the benefit.
• Amount Settlement Ratio (ASR)
  The Amount Settlement Ratio indicates the percentage of the total claim amount that was paid out relative to the amount claimed. Even if an insurer settles a high rate of claims, they may not always pay out the full amount. A policy with a higher ASR suggests that not only are claims being settled, but they’re also being paid in full, providing better protection for your family.
• Solvency
  The solvency ratio measures the insurer's financial health. A good solvency ratio (above the minimum requirement of 1.5 as per IRDAI) ensures that the insurer has enough capital to meet its obligations, including paying out claims. A cheaper insurer with a lower solvency ratio could present risks, especially for long-term policies that may last 30-40 years.
• Complaints Volume
  Research the number of complaints against the insurer. If an insurer consistently receives high complaints regarding claim delays, poor customer service, or rejection of claims, it’s a red flag. A slightly more expensive insurer with fewer complaints might offer better peace of mind.
• Customer service
  Good customer service ensures that your queries, claims, and policy changes are handled smoothly and quickly. Cheaper insurers may cut costs by compromising on service quality, which can result in delays or confusion during critical times. A plan backed by responsive and accessible customer support can make a significant difference, especially for your family during the claim process or in times of urgency.
• Riders (like critical illness or waiver of premium)
  Riders enhance the base policy by offering additional benefits, often at a nominal extra cost. A cheap term plan may not provide key riders, such as critical illness or, or it may price them disproportionately. These riders can provide crucial financial support in specific scenarios, like a serious illness or disability, making a slightly more expensive plan with the right add-ons a much smarter long-term investment.
• Long-term insurer stability
  When purchasing term insurance, the financial strength and reputation of the insurer are critical, especially for policies that may last 30 to 40 years. While the cheapest plan from a less-established insurer might seem appealing at first, it could pose significant long-term risks, such as changes in policy terms, delayed claim settlements, or even insolvency. 
  
  Although the IRDAI (Insurance Regulatory and Development Authority of India) works to protect policyholders in the event of bankruptcy, it is always better to avoid such situations altogether. By choosing a well-established, financially stable insurer, you can ensure that the company will be around and capable of paying your claim when you need it most, decades down the line.

Ditto’s Take on Cheapest Life Insurance India

The cheapest term plan may look attractive upfront, but it often comes with compromises that can prove costly when it matters most. Actual value lies in a plan that balances affordability with claim reliability, service quality, essential riders, and long-term trust in the insurer. Instead of focusing solely on premiums, it is wiser to evaluate the total benefit package to ensure that your family's financial security is genuinely protected.

Let’s consider a realistic example to understand this better. 

Imagine Person A buys the cheapest plan, which has a low claim settlement ratio, no riders, and minimal customer support. 

At the same time, Person B pays ₹500 more annually for a plan with a 98% claim settlement ratio, built-in terminal illness benefit, and responsive service. 

When Person A's nominee faces delays or rejections during claim processing, the initial savings quickly become irrelevant. 

Person B’s family, on the other hand, receives timely support and payout, highlighting that best value often trumps lowest price.

Buy The Right Term Insurance Plan Through Ditto

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Conclusion: Cheapest Life Insurance India

Choosing the cheapest life insurance India has to offer doesn’t mean settling for the bare minimum. While cheap life insurance plans with low premium term insurance are excellent starting points, the actual value lies in plans that combine affordability with reliable claim settlement, helpful add-ons, and responsive service. 

Paying just slightly more than the absolute cheapest option can significantly improve your family’s protection. Top affordable term life insurance providers, such as Axis Max Life and Bajaj Allianz, offer customizable plans tailored to the evolving needs of Indian families. 

When you’re looking for cheap life insurance India in 2025, ensure a reputable insurer backs the plan with a proven track record. Ultimately, the best plan is one that provides peace of mind today and financial security tomorrow. 

Choosing wisely now means your loved ones won't face hardship later, even if you're not around.

Frequently Asked Questions: Cheapest Life Insurance India