Buy Term Insurance: A Complete Guide

Thinking about term insurance but unsure where to start? With dozens of plans, confusing features, and rising premiums with age, choosing the right cover can feel overwhelming. 

At Ditto, we’ve guided thousands of people daily to make smarter insurance choices, so we truly understand what matters most when selecting a term plan. This guide breaks down term insurance simply, compares the best plans of 2026, and helps you buy the correct term plan without overpaying.

Top Term Life Insurance Plans (2026)

Before we discuss the list, we assess the plans through Ditto’s Cut to ensure strong coverage, clear features, and long-term value.

1) Axis Max Life Insurance Smart Term Plan Plus

The Axis Max Life Smart Term Plan Plus is a flexible term insurance plan offering six variants. For most buyers, the Regular (Level Cover) and Smart Cover options stand out, making it a well-rounded and customizable choice for varied protection needs.

Features:

• Accidental Death Benefit and Critical Illness Cover (up to 64 illnesses)
• Regular or Smart Cover (1.5X coverage for first 15 years)
• Waiver of Premium on Disability or Critical Illness
• Terminal Illness Benefit (up to ₹1 crore)
• Additional features like Zero-Cost Exit Option and Women's Perks (Lifeline Plus & Discounts)
• An accelerated benefit of 2 Lakhs out of the base sum assured within 1 working day upon intimation of death( after waiting period of 1 policy year)

Note: The listed premiums are for a non-smoker male (Coverage till age 70, without first year discounts)

2) HDFC Life Click 2 Protect Supreme

HDFC Life Click 2 Protect Supreme is a comprehensive term plan that offers a flexible Smart Exit benefit and cover increase options. It also gives all customers access to comprehensive health management services through the Life Rewards app.

Features:

• Accidental Death & Terminal Illness Benefit (up to ₹ 2 crores)
• Disability & Critical Illness Premium Waiver
• Income benefit on Accidental Disability
• Insta Payment on claim intimation and Inflation-linked cover
• Critical Illness Cover (60 illnesses)
• Life Stage Cover Increase

Note: The listed premiums are for a non-smoker male (Coverage till age 70, without first year discounts)

3) Bajaj Life eTouch II

Bajaj Life eTouch II is a strong term plan with useful riders, including a comprehensive 60-illness critical illness cover. It also stands out for affordable premiums, a good claim settlement record, and discounts for salaried and first-time buyers.

Features:

• Accidental Death Benefit
• Life Stage Benefit (increased coverage after marriage/childbirth)
• Early Exit Option 
• Waiver of Premium on Accidental Total & Permanent Disability
• Terminal Illness cover (up to ₹2cr) 
• An accelerated benefit of ₹2 Lakhs out of the base sum assured within 3 working days of claim registration( after waiting period of 1 policy year)

Note: The listed premiums are for a non-smoker male (Coverage till age 70, without first year discounts)

4) ICICI Prudential iProtect Smart Plus

ICICI iProtect Smart Plus is a comprehensive term plan offering features like a Premium Break that lets you defer premiums for a year, Insta Payment with a ₹3 lakh advance payout on claim intimation, and the flexibility to switch from regular to limited pay after three years.

Features:

• Accidental Death Benefit and Zero Cost Option 
• Life Stage Benefit (increased coverage after milestones like marriage/childbirth/home loan)
• Terminal Illness Payout (Entire base cover)
• Critical Illness Cover (60 illnesses)

Note: The listed premiums are for a non-smoker male (Coverage till age 70, without first year discounts)

5) Aditya Birla Sun Life Super Term Plan

Aditya Birla Super Term Plan offers multiple cover options, income-based payout choices, and optional riders. While premiums can be slightly higher for younger buyers, they are justified by the plan’s strong built-in features and long-term flexibility.

Features:

• Accelerated Critical Illness Benefit 
• Waiver of premium on Accidental Total & Permanent Disability
• Life Stage Flexibility and Terminal Illness payout 
• Cover Continuance (premium deferment up to 12 months)
• Early Exit Value (specific age/tenure bands)

Note: The listed premiums are for a non-smoker male (Coverage till age 70, without first year discounts)

Learn more about these term plans and how we rate them.

What Are the Different Types of Term Insurance Riders?

• Critical Illness Rider: In case you opt for this rider, you receive a lump sum payout upon diagnosis of a critical illness listed in the policy, which helps cover loss of income and medical expenses and preserves your savings.
• Accidental Death Benefit Rider: With this rider, your family receives an additional sum if you pass away due to an accident, over and above the base policy payout.
• Waiver of Premium: Premium payments are waived in case of a covered risk, ensuring the policy remains active even if you're unable to pay.
• Terminal Illness Cover: This benefit is often inbuilt. If you’re diagnosed with a terminal illness, a part of the cover is paid in advance. This helps you access funds early and plan expenses and family needs in time.
• Total Permanent Disability Rider: If an accident leads to permanent disability, this rider gives a lump-sum payout. It helps manage income loss. It is helpful for individuals with high-risk jobs or those requiring additional protection.

Who Should Buy Term Insurance?

• Salaried Individuals: Ideal for protecting dependents against loss of regular income and covering liabilities like home loans.
• Self-Employed Professionals: Helps secure family finances despite irregular income and business risks.
• Married Individuals and Parents: Ensures your spouse, children, and dependents can manage living costs and future goals.
• Young Earners and First-Time Buyers: Lock in low premiums early and build long-term financial protection at minimal cost.

Put simply: Individuals with dependents, loans, or financial responsibilities (current or potential future ones) should buy a term plan.

When Is the Right Time to Buy Term Insurance?

The ideal time to buy a term plan is when you start earning, preferably when you are in your 20s and early 30s. This is because the premium for a term plan is more affordable when you are younger, healthier, and relatively disease-free. 

Delaying the decision to purchase a term plan can be costly. Premiums rise sharply with age, and health issues after 40 can further increase premium rates.

How Much Term Insurance Cover Should You Buy?

There’s no fixed-term cover that works for everyone. The right term insurance cover depends on your income, expenses, goals, and liabilities. A high cover (10-25x yearly income) should work if you are young.

For example, if your income is ₹10L/year, your ideal cover could range from ₹1 Cr to ₹2.5 Cr, depending on your family's needs, lifestyle, and liabilities.

At Ditto, we use the expense and liabilities replacement method to estimate the term cover you require. To get a better understanding, use this online calculator to find the ideal cover for you.

How to Buy Term Insurance Online?

Common Mistakes to Avoid While Buying Term Insurance

• When buying term insurance, don’t focus only on keeping premiums low by picking a small cover. 
• Avoid delaying the purchase and skipping medical disclosures.
• Do not get distracted by flashy add-ons like return of premium. 

The cover should realistically match your income, loans, and your family’s future needs. Learn more about the common mistakes people usually make while purchasing a term plan.

Why Choose Ditto for Term Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why do customers like Vijay below love us:

• No-Spam & No Salesmen
• Rated 4.9/5 on Google Reviews by 15,000+ happy customers
• Backed by Zerodha
• Dedicated Claim Support Team
• 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call now or chat with us on WhatsApp!

Ditto’s Take on Term Insurance

Buying term insurance isn’t about finding a perfect plan. It’s about finding the right fit for your life. Income, health, liabilities, and family responsibilities vary for everyone, and these factors can change which plan works best. 

Use this guide as a starting point, and if needed, a quick expert conversation can help tailor the choice to your budget and long-term goals.

At Ditto, we recommend term insurance as the most efficient way to protect your family. It gives you a large cover at a very low premium because it does not mix insurance with investment.