How to compare term insurance quotes in India like for like (worked example)

To compare term insurance quotes fairly, first fix the cover amount, policy term, premium payment term, riders and payout option, and only then compare premiums. A quote that looks cheaper often has less cover, a shorter term or fewer riders. After that, rank the options by whether they meet your cover need and by annual premium, then check the policy wording, exclusions and the insurer's published claim data. In the worked example below, a ₹1.5 crore plan at ₹19,500 a year is a better choice than a ₹1 crore plan at ₹14,000 because the cheaper plan leaves ₹50 lakh of the family's need uncovered.

This guide belongs to the cover amount guide. Premiums in the examples are illustrative, not quotes from any insurer.

Step 1: Fix the specification before asking for quotes

Online quote pages typically ask for date of birth, gender, tobacco use, income, education and city. Use the same answers for every insurer, and answer truthfully.

Step 2: Rank by need met and premium

Illustrative example. The family's need, calculated with the life cover calculator, is ₹1.5 crore. You have three options:

The shortfall is the need minus other cover minus the sum assured: for A, 1.5 crore − 0 − 1 crore = ₹50 lakh. Option B costs ₹5,500 a year more than A, which is about ₹458 a month, for ₹50 lakh more cover. Option C looks attractive while you are employed, but the employer cover stops if you leave, and even then it leaves ₹20 lakh uncovered. Option B is the only one that meets the need.

The term quote comparison tool runs the same ranking with your own figures.

Step 3: Look beyond the premium

Once two or three quotes meet the need at similar premiums, compare these:

• Exclusions. Most term plans exclude suicide within the first year after issue or revival, with a partial refund of premiums as set out in the policy. Look for any additional exclusions, such as hazardous activities.
• Terminal illness benefit. Whether an advance is paid on diagnosis of a terminal illness, and how much.
• Increasing cover or life stage options. Whether you can raise cover at marriage, childbirth or a home loan without fresh medicals.
• Premium break or special exit options. Some plans let you exit at a certain age with a refund of premiums; check what it costs.
• Rider definitions. Critical illness lists and disability definitions vary widely.
• Grace period, revival terms and how the policy handles missed payments.

Step 4: Check insurer data you can verify

Do not rely on rankings or advertising. Check these on official documents:

• Claim settlement data. Insurers publish claim figures in their public disclosures on their own websites, and IRDAI publishes insurer-wise claim data in its annual report. Look at both the number of claims settled and the amount settled, and at the share repudiated. Large insurers and small insurers can differ in the size and type of claims they handle, so read the figures over several years.
• Solvency. IRDAI requires insurers to maintain a minimum solvency ratio. The insurer's public disclosures show its current figure.
• Complaints. IRDAI's annual report and the Council for Insurance Ombudsmen's annual reports include complaint data by insurer.

A high claim settlement ratio does not guarantee your claim will be paid. The single biggest factor you control is honest, complete disclosure on the proposal form; see claim rejection and Section 45.

Step 5: Read the documents before paying

• The sales brochure, benefit illustration and policy wording (sample policy document) are published by the insurer.
• Check that the proposal form, if filled by an agent or online, shows your answers correctly.
• After the policy is issued, you have a free-look period to cancel if it differs from what you were told; see mis-selling, free look and fake calls.

Comparison checklist

• Same cover, term, payment term, payout option and riders across all quotes.
• Premium shown with no GST (individual life policies are GST-exempt from 22 September 2025).
• Shortfall against your calculated need is zero.
• Exclusions and rider definitions read and acceptable.
• Insurer's claim and complaint data checked in official sources.
• Medical tests, if asked for, completed rather than skipped.
• Nominee and MWP Act choice decided; see the MWP Act guide.

Also read buy term and invest the rest if you are weighing a term plan against a savings policy.

Frequently asked questions

Why is one insurer's quote much higher for the same profile?

Insurers price risk differently and target different customer groups. Underwriting results can also differ: after medicals, the final premium may change. Compare final offers, not only the first online quote.

Should I split cover between two insurers?

It can make sense for very large covers, or to layer policies with different terms. It does not by itself make a claim safer. Each policy needs full disclosure of the other.

Is a policy without medical tests worse?

Not necessarily, but if an insurer issues without tests, it still relies on your declarations. Insist on tests if you have any doubt about your health history, so the insurer cannot later say it was unaware.

Sources

• IRDAI — annual report with insurer-wise claim data, list of registered insurers, consumer guidance
• Council for Insurance Ombudsmen — annual reports with complaint data
• Insurer websites — public disclosures, sales brochures, benefit illustrations and policy wordings