Term & Life Insurance
The largest cover your money can buy, for the people who depend on you.
- Highest cover, lowest premium
- Premium locked for the full term
- Claim is tax-free under 10(10D)
A term plan is the simplest and the cheapest form of life insurance. The insured pays a small premium for a fixed number of years, and if something happens to them during that period, the family receives the full sum assured.
It is the one policy every earning member of a household should own before anything else. Through Paydeer, retailers can compare term plans from leading life insurers and help the customer choose the right cover amount and policy term.
01Life Insurance Plans Available At Paydeer
- Pure Term Plan – the highest cover at the lowest premium. Pays the sum assured to the nominee on death of the insured.
- Return Of Premium Term Plan – the same protection, and the total premium paid is returned if the insured survives the policy term.
- Endowment & Money-Back Plans – protection along with guaranteed savings and periodic payouts.
- Child Plans – build a corpus for a child’s education that continues even if the parent is no longer there.
- Retirement & Pension Plans – convert today’s savings into a regular income after retirement.
02Riders That Can Be Added To A Term Plan
- Critical Illness Rider – lump-sum payout on diagnosis of a listed major illness.
- Accidental Death Benefit – an extra sum assured if death is caused by an accident.
- Accidental Total & Permanent Disability – pays out when an accident stops the insured from earning.
- Waiver Of Premium – future premiums are waived if the insured becomes disabled or is diagnosed with a critical illness, and the cover continues.
03How Much Cover Does A Customer Actually Need?
A simple rule that works well in practice: the sum assured should be at least 10 to 15 times the annual income of the earning member, plus any outstanding home loan, vehicle loan or business loan, plus the money the family will need for the children’s education.
Worked example. A 32-year-old shopkeeper earning ₹4 lakh a year, with a ₹12 lakh home loan and two young children, needs roughly ₹50 lakh for income replacement, ₹12 lakh to clear the loan and about ₹15 lakh for education — a term cover of around ₹75 lakh to ₹1 crore.
Premium is lowest when the policy is bought young and it stays locked for the entire term, so the earlier the customer buys, the cheaper the same cover becomes.
04How To Pick The Payout Option
Every term plan asks how the nominee should receive the money. The choice matters more than most customers realise.
- Lump sum: the entire sum assured at once. Best when there is a loan to close immediately.
- Monthly income: a fixed amount every month for 10 to 20 years. Useful when the family has never handled a large amount of money.
- Lump sum plus monthly income: a part immediately for liabilities and the rest as a monthly cheque. This is what most families are best served by.
- Increasing income: the monthly payout rises every year to keep pace with prices.
05Why Honest Disclosure Decides The Claim
A term plan is a promise that is tested only once, and by then the customer is not there to explain. Everything the proposal form asks — smoking, alcohol, existing illness, actual income, other policies already held — must be answered truthfully.
After three years of continuous cover, Section 45 of the Insurance Act stops an insurer from questioning the policy on grounds of non-disclosure. Before that, a hidden habit or illness is the most common reason a family’s claim is turned down. A retailer who fills the form honestly is protecting the customer, not slowing down the sale.
06Benefits For The Paydeer Retailer
- Life insurance carries one of the highest commission structures of any Paydeer service.
- Renewal premium every year means recurring income, not a one-time sale.
- Quotes from multiple life insurers on a single screen, so the customer never has to be sent elsewhere.
- The entire journey — quote, proposal form, payment and policy document — is digital.
✓What the policy covers
- Death of the insured during the policy term — the full sum assured goes to the nominee.
- Terminal illness diagnosis, in the plans that offer it, paid in advance of death.
- Accidental death, with an extra amount where the accidental death rider has been taken.
- Permanent disability caused by an accident, where that rider has been taken.
- Critical illness listed in the rider, paid as a lump sum on diagnosis.
- Waiver of all future premiums on disability or critical illness, with the cover continuing.
- Return of the premiums paid on survival, in a return-of-premium plan.
✕What it does not cover
- Suicide within 12 months of buying or reviving the policy — only the premiums paid or the surrender value are returned.
- Death arising from a material fact that was hidden in the proposal form, such as an illness, a habit or the real income.
- Death while taking part in an undeclared hazardous activity or adventure sport.
- Death caused by the insured’s own criminal act.
- Death under the influence of alcohol or drugs not prescribed by a doctor.
- Any claim on a policy that had already lapsed and was never revived.
On this page
Documents to bring
- PAN card — mandatory for every life insurance proposal
- Aadhaar card or another address proof
- Age proof, usually the birth certificate, PAN or passport
- Income proof — salary slips, Form 16, or the last two or three ITRs for a self-employed customer
- Bank statement, where the insurer asks for it
- Passport-size photograph and the nominee’s details
- Medical reports, once the insurer’s check-up is done
Paydeer retailers
Issue Term & Life Insurance from your own counter and earn on every policy and every renewal.
Become a partnerHow the policy is issued at a Paydeer outlet
Four steps from the counter to the policy PDF in the customer’s hand.
Work out the cover
The retailer adds up income replacement, outstanding loans and the children’s education to arrive at the sum assured, and picks a term that ends around retirement age.
Compare the quotes
Premiums from several life insurers for the same cover, along with claim settlement record and the riders each plan allows.
Fill the proposal honestly
KYC, income proof, nominee details and the health declaration. Everything the customer discloses here is what protects the claim later.
Medical test and issuance
The insurer arranges a free medical check-up where required, then issues the policy. A free-look period of 15 to 30 days lets the customer return it if the terms do not suit.
Sell Term & Life Insurance from your own shop
Compare plans from multiple insurers, issue the policy in minutes and earn a commission on every sale and every renewal — from the same Paydeer portal you already use for recharge, AEPS and bill payments.
Questions customers ask
The doubts that come up most often about Term & Life Insurance, answered the way a retailer would explain them across the counter.
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What is the difference between term insurance and life insurance?
Term insurance is a type of life insurance that gives only protection — there is no maturity amount if the insured survives the term. Other life insurance plans such as endowment or money-back mix protection with savings, so they cost far more for the same cover.
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Till what age should the term plan run?
Ideally till the age the customer expects to stop earning, usually 60 to 65 years. Covering beyond that is useful only when there are dependants or a loan that will still be running.
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Is a medical test compulsory for a term plan?
It depends on the age of the customer and the sum assured. Small covers for young applicants are often issued without a test, while a high sum assured almost always requires a medical check-up, which the insurer arranges free of cost.
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Does the family pay tax on the claim amount?
No. The death benefit received by the nominee is exempt under Section 10(10D) of the Income Tax Act, and the premium paid qualifies for deduction under Section 80C.
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What happens if a premium is missed?
Every policy has a grace period, normally 15 to 30 days, during which the premium can still be paid and the cover continues. If it lapses after that, most insurers allow revival within a few years by paying the pending premium with interest.
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Can a housewife or a non-earning member take a term plan?
Yes, most insurers now offer a term plan to a homemaker, with the sum assured linked to the earning spouse’s cover. The spouse must usually already hold a term policy of their own.
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Should the customer buy a return-of-premium plan?
It feels attractive because the money comes back, but the premium is roughly two to three times that of a pure term plan for the same cover. For most customers, a pure term plan plus a separate recurring deposit or SIP with the difference works out better.
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Can a term plan be bought if the customer smokes or drinks?
Yes. The premium is higher for a declared smoker, but the policy is issued normally. Hiding the habit to save premium is the surest way to have the family’s claim rejected later.
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Can the cover be increased after the policy is issued?
The sum assured of an existing plan cannot be changed, but many plans have an increasing-cover option built in at the time of purchase, for marriage or the birth of a child. Otherwise the customer simply buys a second term policy alongside the first.
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