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What is 20 Year Term Insurance Policy?

There are milestones to be met and dreams that have to come true, in the course of a lifetime. A 20-year term insurance plan ensures that you can follow your dreams in peace without worrying that your family will be left in the lurch if you are no longer around to support them.

To delay is to regret

You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.

Term Insurance


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Term Insurance

Is it a good idea to sign up for a 20-year term insurance plan?

20 Years Term Insurance
March 01, 2024


As human beings, we always want to be in control of situations. But life works differently – when things turn around, they leave you perplexed and frantic. Unpredictability is certainly the name of the game, but there are some steps one can take to minimise the challenges. This is particularly applicable in the case of breadwinners, who are responsible for their families.

That’s where a term insurance policy can help. It may sometimes feel confusing to choose from a sea of insurance plans available today, but if you are looking to safeguard your family in the long run, there’s nothing better than a 20-year term insurance plan.

How does a 20-year term policy work?

Once the policyholder signs up for a 20-year term policy, it is mandatory for them to pay regular premiums to avail the benefits of the plan. In this case, a death benefit is offered if the policyholder loses his life during the tenure. There is no maturity benefit that’s extended if the policyholder survives through the tenure.

The benefits of a 20-year term insurance policy

If you’re planning to sign up for a 20-year term insurance policy, here are a few benefits you should be aware of:

  • Security for 20 years to the policyholder’s family, offering peace of mind
  • Death benefit offered to the family; in case the policyholder dies during the policy term. It could be natural death, death by accident, or death due to critical illness
  • Surrender benefit is offered if the policyholder surrenders the policy before the policy tenure ends
  • Helps in planning future financial needs like your child’s education or marriage
  • Income tax benefit under Section 80C of the Income Tax Act*
  • Offers option to add riders for an added layer of security
  • Affordable premiums to ensure coverage, without emptying the pockets of the policyholder

Is there any way to calculate 20-year term life insurance premiums?

The premium is calculated based on a range of factors, including the age of the policyholder, family size, annual income, sum assured, medical history, and if they have a history of smoking or any other major health risks. If someone has greater health risk, be prepared to pay a higher premium.


1. Is it a good idea to avail the 20-year term insurance plan?

It is definitely a good idea for those individuals who are looking to safeguard their family’s financial needs in their absence for a tenure of 20 years.

2. Does one receive a maturity benefit if the policyholder survives during the tenure of the 20-year term insurance plan?

No. If the policyholder survives the term, they do not receive any maturity benefit.

3. How can one cancel the 20-year term insurance policy?

There are two ways to approach this. You could reach out to your insurance company and let them know your decision. Alternatively, you can choose not to pay regular premiums. After a certain grace period, your policy will be canceled.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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Reviewed By Reviewed By:
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Reviewed by Life Insurance Experts


We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2021-22.

#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved

^ Available under Life & Life Plus plan options

*As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.

ARN - ED/05/23/1814