No-frills lifer

a. Rs/p.a. Rs/p.a. Rs/p.a. Rs/p.a. Om Kotak Preferred Term Plan24003900833025004900 ICICI Pru Life Guard27513917796427515014 HDFC Standard Term Assurance Plan28203840832029205110 Birla Sun Life Term Plan29504310879030105150 Tata AIG Assure Lifeline Plan23204070926027905310 SBI Life Shield20423542881424545384 Max New York Life Level Term Policy228041601000027105650 Aviva Life Lifeshield26604220923031205840 LIC Anmol Jeevan256447021133532276940 Allianz Bajaj Risk Care356061001361048309850 Source: Companies  On the other hand, if you took a Rs 1 lakh term policy for 20 years at Rs 250 per annum and invested the rest (Rs 2,688) in another investment (say PPF, yielding 8 per cent) then the compounded value here would over Rs 1.2 lakh. The second option covers you for the same amount while generating excess return.  Do not settle it once and for all
Apart from regular premium payments, you have another option which involves a one-time payment of premium on purchase of the policy.  However, one-time payments may work out slightly more expensive than regular payments, when discounted at future values.  For instance, a policy of Rs 5 lakh for 10 years has an annual premium of Rs 1,140 against a single premium of Rs 8,200, and in case of the single premium you effectively end up paying about 2.5 per cent more (the net present value of Rs 1,140 for 10 years works out cheaper than the single premium).  Similarly, if you have a longer-term tenure, say 20 years for the same sum assured, you would effectively pay 7 per cent more than your annual premium of Rs 1,528.  Moreover, the catch with single premium policies is that if you are to expire in between your tenure, the rest of the premium paid for the remaining tenure is not refundable!  Not just plain vanilla
Despite its apparent lack of frills, term policies do come with several riders. Riders are additional benefits you can get on events like accidents, disability and critical illnesses.  In case of a critical illness, for instance, premiums paid will be eligible for deduction under section 80 (D) which covers medical insurance. Usually these riders can be availed of at a marginal premium and every policy comes with a differential structure of riders.  Default in payment of premium
Insurers usually offer a grace period of 30 days in case of non-payment of premium. After this interest (a nominal rate) on the premium due is calculated and the policy holder will have to pay this extra amount to restart the policy.  However, this cannot be done for the entire term. Insurance companies usually allow the extension of non-payment for about two years (varies marginally across various insurers). If the premium is not paid even after these two years, then the policy lapses and you will need to take a new one.  If you are planning to pick a term policy, it may be advisable to go in for the one with the cheapest premium. But look out for the riders.