A contract between a policy holder and an insurer under which the insurer agrees to pay a predetermined sum upon the demise of an insured party or after an agreed-upon period of time in exchange for a premium is referred to as an insurance policy. Everyone should think about insurance coverage if they want to protect their loved ones, property, and selves from financial risk or losses. More and more people are adding life insurance policies in part of their portfolio but still only 3 among 100 people have life insurance. Over the next 3 to 5 years, it is anticipated that the country’s life insurance market will expand by 14% to 15% each year. In the event that the life insured passes away during the term of the policy, the term plan, which is a pure life insurance product, offers financial protection. There are numerous varieties of life insurance policies. The main purpose of the study is to know the effect of various factors namely age, gender, premium paying term, smoking habits on annual premium of the policy holder. An attempt has been made to study the return of premium option of the Digishield term plan of Aditya Birla sun life insurance and to compare the annual premium of plan in order to know the impact on premium due to the aforementioned factors. Data is gathered using ABSLI's term plan premium calculator and illustrations. To study the impact on premium amount the whole study is divided into 5 cases on the bases of the factors mention above. Based on the analysis and interpretation, it can be concluded that with increase in age term plan annual premium increase, also high premium is charged from the person who has smoking habits, and females are charged less as compared with men. Also, it is suggested to the individuals of the age group of 18 to 30 years to take a term plan as early as possible to avail the benefit of low premium and protect their family from any financial losses.
