As the name suggests, term insurance is nothing but life insurance of a designated amount for a fixed tenure. Term insurance helps your dependents achieve financial security by fulfilling your future needs such as a child’s higher education, marriage etc. in the event of your untimely death in the designated tenure.
Among all the life insurance products, Term life insurance policy offers the highest life coverage amount with the cheapest premiums during the term of the policy.
Safety Net
A term plan guarantees that all your loans and liabilities can be paid for thereby keeping your dependents stress free in the case of an unfortunate event.
Critical Illness
Along with life cover, a term insurance plan also offers protection against critical illness. Being an add-on feature, Critical Illness cover offers a lump sum payment when any critical illness such as kidney failure, cancer, or heart attack, etc. is first detected at a small incremental price.
Tax Benefits
The term life insurance premiums paid for qualify for a deduction under Section 80D and 80C depending on the plan and rider availed. Tax benefits can be availed subject to the conditions u/s 10(10D) of the Income Tax Act on the amount that his/her family receives in the case of an untimely demise or unfortunate event.
Flexibility
There are 2 modes of payment of premiums for term insurance policy plans: Limited Pay and Regular Pay. You can select the number of months within which you wish to pay the premium amount. If you select a shorter payment tenure, the amount of premium goes down substantially whereas the cover term stays intact. Kindly contact us for a detailed understanding of regular pay v/s limited pay options.
Additional Riders
Additional optional benefits such as critical illness and accidental death/ disability are also available under the term life insurance policy. The benefits can be added to the term plan by paying an additional premium amount. Some common term insurance riders are:
Age Factor
To be eligible for term insurance Plan, the minimum age is 18 years. The maximum age is 65 years. Do remember that the premium of the term plan increases with age and people who are looking for a term policy for a longer period should opt when they are relatively young.
Maturity: Term insurance policy offers coverage to the insured until he is between 80-100 years of age. Do remember that term life insurance policy with higher maturity age generally charge a higher premium amount as they cover life risks for a longer tenure.
Countless people face issues while putting in claims for processing wherein the company may or may not consider their claims. Therefore, it is very important to choose the right company and the right product instead of the cheapest one available. We help you select the most appropriate plan and get your claim processed easily and quickly bringing in much needed relief in difficult times for your family.
Many companies have come up with a life insurance policy specifically for covering coronavirus. We urge you to first go to our term life insurance section and understand the same in detail.
If a person dies due to coronavirus had a term life insurance policy, the beneficiary of the policy will receive the sum assured amount as the death benefit.
However, if the person has unfortunately met and end due to COVID-19, this policy will cover the specific event. Many companies have come up with a dedicated process of claim filing process in case death due to COVID-19.
We urge you to first go to our term life insurance section and understand the same in detail. There is only one different feature in term insurance return of premium plan vis a vis vanilla term insurance plan. It returns the entire amount of premium paid at maturity as a survival benefit in case the insured survives the policy tenure.