Term Insurance
Secure your family's finances with
Term Insurance even when you're not around.
What is Term Insurance?
Term Insurance is a type of Life Insurance that provides financial protection to the family of the policyholder on account of their untimely demise during the term of the policy. Among all the life insurance plans, Term Insurance offers the highest amount against a minimum premium.
What makes this plan different from others is that a term insurance plan activates when the policyholder pays the premium as per the agreement for a specified “term” of a year and if the person dies within the period, the predefined amount will be paid to the nominee by the insurance company.
Term insurance is valid for a specified term and doesn’t offer maturity life coverage. In case of the insured’s survival of the fixed period, the policy expires with a further option of renewal.
Why Should you Buy Term Insurance?
Term Insurance ensures that your family doesn’t face financial scarcity if an unfortunate and untimely death occurs to you. As life is unpredictable and risk is related to it, the highly used Term Insurance acts as a shield for your family’s protection.
Though term insurance policy can help the insured in many ways, the major three reasons that indicate the importance of Term Insurance are as follows.
Securing Financial Stability of Family
Being the only wage earner of your family, you can sustain financial stability even after your demise through the term insurance policy. Your dependents will be able to meet their expenses in your absence and also can fulfill life necessities like your child’s education and marriage.
Protecting the assets
In case of a loan or debt repayment, the term insurance money can help your family or dependents when you’re not around. Your family won’t be burdened with a huge amount of loan or debt after your sudden demise and assets will be protected as this insurance money will help in paying off the debt.
Critical Illness Protection
As a modern lifestyle can impact health with any critical disease at any time, the term insurance plan can safeguard your family by offering critical illness protection. In this case, you, as a policyholder, have to pay an agreed sum on the diagnosis of a critical illness to ensure your family is protected in your absence.
Benefits of Term Insurance
Term Insurance plan’s sole purpose is to provide financial protection to the insured’s family and loved ones. This plan is one of the most popular life insurance plans that benefit in a bunch of ways. However, every insurance company has its own terms and conditions.
- Make your family free from Loans and Liabilities by providing financial safety.
- Provide Critical Illness coverage.
- Offer higher sum assurance at affordable premiums.
- Provide additional tax benefits on the premiums.
- Support through paying future premiums in case of partial or permanent disability.
- Offer add-on protection to the family upon the accidental or untimely death of the insured.
- Death benefits are paid to the nominee of the life assured on account of his/her untimely demise during the policy tenure.
- Offer flexibility in the term of the policy which means the plan can be increased or decreased.
Types of Term Insurance Plans
A variety of Term insurance plans with different sets of features are provided by several insurance companies in India.
Level Term Plan
Level term Life Insurance policy is one of the most affordable life insurance policies in the market. It’s the basic coverage where the premiums and the assured sum remain the same throughout the tenure of the policy and the death benefits are paid to the nominated beneficiaries.
Standard Term Insurance Plan
Being a yearly term plan, it’s the most common and popular life insurance policy that allows the policyholder to pay a yearly premium. In return, it offers annual coverage to the life assured against various risks.
Term Return of Premium Plan
The Term Return of Premium Plan is gaining popularity amongst the users as only this plan refunds the total premium to the insured at the end of the policy term if the insured survives the period. No other term insurance policy has such a feature.
Group Term Insurance Plan
Group Term Insurance is ideal for a business, company, association, or even a joint family as this plan offers insurance coverage for all members of a group. Though it’s a term life insurance plan, unlike the basic term insurance policy, Group Term benefits all the members simultaneously.
Increasing Term Insurance Plan
In the Increasing Term Insurance Plan, the premium and the cover amount increase over the policy term. The sum assured chosen at the time of commencement of the policy tenure increases every year by a predefined amount.
Decreasing Term Insurance Plan
In the Decreasing Term Insurance Plan, the cover amount decreases by a specific percentage over the tenure wherein the premium rate remains constant. The premium of this policy is cheaper than other insurance plans. Generally, Decreasing Term Insurance is helpful for debt clearance and tax benefits.
Joint Life Term Insurance Plan
A joint term insurance plan is ideal for a couple where two persons are benefitted from the same advantage. As the features and benefits are the same for both of the members, it’s a wise decision to go for this plan instead of two separate term insurance plans.
Offline and Online Term Insurance Plan
In India, both offline and online Term Insurance plans are widely accessible. Offline plans are sold through the traditional method like agents and branch offices. Online plans are available on web portals. However, online plans are cheaper than offline ones as the customer deals directly with the company without any intermediate agents. So, the web portals tend to offer discounts on the plans.
Why Buy Term Insurance Plans from Life & General Insurance & Investment Consultants?
Product variety
High Claim Settlement Ratio
