Term plan Insurance allows a greater coverage with respect to the annual premium amount paid. Make the most of it by securing yours as well as your family’s future with the help of term insurance.
What is meant by Term Plan Insurance?
It is a type of life insurance that will provide financial coverage to the insured person’s beneficiary for a specific period of time. If the policyholder expires when the policy is active, the beneficiary will be eligible of making death benefits claim from the insurer. The death benefit means to the beneficiary or the nominee who is in most scenarios a family member. There are different options, either a lump-sum amount in the beginning or a combination of monthly amounts and a lump-sum one. Some insurers also provide cover for partial or permanent disability when the policyholder’s income becomes nil. If the policyholder survives, the coverage won’t be guaranteed at the earlier premium rate when the policy expires. The buyer will have to extend the coverage using a different payment method or completely let go of the coverage. Calculate term insurance plans at Quickbima to strike the best deal.
Why Buy Term Plan Insurance?
Getting a term insurance is essential for securing your family’s future. To save them from financial deprivation when you won’t be there, you can take care of it now with the help of Term Insurance. It helps in taking care of your responsibilities and liabilities when you are gone. The amount your family will receive will give them financial stability at that time of crisis.
BENEFITS OF HAVING TERM PLAN INSURANCE
When you buy term insurance plan:
- You will be getting a compensation amount when there is a sudden death
- It will take care of liabilities and loans
- It will provide money for the family to be able to live comfortably
- It will take care of the family if there is a critical illness or disability
- It will provide a supplementary income at times of loss of income occurring due to illness or accidental disability
- You will be getting a lump sum amount when diagnosed with a critical illness
- You will get an additional amount incurred at the time of accidental death
What are the Benefits of Buying a Term Insurance?
Term Insurance provides financial protection for your family in your absence by indemnifying the nominee with a lump sum amount or Sum Assured.
Term Life Insurance Plans do not offer maturity benefits. Only Term Plans with “Return of Premium” (TROP) offers the maturity benefit which is the return of all paid premiums at the maturity in case the insured survives the policy term.
With your Term Life Insurance Plan you may opt for additional coverage or riders like Accidental Death Benefit, Disability rider, Income benefit Rider, Critical Illness rider, etc. to give you added protection along with your base policy. The eligibility and grant of riders may vary from insurer to insurer.
Premium paid towards the Term Insurance Policy avail tax benefits under section 80 C and the proceeds of the insurance policy is tax free as per section 10 (10) D of the Income Tax Act, 1961 ,subject to the terms & conditions laid in the Act.
TERM PLAN INSURANCE IN INDIA
- Aegon Life iTerm Insurance Plan
- Canara HSBC OBC eSmart Term Plan
- Bajaj Allianz iSecure OnlineTerm Plan
- LIC eTerm Plan
- ICICI Pru iProtect Smart Term Plan
- Kotak Preferred Term Plan
- PNB MetLife Mera Term Plan
- Max Life Super Term Plan
- SBI Life eShield Term Insurance Plan
You can compare best online term plans in India according to your needs. Term insurance plans are flexible in nature providing options that care of every person. You will be able to choose:
- The amount to be assured
- Either a one-time or regular premium payment method
- Add-on protection
- Term of the policy
Key Features of Term Plan Insurance
Term insurance helps in securing the family with financial coverage at the time of uncertainty or death.
Tax Benefits: It provides tax benefits under the Income Tax Act’s Section 10 (10D) and Section 80D. The premium that is paid availing for Critical Illness benefit also allows a deduction under the Section 80D.
Policy Term: The minimum term is usually of 5 years and maximum goes up to 25 years or the entire life. A single premium payment policy will have a term of 5-15 years. Going for a longer term is better as the amount paid as premium gets locked which will be a stable amount payable for the entire tenure to provide a cover of the same amount.
Plan Choice: You can either choose your plan on the basis of single life or joint life. In the single life, the insurer will provide coverage for the life of the wage earner of the family. A joint life will cover for the life of both husband and wife using single term plan.
Entry Age: The minimum age of 18 years and the maximum is 65 years with add-on benefits that are optional. The premium will increase with the age. Hence, choose the best Term Plan Insurance at a relatively young age if you are looking for a long insurance plan.
Maturity Age: The best plans will provide coverage for the lifetime. Most usually cover for 60-70 years of the policyholder’s life. The maturity age is higher for term plans with a relatively higher premium rate as they offer to cover risks for a longer duration.
Survival Benefits: You will not get any survival benefits in a standard term insurance plan. Term Return of Premium (TROP) plans means that the premium will get refunded when the tenure ends only if the policyholder is alive. This plan is quite a popular one because this is a combination of savings and insurance together in one plan. The premium is higher in this as compared to the standard ones.
Death Benefits: On the death of the policyholder, the beneficiary or nominee will receive the death benefit which will be decided when the policy commences. It either may remain same for a period of time, decrease, or increase as well. The payment option is also multiple. It can be a lump sum amount, lump sum along with monthly, yearly or quarterly payment, or just the annuities spread over a long span of years as decided upon.
Maturity Benefits: A TROP plan will be suggested to you if you are looking for maturity benefits as most of the standard term insurance plans do not accommodate maturity benefits.
Additional Rider Bonus: Some of the optional benefits like accidental disability/death, critical illness or Accelerated Sum assured are easily available. These benefits can be an add-on to the term plan with some extra premium amount. You can choose these additional benefits from Quickbima by comparing all the plans available in India.
Some of the common term plan insurance riders include:
- Critical Illness Rider
- Permanent and Total Disability Benefit Rider
- Hospital Cash Rider
- Accidental Death Benefit Rider
- Waiver of Premium Rider
How Will You Choose The Best Term Plan Insurance?
Company reliability: It is important especially for life insurance companies to build trust with their customers. The reputation and stability of the company will take itself a long way.
Expenses: Costs will play a role when you go through plans. Choose a plan that has lower premiums for a decent cover.
Convenience: Discovering term plans online is the most convenient way and many people are choosing this option as it allows them an easy access to a lot of information in less time.
Enhanced cover: Some insurers provide this special option in their online term plans. It provides a chance to increase the life cover during critical situations that the policyholder might go through.
Claim settlement ratio: This ratio will help you understand the number of settlements the insurers have settled per 100 claims. You should look out for 100%, though highly unlikely.
Solvency ratio: The solvency ratio shows the financial goodwill and steadiness of the company. You will get an idea if satisfactory pending claims can be made by the company without going bankrupt.
Riders: Look out for insurance that takes care of all the edges for you. This can be done using riders. It is an extra to the normal plan but provides quite many benefits.
There are several term insurance plans online in India. The term insurance plans are both offline and online having a different set of features to attract more customers. All you need to do is search for the best plans in Quickbima. You can compare different plans that are being offered in India here with the lowest quotes. All you need to do is fill in your basic details and wait for us to calculate the term insurance plan and some of the best options available.