Term Insurance Plans

Compare Term Insurance Plans

Term insurance is the most important life insurance form as it gives strong financial support for a defined time span. In case of any unwanted situation, this plan supports the insured’s family by providing strong financial stability. Death benefit is received by the nominee who is generally a family member. Policyholder can select to receive a lump sum amount of mix of monthly payment and lump sum amount based on insured’s needs. Some insurance companies in India cover partial or permanent disability wherein the insured’s regular flow of income comes to an end.

In case of insured’s survival, the coverage at the earlier rate of premiums is not guaranteed when the policy expires. So, the buyer has to either get extended coverage with various payment modes or miss the entire coverage. Death benefit offered in the form of lump sum amount can offer financial stability to the family and pay off the liabilities. This insurance type is more necessary for the breadwinner of the family. Below are some of the benefits provided by this product:

Clear all your liabilities and loans
Lump sum money in case of unexpected demise
Financial support for your family to live with pride
Takes care family in the event of critical illness or disability
Extra sum insured in case of demise due to an accident
Offer lump sum money in case diagnosed with critical illness
Give supplementary income in case of loss of income because of illness or accidental disability

Key Features of Term Insurance

Term insurance is mainly designed to protect financial requirements of insured’s family in the event of uncertainty or death. Based on the policy type, dependents of the policyholder are eligible to get lump sum money in case of critical illness or death, if applied for, of the policyholder and during the policy term.

Policy Period

The minimum policy period is of five years, with the maximum varying from 25 years to whole life span for equated monthly premium installments. The policy period is 5-15 years for single premium payment plans.

Coverage Type

This insurance gives flexibility in terms of selecting the plan on single life or joint life basis.

Entry age

The minimum entry age for this plan is 18 years and maximum age limit is 65 years along with additional add-on benefits.

Death Benefits

On demise of policyholder during the policy period, the nominee will get the total death benefits preferred at the time of commencement in case where the plan has been dedicated to someone else.

Extra Optional Benefits

Accidental disability or death, accelerated sum assured and critical illness are available as extra optional benefits.

Maturity Benefits

Customers should know that term insurance doesn’t available with any maturity or survival benefits. Those who want to avail maturity benefits can opt for a Term Return of Premium policy.

Tax Benefits

Policyholders can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.In fact, premiums paid for the critical illness benefit eligible for a deduction under Section 80D.

    •   Premium Payment Mode

Single premium payment option
Regular premium payment option – monthly, quarterly, half-yearly and yearly

    •   Flexible options to meet every individual’s needs

Policy period
Add-on Protection
The amount of preferred sum assured
Premium payment options – regular or single

    •   Term Insurance Riders

Term rider is an amendment to a policy which supplements the coverage. Below are some of the riders available on term plans:
Permanent and Partial Disability
It comes handy when insured face permanent or temporary disability because of an accident. This rider becomes active when the disability happens due to accident.
Waiver of Premium
It makes sure that your plan doesn’t get entitled for surrender if you stop paying your future term insurance premiums because of income loss or disability.
Critical Illness
Policyholder will receive lump sum amount in case insured is diagnosed with an illness mentioned in the plan. When it is detected, the policy might terminate or continue based on the insurance type.
Accidental Death and Dismemberment
It gives additional sum assured in case the policyholder dies in accident. This coverage is only for the supplementary sum assured if the insured dies in an accident.

Tips to Select the Best Term Insurance Online

Since last few years, the popularity of this insurance has grown up because of its affordable cost of premium and coverage benefits. Today, majority of people understand the importance of term plans but buyers get confused when it comes to selection of death benefit coverage. Below are some of the important factors which one must keep in mind to ascertain the coverage amount needed:

Number of dependents, liabilities and annual income are the important factors in deciding individual’s standard of living. It is advisable to own life coverage of 15 times their annual income. Person with dependents, including old parents and children must have higher term insurance coverage as compared to a person with no dependents. In fact, those who have some sort of debts to pay off can opt for higher coverage. Also, do not forget to consider the inflation factor in paying premiums and coverage advantages.

Find the best online term insurance policies India at PolicyBoss. You can compare various term plans available in India and get the Lowest Insurance Quote. Compare policies based on coverage, features, rates etc. Just submit your basic details such as annual income, age, gender etc, and then we calculate the premium amount for you. We offer best plans from leading insurance companies in India.