Term Insurance
Term Insurance
What is Term insurance?
The term insurance plans are completely different from the other plans. All the benefits are provided to the whole family, beneficiary, or nominee. But all of its benefits are provided if you will no more.
What is the importance of term insurance?
Term insurance is beneficial for the whole family and financially helps them even after your death. Here are some of the reasons which will explain to you about the importance of the plan.
- It is very much beneficial in offering financial support to the family
- It helps family members in leading a happy and comfortable life.
- All of the premiums for the term insurance are quite affordable.
- There will be no debt for the family.
Term life insurance offers financial coverage to the policyholder and their beneficiaries for a specified time period. The top benefits include :
- It safeguards you and your family against financial liabilities such as a mortgage or a loan
- It provides financial security to your family, the designated beneficiaries, in case of your untimely death
- It offers financial security in case of loss of income due to disability or critical illness
- It offers tax benefits under section 80/c of the Income Tax Act and tax-free income on paying the maturity claim
Major Benefits of Term Insurance
Affordable premium
The biggest benefit behind getting the term insurance is that its premiums are affordable. Moreover, if you will get it at an early age, then you have to pay fewer premiums.
Having amazing tax benefits
According to Section 80C and section 10(10D), there is an unlimited number of tax benefits of getting the term insurance.
Offers complete life cover
You can claim the term insurance, even if you are 100 years of age. Therefore, this is also known as whole life term insurance plan.
Offers Financial Protection
As we have already discussed that it offers financial protection to the whole family. While you will have the term insurance, then your family will get some amount of money, which is described in the terms and conditions of the plan.
Rider options are also available
Along with the term insurance, the rider options are also available along with this, which includes critical illness, daily hospital cash, partial or permanent disability, accidental death benefit, and many more.
Top-Features of Term Insurance
To have a better idea about the term insurance, you must go through its features. So, here we have added some of its features so that you can understand it better.
Get it online
Like the other insurance plan, you can get the term insurance plan online as well. There are a number of websites like Hello Policy, from where you can have all the ideas about the term insurance and even though you can compare its premium prices from multiple websites to save your money.
Offer flexible premium payment options
While you will choose term insurance, then you can select your premium payment option. For example, you can pay it annually, monthly, quarterly, or even semi-annually.
Having amazing discounts and rebate
If you get the term insurance at the highest amount of money, then you can grab the advantage of amazing discounts and rebate. Even though, if you will choose the online platform to get the insurance plan, then you can avail more discount on it.
What are the types of the Term insurance plan?
Depending upon its benefits and its features, it is categorised into following types.
Term Return of premium
In the term return of premium, you will get all your premium deposited back if nothing will happen to you even after expiry of the term insurance plan. It is the best method, which will help you in getting your paid money back.
Joint Life Term Insurance plan
As its name describes, in the case of the joint-life term insurance plan, it offers all the benefits to you and your spouse. In the case, if you or your spouse will die then its advantage is offered to the other insurer.
Increasing Term insurance plan
In the term insurance plan, the life cover goes on increasing with some percentage. It is also known as an add-on on the existing term insurance plan.
Convertible insurance plan
Under the convertible insurance plan, you can easily convert your existing term insurance plan to saving plan
What are the types of the Term insurance plan?
Depending upon its benefits and its features, it is categorised into following types.
Term Return of premium
In the term return of premium, you will get all your premium deposited back if nothing will happen to you even after expiry of the term insurance plan. It is the best method, which will help you in getting your paid money back.
Joint Life Term Insurance plan
As its name describes, in the case of the joint-life term insurance plan, it offers all the benefits to you and your spouse. In the case, if you or your spouse will die then its advantage is offered to the other insurer.
Increasing Term insurance plan
In the term insurance plan, the life cover goes on increasing with some percentage. It is also known as an add-on on the existing term insurance plan.
Convertible insurance plan
Under the convertible insurance plan, you can easily convert your existing term insurance plan to saving plan.
Things that can impact the premiums of the term insurance policy
Not all the premiums are having the same rate as there are several factors involved in this. Here are the major factors, which impact the premium of the term insurance.
- Age
- Occupation
- Gender
- Body mass index
- Family medical background
- Area you are living
Things that can impact the premiums of the term insurance policy
Not all the premiums are having the same rate as there are several factors involved in this. Here are the major factors, which impact the premium of the term insurance.
- Age
- Occupation
- Gender
- Body mass index
- Family medical background
- Area you are living