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Term insurance is the purest form of life insurance product that offers comprehensive financial coverage for a limited period to the nominated beneficiary in exchange for premiums paid. This financial coverage offered by the insurance company under the term insurance plan is paid as a death benefit if the policyholder passes away during the policy term.
Term insurance, also known as term life insurance, is an economical life insurance policy that guarantees to offer coverage for a specific term.
Term life Insurance policies provide a high life cover at lower premiums. These premiums are fixed and can be paid a lump sum or at regular intervals for the entire policy term. Premium amount varies depending upon the type of premium payment method opted by the buyer.
Term life insurance helps to ensure the family's financial goals such as paying off a mortgage, keeping a business running, or child’s higher education costs, etc. are met.
Aditya Birla Sun Life Term Insurance Plans
Aviva Term Insurance Plans
Bajaj Allianz Term Insurance Plans
Bharti AXA Term Insurance Plans
Canara HSBC Term Insurance Plans
Edelweiss Tokio Term Insurance Plans
Exide Life Term Insurance Plans
Future Generali India Term Insurance Plans
HDFC Life Term Insurance Plans
ICICI Prudential Term Insurance Plans
IDBI Federal Term Insurance Plans
IndiaFirst Term Insurance Plans
Kotak Life Term Insurance Plans
Max Life Term Insurance Plans
PNB MetLife Term Plans
Pramerica Term Insurance Plans
Reliance Life Term Plans
SBI Life Term Insurance Plans
TATA AIA Term Insurance Plans
The prime motive behind opting for a Term Life Insurance plan will be to provide a safety cover for the family in case of the sudden demise of the insured. Life Insurance like this plan, thus, becomes important, whether you are single or in a relationship. In the event of an unfortunate circumstance, your family members will get the insurance coverage as death benefit. These plans are capable of providing a regular flow of income to cover not only daily living expenses but also paying off the outstanding debts such as loan EMIs, credit card bill, funeral expenses, or estate taxes etc.
Now we will go through the various benefits that you get when you opt for a life insurance term plan.
This product is ideal for covering yourself for a specific need in the long run like indemnifying a mortgage or business loan or meeting unforeseen life expenses.
Term plans provide a large amount of life insurance coverage at an affordable premium. This cover can compensate for several years of lost earnings even after the demise of the policyholder.
Some contemporary life insurance term plans also protect against critical illnesses. When a critical illness like a heart attack, cancer, kidney failure, etc. is first diagnosed, this comes as an additional benefit. Critical Illness Cover provides lump-sum payments for a small additional premium, which can be purchased as a rider cover.
A term policy provides additional pay-out in case of accidental death to increase the security of your family. For example, if your life cover is Rs. 1 Crore, a term policy with Accident Cover pays Rs. 2 Crore to your family in case of accidental death.
Some term life insurance plans pay your future premiums in case of total and permanent disability leading to loss of income. It is an appealing feature that if you are unable to pay your regular term insurance premiums because of disability, but your life insurance cover will continue. There are policies which offer waiver of a premium rider of all policy premiums in case the life assured is diagnosed with a permanent disability or critical illness.
Under Section 80 C of the Indian Income Tax Act, all term life insurance plans offer tax benefits on premiums paid up to 46,800. New-age Term insurance plans with critical illness cover also offer additional tax benefits on premiums paid up under Section 80 D.
Now that you have realized the significance of a term life insurance plan, it is necessary to delve into the details of these plans. Term insurance can be categorised into various types. You have to be very specific in your future insurance requirements before you opt for a single policy.
|Type of Term Plan||Description|
|Level Term Plans||The sum assured and payable premiums remain fixed for the entire tenure of the policy for 10-20 years.|
|TROP||The insurance company will return all the premiums that you've paid over the life of the policy at the end of the term if you survive the policy period.|
|Increasing Term Plan||Death benefits increase every year periodically during the term of the policy. The premiums of the policy do not increase.|
|Decreasing Term Plan||The assured sum payable will decrease every year until either the period of coverage ends, or the policy pays out. The premiums remain constant.|
|Convertible||A regular plan can be converted to another plan on a later date.|
|Tem Plan with Riders||This regular term plan with riders for accidental death, critical illness, disability cover, etc. by paying additional premiums.|
Here are the types of existing term life insurance plans.
Now we will go through the various benefits that you get when you opt for a life insurance term plan.
This is the simplest form of a term policy. In these types of plans, the sum assured does not change during the tenure and benefits are paid out to the nominee on the death of the policyholder.
TROP refers to a term insurance policy with a Return of Premium option. This plan is the same as any other standard term insurance policy, however, the only difference is return of premiums option These plans also ensure survival benefit at the end of the policy term. Their primary objective is to provide financial protection to your family in case of contingencies.
As the name suggests, these are term insurance policies that increase the death benefit. The premium increases, but these plans allow policyholders to pay lower premiums in the early years when they have greater expenses.
A decreasing term policy is the opposite of the increasing term insurance policy. They are also known as Mortgage Term Insurance Plans. In these plans, the death benefit amount decreases with time. Here, premiums are smaller when compared to life insurance term plan premiums. Premium payments remain the same even if benefits decline.
These plans allow a term policy, to convert into whole life or permanent insurance plan once the policy matures. The primary benefit of convertible insurance is that the policyholder doesn't have to submit a medical test, even while converting the policy to a regular life insurance plan.
With a rider cover, the basic term insurance benefits can be enhanced. A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy. They provide insured parties with options such as additional coverage at an additional cost. You can buy riders for critical illness cover, accidental death cover, or disability cover. You can also choose a premium waiver benefit with a rider, in which you need not necessarily pay future premiums during emergencies
These are the various types of life insurance term plans available in the market. You need to determine your insurance objective and your financial goals before you finalize any of these.
While life Insurance term plans can be the most popular insurance products that provide an efficient life coverage as well as add-on benefits, certain things are excluded. Before buying a term policy, you need to be aware of these exclusions:
These are the exceptional cases which are not covered by life insurance policies. The buyer needs to keep these in mind while making the product purchase.
A very significant benefit of term life insurance products is that they also provide tax benefits i.e., your money invested in these policies stays tax-free. Let us check out the tax implications for the term insurance plans below.
A term policy acts as an income replacement tool for a family when the primary earner dies. However, you need to carefully consider your insurance needs rather than ending up buying a life insurance policy just to avail of the tax benefit that premium payments bring with them.
Online access has paved the way to purchase these online term insurance plans in an easy and hassle –free way. Once you have ascertained your insurance needs and determined your financial goals, you can go through the various existing life insurance term plans available in the market.
Online term plans offer the cheapest life insurance. You not only get a high life coverage but also can avail the plan at a relatively low premium. You can compare the products online based on several parameters. Once you have zeroed in on a particular product, you can log in to the company’s website and follow the steps to buy the plan online.
The process of buying online term life insurance varies across insurance companies. However, the basic steps remain the same, which are as follows:
The insurance company will get back to you within three weeks if your insurance policy has been approved by its underwriting team. This will be done after verification of your proposal form, documents, and medical reports. If your insurance request has been approved, you will receive a soft copy of the policy. This will be later followed by a hard copy. The process is easy to follow and does not require much external assistance. You can easily apply for a term policy online without any hassles.
The number of term insurance products existing in the market is numerous. In the absence of the right information, it may become complicated and confusing for the customer to compare term insurance plans and choose the right product.
You, as a buyer, have to make sure that your plan is sufficient for your family’s needs in your absence. Therefore, you need to make a term plan comparison by assessing the sources of income, the number of dependents, existing debts and liabilities, and the expenses incurred in the future to sustain their current lifestyle.
You also need to consider the amount invested periodically in these plans if you are planning for your child's education, marriage, or pension for your spouse. Let us consider some factors that can help you to compare term insurance plans online. You can make a term plan comparison and choose the right one for you by keeping the below factors in mind: