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When is the Right Time to buy a Term Insurance Plan

The term insurance is a unique life insurance plan that is offered by almost every insurance company. It is comprehensive financial coverage that is offered against premiums paid for a limited period to the beneficiary of the said insurance policy. The coverage that is offered under various plans is paid out as a death benefit. It means that the payout is after the demise of the insured person during the term of the policy.

What is Term Insurance?

This type of insurance is available for a certain period or a fixed number of years. The essential feature that segregates this type of insurance policies from other types of life insurance policies is that it is a low-cost policy as it does not have any cash value. The policy is useful only when the holder of the policy dies within the stipulated timeframe during which the term insurance policy is active. 

As stated earlier, these insurance policies are offered by almost every insurance provider, and they are usually available for different terms like ten years, 20 years, and 30 years and so on. The best part of these types of policies is that some of them have a feature whereby they can be converted into permanent life insurance policies. In these cases, the health condition of the policyholders does not hold much significance. 

List of plans
S. No.  Plan Name Minimum Premium 
1 Pru iProtect Smart Rs 2400 per month (Under Life Option)
2 Click 2 Protect 3D Plus Rs 1023 per month
3 Smart Term Plan Online Rs 9700 per annum
4 iTerm Plan Rs 8394 per annum
5 Life Insurance-Sampoorna Raksha Rs 5000 per annum (non-smoker)
6 Mera term Plan Rs 955 per month
7 e-term Plan Less than Rs 9/day
8 Digishield Plan  Rs 1037 per month
9 i-Term Smart Rs 3450 per annum
10 Digi-Term Insurance Plan Rs 5549 per annum
11 Future Guard Plan Depends on certain conditions
12 Jeevan Rakshak Rs 2642 per annum
13 Life Online Term Depends on certain conditions
14 MyLife+ Depends on certain conditions
15 Anytime Plan Depends on certain conditions
16 iSurance Depends on certain conditions
17 eProtect Depends on certain conditions
18 Flexi term Plan Depends on certain conditions
19 Online Term Depends on certain conditions
20 eShield Depends on certain conditions
21 Grameen Bima Depends on certain conditions
22 CSC Suraksha Plan Depends on certain conditions
23 iSecure More Depends on certain conditions
24 iRaksha Supreme Depends on certain conditions
25 Protect@Ease Depends on certain conditions

Disclaimer: Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

How to Apply for the Right Term Plan?

Any individual has the option of buying a term insurance plan either online or offline. If someone chooses to buy a term plan on the internet, then all he/she needs to do is to visit any insurance aggregator or the company website. Then he/she must fill out all necessary details correctly, choose from the available policy options, sum assured, agree for a medical check-up (if required), and finally purchase the policy by making an online payment. As soon as these steps are completed successfully, the insurance company will send a soft copy of the selected policy, followed by the hard copy.

Features of Term Insurance Plan

Here is a rundown to the salient features of an ideal term insurance plan for you:

  • The most beneficial feature of this type of insurance coverage is the immense flexibility that it offers in its duration. One can get coverage for only one year or as long as forty years
  • The nominee receives the Sum Assured only after the death of the policyholder

  • Compared to other plans, these insurance policies are relatively low-priced

Benefits of Term Insurance Plan

Here is the list of core benefits offered by an ideal term insurance plan:

  • Premiums are affordable

  • Whole Life Cover

  • Some come with maturity benefits

  • It provides death and rider benefits and also tax benefits

  • It helps to take care of the liabilities

  • Very helpful for nuclear families

Comparison with other plans?

The concept of term insurance is much different from other insurance or investment plans as the other plans do not give the family of the policyholder full financial security in case of premature death. The regular investment avenues like fixed deposits and mutual funds do not promise any benefit in case of premature death of the holder of the policy. The death benefit helps to take care of the living expenses of the family as well as future financial goals. For this reason, the term plans have become so indispensable nowadays. The significant difference with other types of life insurance policies is that there are no maturity benefits. The benefit is only paid when the insured dies during the term of the policy. For this reason, the term policies are known as pure protection plans. The term plans also have more affordable premiums and coverage, which makes them attractive.

Things to Consider While Buying the Plan

Buying a term plan is no easy task as you need to consider several factors in mind. An individual must consider certain factors while buying a term plan.

  • Cover Amount

    To establish the cover amount that you will need, you must consider a lot of variables like age, future financial requirements, responsibilities, and lifestyle habits. The thumb rule is that if you are buying the plan early in your life, then the cover amount should be higher. Ideally, it should be eight times the annual income of an individual.

  • Policy Period

    Again this will depend a lot on your age. Someone in the 20s should opt for a policy with a term of 40 years, but if he is the 50s, then it is better to settle for a ten years policy period.

  • Suitable Payout Option

    Not many people know that the premium amount depends on the payout option. One can choose between a lump-sum payment and a regular monthly income. Usually, the premium for monthly income is higher than the single death benefit sum. 

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