Tue. Jun 18th, 2024
Term Insurance Policies


The word ‘insurance plan’ plays a crucial part in safeguarding individuals’ financial futures so they can face life’s uncertainties. A term insurance policy provides the beneficiary’s family with a death benefit in the event of an unfortunate incident. It takes care of the family’s financial obligations for a comfortable living.

Understanding the policy’s features lets you choose a comprehensive term insurance plan for a family. Let’s discuss in detail the benefits of term insurance:

  • Simple to Purchase

Compared to other financial products, purchasing term insurance is straightforward. The term insurance plan’s structure is straightforward, including both online and offline purchasing options. With the online process of policy purchasing, insurance purchasers can directly purchase the plan by visiting the official website of the insurance business. And with the help of a term insurance premium calculator, onecan determine the plan’s cost.

  • Return of premium on a return-of-premium term policy

This term insurance plan is built with the client’s needs in mind.  The ‘Term Return of Premium Plan’ (TROP) provides a survival and death benefit. This plan lets the policyholder get the money promised at once or in instalments.

  • Payment Flexibility for Premiums

The term insurance plan offers a variety of premium payment alternatives, allowing the life assured to select a method that is most convenient for them. A term insurance premium calculator can assess the changes when riders are added to a plan. In general, term insurance policies offer three types of premium payment options: single, limited, and regular pay. Under the regular payment option, the life assured can select to pay the premium annually, semi-annually, quarterly, or monthly. 

  • Term Insurance Tax Benefit

Term insurance provides tax benefits in addition to providing death coverage. Section 80C of the Income Tax Act exempts from taxation premiums paid for term insurance policies totalling up to Rs. 1.5 lakh. In addition, the survival benefit is excluded from federal income tax under Section 10(10D) of the Income Tax Act for Term Return of Premium (TROP) policies. * Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year. 

  • Complete Coverage

Term insurance offers lifetime coverage. This option guarantees life coverage until 99. Term insurance covers the family’s financial obligations without the principal breadwinner.

  • High Sum Guaranteed with Reasonable Premium

A person can purchase a life insurance policy with a minimum monthly cost of Rs 411. Term life insurance gives complete coverage at the most reasonable premium rate compared to all other types of life insurance. Thus, every member of a different income bracket can afford to get a term insurance policy to protect their family’s financial future.

  • Rider Benefits

Various riders can be added to aterm life insurance policy to increase its coverage. These riders may be added to the standard package by paying the additional price. The rider benefits of the term insurance policy are as follows: 

  • Accidental Death Benefit Rider
    Under this rider option, the beneficiary of the policy receives, in addition to the basic death benefit, an additional death benefit in the event of the accidental death of the life assured during the policy period.
  • Waiver of Premium Rider
    Under this option, in the event of the passing away of the life assured, the remainder of the policy’s premium is waived, and the benefits continue until the end of the policy’s term.
  • Benefit for Critical Illness
    This is an additional benefit provided by the term insurance policy. As specified in the policy provisions, the policyholder is exempt from paying medical expenses incurred in the event of a severe illness under this option. The term insurance coverage covers the policyholder’s critical sickness expenses.
  • Accidental Disability Benefit Rider
    The term insurance policy pays the sum assured at regular intervals for five to ten years if the life assured is accidentally totally or partially disabled. The policyholder’s passing away triggers this rider’s income. This rider gives the life assured’s family an additional annual income for 5 to 10 years.
  • Mutual Term Assurance

A person may also choose a shared term insurance coverage. In a shared-term life insurance policy, the sum assured is based on the first claim. If either of the two policyholders dies before the term of the policy expires, the sum insured is paid. In the event of the death of both policyholders, the sum promised is given to the children.

Why Should You Choose Term Insurance?

A family’s best financial protection against life’s risks is term insurance. Insurance policies protect against the fear of sudden changes and the accompanying financial issues. Under section 80C, term insurance tax benefits where the insurer receives up to 1.5 lakhs in tax deductions are permitted.

Term insurance has many benefits beyond its low premiums. Insurance buyers can choose the best term insurance plan based on these features.

By admin

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