Term Insurance

The simplest form of insurance to protect your family is called Term Insurance. Term Insurance offers a life cover to the insured at affordable rates. The insured can get a relatively higher amount of insurance by paying a very nominal premium. The benefit amount is paid to the beneficiary at the death of the insured.

Term Plans are not investment options and should not be treated as such. Term plans are meant to give protection to your dependents in the case of an eventuality. The premiums paid for a term plan do not give any returns except the insurance against any mishap.

Features of a Term Insurance:

Affordable:

Term insurances, as mentioned earlier, are affordable. This is because the entire amount you pay as premium is used to offer a life cover to you; no portion of the premium is used for investment or returns to you.

Policy Term:

The policy term can be chosen as per your requirement from 5 years to 99 years depending on how long you feel that your family will be dependent on you.

Entry age:

The age of entry for a term insurance is 18 years and can be bought till the age of 65 years.

Maturity benefits:

Since a Term Plan is a simple life cover, the only benefit is to provide financial protection to your dependents during the policy of the term, in case of any unfortunate event. However, there are policies that have the feature of return of premiums at the end of the term, if not claimed.

Flexibility:

The age of entry for a term insurance is 18 years and can be bought till the age of 65 years.

Add ons:

Term plans come with rider benefits like critical illness, accidental death cover and waiver of premium in case of permanent disability.

Tax benefits:

The premium paid for your Term Plan can be claimed as a deduction under the Section 80C of the Income Tax Act ( 1960). If you have a health related rider attached to the premium of Term Plan, you can also claim deduction under Section 80 d of the Income tax Act (1960), for that part of the premium.