How to Secure Your Family With Term Insurance?

Mr Sharma has a family of 5 members, including 3 children. He works in an MNC and the family lives happily. One day he lost his close friend, Mr Nishant, to a fatal accident. The wife of Nishant is now struggling to look after her 2 children on the untimely death of her husband.

Mr Sharma closely observes the financial difficulties his friend’s family is facing. Unfortunately, Mr Nishant didn’t avail a term insurance plan when he was alive. If Mr Nishant had availed a term insurance plan, his family would be free from financial worries, today.

Mr Sharma does not want to repeat the mistake his friend committed and intends to keep his dependents financially secure in his absence by purchasing term insurance. Is it not a good idea? Yes, it is. What about you?

Do Not Let Your Dependents Suffer Financially

This is possible through term insurance, which is gaining popularity, today. Term insurance is a pure risk protection plan which offers coverage to the insured for a given time period. The nominee gets the sum assured if the insured dies during the term of the plan.

Various types of term insurance plans are offered today with different features and riders. Policyholders also enjoy different payout options. Today’s term insurance plans are flexible in terms of premium payment options. One can choose to make annual payments, semi-annual payments, quarterly payments and monthly payments according to convenience.

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10 Popular Term Insurance Policies in India 2019:

Plan Name	Claim settlement ratio	Premium amount (pa)	Sum assured (Rs)	Maturity age
HDFC Life Click2Protest Plus Term Plan	97.6%	NA	Minimum-25 lakh Maximum- No restriction	Maximum- 75 years
Birla Sun Life Digi Shield Plan	96.40%	Rs 11,440	Minimum-Rs 50 lakh Maximum- No restriction	Maximum – 80 years
India First eTerm Plan	92.0%	Rs 8,378	Minimum- Rs 50 lakh Maximum- No restriction	Maximum – 80 years
Max Life Online Term Plus	98.3%	Rs 19,599	Minimum-  Rs 50 lakh Maximum- No restriction	Maximum – 85 years
TATA AIA Sampoorna Raksha	98.0%	Rs 14,101	Minimum- Rs 50 lakh Maximum- No restriction	Maximum – 80 years
IDBI Federal iSurance Flexi Plan	90.3%	Rs.10,018	Minimum-Rs.50 lakh Maximum- NA	Maximum – 80 years
Canara HSBC Life Insurance iSelect	93.20%	Rs.8,438	Minimum- Rs.50 lakh Maximum- No restriction	Maximum – 80 years
Future Generali Flexi Online Term Plan	93.20%	Rs.10,252	Minimum-Rs.50 lakh Maximum- No restriction	Maximum – 75 years
Aegon Life iTerm	97.10%	Rs.10,252	Minimum-25 lakh Maximum- No restriction	Up to 100 years

How to Secure Your Family with Term Insurance?

Term Insurance Plans to Achieve Financial Goals

• Increasing term insurance plans: In case of increasing term insurance plans, the sum assured keeps increasing at a predefined rate each year. These policies are helpful to protect against steadily rising inflation and ensure the policyholder is adequately insured.
• Term Plans with Return of Premium: These term insurance plans offer maturity benefits. All the premiums shall be paid to the policyholder if he or she survives the policy term.
• Level term insurance plans: Level term insurance plans are a simple form of term insurance. The sum assured remains the same across the period of the policy. The insurer pays the death benefits to the nominee on the demise of the policyholder. Such term insurance policies may be beneficial for people who seek substantial amounts to keep family financially secure on an untimely demise.
• Decreasing term insurance policies: Decreasing term insurance plans are renewable, but the coverage falls across the policy tenure at a predefined rate. The premium remains unchanged across the plan. Such policies are useful to repay home loans, education loans and so on.  

See Also: Benefits of Buying Term Insurance Online

Why Term Insurance?

• Cover against critical diseases
• Affordable premiums
• Tax benefits under Section 80C and Section 10(10D) of the IT Act, 1961
• Complete financial protection for dependents.

See Also: What is a Term Insurance Plan?

What Should Be My Life Cover?

The quantum of cover you need can be computed considering your current income, liabilities, expenses and investments. Use the human life value calculator to compute the sum assured for your family. According to experts, if you are in the age group of 18-35 years, the life cover should be 15-20 times yearly income. If you are in the age group of 36-45 years, it should be 20 times annual income; if you are in the age group of 46-50 years, the cover must be 15 times of the yearly income; and if you are in the age group of 51-60 years, the life cover has to be at least 10 times of the annual income.

See Also: What to Consider While Buying a Term Insurance Plan?

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