Unless You Are an Immortal, You Need Term Insurance

We are all mortal. This is the universal truth. Death is certain, but we are not sure on the causes and the time of death. A person may expire in an accident at a young age. Heart disease is common among people of all ages. From 1990 to 2016, there has been a drastic rise in the number of cases of strokes and heart disease. This has gone up by around 50% in this period.

Just imagine a situation where a person expires after a heart attack, and there is no one to take care of the financial needs of dependents. To keep your family financially safe on an unexpected demise, avail a term life insurance policy.

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Unless You are an Immortal, You Need Term Insurance             

What Exactly is a Term Insurance Policy for a Layman?

Term life insurance is a form of life insurance and is renewed each year. When you avail a term insurance plan, the insurer pays the beneficiaries/nominees the sum assured on demise within the policy term. Term insurance has no survival benefits.

Insurers today offer different types of term insurance policies, to cater to frequently changing customer preferences and needs.

See Also: Term Insurance For Indians

Common Types of Term Insurance:

• Level-Premium Insurance: If you opt for level premium term insurance plan, the premium amount remains constant, across the policy tenure, say 5 years. After the level term duration, the premium amounts rise each year.
• Annual Renewable Term: This plan gives you an option to renew on a yearly basis, by paying the revised premium amounts.
• Return of Premium: Under this plan, the insurance company pays back the premiums, if no death benefits have been paid by the completion of the policy term. The premium for this plan is higher vis-a-vis normal term plans.

See Also: What is a Term Insurance Plan?

Importance of Term Insurance:

A term insurance plan is a must, if you have dependents. It is the best way to safeguard dependents from both short and long-run financial obligations like education loan, home loan on an early demise. Term Insurance is high cover at low premium.

Term plans are very easy to understand, compare and purchase. If you are planning to buy term life policy for the first time, spend time to understand types of life insurance plans and pick up one which matches needs.

Key Benefits of Term Insurance:

• Financial protection for dependents
• Lower premiums (the lower the age the lower the premiums and vice versa)
• Very flexible payouts
• Grace period
• Options to buy add-ons or riders
• Tax benefits (Under Section 80C of the IT Act, 1961, policyholders can claim the tax deductions on the premium paid)
• Very flexible policy tenures (1 year, 3 years, 10 years and so on)
• Can be availed offline and online

See Also: Tips before Buying Online Term Insurance Plan

Eligibility Criteria for Term Insurance:

• The minimum entry age is 18 years, while the maximum entry age is 60-70 years.
• The maximum age at maturity is 80 years.
• The minimum sum assured depends on your requirements and the insurer.

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