Term insurance premiums are economical with respect to the higher coverage amount it offers. Secure your family's future take the most important decision of tomorrow, TODAY. Make Term Insurance your best friend and protect your family. Calculate the right amount of term insurance at PolicyBazaar and buy instantly. Best term life insurance.
What is Term Insurance?
Term Insurance is a life insurance plan that provides financial coverage to the beneficiary of the insured person for a defined period of time. In the event of death of term insurance policyholder during policy term, the beneficiary can claim death benefits from the insurance company. The death benefit is payable to the nominee or beneficiary who is usually a family member. You can choose to get a lump-sum amount or a combination of lump-sum and monthly amount as per your requirement. Some Insurance Companies also cover permanent or partial disability wherein the policyholder's regular income is disrupted.
Note: In case of survival of the policyholder the coverage at the earlier rate of premiums is not guaranteed after the expiry of the policy. The buyer has to either obtain extended coverage with different payment condition or forgo the coverage entirely.
Don't be short-sighted. Get Term Insurance and secure your family's future. Save their harassment by financially securing them through a term plan.
In the event of an unforeseen situation who will take care of your liabilities and responsibilities? It is here that the importance of term insurance is felt. The lumpsum that your family will get as death benefit can bring financial stability and pay off the liabilities.
It is the real support that your family can have if something happens to you. Term insurance is important for everyone and especially more for the bread earner of the family.
“Family is not an important thing, it’s everything."– Michael J. Fox
Benefits of Term Insurance Plan
Get lumpsum amount in the event sudden death
See off all your loans and liabilities
Provide money so that your family continues to live with pride
Term Insurance also takes care of family in case of your disability or critical illness:
Provides supplementary income in case of loss of income due to accidental disability or illness
Get lumpsum amount if diagnosed with critical illness
Additional sum insured in case of accidental death
Premium Payment Mode: Single | Regular - Yearly, half-yearly, quarterly, and monthly.
Term insurance offers flexible plan options to suit the need of every individual. You can choose:
The amount of preferred sum assured
Premium payment option which can be either one-time or regular.
Term Insurance Plans are specifically designed to secure your family's core financial needs in case of death or uncertainty. According to the plan, family/dependents of the life insured is/are eligible for a lump sum amount in case of death or critical illness, if applied for, of the life insured and during the term of the policy. Such an insurance plan can help your family to have sound financial independence, even if you are not around.
Tax Benefits:Term life insurance plans come with excellent tax benefits. You can avail lucrative tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the Critical Illness Benefit also qualifies for a deduction under Section 80D.
Note:Tax benefits are subject to changes in tax laws. Please consult your tax advisor for details.
Policy Term: The minimum policy term is 5 years, with the maximum varying from 25 years to whole life span for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years. People can opt for the term plan period they think works for them. Experts suggest going for a longer period term plan as the premium amount generally gets locked and the insured party gets to pay the same premium over the tenure of the term plan for the same amount of cover.
Plan Choice:Term insurance provides flexibility in terms of choosing the plan on single life basis or joint life basis. Single life means that the term plan will only provide cover for the life of the insured party who is generally the breadwinner of the family. A joint life term plan, on the other hand, covers the life of both the husband and the wife through a single term plan. Most term insurance plans offer the term plan on a first claim basis. This means that the term plan pays the sum insured on the expiry of either of the two insured people. There are also other term plans that pay on the death of both the insured persons.
Entry Age:To be eligible for term insurance plans, the minimum age of entry is 18 years, with a maximum age limit of 65 years with optional add on benefits. The premium of the term plan increases with age and people who are looking for a term policy for a longer period should opt for the best term insurance plan when they are relatively young. This will ensure they have a locked-in premium amount that does not change much most of these term plans.
Maturity Age: The best term insurance plans are those that offer cover well into the lifetime of the insured. Most term plans offer cover the insured to up to 65-70 years of age. Term plans that have a higher maturity age may also charge a higher premium rate as they offer a term insurance cover against life risks for a longer tenure. Also, the risks increase with age and this is reflected in the premium amount.
Survival Benefits: A standard term plan does not have any survival benefits. However, the demand from investors has meant that various companies have opted to launch term insurance plans with survival benefits. Called Term Return of Premium (TROP) plans, the term plan refunds the premium at the end of the term plan tenure if the insured person survives the period. The TROP plan is becoming popular with people who are looking for savings as well as insurance with their term plan. This term life insurance plan has a higher premium than the standard term plan but has the advantage of assurance that the policyholder will get back the premium he or she paid to the life insurance company for the cover. Investors should read the insurance terms and conditions carefully to ensure they know the amount of money they will get back as survival benefits. Check out the term insurance plan that meets your needs with our term plan comparison.
Death Benefits:On death of life assured during the term of the plan, the nominee or assignee, in case where the policy has been assigned to someone else, will receive the total/ assigned death benefit chosen at the time of commencement. Depending on the type of plan, the death benefit may stay the same over the whole tenure of the plan (standard term plans), decrease (decreasing term plans) or increase (increasing term plans). The insurers provide various options of payment for the termplan. These include a lump sum payment, lump sum payment plus an annuity that may be monthly, quarterly or yearly, or simply annuities that are spread over the agreed number of years.
Maturity Benefits: Term insurance plans don't come with any survival or maturity benefits. If one wants maturity benefits, then a TROP (Term Return of Premium) plan is more about TROP Plan here.
Additional Rider Benefits: Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured are also available. The benefits can be added to the term plan by paying an additional premium amount. The best term plan in India is the one that offers these riders at a comparatively lower price than opting for such cover through individual plans. Choose the additional optional benefits for your term insurance plan with our website. Use the term plan comparison features to shortlist the additional benefits you common term insurance riders are:
Total and Permanent Disability Benefit Rider
Accidental Death Benefit Rider
How to Choose the Best Term Insurance Plan:
Company reliability:The company's reputation and stability are very important in any sector of business especially life insurance for the customers to trust. The reputation in the household sector, the FICO score on their funds accumulated.
Expenses:We realize that costs have a vital role to play in term protection plans. Hence, search for plans with the least costs which leads to lower premiums in the same cover. Additionally, choose a company that provides discounted premiums to no smokers.
Convenience: Over the range of life coverage plans, one discovers the term plans online seeing the most extreme advancement. For one, price and by additional premium rates have been decreased significantly and this procedure is on.
Enhanced Cover:It is a special option provided by the online terms plans of specific insurers the chance to enhance their life cover at their critical situations of the life of the policyholder.
Claim settlement ratio:The proportion explains what numbers of settlements have been done per 100 claims. Hence, claim settlement proportion of 100% (exceptionally uncommon) implies the organization has settled each claim
Solvency ratio:The steadiness and financial goodwill of the insurance agency are dictated by its solvency ratio. It gives a clear picture whether it can make satisfactory pending claims and develop the business without becoming bankrupt.
Riders:The one that gives you all secured edges is the best term insurance plan for you. One approach to accomplish this is through riders. An insurance rider is an extra to the essential plan that offers advantages far beyond the subject of the policy some contingencies.
Term Insurance India - Types of Plans
There are a number of term insurance plans available in the market from various insurance companies in India. All of these companies offer both types of online and offline term life insurance with each term policy having its own set of specific features that make it the best term insurance plan in the market. To understand these plans we need to look at them a bit more in depth.
Your search for the best online term life insurance plans ends at PolicyBazaar. We help you compare term insurance plans available in India by offering lowest term insurance quotes. We also let you compare plans based on features, coverage, etc. Just fill in your basic details like age and annual income earned. Thereafter, we will not only calculate the amount of term insurance you need but also choose the best plans from top insurers. All you have to do is to compare them side by side on parameters of premium, amount of coverage and additional benefits. Thus, you will make an informed choice and buy the policy started right away!!
The need to buy term insurance varies from one individual to other, but the most common benefits which influence a person decision to buy a term insurance are as follows-
Secure your family- If you are the sole earner of your life, buying term insurance is indispensable for you. Term insurance offers monetary assistance to your family after your death. It means there would be no monetary burden on your family and they could carry on their normal lifestyle even if you are not around.
Safeguard against liabilities- In today’s time, we take a lot of liabilities to buy our home, new car and for meeting other expenses. Many of these liabilities are usually paid over a period of time (loans repayments). However, if something happens to you, responsibility of repaying liabilities falls directly on your family. A term insurance helps your dependents to manage your financial obligations.
Cost-effective- Term insurance plan is cheap. For instance, a risk cover of Rs 30 lakh for a male age 30 years can be as low as Rs 3000/year.
Tax benefits- Term insurance is a great tax saving instrument. By investing in plan, you will get deduction under Section 80C & 10(10D) of the Income Tax Act, 1956.
Additional protection options: Many term insurance plans comes with additional cover options in the form of riders such as Critical Illness, Accidental death or disability, Hospital cash etc. It’s easy to appreciate the need of these benefits with our current lifestyle habits.
Yes, it is always advised to buy individual life insurance policy even if you are covered under a group policy because:
The amount of insurance you are covered for in the group policy may not be enough.
If you leave your job, you may no longer be covered under the group policy.
If you employer decides on cost-cutting then you run the risk of losing on the benefits of the insurance coverage.
As you age, the premiums are much higher & so is risk. If you decide to buy it later, you will end up paying higher amount. Insurance companies take extra precautions as well.
Age proof (Voter’s ID card, Passport, Driving license, etc.)
Address proof (Voter’s ID card, Passport, Utility bills, etc.)
Photo identity proof (Passport, Voter’s ID card, PAN card, Driving license, etc.)
Recent passport size photographs
Income proof (Salary slip, Form 16, ITR etc.)
Some insurance companies might need specific documents apart from these.
Bought by the policyholder, riders are supplementary benefits added in the life insurance policy. However, you need to shell out extra money to get life insurance riders. Like insurance policies, premium paid on riders also give you tax benefits as per prevailing tax laws.
Life health insurance
Various options of life insurance riders available in the market are-
Non-smoker refers to a person who does not consume tobacco in any form. Preferred non-smoker is the one who does not have any pre-existing medical conditions at the time of signing the policy. Below are the situational requirements to fall under this category:
No use of tobacco or nicotine-based products in last 12 months
Cholesterol level not exceeding 280, with or without treatment
Blood pressure not exceeding 152/92, with or without treatment
No cardiovascular or cancer death of more than one parent before age 60
These customers generally fall under non-medical category – depending on their age. Preferred rates are applicable for this category if there is any differentiation by the insurer.
The following are the benefits of holding Insurance policies in electronic form:
Safety: There is no risk of loss or damage of a policy as is common with paper policies
Payment Options: Premium for all the policies can be paid online and several service requests can be logged from the e-Insurance account.
Convenience: All insurance policies can be electronically held under a single e-Insurance account. You can access them whenever required.
Less Paper work and savings in time: An e-Insurance account holder is freed from the trouble of submitting KYC details each time a new policy is taken.
Single Point of Service: Service requests in respect of e-Insurance account or any of the electronic policy can be submitted at any of Insurance Repository's service points.
Statement of Account: At least once every year, the Insurance repository would send a statement of account to the e–Insurance account holder with the details of the policies of the account holder.