Term insurance is one of the most basic forms of life insurance. It offers you financial coverage for a predefined policy term in return for a fixed premium. A term insurance plan safeguards the financial interests of your loved ones in your absence. This single tool can help them cover various expenses like education, housing, groceries and more.
Therefore, it is essential to invest in a good term life insurance policy. This can ensure your family’s financial security after you.
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specific period of time or years, i.e., a term. This type of life insurance provides a financial benefit to the nominee in case of the unfortunate demise of the insured during the policy term. A term insurance policy provides high life cover at lower premiums.These fixed premiums can be paid at once or at regular intervals for the entire policy term or for a limited period. Premium amount varies basis the type of the premium payment method opted by the buyer.
Who Should Buy a Term Plan?
Anyone with financial dependents should buy a Term Insurance Policy. This includes married couples, parents, entrepreneurs and self-employed, SIP investors, young professionals with dependent parents, and in some cases, even retirees.
Premiums paid under the policy are allowed as a deduction subject to conditions u/s 80C of the Income Tax Act, 1961.
Features of Term Insurance
Low entry age
Term insurance plans have a minimum entry age of 18 years only, allowing young adults to secure their loved ones early on
Long term protection
The term plan offers long policy tenures of up to 40 years that allow you to protect your family members for a long time
Adjustable cover
A term insurance plan is flexible and allows you to increase the sum assured if you have opted for the life-stage option at the time of buying the plan
Liability protection
The sum assured of a term insurance plan can be used to ensure your family’s financial security and protect them from debt liabilities like a loan repayment
