Rahul Khanna
Term insurance is one of the most straightforward forms of life insurance. It offers you financial reporting for a predefined policy term in return for a fixed premium. A term insurance plan precautions the financial interests of your loved ones in your absence. This single tool can help them conceal 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 offers coverage for a specific period of time or years, i.e., a term. This type of life insurance offers financial benefits to the nominee in case of the unfortunate demise of the insured during the policy term. A term insurance policy offers high life cover@ at lower premiums. For e.g., a Premium for ₹ 1 Crore Term Insurance cover could be as low as ₹ 432* p.m. These fixed premiums can be paid at once or at steady intervals for the entire policy term or for a limited period. The premium amount varies based on the type of premium payment method the buyer chooses.
Buying a term insurance plan online is a quick, secure, and hassle-free way to protect your loved ones. The development of buying a term plan online is well-detailed to help the user choose the right product besides completing the entire process with a few clicks. This assists in eliminating any potential visits or filling out lengthy paperwork. Let’s dive into some clear benefits of choosing to buy your term insurance plan online.
High Protection at Low Premiums
Most insurers often give a discount when you buy a term insurance plan online. While this may seem small, it can be substantial when you consider the savings during the entire Premium paying duration. This means you can get higher coverage for your loved ones at a lower premium.
Add Ons
A term insurance plan is something that is not one-size-fits-all. Most insurers offer term insurance plans with riders or add-ons. This can help when it comes to giving you the flexibility to tailor your policy to your life’s unique needs. Some popular add-ons or riders that are usually offered are accidental death benefit5, critical illness cover6, and terminal illness rider^, among others.
Convenience
Buying a term insurance plan online lets you manage everything from your phone or laptop in a matter of minutes. Securing your family’s future protection can now be done from the comfort of your home or office at a time that is suitable for you—it is that convenient.
Who Should Buy a Term Plan?
Anyone with financial dependents should buy a Term Insurance Policy. This includes married couples, parents, entrepreneurs, 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. The proceeds received under the policy are exempt and subject to conditions prescribed under 10(10D) of the Income Tax Act, 1961. Term insurance also has the lowest premiums compared to the different types of insurance policies. Hence, individuals who derive any of the three significant benefits associated with term insurance should consider buying such policies. The three significant benefits are – life protection, tax-saving, and affordable premiums.
How Does a Term Plan Work?
Term insurance is a straightforward form of life insurance, but understanding how it works can empower you to make the best choice for you and your family. Here’s a breakdown of the six primary stages involved in a term insurance policy.
Agreement
Term insurance begins with a simple contract between you and the insurance company. By paying a regular premium, you secure life coverage for yourself (or, in some cases, a family member). In this policy, the insured individual is known as the life assured.
Benefits of Buying a Term Insurance Plan
Affordable Premiums
Term Insurance plans provide a large amount of life insurance coverage at an affordable premium. This cover can compensate for several years of lost earnings.
- Cover Against Critical Illnesses
- Support in Case of Disability
- Additional Financial Security
- Tax Benefits
- Death Benefit
- Survival Benefits
- Whole Life Cover
- Flexible Payout Options
Read More: What to choose in between Individual Health Insurance and Family Health
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