Term insurance policy is an insurance plan which is taken to limit the risk factor related to death. It is taken for a specific period called the ‘term’ of the plan. A pre-specified amount is paid if the policyholder dies during the term of the plan, called the ‘Sum assured’ A term insurance plan differs from a traditional Life Insurance Policy in the way that no Maturity Benefit is provided if the policyholder outlives the term of the policy. Only if the policyholder dies, the sum assured is given.
A term insurance policy has certain benefits for which it is considered one of the best investment options available in the market:
- It reduces the effect of an unfortunate event like death on the family of the policyholder. As the family gets a lump sum amount, they can cover the future expenses without creating a financial burden on themselves.
- A term insurance policy is cheap when compared to other investment product. You can take a term insurance for as high as 50 lakhs just at a premium of around 4 to 5 thousand, depending on other factors. It has the lowest premium in all of the insurance policies.
- Under a term insurance policy, you can opt for any amount as sum assured as the maximum amount of sum assured is unlimited. After you have qualified under the Underwriting parameters of the company, you can buy a term insurance of any amount as sum assured. Whether you want a 50 lakh policy or a ten crore policy, you just have to buy a term insurance.
How old someone has to be to buy a term insurance?
Term insurance plans are vital to protecting your loved ones in the event of death. It is wise to buy a term Insurance as early as possible. The eligibility criteria for buying a term insurance plan is:
- Minimum age: You should be at least 18 years of age to buy a term insurance policy in India as a person is considered adult only at the age of 18.
- Maximum age: The maximum age limit for which you can buy a term insurance plan is 65 years. After reaching 65 years of age, you can’t buy a term insurance plan for yourself.
Age criteria to buy a term insurance policy differs with every insurance company. You can always compare different term insurance policies based on age criteria and go the best term insurance plan which is suitable according to you.
Edelweiss Tokio Life’s Term insurance policies are tailor-made to cater to your needs and include unique features to reduce the effect of death on your loved ones. They are one of the cheapest term insurance plans available in the market with the addition of Tax benefits under section 80C and 10(10D).