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Real Facts About Term Plans That Can Prove Useful to You As Well!

  8/7/23 4:19 AM

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Raveesh was hearing a lot about the term insurance plans. His colleagues mentioned it and he also received promotional emails about term plans from various insurers. However, he wasn’t able to find enough information about them and when he inquired from his agent, he dismissed the idea. This made him think as to why is something being discussed so much by people and yet his agent doesn’t support the idea of it? This is when he researched even further to found out all the information related to term insurance plans in India.

He came across some real facts about the term plans that can prove useful to you as well:

1. Simple Insurance

This is one of the easiest plans in the market. It caters to those buyers, who want to safeguard the financial stability of their family in the times of their untimely death. If a breadwinner passes away suddenly, the family is left to fend for itself and it becomes difficult to immediately replace the income. A term plan can help in replacing the income; it can help in paying any outstanding debts and also provide the family with some funds to take care of future obligations.

2. It covers your better half

After researching a lot Raveesh came across a plan named Edelweiss Tokio Life Zindagi Plus. It is a plan which understands the importance of a homemaker and her role in supporting the family at every step. Edelweiss Tokio Life Zindagi Plus is a term plan that provides a better half benefit under which a lumpsum amount would be given in case of the death of the policyholder and 50% of the life-cover that is up to Rs 1 crore will be provided to the spouse after the policyholder’s demise. In case of an unfortunate demise of the existing spouse, the dependents will receive the sum assured.

3. Smart Beginning

It is assumed by the insurance providers that young people are less susceptible to death and therefore they offer amazingly low premiums to youngsters buying the policy. Hence, it is suggested to invest in such a plan as soon as you start earning and that too for the longest possible term to cover your financial risks. For example, if you start earning at 25 years of age, buy a term plan for a term of 50 years so that you will be covered till around the time you retire. Term insurance plans in India are available for people between the age group of 18-65 years with maximum maturity age at 80 years of age.

4. Riders Available

With your base policy, you can have add-ons or riders which can be easily added to your base plan as per the different needs and requirements of your family. Riders like accidental death benefit rider, critical illness ride and so on can be taken depending on different insurers’ terms and conditions.

5. Enjoy Tax Benefit

The best term insurance plan is the one that offers you wholesome benefits at the lowest cost. Apart from getting such plans at low premiums, you can also save money via tax deductions under Section 80C and Section 10 (10D) of the Income Tax Act.

6. Online Purchase

Term plans are available online that too at very low premium rates. As compared to offline plans purchased by agents these plans are 30% to 40% cheaper this is because these plans are sold directly to the customer without any agent commission involved. This benefit is then passed on to the end customer. For a buyer, it makes more sense to buy online due to the simple process of buying it at lower premiums.

Raveesh’s doubts were cleared. Hope these facts cleared a lot of your doubts. The only thing you need to keep in mind is that don’t buy any plan without researching. After you compare term plans online, you can make an informed decision.

 

Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.

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