1. What is Term Insurance?
Term Insurance is the basic or pure life insurance cover wherein the family will get the sum assured in the event of an unexpected death of the insured person.
2. How is Term Insurance different from Life Insurance?
Life Insurance is a contract wherein the Insurance Company will pay a lump sum amount if the insured meets with an unexpected death or if the policy matures.
Alternatively, a term plan policy is a type of life cover where there is only a life cover benefit is paid to the nominee in case of the insured’s death, and no maturity benefits are payable.
3. Why is Term Insurance necessary?
Term Insurance is necessary to secure your family financial future in case of any unexpected eventuality. The term insurance payout allows your family to continue their lives with dignity and financial security.
4. Is there a maturity benefit in Term Insurance?
No, there is no maturity benefit in a term plan.
5. Who should buy Term Insurance?
A term insurance policy is necessary for a person who is the only earning member in the family, has many financial commitments and/or has taken multiple loans/advances that are pending repayment.
6. What is covered in Term Insurance?
A Life Insurance Term Plan will provide a life cover that provides claim settlement in case of any natural or any health-linked death. It can be due to an accident or a serious medical condition that ultimately results in a death, like the Covid 19 pandemic.
7. Is there a Tax Benefit for Term Insurance?
You can buy a term plan to get tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the term plan payout is tax-free under Section 10 (10D) of the Act.
8. What are the riders associated with the Term Insurance Plan?
Edelweiss Tokio offers four additional riders with our Zindagi Plus term insurance plan - Accidental Death Benefit, Accidental Total and Permanent Disability, Critical Illness, and Hospital Cash Benefit riders.
9. What is the Better Half Benefit in the Edelweiss Tokio term plan?
You can give your partner an additional life cover up to 50% of your term plan cover in your absence with this benefit.
10. When should you take Term Insurance and Why?
Term life insurance coverage should be purchased at a younger age as the premiums will be available at a lower rate. However, you can buy a term plan at any stage of life to ensure optimum protection for your family.