WHAT IS TERM INSURANCE?

Term insurance plans are pure protection plans. If an unfortunate event of death occurs to the policyholder during the policy term the nominee receives a sum assured also known as death benefit. Term insurance policies offer the highest life cover for the lowest premium amount. When you buy a term insurance plan in India, your family is provided with the insurance money only after your demise and not on the maturity of the term. Hence, you can opt for a more extended life cover when buying term plans in India. The whole amount of your premium is solely for death benefit and hence, it is the cheapest.

BENEFITS OF TERM PLANS

  • 01

    LONGER PROTECTION

    Provides Longer protection. One can choose up to the age of 80

  • 02

    HIGH COVERAGE

    Provides high coverage at affordable premium rates

  • 03

    FINANCIAL STABILITY

    Secures your family’s future by providing financial stability in your absence

  • 04

    TAX BENEFIT

    Save tax u/s 80C and section 10 (10D) of Income Tax Act, 1961

  • 05

    CRITICAL ILLNESS COVER

    Cover yourself against 35 critical illnesses

  • 06

    LUMPSUM AMOUNT

    Provides a lumpsum amount on the diagnosis of a critical illness

  • 07

    ADDITIONAL RIDERS

    You can add riders for enhanced protection

  • 08

    PEACE OF MIND

    Comprehensive protection that gives complete peace of mind

Why do we need Term Insurance plans?

Why do we need Term Insurance plans?

While you strive hard to fulfill all your family’s needs at present, you wouldn’t want them to compromise or face financial difficulties in your absence. With a family, comes many responsibilities of both present and future. If you are the only breadwinner of the family with a regular source of income, it becomes your sole responsibility to provide for your family and see to it that there are taken care of after your demise.

Unlike an investment plan, a term plan will not provide a return to you in the form of survival benefit when you are alive, but it will secure your family’s future in your absence by providing a high coverage at a nominal rate. After your demise, a term insurance plan will provide the sum assured of the term policy to the beneficiaries of your term plan, assisting them financially for covering all the future expenses and providing them with a secure future. As the maximum limit of the live cover in a Term insurance plan in India is limitless, you can opt for a term insurance policy with a sum assured as high as you want. Term insurance plans are one of the cheapest life insurance policies as there is no investment component involved allow you to take care of all your responsibilities like your child's education, marriage, etc. and liabilities in your absence. A term policy also allows the policyholder to save tax under section 80C and 10(10D) of the Income Tax Act, 1961. If you want financial stability for your family and don’t want them to suffer in your absence, you should definitely choose a term plan with an adequate live cover as soon as possible.

Inclusions and Exclusions of Term Insurance

Term plans promise to pay a lump sum amount to the nominees of the policyholder in the event of death. While the policy brings you security and hosts of benefits, your term policy comes with a few inclusions and exclusions:

Inclusions and Exclusions of Term Insurance

Inclusions:
The nominees are provided with the sum assured as a lump sum amount or through the chosen payout option in the event of the policyholder’s death. Tax deductions and exemptions are provided with under section 80C and 10(10D) of the Income Tax Act, 1961 and other prevailing tax laws. Additional amount over and above the policy’s sum assured is provided if the event mentioned in the added rider is fulfilled. Other facilities like loan facility for meeting any unforeseen financial requirement, extra benefits for higher premium are included.

Exclusions:

The insurance claim is rejected by the insurance company if the death has occurred under abnormal circumstances.

In case the policy includes Accidental or Critical illness rider, the insurance claim is rejected if the death has occurred due to: 
a) Accidental death because of driving under the influence of drugs or alcohol
b) Death as a result of participating in life-threatening activities like racing or trekking
c) Death due to any pre-existing medical condition not mentioned in the policy term
d) Death due to any illegal activity

Other exclusions for term insurance plans include:
a) Suicide within the first year of term policy tenure
b) Death due to sexually transmitted disease not mentioned in the policy term
c) Any self-inflicted injury resulting in death
d) Death due to the consumption of illegal narcotics or drugs

FAQs

ARTICLES WORTH READING

  • What would be your ideal life cover?

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  • Understand all about Term Insurance Plans

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  • What Are the Advantages of Term Insurance?

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  • Why you should choose comprehensive cover over basic life cover?

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  • 5 mistakes you should avoid before buying a term insurance plan

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  • Buying a term plan at an early age is a wise decision.

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  • Do women need life insurance OR Women DO need life insurance!

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FREQUENTLY ASKED QUESTIONS

  • TotalSecure+ provides cover that goes beyond term insurance. It has an inbuilt accelerated critical illness benefit options (health cover). Thus it offers buyers the flexibility to choose cover based on their needs. The plan offers the following options for the policyholders. 1. Life Cover 2. Life Cover with ‘Basic Health Cover’ (7 Critical Illnesses) 3. Life Cover with ‘Comprehensive Health Cover’ (35 Critical Illnesses)

  • The following Riders are available with TotalSecure+: Accidental Death Benefit Rider (UIN: 147B002V02) Accidental Total and Permanent Disability Rider (UIN: 147B001V02) Waiver of Premium Rider (UIN: 147B003V03) Hospital Cash Benefit Rider (UIN: 147B006V02) For more details about the aforementioned riders, please refer to the respective rider brochures.

  • The riders provide additional benefits in addition to the cover chosen by the policyholder. It not only complements the base plan but also provides additional cover for accidents that may affect the financial planning of the policyholder.

  • The claim is paid on the diagnosis of the critical illness. It is an accelerated benefit which means, the policy will continue with the life cover reduced to the extent of the critical illness cover paid. The policy will continue after the critical illness cover is paid unless it is equal to the life cover. Thus, the future premiums payable for the life cover will also get reduced proportionally based on the reduced amount.

  • TotalSecure+ provides cover that goes beyond term insurance. It has an inbuilt accelerated critical illness benefit options (health cover). Thus it offers buyers the flexibility to choose cover based on their needs. The plan offers the following options for the policyholders. 1. Life Cover 2. Life Cover with ‘Basic Health Cover’ (7 Critical Illnesses) 3. Life Cover with ‘Comprehensive Health Cover’ (35 Critical Illnesses)

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