Learn About Term Life Insurance

Posted on 19/07/201821/07/2018Posted in business finance

The penetration of Life Insurance in India is 4{8f0fe19761905e87eba3397ca99565427b69c03b99af0f60d3e458a1c5c96a49}. There is a still chance to penetrate into the insurance industry for the insurance providers. Term insurance will pay immediately upon the death of the policyholder during the term. It has certain features and benefits.

Some of the main features of term insurance are:

Policy Term: The term varies from 5 to 35 years.

Policy Coverage: Death Benefits and maturity benefits for the policy enrolled.

Sum Assured: Vary from policy to policy by various life Insurance companies. You can choose a policy of your choice.

Policy Revival: The policy can be revived from the 2 years of unpaid premiums if it has been in force for a minimum period of 3 years.

Grace Period: The grace period for premium payments is up to 30 days.

Plan type: Term insurance offers flexibility in terms of choosing a plan.

Age Limit: Minimum entry age is 18 years and maximum of 65 years.

Premium term: single, limited and regular pay.

The benefits of term insurance are:

Death benefits: Term insurance offers death benefits to the designated nominees in case of sudden death within the term.

Maturity benefits: Generally, term insurance does not offer you such benefits but the whole life insurance offers maturity benefits if the policyholder survives for certain terms.

Tax benefits: The Term insurance does not only offer the death coverages for the policyholders, it also offers tax benefits for paying the premiums. If you have opted for the insurance plan and paid for the premiums, you should declare that when filing the income tax at the end of the year.

Flexibility – The plans offer you to switch to a whole life insurance plan at a later point in time to enjoy all the benefits related to the whole life insurance.

Easy Way to Get Term Life Insurance

It is important to enroll yourself in a term insurance plan to protect yourself and your family from unexpected circumstances. You can get your term insurance plan through an agent or online. The process is very easy either way. If you are planning to go for an insurance agent to enroll in a plan, please bear in mind that the plan you may choose will be biased and uninformed. Additionally, you will end up paying for hefty Agent commissions. To avoid that, in the age of the internet, you have online insurance aggregator websites, where you can compare all the plans online and get free quotes from all the insurance providers to compare and decide on the plan, you want to go for.

Before you compare insurance plans, make sure you know your requirements well. Knowing your requirements will help you to compare the plan better and you can opt for a plan, which will meet your requirements.  To compare the insurance plans online on Coverfox, you have to fill in some details to get the quotes. The premiums vary based on the coverages you get for the insurances. Once you choose the plan, you can pay for the premiums online and renew it on an annual online.

Top Term Life Insurance Plans

You get to choose from a variety of plans offered by the insurance providers. Some of the best plans include the following.

  1. LIC Jeevan Pramukh:This is an Endowment Assurance term insurance plan offered by Life Insurance Corporation of India. The plan offers financial protection for the death of the policyholder for the policy term and provides maturity benefits of the policyholder survives the term enrolled. The sum assured will be paid in lump sum to the nominee of the policyholder.
  2. MetLife Suraksha TROP:This is a non-participating term life insurance plan offered by PNB MetLife. The plan offers you benefits at a nominal cost along with other guaranteed coverages for the plan.
  3. Max Life Premium Return Protection Plan:It is a term insurance plan with maturity benefits by Max Life Insurance Company. It returns all the premiums paid for the insurance plan at the time of maturity to the policyholder if he/she survives the policy term.
  4. Aviva iShieldPlan: It is a non-linked term insurance plan offered by Aviva. This plan offers guaranteed premium payments including all the coverages. The sum assured is 110{8f0fe19761905e87eba3397ca99565427b69c03b99af0f60d3e458a1c5c96a49} of the premiums paid for the plan.
  5. Tata AIA Life Insurance iRaksha TROP: this is an online term insurance plan, which pays for the lump sum assured if the policyholder survives the policy term.

There are other insurance plans available in the market based on your requirement. When you choose the term insurance, you should make sure to compare all the plans and choose the one, which will be worth the premiums paid and coverages it offered.