Term Insurance Simplest way to protect your family's financial future
Facing loss of the breadwinner can put a family at a great risk of being financially insecure. Term Plan is a pure risk cover plan and an economical means of providing a high level of financial protection. In this plan, the family of life insured is financially well cushioned even if the life insured is no longer around to provide. Term insurance is highlighted as an essential tool in financial planning, ensuring that your loved ones are adequately protected without straining your financial resources. By securing your family’s financial stability, term insurance offers peace of mind, making it an indispensable aspect of comprehensive financial planning.
- Pure Protection Plan
- Affordable Premium
- Financial Security to your Family
-
Coverage Against Critical & Terminal
Illness -
Accidental, Total & Permanent
Disabilit Benefit
1 Crore Term Cover Plan Start at ₹519/Month
What is Term Plan?
Term insurance is a life insurance policy that provides coverage for a specific term or duration. Its also known as a 'pure protection plan,' It is not only affordable but also offers substantial coverage, making it a cost-effective choice for comprehensive protection. Term Insurance offers financial protection to your family in the event of your demise during the policy period. If you are the primary breadwinner, term insurance becomes a vital tool to ensure the continued well-being and financial stability of your family. This financial cushion helps cover living expenses, outstanding debts, and future financial goals.
| Benefit | How it Works |
|---|---|
| Death Benefit | If you don't survive the policy term, your nominee will be eligible to receive the sum assured as the death benefit. |
| Maturity Benefit | If you survive the policy term, no benefit is paid. However, if you buy a Term Return of Premium (TROP), plan you will receive the amount of premiums paid (minus taxes)-once the policy matures. |
Need and Importance of Term Plan
A term insurance plan is a type of life insurance policy that provides coverage for a specified term or period. It offers financial protection to your family in case of your untimely demise during the policy term. Here are several advantages of buying a term insurance policy:
Financial Responsibilities
Term insurance is crucial for individuals with financial responsibilities, ensuring that their loved ones are protected against unforeseen circumstances.
Ensures Family Lifestyle in Your Absence
It replaces lost income, helping your dependents maintain their standard of living and meet financial needs even after your demise.
Life Stages Consideration
The importance of term insurance is emphasised across various life stages, such as being newly married, a young professional, a parent, a taxpayer, self-employed, or retired.
Protects Child Education Expenses
For individuals with children or dependents pursuing higher education, term insurance ensures that their educational aspirations are not compromised.
Debt Repayment
Term insurance helps settle outstanding loans, preventing your family from shouldering financial burdens like home loans or personal loans
Peace of Mind
By investing in term insurance, you gain peace of mind, knowing that your loved ones are financially protected, and their future is secured in your absence.
Tax Benefits
Term insurance offers tax benefits, making it an attractive option for those looking to save on taxes while ensuring financial protection.
Business Continuity
For business owners, term insurance ensures smooth business continuity by providing funds for debt repayment, share buyouts, or capital for operation.
Types of Term Insurance Plan
All life insurance companies offer different type of term plans in India. Each term plan has its own unique features and benefit. Below are these different types of term insurance plans in detail;
Level Term Plan
It is the most basic term life insurance plan. Level Term Plan provides a fixed sum amount to the beneficiary in case of the policyholder's demise. In the level term plan, Both the premium and death benefit are fixed throughout the policy tenure and the premium for these plans are the lowest
Term Return of Premium Plan (TROP)
Term return of premium plan is a type of term insurance plan in which the life insurance company returns the premium paid for the cover in case the insured survives the policy tenure. These policies are gaining popularity as the policyholder will get back the money he has invested for the term insurance cover.
Increasing & Decreasing Term Insurance Plan
The coverage of an Increasing term insurance plan increases every year. Whereas the coverage for a decreasing term insurance plan decreases every year. Usually, this type of plan is taken to cover increasing or decreasing liabilities. An increasing term plan could be taken to combat inflation while a decreasing one could be against a loan.
Single Life & Joint Life Term Insurance Plan
A single-life is a regular Individual term insurance plan, whereas a Joint Life Term Insurance plan is best suited for couples with children. They offer the same advantages and benefits to both the policyholders.
Eligibility Criteria to Buy a Term Plan
It is always advisable to check the eligibility criteria for term life insurance plan before buying it. Below mentioned are the eligibility criteria to buy the term insurance plans are:
| Eligibility Criteria | Specifications |
|---|---|
| Min and Max Age | 18 years - Max 65 years |
| Minimum Policy Term | 5 yrs and vary from company to company |
| Maximum Limit | No Limit (may vary from insurer to insurer) |
| Pre-medical Screening Test | Yes, it is mandatory to undergo a medical test |
| Payout Options | Annual Payout/Lump-sum/Monthly Payout/Lump-sum with monthly income/Lump-sum with increasing monthly income |
Key Benefits of Term Plan
The key benefits of term insurance include high coverage at affordable premiums, financial security for your dependents, flexibility to choose the policy duration, and the option to enhance coverage with riders for additional protection.
Death Benefit
The primary objective of a term insurance plan Provide Lump sum amount to the beneficiary of the policy in the event of sudden death. This lump sum amount can help your family cover various financial obligations such as daily living expenses, outstanding loans, mortgage or rent payments, education expenses and other financial goals
Maturity Benefit
If you survive till the policy term, insurance company returns the premium paid for the cover in case the insured survives the policy tenure as per the type of opted.
Critical Illness Cover
Term insurance offers protection against critical illness. A term life insurance plan provides a lump sum amount in case of the policyholder suffers from any critical illness for the first time.
Add-on Riders
You can enhance your basic term insurance coverage benefits by choosing optional add-on riders who pay a certain premium. Some of the common add-on riders include accidental disability riders, accidental death benefits, waiver of premium, etc.
Long-Term Coverage
Term insurance provides coverage to the policyholder for its entire life Pay off your policy premium early and stay covered for the full policy term with affordable premiums.
Offers Customisation Options
When it comes to term insurance, there are several ways you can personalise your coverage. Some of these customisation choices include Premium Payment Duration, Premium Payment Frequency, Claim Payout Options
Our Preferred Plan
Preferred plans may provide tailored coverage options based on individual health profiles, offering a more personalised and comprehensive insurance solution.
Smart Secure Plus Plan
- Advantage with Max Life
- Claim settlement Ratio: 99.51%
- Rs 1,22,857 Crore of assets under management as on FY 22-23
- Max Life’s presence is in 296 branches across India
Coverage Benefits
- Life Cover: 1 Crore at Rs. 702/month*
- Terminal Illness Coverage at zero additional cost
- Covers 64 Critical illness
- Premium Break option after 10yrs
ICICI iProtect Smart
- Advantage ICICI Prudential
- Claim settlement Ratio: 98.14%
- Crossed `2.5 trillion of assets under management as on FY 22-23
- 24X7 assistance with their Mobile App
Coverage Benefits
- Life Cover: 1 Crore
- Covers 34 Critical Illness
- Covers Terminal Illness
- Accidental Death Benefit 100%
- Wavier of premium cover
Click 2 Protect Life
- Advantage with HDFC
- Claim settlement Ratio: 99.39 %
- Rs 2,38,782 Crore of assets under management as on FY 22-23
- HDFC Life’s presence is in 498 branches across India
Coverage Benefits
- Life Cover: 1 Crore at Rs Rs 873/month*
- Accidental Death Benefit
- TROP option Available
- 1 day claim settlement is exclusively available for policies bought online*
E Touch Term Plan
- Advantage with Bajaj Allianz
- Claim settlement Ratio: 99.04 %
- Rs 1,04,493 Crore of assets under management as on FY 22-23
- Bajaj Life’s presence is in 510 branches across India
Coverage Benefits
- Life Cover: 2 Crore at Rs 750/month*
- Shield terminal illness & disability
- Covers 55 critical illness
- Premium holiday option available
Kotak E term
- Advantage with Kotak E term
- Claim settlement Ratio: 98.82%
- Covered 50 million lives nationwide as on 2023
- 24X7 assistance with their Mobile App
Coverage Benefits
- Life Cover: 1 Crore at Rs 510/month*
- Multiple payout option
- Wavier of premium option
- Permanent disability and Critical illness benefit
Inclusion and Exclusions in Term Plan
In a term insurance plan, the following aspects are covered, also There are certain situations under which the claim may be rejected. You must be aware of the exclusions applied in your particular term insurance plan.
Different Time Periods You Should Know About in Insurance
1. Premium Payment Term (PPT): It is term for payment of premiums and it depends on the plan chosen.
2. Free Look Period: The free look period in life insurance is usually 15 to 30 days from the date of delivery of policy document, depending on the channel through which you have purchased the policy.
3. Grace Period: The insurance grace period is 15-30 days for policies basis the premium payment options like monthly, quarterly , yearly.
4. Revival Period: A revival period refers to the time band allowed by the insurance company to recover a lapsed policy starting from the due date of the first unpaid premium. Typically, this period of 5 years.
FAQ's
As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming. To help you with this, We have tried to address common doubts for a seamless journey with Bimasure;
Term insurance is a type of life insurance that provides coverage for a specified term or period. It pays a death benefit to the beneficiary if the insured person passes away during the policy term.
Term insurance is crucial for providing financial protection to your family in case of your untimely demise. It ensures that your dependents receive a lump sum amount to cover expenses like daily living, outstanding loans, and future financial goals.
The coverage amount depends on your financial obligations, such as loans, education expenses, and living costs. A common recommendation is to have coverage equal to 10-15 times your annual income.
Term insurance riders are additional benefits that can be added to the base policy for extra coverage. Common riders include critical illness, accidental death, waiver of premium, and disability benefits.
Yes, most insurance companies offer the option to buy term insurance online. Online purchases provide convenience, transparency, and the ability to compare different plans.
If you outlive your term insurance policy, there is no maturity benefit, and the policy expires. You may have the option to renew the policy, but the premium will likely increase.
Premiums are determined based on factors like age, health, lifestyle, coverage amount, and term duration. Younger, healthier individuals typically pay lower premiums.
Yes, smokers generally pay higher premiums compared to non-smokers due to the higher health risks associated with smoking.
Yes, you can have multiple term insurance policies from different providers. Having multiple policies allows you to customize coverage based on your needs
The claim settlement ratio indicates the percentage of claims settled by the insurance company. A higher ratio suggests a better track record of settling claims, making the company more reliable.
