The probability of premature death is quite significant. Life is unpredictable. The family loses its source of revenue if the family’s bread-producer dies suddenly. The family is facing a huge financial dilemma in that lawsuit. Financial security is sought in the savings that the family may not have been able to satisfy all its financial demands. A life insurance policy guarantees that financial security and assists the family to cope with the financial loss if the bread-winner dies early.
WHAT IS A TERM INSURANCE PLAN?
A term insurance policy is a life insurance plan that is a person’s lifetime. Under the policy, a certain duration and amount are selected. If the life insured person dies within the period of the plan, the insurance company pays the insured amount to the family of the dead. This lump sum advantage helps the family manage their financial loss.
|TERM PLAN||ENTRY AGE||POLICY TERM||ACCIDENTAL DEATH BENEFITS||CRITICAL IILENESS BENEFITS||WAIVER OF PREMIUM||TERMINAL ILLNESS|
|Aditya Birla sun life||18-75 years||5-70 years||Paid||Paid||Paid||Included|
|Bharti AXA Term Plan eProtect||18-65 years||10-75 years||Included||N/A||N/A||N/A|
|LIC E-term Plan||18-60 years||18-60 years||N/A||N/A||N/A||N/A|
|TATA AIA Maha Raksha supreme||18-70 years||10-40 years||Paid||N/A||N/A||Included|
|SBI Life eShield Plan||18-65 years||18-65 years||Paid||N/A||N/A||N/A|
|SBI Smart Shield||18-60 years||18-60 years||Paid||N/A||Free||Free|
|ICICI Prudential iProtect Smart||18-60 years||18-60 years||Paid||N/A||Free||Free|
|Kotak e-Term Plan||18-65 years||5-75 years||Included||Paid||Included||N/A|
|HDFC Life Click 2 Protect 3D Plus||18-65 years||18-65 years||Paid||Paid||N/A||N/A|
|Bajaj Allianz eTouch Lumpsum||18-65 years||18-65 years||Paid||Paid||Free||N/A|
|Aviva Lifeshield Advantage Plan||18-55 years||10-30 years||Included||N/A||N/A||N/A|
5 BENEFITS OF BEST TERM INSURANCE
Term life insurance plans have a high sum assured when compared to the other insurance plans.
- Lowest premium term insurance in comparison to other health insurance schemes. Furthermore, the policyholder dependents are a reasonably cheap means of protecting themselves in event of death. Those dependent on the death benefit, regardless of the juncture of the policy tenure, from obtaining the amount from the death of the policy owner.
- The promised amount depends on the plan and increases, decreases or stays equal to the planned amount.
- The premium paid under section 80C of the Income Tax Act for a long-term insurance may be reclamated as tax exemptions. Section 10 (10D) exemptions from benefits acquired via insurance plans may also be claimed.
- There are no survival benefits for a regular term insurance plan. However the surviving insurance holders are to receive the premium amount paid in respect of the term return of the premium policy (TROP).
- The term insurance policy includes additional characteristics and benefits in the event of accidental death, severe sickness, complete and permanent disability.