Term Insurance Plan

1. Term Insurance Plan

2. Overview of Term Insurance Term insurance offers financial protection at highly affordable premiums. The death benefit is provided to the nominee in the event of the policyholder’s demise during the policy tenure. No benefit is offered if the insured survives the policy term.

3. Features of Term Insurance • A term insurance policy is extremely cost effective. • Both online and offline application options are available for hassle-free purchase. • You can opt for additional riders to cover disability or disease. • Premiums payments are flexible. You can choose annual, semi-annual, quarterly or monthly payments. • Partial claim amount is payable as lump sum.

4. Benefits of a Term Insurance Plan • The policy offers substantially longer coverage. • Lump sum pay out is offered in case of the diagnosis of a terminal illness. • Tax benefits are available on premiums under Sector 80C. The death benefit is also exempt from taxes under Section 10D. • Optional coverage for accidental death is available, to protect against future mishaps.

5. Tips to Buy Term Insurance • Think of the number of family members and your current financial situation. • Calculate a rough estimate of the amount you will need to maintain their current lifestyle. • Keep liabilities like debts in mind. • Determine till which age you might require the cover. • Pick a company that offers a smooth claim settlement process. • Make the best use of riders to maximise coverage. • The cover amount should not only replace your income but also cater to the daily requirements of your family.

6. How to Calculate Term Insurance Premium? A term insurance premium calculator is the easiest way to estimate the premiums to be paid. Enter the basic details, like preferred policy term, payment frequency, date of birth, smoker or non smoker and gender. You will also need to provide your name and other personal details. Now simply click on “Calculate Premium.”