Term Life Insurance
Term Life insurance provides coverage for a fixed period of time at a fixed premium rate.
In case of untimely death of the life insured during the policy term , the nominee of the life insured gets the Total Payout/Benefit. The benefit can be paid out as a lump sum payout or a combination of Lump sum & Monthly payout or only as a Monthly payout.
Benefits of Term Life Insurance
Death Benefit: In the unfortunate event of death of life insured during policy term, the nominee shall receive the Total Payout as a Lump sum amount or a combination of Lump sum & Monthly amount.
Tax Benefit: The premiums paid for Term Life Insurance are Tax free under section 80(C) upto an amount of Rs 1,50,000.
Rider Benefits: Riders are an important addition to the basic plan offering & provide an option to customize the coverage to the life insured. Accidental Death Benefit rider offers an additional sum assured over the base plan offering in case death occurs due to an accident.
Key Terms when comparing Term Life insurance
- Total Payout of each plan
- Premium amount paid for desired Total Payout
- Policy term offered
- High claim settlement ratio
- Riders offered with the plan
Term insurance is the simplest and oldest form of assurance and provides for payment of the sum assured on death, provided death occurs within the policy tenure or term. Should the life assured survive to the end of the term then the cover ceases and nothing is payable.
Types of term insurance:
- Level premium term insurance
- Convertible term insurance
- Term insurance with return of premiums
- Term insurance with guaranteed renewal
- Decreasing term insurance
- Term insurance with riders
- Term Insurance as a rider
- E-Term Isurance