Benefits Of Term Insurance Policy In India 2024

Updated On: 2023-04-05

Author : Team Policybachat

A term plan offers insurance coverage in the form of the death benefit to the beneficiary of the policy in case of uncertain demise of the insured person. In today’s times, buying a term insurance policy is imperative as it ensures a secured financial future for the family in case of any eventuality.

Moreover, along with the benefit of financial security to the family, a term insurance plan offers plenty of benefits right from lower premium rates, additional rider benefits, etc. Let us briefly understand the term insurance benefits below.

What are the Benefits of Term Insurance?

Term insurance offers multiple benefits to customers. Here are a few you should be aware of:

  • Affordable Premiums: You can get a high-value life cover from a term insurance plan by paying an affordable premium amount. Premium payments can be made either monthly/half-yearly/yearly. The earlier you buy a term insurance plan, the lower the premium amount you have to pay.
  • Whole Life Cover: Term insurance plans offer substantially longer coverage. Whole life insurance plans offer coverage till the age of 99 years
  • Payout of Sum Insured: In case of the unfortunate demise of the person insured, the family members will receive the sum assured as a payout. The policyholder can choose for this payout to be in the form of a lump sum, an income that is either monthly or annual, a combination of a lump sum and income, or an increasing income at the inception. This will help take care of financial needs and household expenses among other costs
  • Critical Illness Coverage: In case optional Critical Illness Coverage is included in your term insurance plan, you will get a lump-sum payout upon diagnosis of any critical illness1 that is covered in the plan
  • Accidental Death Benefit: You can add the Accidental Death Benefit benefit to your term insurance plan. This will offer protection against any mishaps in the future
  • Coverage for Terminal Illnesses: Term insurance plans can give you lump-sum payouts in case of diagnosis of terminal illnesses such as AIDS
  • Tax Benefits: You can get tax benefits on premiums paid under Section 80C along with premiums paid towards critical illness benefits under Section 80D. The lump-sum amount received by nominees as the sum assured/death benefit is also exempted from taxes subject to Section 10 (10D) of the Income Tax Act, 1961

Why Term Insurance Plan?

You may believe nothing uncertain will happen to you based on the lifestyle you follow. However, there is always a risk of untimely demise through external factors, like accident or disease, etc. which are not under your control. Buying a term insurance plan is essential as it helps your family to minimize the financial stress that they might have to face in your absence.

Benefits of choosing Term Insurance Plans

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

The regular benefits of a term insurance plan with extensive Critical Illness Coverage. Here are a few key features of the same:

  • Longer coverage with the option to be covered until 99 years of age
  • Extensive coverage for 34 critical illnesses
  • Receive payouts upon the first diagnosis of any critical illness covered under the plan
  • Receive full payout of life coverage upon diagnosis of any terminal illness
  • Pay lower premiums starting from ₹ 490 per month
  • Choose from four payout options, namely Lump Sum, Lump Sum + Income, Increasing Income, and Income

Key Features of Term Insurance Policy:

  • Death benefits
  • Maturity benefits
  • Term insurance Tax benefits
  • Rider/Add-on covers
  • Converge against various liabilities of term insurance
  • Sum Assured
  • Premium Payment Frequency
  • Claim Assistance

Benefits of Term Insurance Premium Calculator:

Below are some of the benefits of term life insurance premium calculator is useful for choosing the right plan by comparing the term plan calculator is explained below:-

  • Save Time: The term plan calculator can help save your precious time by comparing the term life insurance policy quotes online within 5 minutes. It is not required to submit any documents to get premiums. After the selection of the best term plan, you can pay online without any interaction with agents.
  • Easy Budget: While comparing the term insurance policy between different insurance companies online one can get a clear estimation of which careers have low premiums and high coverage, how much premium you have to pay for your coverage with covering all financial obligations.
  • Low premiums: Each company that offers policyholders new discounts and better plans every year and also buying online will make customers' thoughts cost-effective. Compare quotes with various insurers and choose a better plan to save extra in your pockets.
  • Single Platform: The term calculator tool provides to choose the best term plan offered by companies on a single platform easily without switching to different sites.

For best term insurance plans please visit our website or dial our toll-free number 1800 123 4006 / 1800 123 4003.

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