Term life insurance is a type of life insurance in which the insurance company pays the claim to the nominee of the insured in case of the death of the insured. The life insurance coverage is provided for a particular period which is known as the “term”. The period in term life insurance can be anywhere between 5 years to 60 years depending on the type of term insurance policy.
Pure term insurance policies are those which do not have any investment option and these plans purely cover the life of the insured against specific perils. Term insurance covers the death of the policyholder during the policy period and provides claim as a form of financial assistance to the family of the deceased. The term insurance can also be claimed at the time of maturity by the policyholder and the maturity amount with any accrued bonus would be paid to the policyholder.
Term life insurance is the best life insurance policy available in India. The term insurance policy can be taken for a particular period or the entire life depending on the requirement of the customer. The premium can be paid lifelong or for a particular period in the long-term insurance policies depending on the premium paying capacity of the customer.
What is a 75 Lakhs Term Insurance Plan?
A 75 Lakh term insurance plan is a standard life insurance policy with a sum assured of Rs. 75 Lakh. This term insurance plan offers a death benefit to the nominee in case an unexpected event takes place such as the sudden death of the policyholder. It provides financial protection to the family of an insured and gives financial support to fulfill their future goals.
In 75 lakhs term insurance plan, the life assured has chosen the sum assured of Rs. 75 Lakh at the time of policy issuance, the death benefit shall be equal to the chosen sum assured. Rs. 75 Lakh term insurance plan works like a traditional term life insurance plan but some life insurance companies offer a maturity benefit that will be equal to the chosen sum assured.
The life insurance companies in India provide Rs. 75 lakhs term insurance plans online. 75 lakhs term life insurance can be purchased online at Policybachat.com by comparing the best term life insurance in India from different types of life insurance companies. The sum assured would be automatically calculated based on the annual/monthly income and other factors of the applicant. 75 lakhs term life insurance sum assured would be paid to the policyholder in the event of maturity of the policy or to the nominee in the event of death of the policyholder.
Who Can Purchase a 75 Lakhs Term Insurance Plan?
- A 75 lakhs term insurance plan can purchase anybody whose age is above 18 years.
- Who has a regular source of income and dependents in his/her family can purchase Rs. 75 Lakh term insurance plan.
- These plans are well suited for those who have a large family with parents, children, siblings, wife, etc.
- These plans are suited for those who want to create enough savings for their family in case of absence.
- A salaried person, married or unmarried can also purchase Rs. 75 Lakh term insurance plan.
Premium Calculator for 75 Lakhs Term Insurance Plan:
A policy's premium varies and depends on the plan that one selects and his/her credential. Most of the time, a young and healthy person will get the same term plan at a lower premium than a person who is older comparatively. In the same manner, a person who does not smoke gets a better premium than a person who is a smoker. A life insurance premium calculator is a tool that provides an affordable premium for your life insurance policy according to the data entered by you.
The Life Insurance premium can be calculated in 2 steps online by entering basic details such as Date of birth, Smoking habits, Pre-existing diseases, Gender, Annual income, Salaries/Self-employed, and contact details. In the next step, life insurance premiums from different insurance companies will be displayed on the screen.
The premium calculator for term insurance can be done by using the online portal in 3 simple steps and the premium can be paid online before the issuance of the policy. The below steps are to be followed to arrive at the premium of 75 lakhs sum assured term insurance policy.
Step 1: The first step in using the life insurance premium calculator is to click on the online life insurance premium calculator link and proceed to the life insurance section.
Step 2: The next step in using the life insurance premium calculator is to enter the below details clearly and correctly.
- Gender of the applicant
- Tobacco consumption; Yes or No
- Annual income from the options given in the calculator
- Occupation type; Salaried or Self Employed
- Age of the applicant; to be entered as Date of Birth
- Name of the applicant and email id of the applicant.
Step 3: In this step, you can enter your requirements such as:-
- Sum assured required under the life insurance policy
- Tenure – maximum age the coverage is required
- Premium payment type - Regular or Lump sum or Limited pay
- Premium payment frequency - Monthly or Quarterly or Half-yearly or Yearly
- Payout type - Lump sum or Income or Combination of both
- Add-ons such as Critical illness cover, Waiver of premium, and Accidental disability cover can be selected and the premium would change accordingly.
Step 4: This is the last and final step where you need to make payment to the insurance company and it only takes a few minutes to finish this process. The premium figure displayed may be changed subject to the medical underwriting. Once the premium payment is made, the customer receives confirmation regarding the same and the next step would be the tele medicals or physical medical verification where the customer needs to undergo medical tests or declare health condition on the telephone to the insurance company before policy issuance.
Advantages and Disadvantages of 75 Lakhs Term Life Insurance Policy
Advantages of 75 Lakhs Term Life Insurance Plan:
- Financial Security: The sudden demise of the insured can put the family in jeopardy. With no regular income, the family may soon face a financial crisis. Having a life insurance policy helps your family come out from any financial crisis after your sudden demise.
- Death Benefit: 75 lakhs life insurance plans provide the death benefit to the nominee of the policyholders in the case of death of the policyholder. The sum assured amount as a death benefit paid to the family members is mentioned under policy terms and conditions. The death benefit paid to the nominee of the policyholder can be used to prevent the financial circumstances of the family after the death of the policyholder.
- Maturity Benefit: Term life insurance plans offer maturity benefit in which the policyholder would get a lump sum amount at the time of maturity of the term insurance policy. There are certain term insurance plans in which the premium amount paid by the policyholder would be returned to the policyholder after the expiry of the term insurance policy. Maturity benefit would be paid to the policyholder in this case as the policyholder would be alive at the time of maturity of the policy.
- Loan Availability: The term life insurance policies provide loans to the policyholders during certain stages of life such as Marriage, Child education, home loan, etc. Availing of a loan against the life insurance policy these days is the best option to meet all your emergency expenses.
- Income tax exemption: The premiums paid under the life insurance policy are eligible for income tax exemption under section 80C and section 10(10D). At present under this section of income tax, you can avail of a maximum tax deduction of Rs.1.5Lakh.
Disadvantages of 75 Lakhs Term Life Insurance Plan:
- High premium for aged people: The higher the age the higher would the premium to be paid in the life insurance. This is due to the simple fact that the risk increases with the age so is the premium. So, it is advisable to take life insurance at a very early age to prevent yourself from paying higher premiums. There is a chance where the insurance companies have rejected or denied providing policy to old age people having ailments.
- Awareness of Exclusions, Hidden clauses: Any financial product available in the market certainly has some exclusions and hidden clauses incorporated into it. It is your responsibility to find out those clauses and choose the right life insurance policy. For example, most of the policies don’t pay for suicide in the first year and almost all the policies exclude loss of life due to drugs overdose or involvement in criminal activities.
- No guarantee of wealth: Another major disadvantage of the 75 lakhs life insurance policy is that the policy would not guarantee the creation of wealth. When compared to traditional investments the wealth-building in life insurance policy comes with a limited guarantee.
- Difficult to calculate the returns: The returns on the life insurance policies are quite complicated and it is highly difficult to predict the returns. The returns from life insurance are purely based on market conditions and performance. So a particular figure is difficult to arrive at in the case of life insurance unlike PPF and other fixed deposit schemes.
75 Lakhs Term Life Insurance Exclusions:
Death due to Suicide or Dangerous activity participation:
Suicidal death and participation in dangerous activities that may lead to death are also included in the exclusions. The dangerous activities include adventurous sports that may commonly result in death.
Death due to Participation in Criminal Activities:
Death due to participation in criminal activities, their beneficiaries will not be able to claim term insurance benefits, i.e. the sum assured. This is quite a common exclusion and there are no add-ons that can offer protection to policyholders against this exclusion.
Death under the influence of alcohol or drugs:
Life insurance companies in India mostly refuse to provide term insurance cover to habitual drinkers and drug abusers. One cannot hide this claim from the insurer. Even if you hide your drinking problem and drug addiction, buy a term plan, and die due to an accident or some other incident under the influence of drugs or alcohol, the insurance company may reject your life insurance claim as per the terms and conditions specified therein.
Pre-Existing Medical Conditions:
It is mandatory to reveal pre-existing medical conditions before availing of the policy if you have not revealed that you will not receive coverage for it. This means that if you die of a pre-existing medical condition that the insurer did not know about, your beneficiaries will not be able to receive the death benefits.
How to purchase a 75 Lakhs term insurance plan online?
The process of buying a term insurance plan online has become simple and hassle-free with PolicyBachat. For buying a term insurance plan online please visit our website Policybachat.com Following steps to purchase the life insurance policy online in our portal
Step 1: Firstly, Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, type of occupation, and salary, and Date of Birth. After this, you need to enter your contact details to facilitate a call from our agent.
Step 2: Now the premium from different insurance companies will be displayed on the screen. You can edit the details such as Coverage, Term, Premium payment method, Mode of claim settlement, etc. Submit the details to get the desired premium. The premium can be changed by changing other factors such as Coverage required, mode of payment, etc.
Step 3: The next step is to select the best life insurance plan and pay the premium to the insurance company before proceeding to fill the proposal form details.
Documents Required Buying a 75 Lakhs Term Insurance Plan Online
- Age proof: The premium to be paid for the life insurance policy depends on the age of the applicant and the sum assured required. To verify the age of the applicant, age proof such as Voter Card, Pan Card, Driving license, etc. should be submitted to the insurance company.
- Address Proof: Proof of residence would be required to communicate the policy-related details and the address proofs such as utility bill, passport, Voter ID, Aadhar Card, etc would be required by the Insurance Company.
- Photo Identity Proof: Photo identity proof such as PAN Card, Aadhar Card, Driving license, and any other proof which contains the photo of the applicant needs to be submitted at the time of taking the life insurance policy from the insurance company.
- Picture: A passport-size photo of the applicant should be submitted at the time of taking the life insurance policy from the Insurance Company.
- Income Proof: One of the most important documents which are required at the time of taking a term life insurance policy is the income proof of the applicant. The income proof could be the salary slip, income tax return, employer’s certificate, or Form 16.
- Medical Reports: Life Insurance Company might ask for a medical certificate depending on the declarations made by the applicant in the proposal form. Higher sum assured options may require compulsory medical tests before issuing the policy.
Claim Settlement Process of 75 Lakhs Term Insurance Plans
The Claim Process of 75 lakhs Term Life Insurance policy online should be in 3 steps
Step 1: Claim Intimation
- In the case of Maturity claims, the policyholder should inform the insurance company regarding the maturity of the policy or survival of the policyholder.
- In case of Death claims, the nominee of the policyholder or the immediate family members can lodge a claim with the insurance company.
The claim intimation can be done online or offline which should contain basic information such as the Name of the Policyholder, Policy number, Date of Maturity, etc. In case of offline intimation, the claim form can be availed from the nearest life insurance branch and duly filled before submission.
A claim intimation number is provided by the insurance company which is to be retained and used for any further communication with the insurance company.
Step 2: Submission of Documents
Once the claim intimation is done and the claim intimation number is obtained, the next step is to provide all the relevant documents to the insurance company. It is advisable to submit all the documents in one go to avoid to and fro communication with the insurance company.
The following documents are to be provided by the nominee or the policyholder:
- Certificate of Death (Death Claim)
- Panchanama report (Death claim)
- Statement from the hospital if the insured is admitted
- Certificate from medical attendant stating that the illness of the insured
- F.I.R Report (Accident death claim)
- Cremation or burial report
- Certificate from an employer if the deceased is an employee.
- Age proof
- Residence proof
- Relation proof with the policyholder(Death claim)
- Deeds of assignment (if any)
- Policy document
- Duly filled claim form/ claim intimation number
- Bank account details
- Any other documents as required by the insurance company.
Step 3: Claim Settlement
As per regulation 8 of the IRDA (Policyholder’s Interest) Regulations, 2002, the insurer is required to settle a claim within 30 days of receipt of all the required documents. If the claim is an early claim (a claim which is occurred within 3 years from the date of policy start date) then there would be further investigation by the insurer. This procedure has to be completed within six months from the date of receiving written intimation of the claim. After receiving all the documents the claim is processed and the insurance company releases the funds into the account mentioned in the claim intimation form.
PolicyBachat is an online insurance web aggregator where you can compare quotes of the best life insurance policies in India from the best life insurance company.