Term Insurance Plans
Term Life Insurance provides financial protection for a specific duration at a fixed premium rate. If the insured person passes away during the policy term, the nominee receives the total payout or benefit. This benefit can be disbursed as a lump sum, a combination of lump sum and monthly payouts, or as monthly payouts alone. Term life insurance is recognized as a pure protection plan that ensures the financial security of dependents in the event of the insured’s untimely death.
Benefits of Term Life Insurance
- Death Benefit:
In the unfortunate event of the insured’s death during the policy term, the nominee is entitled to receive the total payout.
Lump Sum: To address immediate financial liabilities.
Monthly Income: To help maintain the family’s standard of living.
- Tax Benefit:Premiums paid for term life insurance qualify for tax deductions under Section 80(C) of the Income Tax Act, up to ₹1,50,000 per year.
- Rider Benefits:Riders allow customization of the basic term insurance plan, enhancing coverage based on specific needs:Accidental Death Benefit Rider: Provides an extra sum assured in case of death due to an accident.Accidental Disability Rider: Offers an immediate lump sum payment in the event of a disability caused by an accident.Critical Illness Rider: Pays an additional sum assured if the insured is diagnosed with a critical illness specified in the rider.Waiver of Premium Rider: Waives future premiums if the insured suffers from a critical illness or permanent disability.
- Option to Increase Death Benefit:Certain policies allow the insured to increase coverage at key milestones in life, such as marriage or the birth of a child, to accommodate changing financial responsibilities.By combining affordability, flexibility, and comprehensive coverage, term life insurance serves as a crucial tool for financial planning and safeguarding the future of loved ones.
