Term Insurance: Best Term Insurance Plans & Policy in India

Term insurance is a type of life insurance that covers the policyholder up to the age specified in the policy. Should the life assured die before the term is over, the beneficiary will receive a death benefit as per the policy selected. The objective of having this insurance is to provide financial coverage to the life assured and his/her family, in the event of unfortunate situations like permanent disability or death.

Terminal insurance is very similar to term insurance cover but instead of death benefit it provides tax-free lump sum when diagnosed with terminal illness. Terminal illness benefit is defined as benefit paid when the estimated survival period of life assured is less than 12 months. This is certified by a medical doctor. Purchasing this insurance gives you the security that a guaranteed amount will be paid if the unforeseen happens and you are diagnosed with a terminal illness.

Term insurance guarantees a pre-determined amount of money to the insured person’s nominees if the person passes away within the policy period. Term insurance for life should be a necessity if you have family members who are financially dependent on you and you are the sole breadwinner. It can likewise prove to be handy if you have liabilities like an auto loan, a home loan, or other obligations.

It is a type of term insurance where the policyholder pays a constant premium, but the coverage amount or the sum assured, decreases every year by a fixed percentage, either on a monthly, quarterly, or yearly basis. Decreasing term insurance, also known as mortgage term insurance, is usually bought by homeowners to pay off debts and loans to ensure their mortgage is settled after their death.

Level term insurance is one of the most popular types of life insurance that offers you protection in the event of your demise within the term of the policy. The amount paid as premium as well as the sum assured does not change over the course of the policy term, unlike decreasing term insurance.

It is possible to get term insurance or long-term care insurance if you have diabetes. Term protection is likely available to you, particularly if your diabetes is under control; you can get moderate rates if you react well to treatment and lead a healthy life.

Maturity benefits indicate the sum received by a policyholder or his/her beneficiaries when a policy matures. Typically, a traditional term insurance plan does not offer any maturity benefit. It only offers term insurance death benefit when a policyholder passes away within the policy term.

Term insurance financially covers the risk of death, by paying a lump sum amount to the life assured’s nominee. But, certain kinds of deaths are not covered by the term plan in India. Hence, to avoid any unpleasant surprises to your family members or dependents upon your demise, it is essential to be aware of the terms and conditions of term insurance plans.

Term insurance coverage allows your nominees to receive the guaranteed death benefit in the event of your untimely demise. However, in the case of a pension plan, once the policy matures, you or your nominees are entitled to receive the corpus that you have built over time.

Yes, there are circumstances where buying term life insurance over 60 years of age is worthwhile. Let’s plunge in such scenarios a bit deeper and see which broad life situations make purchasing a term plan in your senior years beneficial:

The duration of your term policy should rely upon how long you need to provide financial security to your family if there should arise an occurrence of unfortunate eventualities. However, while buying a term policy, you should always opt for a ‘term’ depending on your retirement age. So, if your current age is 30 and you are planning to retire at the age of 60, then you should opt for a 30 years policy term.

Life insurance companies require certain documents from you when you purchase a term insurance plan. You can either directly upload these documents onto the insurer’s website while applying, email to their customer service id, or courier the documents to the closest branch.

No, you cannot avail loans on term insurance plans because such term plans do not contain cash value and expire at the end of their policy period without earning any returns. Therefore, banks cannot consider term life insurance as collateral against loans.

Premium paying term for ‘Term Life Insurance’ is the duration for which the policyholder must pay the term insurance premium.

In general, term life insurance policy covers death due to natural disasters such as severe weather conditions, earthquakes and lightning.