Most-Asked Questions Answered!
Term insurance is a pure-risk cover. While the policy is active, it offers coverage to the nominee in the case of demise of the life insured. To know more,
• Get a lump sum amount
• Get a monthly regular income
• Get a combination of lump sum and monthly regular income
For their nominee, the life insured can select one of the following pay-out methods:
A term insurance plan offers the following benefits:
● High life cover at a low price
● Financial protection
● Option to add on riders
● Flexibility to choose policy term
● Flexible premium payment modes
● Tax benefits
There are two tax benefits available:
1. As per Section 80C* - tax benefits can be claimed on premiums paid towards a term insurance policy up to a limit of Rs 1,50,000.
2. As per Section 10(10D)* - the death benefit received by the nominee(s) upon the death of the life insured is tax-free.
The term insurance coverage amount should cover the following:
● Immediate loans and liabilities.
● Long term goals like children's education, etc.
● Regular expenses like monthly bills of groceries, maid, etc.
Any individual with even one dependent on his/her income must buy a term plan.
Term plan is expected to replace the income when the earning member is not around. Hence, the duration of a term plan should be typically up to the retirement age.
In case the term plan is intended to cover a loan/liability, the duration should match the term of such loan/liability.
Ankit is a 35 years old healthy non-smoker male.
Let us understand this with the help of an example:
He buys the Future Generali Care Plus with:
● Policy Term = 25 years
● Premium Payment Term = 25 years
● He has two plan options to choose from.