Term Plans India

Hello sir I am here as I want to know what is the Term Insurance Plans so will you please tell me about this Insurance Plan??

Term Insurance is the cheapest form of life insurance that provides full financial coverage for a defined period of time. In the event of any unforeseen situation the policyholder’s family is taken care of and financial stability is ensured. Death benefit is payable to the nominee who is usually a family member.

Benefits:
-Get lumpsum amount in the event sudden death
-See off all your loans and liabilities
-Provide money so that your family continues to live with pride
-Term Insurance also takes care of family in case of your disability or critical illness:
-Provides supplementary income in case of loss of income due to accidental disability or illness
-Get lumpsum amount if diagnosed with critical illness
-Additional sum insured in case of accidental death

The key features of term insurance plans are:
-Policy Term:
The minimum policy term is 5 years, with the maximum varying from 25 years to whole life span for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years.
-Plan Choice:
Term insurance provides flexibility in terms of choosing the plan on single life basis or joint life basis.
-Entry Age:
To be eligible for term insurance plans, the minimum age of entry is 18 years, with a maximum age limit of 65 years with optional add on benefits.
-Death Benefits:
On death of life assured during the term of the plan, the nominee or assignee, in case where the policy has been assigned to someone else, will receive the total/ assigned death benefit chosen at the time of commencement.
-Maturity Benefits:
Term insurance plans don't come with any survival or maturity benefits. If one wants maturity benefits, then a TROP (Term Return of Premium) plan is suggested.Read more about TROP Plan here.
-Additional Optional Benefits:
Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured are also available.

Eligibility Criteria for Buying Term Insurance Plans
Entry Age
Minimum: 18 years
Maximum: 65 years

Policy Term
Minimum: 5years
Maximum: 30-55 years

Maturity Age
Maximum: 75 years to Whole Life

Annual Premium
Minimum: INR 2000
Maximum: Based on Sum Assured and age of applicant


Term insurance offers flexible plan options to suit the need of every individual. You can choose:
-The amount of preferred sum assured
-Premium payment option which can be either one-time or regular.
-Term of the policy
-Add on protection

__________________
Answered By StudyChaCha Member