What is Term Plan ?
This is a type of life insurance policy that provides coverage for a certain period
of time, or a specified tenure of years. This policy covers risk only during the
selected term period and if the policyholder survives the term, the risk cover comes
to an end. If the insured dies during the time period specified in the policy and
the policy is active - or in force - then a death benefit will be paid.
Why go for Term Plan ?
One of the main advantages of going for a term insurance plan is the simplicity
of the cover it offers. As these are pure risk covers, these are easily comparable
Term insurance is the cheapest form of insurance Available for long tenures which
covers life to age 75 Premiums are fixed and do not increase during the policy tenure
One can use it to cover against liabilities such as a home loan One can extend the
scope of cover with riders on these policies such as Accidental Death. How to buy
it While one can opt for a term plan though an insurance advisor; these can be bought
off-the-shelf though online options Buying term plans online is a cheaper option
Look for premium discounts for non-smokers.
This policy is suitable to everyone. However, what stands out is the simplicity
of this policy and ease of understanding. When starting out in life When taking
home loans When creating contingency plans for dependents.
Premium saving tips
Buy this cover before the age bands when the premium starts to shoot up Opt for
an annual premium payment to save on costs; despite advertisements communicating
covers as low as Rs 350 a month, which is what one spends on a pizza or few cups
of coffee Go for a pure term plan and not one with return on premium as they are
Avail tax benefits under Section 80C on the premiums paid for
Did you know ?
Buying term plans online is a cheaper, efficient and easy option compared to other
forms of distribution.