Term insurance offers financial security for the entire family in case of the unfortunate death of the policy-holder. Get higher Risk Coverage of your life at low Premium.

FAQ

What is Term Insurance?

 

Term insurance is a type of life insurance in which the insurance company pays the death claim of the insured to the nominee of the insured in return for a premium. Term insurance provides the claim in case of the untimely death of an insured. Term insurance is a long-term contract between the insurance company and the insured customer. As the name suggests term insurance is a life insurance plan taken for a particular period of the term (years).

What are the Features of Life Insurance?

·       Death benefits

·       Maturity benefits

·       Tax benefits

·       Rider/Add-on covers

·       Sum Assured

·       Claim Assistance

·       Customizable tenure

·       Flexible premium payments

What is the Importance of Life Insurance?

A life insurance policy helps to minimize the risk of financial difficulties which would be faced by the families in case of the sudden death of the policyholder. According to the life insurance definition, life insurance is a contract between the insurance company and the insured customer. The insurance company agrees to pay the nominee or beneficiary the pre-defined sum assured. Apart from life insurance cover some life insurance policy plans also offer you the opportunity to create wealth. If one wants to make long-term investments, it’s important to think about life insurance meaning. Such insurance plans help you make systematic savings and create wealth that can be used for your future goals.

When should I buy a term policy?

There is no better time to buy the best term life insurance policy. It is better now than never to purchase a life insurance policy. Ideally one should purchase a term insurance policy immediately after starting a job. Early term insurance purchase results in lower premiums to be paid to the insurance companies. The term insurance
premium depends on the age of the proposer and thereby increases with an increase in age.

What is Term Life Insurance?

Term life insurance is a type of life insurance in which the insurance company pays the claim to the nominee of the insured in case of the death of the insured. According to term life insurance meaning, the life insurance coverage is provided for a particular period which is known as the “term”. The period in term life insurance can be anywhere between 5 years to 60 years depending on the type of term insurance policy. The term life insurance calculator is used to calculate the premium of the term life insurance policy.

What is the difference between Term Insurance and Life Insurance?

The difference between term insurance vs life insurance is that life insurance provides coverage on the maturity of the insurance policy. In life insurance, if the person is alive or dies, the payment is guaranteed as per norms. The policyholder can set a term for the policy and if the policyholder dies then the money is given to the nominee. Term Insurance policy provides coverage for the premature death of the policyholder within the fixed term. Insurance companies provide financial protection to the nominee of an insured if the person dies
within the term of the policy. There can be no claim to the money if the person survives till the maturity of the policy tenure.

How to Select the Best Term Policy for myself?

The best life insurance term plan can be selected online on our portal by comparing the premiums from the top 10 life insurance companies in India. It is advisable to talk to our experts regarding your requirements which help them in guiding you to pick the best term insurance plan in India. The best term insurance plan is the one that offers the best coverage at a reasonable premium.

What are the Types of Term Insurance available in India?

Term insurance is available in many types in India, they are:-

·       Increasing term insurance – The coverage increases each year in a specified percentage i.e. 5% or 10% and the total increased sum insured doesn’t cross the basic sum insured chosen by the
insured customer.

·       Decreasing term insurance – As the name suggests the coverage is decreased each year over a while. The sum insured decreases at a certain percentage each year.

·       Money-back term insurance – The premiums paid are returned to the customer at the time of maturity and in case of death of the customer, the claim is paid.

·       Pure term insurance –In pure term insurance, a claim is paid only on the death of the policyholder. No
survival benefits are paid to the customer in case of survival till the end of the policy period.

How is a Term Insurance Plan Different from other Life Insurance Plans?

Term insurance is a type of life insurance plan which only focuses on the coverage of the life and
the claim is payable only in case of death of the policyholder while the other life insurance plans are seen as a tool for savings. Other life insurance plans provide both the maturity benefit as well as a death benefit to the
policyholder. Term insurance is typically an insurance tool to provide claims in case of death while the other life insurance plans are saving tools.

Why should I Buy a Term Policy?

Life is unstable and we need a backup plan to provide financial security to our family. In case of sudden demise, the family might face financial hardships due to the death of the earning member of the family. A term policy covers the children’s education costs, clears the outstanding loans, and provides income to the family of the
policyholder in case of the untimely demise of the insured. 

Do I need to Buy Term Insurance even if I’m covered under my Company’s Group Policy?

Employer-sponsored best life insurance policy in India would be valid only till the time you are on the payroll of the organization. It is advisable to have a separate term insurance plan after analyzing your liabilities and outstanding loans to maintain the healthy financial condition of your family in case of your sudden demise. It can also be noted that the company-sponsored life insurance coverage would not be sufficient to meet your financial goals as the company offers minimum life insurance coverage without considering your liabilities.

Are there any Age Limits for Buying a Term Policy?

Most insurance companies restrict the maximum entry age to buy a term insurance policy to 65 years. This is due to the general practice that most people retire at the age band 60-65 and also would be free from all the financial obligations and liabilities, hence there would be no need to have a term insurance policy. The
minimum entry age for a term insurance policy is 18 years while the maximum entry age is 65 years. Once the term policy is taken the term can be chosen by the proposer, the younger the proposer higher the term period.

What are the Advantages and Disadvantages of Life Insurance Policy?

Advantages of a life insurance policy are financial protection, Income tax exemption, Low premium, and high sum assured, additional riders, loan availability, and others. Disadvantages of term life insurance are premium rates depending on age, No cash value component, Exclusions, Hidden clauses, and others.