Cheapest Term Life Insurance: Term insurance plans are meant to offer compensation to the dependents of the policyholder when the policyholder dies unfortunate or untimely. Term insurance plans are actually protection plans that can provide comprehensive coverage depending on the plan chosen by the policyholder.
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What is Term Insurance?
Term insurance plan is a type of life insurance plan that aims to compensate the beneficiary in case of unfortunate death of the insured during the tenure of the policy. In such cases of an unexpected death of the insured, the nominee/family is assured of an amount called the death benefit. Term insurance plans, also known as pure protection plans, are budget-friendly and offer more coverage at a much cheaper premium.
How Does A Term Plan Work?
A term insurance plan is a type of life insurance plan that provides compensation to the beneficiary for the unfortunate loss of the insured during the policy term. In case of the unexpected death of the insured during the policy term, a sum assured known as a death benefit is provided to the nominee/family of the insured. Term insurance is the simplest form of life insurance that helps a person secure financially in the absence of their loved ones. Term insurance plans are affordable, a person can get a higher coverage amount at the most affordable premium.
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Term insurance plans are widely known as pure protection plans that offer death benefits in case of unexpected death of the insured during the policy term. Some term insurance policies offer maturity benefits on survival of the insured till the completion of the entire policy term.
Under term insurance policies, a person can avail tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961. A term insurance policy helps a person build a financial pillow for their loved ones and fulfill their dreams or fulfill their dreams. financial requirements in the absence of the insured.
Reasons To Invest In Term Insurance
Term insurance plans are basic types of life insurance policies that are very cost effective and help a person achieve a financially secure future for their loved ones. Below are some reasons why you should invest in a term insurance policy:
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The premiums of term insurance policies are quite affordable according to the nature of coverage provided under term insurance policies. An individual can avail higher coverage at nominal premium rates. It is also advisable to buy a term insurance policy at an early age as older people are at a higher risk of diseases and need more coverage leading to higher premiums.
Helps in Tax Savings:
A major advantage of buying a term insurance plan is that it can help you save tax. The premium paid for a term insurance policy is eligible for tax benefits under Section 80C of the Income Tax Act, which is rs. 1.5 million. Death/maturity under term insurance policy is also tax free as per Section 10(10D) of the Income Tax Act.
Option to Add Riders:
Under a term insurance policy you can add additional coverage known as a rider that helps increase the scope of coverage under a term insurance policy. Riders can be added to a term insurance policy in exchange for additional premiums. Some commonly chosen life insurance riders include accidental death benefit, accidental total and permanent disability, critical illness rider, waiver of premium rider, Cheapest Term Life Insurance, etc.
Provides Financial Security:
A term insurance policy is known as a pure protection plan that helps provide financial security to the insured’s family in case of the unexpected death of the insured during the coverage period. In case of the untimely death of the insured, the nominee will be provided a death benefit that can help the family members of the insured to meet their financial requirements in case the insured is not around.
Eligibility criteria for buying Term Insurance Plans
Term insurance policy is an ideal investment option as it offers life coverage in lieu of regular premium payment. A term insurance policy is a type of pure risk protection plan but before buying a term insurance plan, it is necessary for you to know whether you meet the eligibility criteria to buy term insurance or not. The eligibility criteria for buying a term life insurance policy are given below:
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|Minimum Entry Age||18 years|
|Maximum Entry Age||65 years|
|Minimum Policy Tenure||5 years (may vary from one insurance to another)|
|Maximum Policy Tenure||No limits (may vary from one insurance to another)|
|Who can Purchase It?||Salaried people, young people, newly married people, new parents, parents or senior citizens|
|Available for NRIs||Yes, a term insurance plan is available for NRIs|
|Death Benefit Payout Options||Lump Sum |
Monthly Income Payout
Part Lump Sum, Part Monthly Income
Increasingly Monthly Income Payout
Part Lump Sum, Part Increasingly Monthly Income Payout
|Term Insurance Riders||Accidental Death Benefit Rider |
Accelerated Death Benefit Rider
Accidental Disability Rider
Critical Illness Rider
Waiver of Premium Rider
Income Benefit Rider
Child Support Benefit Rider
|Documents Required to Purchase It?||Income Proof |
Photo Identity Proof
|Medical Tests||It is important to undergo a medical test while buying a term insurance policy as it helps the insurer assess the risk and determine the premium.|
Best Term Insurance Plan 2023
There are currently 24 life insurance companies that offer term insurance policies in India. There are many term insurance policies to choose from which are different. Below are some of the best and Cheapest Term Life Insurance plans in India:
|Plan Name||Min. & Max. Entry Age (in years)||Max. Maturity Age (in years)||Policy Term (in years)||Min. Sum Assured (in Rs.)||PPM*||PPT**|
|Max Life Smart Secure Plus Plan||18 – 65||85||10 – 67||20 Lakh||Annual, Semi-Annual, Quarterly, and Monthly||Single, Regular, LImited or Pay till 60|
|Bharti AXA Life Flexi Term Plan||18 – 65||85||5, 10, 15 or 20||10 Lakh||Annual, Semi-Annual, Quarterly, and Monthly||Regular Pay (same as policy term)|
|LIC Tech Term Plan||18 – 65||80||10 – 40||50 Lakh||Annual, Semi-Annual, Quarterly, and Monthly||Regular or Limited Pay|
|Pramerica Life Tru-Shield Plan||18 – 55||65||7,10,12,15 or 20||5 Lakh||Single, Annual, and Monthly||Single and Regular Pay|
|Exide Life Smart Term Edge||18 – 60||75||12 – 30||5 Lakh||Annual, Semi-Annual, and Monthly||Regular Pay (same as policy term)|
|Kotak Term Plan||18 – 65||70||5 – 30||3 Lakh||Single, Annual, Semi-Annual, Quarterly, and Monthly||Single and Regular Pay|
|ICICI Pru iProtect Smart Term Plan||18 – 65||99||5 – Whole Life||.||Annual, Semi-Annual, Quarterly, and Monthly||Single, Regular, and Limited Pay|
|Bajaj Allianz Life Smart Protect Goal Term Plan||18 – 65||99||5 – Whole Life||50 Lakh||Annual, Semi-Annual, and Monthly||Single, Regular, and Limited Pay|
|SBI Life Smart Shield||18 – 60||80||5 – 80||25 Lakh||Annual, Semi-Annual, Quarterly, and Monthly||Single and Regular Pay|
|HDFC Life Click 2 Protect Life||18 – 45||99||10 – Whole Life||20 Lakh||Semi-Annually, Quarterly and Monthly.||Single, Regular, and Limited Pay|
Types of Term Insurance Plans
- Term Insurance For Family
- Term Insurance For NRI
- Term Insurance For Senior Citizens
- Term Insurance For Spouse
Benefits of Term Insurance
Term insurance is a type of life insurance policy that provides life insurance to the insured at an affordable premium rate. This is the most basic type of life insurance that anyone can get. You can ensure financial security for your loved ones in case anything unexpected happens to you during the policy term as this policy offers death benefits in case of the untimely death of the insured during the policy term. Cheapest Term Life Insurance
Some term plans also offer maturity benefits if the insured survives the entire policy term, helping the insured meet their long-term financial goals. Term insurance can also help you save tax and give you peace of mind.