Term Insurance plan has become one of the important components of our life. A term insurance plan offers many terms insurance benefits plan that helps us to sail through the hard times of our life. Term insurance benefits come in many forms like death coverage of the insured. In this article, we will explore the term insurance benefits plans offered by Insurance companies.
What is the term Insurance?
First, let us have a look at the meaning of Term Insurance. Term insurance is a type of Life insurance that provides financial security to the family of the insured after his death. The most important term insurance benefit comes in the form of Financial Security of the family members of the Policy Holder.
Term insurance is bought for a specific period by the policyholder. The policyholder has to continue the policy by paying the premiums to the insurance company. In return, the insurance company guarantees financial protection to the family of the policyholder after his/her death.
The Financial returns are paid to the family of the policyholder after his death during the active period of the Term insurance Policy. The premiums of the term insurance policies are not high. One can afford the term insurance premiums at a low rate for the large financial coverage.
For example, you can subscribe to a term insurance plan of INR 1 crore by just paying a premium of around INR 400.
Not only financial security is covered by the term insurance benefits but also there are many add-ons coverage for the Insured person. Let us have a look at the term insurance benefits plan under Term insurance.
Term Insurance benefits under term insurance benefits plan
Many insurance companies offer various term insurance benefits and add-on coverage to the insured. Some of these term insurance benefits include Critical illness coverage, coverage for accidental deaths, A low-cost premium for larger financial security, income tax benefits, etc.
However, before buying term insurance, you should know all the term insurance benefits and term insurance benefits plan so you can purchase term insurance that is suitable to your requirements. Knowing the different term insurance benefits plan can help you to make the right choice while purchasing term insurance.
Term insurance benefits Plan
Here are some important term insurance benefits plans that help the insured to make sure that the term insurance he/she opted for is best for him/her and his/her family members.
Lifetime coverage
One of the important term insurance benefits is the lifetime coverage provided to the insurance. This means that under this term insurance benefit, the insured gets lifetime security up to 99 years age limit. Term insurance benefits plan also helps the family members of the policyholder in case of pf an untimely death of the policyholder.
Comprehensive and easy
You need to have a detailed knowledge of all important term insurance elements and the term insurance benefits. One of the term insurance benefits is that it can be understood by a layman easily. Term insurance provides life coverage to the insured can is not related to the investment.
You can have assured financial security for your family with a pre-determined premium. This premium is paid for a specified time frame and has many other term insurance benefits.
Low-cost premium and high financial security
As you know by now that Term insurance provides life coverage to the Policy Holder and is a kind of Life insurance. One of the main term insurance benefits is the Low-cost premium of the term insurance benefits Plan. Term insurance is among the most pocket-friendly life insurance policies.
There are many factors when it comes to the premium price of a term insurance policy. You should check the price between the term insurance policy online and offline. Mostly the Premium is available at a lower price online. Also, there are many discounts offers for those people who do not smoke or drink.
It is advisable to opt for term insurance at an early age. An early age helps in lowering the premium cost for the Policyholder. You should also compare all the available term insurance benefits plan online.
Coverage for Critical Illness
Life is uncertain thus there can be times when a person gets diagnosed with a terminal disease or some critical illness. This can lead to a heavy burden on the financial resources of a family and a person. With the alarming rise in medical care facilities, it’d be not surprising if one exhausted all savings on medical treatment.
One of the term insurance benefits plans is providing coverage for critical illness to the insured. Although the main motto of a term insurance policy is to provide coverage to the life of a person you can amend the terms of the policy and add coverage for terminal illness/critical illness to the term insurance benefits
Under this rider option, your medical expenses will be covered by the insurance company so you will be able to save your hard-earned money on medical expenses. It is advisable to add this term insurance benefit to your term insurance policy to avoid any future medical emergency and medical expenses.
Additional Benefits (Riders)
Many of the Policyholders are not aware of the Riders in the term insurance benefits plan which helps in making the term insurance policy more beneficial to the Policyholder. These riders can be added later in the term and conditions of your term insurance policy.
These riders can be added by paying an additional measly amount to the premium. The term insurance benefits plans are not the same for every person. Term insurance benefits depend on the individual and his/ her requirements.
Financial security
The main reason one buys term insurance is for the financial security of one’s family. After the death of the Policyholder, the nominated family members receive the amount assured under the Term insurance Policy.
This term insurance benefit can be availed all at once or on a monthly/yearly basis. The monetary assistance provided under term insurance benefits plans ensures the financial security of the family members and provides them financial stability after you.
Returns
This is one of the most attractive term insurance benefits where you can avail of the returns on your term insurance premiums. However, this term insurance benefit has to be activated by the insured by paying additional charges.
Under this term insurance benefit, you receive returns on premiums if you survive the active term insurance period. The Returns on premiums will not include tax, levies, and riders, etc.
To calculate how much returns, you will get on your premiums, you can use an online calculator. This will give you a general idea of the estimated amount you will receive. Doing a comprehensive study can help you in making your choice wisely.
Term insurance Death Benefit
There are many responsibilities for the sole breadwinner of the family. These responsibilities can include loans like a house loan, car loan. These liabilities can put a huge financial and mental strain on the family members of the deceased. The term insurance benefit of death helps to lighten the financial strain on the family.
Under the term insurance death benefit, the insurance company provides financial assistant to the family of the policyholder. Under the death benefit of term insurance, the nominee receives a lump sum amount assured under the term insurance policy of the policyholder. This lump sum amount can be put in use to pay all the expenses after the death of the policyholder.
Under the term insurance policy, one can also choose to receive financial aid on monthly basis.
Income Tax benefits under term insurance benefits plans
One of the notable term insurance benefits is the tax benefit under the term insurance benefits plans. Under section 80 of the Income Tax Act, one is eligible to avail of the tax benefits on the term insurance premium paid by the policyholder. If you pay a premium of a high amount then become eligible for the tax exemption too.
Under the income tax act, section 10, you are also eligible for the tax exemption on the Term return of premium after the maturity of your term insurance benefits plan.
Maturity Benefits
Term insurance only covers the death benefits for the family of the policyholder. Term insurance benefits plan do not provide any maturity benefits to the policyholders. However, it offers a special plan that is a Term return of Premium Plan (TROP) to gain the benefit of the maturity period. It comes in the form of returns on premiums of term insurance.
This term insurance benefits plan is only available for those policyholders who survive the active term insurance policy.
These were some of the term insurance benefits available under the term insurance policy.
Best term insurance benefits plan available in India in 2022
In this table, we have mentioned the best term insurance benefits plan available in India in 2021. These insurance benefits plan are against the term insurance of INR 1 crore. The premium is mentioned on the monthly basis.
The rate of premium depends on the nature of your term insurance benefits plan and varies according to the Insurance company.
Why should I buy a term insurance benefits plan?
If you want a stable and secure future for your family then buying a term insurance benefits plan becomes crucial. Here are some of the important reasons for you to buy a term insurance benefits plan.
Family Security
We always worry about the future. A term insurance benefits plan can help you lessen that worry. While purchasing a term insurance
benefits plan, you also secure the financial security of your family after you.
It can help you provide them with a stable life in the form of financial aid at times of need. It can help in assisting them in their needs like education, loans, etc.
Loan and assets
You can take loans if you want to buy a house or a new car, however, this can become a huge financial burden for your family in case you
are not around. Term insurance benefits plan aids your family’s financial needs in the form of lump-sum or monthly installments offered to the nominee.
A term insurance benefits plan can help your family to overcome debts and loans easily.
Uncertainty of Life
At the present time, the lifestyle has become very busy where we do not get enough time to focus on our health. This can result in diseases and critical illnesses of a person. In such cases, a term insurance benefits plan can cover the medical expenses of a person and provide him medical coverage.
In case of terminal/critical illness, your family can have a backup option after your death with the help of term insurance benefits plans.
Why should I buy a term insurance benefits Plan online?
There are many reasons for you to buy a term insurance benefits plan but we have mentioned the most important ones here-
1. Pocket Friendly
Term insurance is important at present, they are not costly and are available at affordable prices. Many insurance companies provide term insurance both, online and offline. Term insurance is more cost-effective if you buy them online. You can buy term insurance on the official website of an insurance company directly.
All the documentation process is done online on buying the online term insurance benefits plan that makes it cost-effective for the policy buyers. It is advisable to buy an insurance policy online.
2. Insured Amount
There are many options when it comes to the price availability of term insurance. Term insurance is more cost-effective online in comparison to offline term insurance. The insurance amount is also high in case of online purchase of the Term insurance benefits plan.
While buying online term insurance, the insurance companies do not ask the insurance buyer to go through a medical screening. Only if the insured amount is above INR 50 lakh, a medical screening is compulsory. This is one of the most cost-effective if you buy a term insurance benefits plan online to get a discounted price.
3. Detailed Analysis
You can buy term insurance benefits plan online and offline but it is easy to compare the term insurance benefits plan online. Buying a term insurance benefits plan can save you from a lot of unnecessary hassle.
Frequently Asked Questions
Q1. What is a term insurance benefits Plan?
Ans. Term insurance benefits plan provides your family financial stability after your death in the form of a death benefit. Term insurance benefits plan also aids your family in financial distress.
Q2. Is critical illness cover is provided under the term insurance benefits Plan?
Ans. Yes, the policy buyer can add this additional benefit under his/her term insurance policy where he can get medical coverage for a critical illness that includes all the medical expenses.
Q3. Do I get maturity benefits under a Term insurance benefits plan?
Ans. No, you do not get maturity benefits under a term insurance benefits plan, however, you can earn returns on term insurance premiums. This service can be activated by your insurance company.
Q4. What are riders in a term insurance benefits plan?
Ans. Riders simply mean the additional benefits added by the insurance company to the term insurance policy of the policy buyer. Under this, he gets additional benefits by paying extra charges.
Q5. Is there a Traditional term plan?
Ans. Yes, a traditional term plan exists that only provides coverage against life and no additional benefits are offered to the policyholder.
Q6. What is a premium in a term insurance benefits plan?
Ans. A premium is an amount paid by the policyholder to continue his term insurance benefits plan. The premium is paid by the policyholder on a monthly or yearly basis.
Q7. What is the significance of the Claim settlement ratio?
Ans. The higher the claim settlement ratio, the higher reliability of an insurance company. You need to check and analyze every term insurance benefits plan to find the most trustworthy insurance company.
