Uncertainties persist in our lives. An unexpected event can affect your family's financial future. Term insurance is a safety net that provides financial support to your family even in your absence. Offering high coverage at a low premium, this plan ensures income security so that your loved ones can live their lives without any financial hassles.

Term insurance is the simplest and most affordable plan of life insurance. In this, the policyholder pays premiums for a fixed period. If he dies during this period, the nominee receives tax-free death benefits. If the policyholder survives till the end of the term, no payment is made, unless the “Return of Premium” option is taken.

• Affordable premium: It is more affordable than other life insurance plans.
• Large coverage amount: Sum assured up to Rs 1 crore is available at a low cost.
• Simple and transparent plan: There are no complex investment components, making it easy to understand.
• Tax savings: Premiums are tax deductible under section 80C of the Income Tax Act and death benefits are tax-free under section 10(10D).
• Family Protection: It ensures that the family members do not face any financial difficulties and can maintain their lifestyle.

Types of Term Insurance

• Regular Term Plan: This is the most economical plan that offers death benefits. If the policyholder survives, no amount is refunded.
• Return of Premium Term Plan: In this plan the premiums paid are returned on maturity of the policy.
• Term plan with increasing coverage: The death benefit amount increases over time, thereby reducing the impact of inflation.
• Term plan with decreasing coverage: In this the sum assured decreases with the policy term, depending on the loan repayment needs.
• Convertible Term Plan: This can be converted into permanent insurance later, ensuring coverage for a longer period of time.

How much coverage should one take in term insurance?

• As per income: Take insurance cover of 10-15 times your annual income.
• Outstanding loans: Take into account the amount of home loan, car loan and other loans.
• Children's education: Include funds required for higher education.
• Day-to-day expenses: Add the amount needed to maintain the family's current lifestyle.

Term Insurance vs. Permanent Life Insurance

Term insurance provides coverage for a fixed period. It gives high sum assured at a low cost, while permanent insurance gives lifetime coverage and investment benefits. If your main objective is family protection and income replacement, then term insurance is a great option. On the other hand, if you want to invest for the future, then you can consider permanent insurance.

Term insurance offers greater protection at a lower cost and ensures financial stability for your family. If you want high coverage at a low premium, term insurance is the best option. Choose the right plan as per your needs and secure the future of your loved ones.