A term insurance policy is one of the purest forms of life insurance, providing comprehensive financial coverage in case of the death of the insured. It is a contract between the policyholder and the insurance company where a fixed premium is paid for a specific period, and in case of death, the nominee receives a lump sum payout. Unlike traditional life insurance plans, a term insurance policy does not offer maturity benefits if the policyholder survives the term.
Among all life insurance products, a term insurance plan offers the highest coverage at the lowest premium since there is no return on premium. Here's how it works:
A term insurance policy provides significant life coverage at an affordable cost, making it accessible to everyone.
In case of the policyholder's death, the nominee receives the death benefit, ensuring financial stability.
Policyholders can customize their term plan by adding riders for accidental death, critical illness, or permanent disability.
Premiums paid towards a term life insurance policy qualify for tax deductions under Section 80C of the Income Tax Act. The death benefit is also tax-free under Section 10(10D).
A term plan offers higher payouts in case of accidental death or disability through riders.
Nominees can opt for a lump sum, monthly income, or a combination of both as the death benefit payout option.
The payout from a term insurance plan can help families cover education expenses, home loans, and weddings in case of an unfortunate event.
A basic term policy where the sum assured remains the same throughout the policy term.
The coverage amount increases over time to keep up with inflation and financial responsibilities.
Designed for those with large loans, where the coverage decreases as liabilities reduce.
If the policyholder survives the term, they receive back the total premiums paid.
Allows conversion to another life insurance policy (such as whole life insurance) during the term.
Ensure the sum assured is at least 10-15 times your annual income to provide adequate financial security.
Choose a policy duration that covers your family's financial needs until major responsibilities (like loans and children's education) are taken care of.
Compare premium rates across different insurers while ensuring adequate coverage.
Check the insurance company’s claim settlement ratio (CSR) to ensure hassle-free claims.
Consider critical illness riders, accidental death benefits, and waiver of premium riders for enhanced protection.
Opt for an insurer with strong financial stability and a good customer service record.
Determine how much coverage your family would need in your absence.
Use online term insurance calculators to compare premiums and benefits.
Select the best term plan based on your requirements.
Fill out the application form accurately and disclose all health and lifestyle-related information.
Some insurers may require a medical check-up to assess risk factors before policy issuance.
Once approved, pay the premium and receive your policy document.
Apex Insurance offers:
Get in touch with Apex Insurance today to secure your family's future with the best term insurance policy tailored to your needs!