With changing lifestyles, rising inflation, and increasing cases of critical illnesses, term life insurance policy is the first step towards financial planning. Term life insurance is the simplest form of life insurance that offers life coverage for a fixed number of years. It can help provide comprehensive financial protection to your family against any uncertainties.
In this article, let us understand how the best term plan in India works and what are the key features provided under this plan.
How Does a Term Life Insurance Policy Work?
Term life insurance policy refers to an agreement between the insurance company and the person whose life is insured. A predetermined amount of money is paid to the policyholder’s nominee by the insurance company in case of the untimely death of the insured person. In return, the policyholder must pay a fixed premium regularly.
To choose the best term plan in India, you must do a term plan comparison. It can help you invest in the right term life insurance policy to take care of the future financial needs of your family.
Features of the Best Term Plan in India
The primary objective of the best term plan in India is to provide financial stability to your family in your absence. Term life insurance policy comes with extensive features to secure the financial future of your loved ones. Here are some of the key features of this policy: –
- Entry Age
The best term plan in India offers a minimum eligible age of 18 years and a maximum eligible age of 65 years. The early in life you buy a term life insurance policy, the lower will be your premium. Therefore, it is advisable to buy term insurance at an early stage in life.
- High Coverage
The premium rates of a term life insurance policy are lower compared to other life insurance policies. And this plan offers high coverage against a low premium.
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- Easy to Buy
It is easier to understand a term plan compared to other insurance plans. And that is why it is easier to buy too. The framework of this plan is simple, which makes it one of the safest investments. It is essential to buy a term plan with an adequate sum insured while keeping in mind your financial goals, debts, budget, etc.
- Multiple Pay-out Options
The best term plan in India provides a lump sum amount to the nominee after the death of the policyholder. Managing a large sum may be challenging for your family. In such a situation, you can opt for a regular pay-out option, where the nominee will be given a regular monthly amount.
- Flexibility
The best term plan in India offers you the flexibility to pay premiums yearly, half-yearly, quarterly, or monthly. Most term policies also provide a limited or single pay premium option. This flexibility can help you pick the appropriate premium payment option at your convenience.
- Return of Premiums
People usually hesitate to invest in a term life insurance policy since it does not offer any benefit on maturity. But most insurance companies offer an option called the return on premium option. With this option, you can receive a maturity benefit equivalent to all the premiums paid. But this option charges a slightly higher premium rate.
- Tax Benefits
The premiums paid toward the best term insurance plan are eligible for tax deductions under section 80C of the Income Tax Act of India, 1961.
- Riders
Under the best term plan in India, you can avail of extra coverage through riders. These are the add-ons to term insurance plan that enhance your coverage. To get these riders, you may have to pay an extra premium amount. Riders may include accidental death or disability, critical illnesses, premium waiver rider etc.
- Annually Renewable
After the completion of every year, term life insurance policy is renewed with a higher premium as the age of the insured also increases. A significant advantage of annual renewability is that it provides guaranteed coverage.
Make sure to keep in mind all these features while looking for the best term plan in India. There are many options available in the market and choosing one out of many can be confusing. You can consider buying a term plan from Max Life Insurance. They are a trusted brand that offers term plans at affordable premiums and comes with extensive benefits.
