Term Insurance - Protect your loved ones with affordable and comprehensive term insurance coverage

Common Factors of the Term Insurance

1. Cost Factors and Affordability

The cost of term insurance depends on several factors, including age, gender, health condition, occupation, and policy type.
On the other hand, men might have slightly higher premiums at around $29 per month. The cost increases with age and tobacco use.
For applicants aged between 30 and 50 years old seeking a 20-year term policy, it translates to an average monthly cost of approximately 11.1¢ per $1,000 of coverage.

2. Duration Flexibility Based on Your Needs

Term policies allow flexibility in choosing their duration based on individual preferences. Whether you require coverage for just five years or up to three decades or more – it's entirely up to you.

3. Maximum Age Limitations

The maximum age at which individuals can buy term insurance is generally set at 65 years old1. However, different insurers and policies may offer coverage beyond this limit. Some companies extend their maximum age limit up to ages 70 or even 75 if purchased earlier in life.

4. No Amendments Once Issued

Once your term insurance policy is issued with its terms and conditions specified upfront upon purchase—you cannot alter them thereafter.

5. Assessing Adequate Coverage

Determining the appropriate coverage amount is crucial to tailor your term insurance policy to your specific circumstances and financial goals. A common guideline is to have coverage that is at least 10 to 12 times your annual income. However, personal factors such as lifestyle, expenses, loans, and more can influence the ideal coverage amount for each individual.

6. Renewal Options

You can choose to renew your term policy before it expires. It's advisable to plan ahead as the expiration date approaches and consider whether renewal (with no medical underwriting), switching companies (subject to medical underwriting), or converting some or all of the term policy into a permanent life insurance policy would be best suited for you.

7. Grace Period for Missed Premium Payments

In case you miss a premium payment on your term life insurance policy, there is typically a grace period provided by the insurer within which you can rectify the situation. However, failing to pay within this grace period will result in lapsing of the policy and loss of coverage.

8. Ideal Use Cases: High Financial Obligations

Term insurance policies are often chosen when individuals face significant financial commitments such as raising young children or paying off mortgages – providing temporary but essential security during these critical periods.

The Difference - Term Insurance vs Life Insurance?

While both types of policies provide valuable protection, term insurance differs from life insurance in terms of duration and cost. Term insurance offers coverage for a specific time period ("term"), making it generally more affordable due to its limited duration compared to life insurance policies that provide lifelong protection.

Why do You have to choose term insurance?

1. High Sum Assured at Affordable Premium: With term insurance, you can enjoy a higher coverage amount compared to other types of life insurance policies, all while paying a budget-friendly premium.
2. Easy to Understand: Term insurance is straightforward and easy to understand without any complex terms or conditions. It ensures that you have complete clarity about your policy benefits.
3. Multiple Death Benefit Payout Options: In case of the unfortunate demise of the policyholder, term insurance offers multiple options for the payout such as lump sum payment or monthly installments – providing flexibility according to your family's needs.
4. Additional Riders for Enhanced Coverage: Extend your coverage by adding riders such as critical illness coverage or accidental death benefit coverage, giving you extra protection against unforeseen circumstances.
5. Income Tax Benefits: Enjoy tax benefits on premiums paid towards term insurance under Section 80C of the Income Tax Act, making it not only financially beneficial but also helping you save on taxes.

Making Term Insurance Purchase Easy and Convenient: Compare, Buy, and Manage Online

1. Buying made easy and convenient

Yes, purchasing a term policy online is quick and hassle-free! You can compare different plans with just a few clicks and choose one that suits your needs best from the comfort of your home or office. The submission of documents, premium payment, and any customer queries can all be done conveniently online via a secure platform.

2. Calculating sum assured

Ensure optimal protection by calculating how much sum assured (coverage) should be opted for – it should typically be at least 10 times your annual income. This way, you can guarantee that your family's financial needs are adequately met in case of an unfortunate event.

3. Nominee and Assignee

In term insurance, a nominee is a person entitled to receive the policy benefits in case of the policyholder's demise. You can change your nominee anytime by submitting a written request to the insurance company. Additionally, an assignee is someone to whom the policyholder transfers ownership rights; with this transfer, they become entitled to all benefits under the policy.

FAQs of Term Insurance

What is the list of documents required to buy Term Insurance?

To buy a term insurance plan, you will need to provide the following documents

• Proof of identity: Official photo identity proof
• Proof of age: Most plans are available for individuals above 18 years old
• Proof of address
• Proof of income
• Medical documents (if required)
• Official photographs

How long does it typically take to issue a term insurance policy?

The time taken for issuing a term insurance policy depends on the insurance company and can vary from a few hours to a few days. Rest assured that many insurance companies strive to provide prompt service and ensure your peace of mind as quickly as possible.

Who can I purchase term insurance for, aside from myself?

You have the flexibility to purchase term insurance not just for yourself but also for your spouse, parents, children, business partner, or key employee. Extend protection beyond yourself and safeguard those who matter most.

What are the benefits of adding riders or add-on covers to my insurance policy?

Riders refer to additional benefits that can be added at any time during or after purchasing your base policy. These riders offer enhanced coverage tailored to specific events or situations.
Add-on covers also provide additional coverage options but are generally included when purchasing your base policy itself. In essence, both riders and add-on covers serve similar purposes – providing extra protection according to your unique requirements.

Can I purchase term insurance even if I'm not currently employed?

Yes! Even if you're not currently employed, you can still purchase term insurance as long as you meet the eligibility criteria. Age, income, and other factors may be considered during the application process to ensure you receive the coverage you need.
Invest in term insurance today and secure your loved ones' financial future. The comprehensive and affordable plans offer peace of mind like no other.