1. Introduction
Life is unpredictable, and ensuring the well-being of your loved ones should be a top priority. Term insurance is more than just a financial instrument; it’s a promise of security even when you can’t be there. Let’s embark on a journey to understand term insurance in the simplest terms.
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specified period, known as the term. It acts as a safety net for your loved ones, ensuring they are financially secure if the unexpected happens.
How it Works
Imagine term insurance as a shield. You pay a regular premium, and in return, if something happens to you during the term, a predetermined amount is provided to your beneficiaries – a lifeline when they need it most.
Why Term Insurance Matters
1 Providing Financial Security
Term insurance is your way of saying, “I’ve got your back.” It ensures that your family can maintain their lifestyle and meet financial obligations even if you’re not there to support them.
2 Affordability
Love doesn’t have to be expensive, and neither does term insurance. It’s a cost-effective way to secure your family’s future, offering peace of mind without straining your budget.
3 Flexibility
Life changes, and so do your needs. Term insurance is flexible, adapting to your evolving circumstances. It allows you to tailor coverage to fit your family’s unique requirements.
Types of Term Insurance
1. Level Term Insurance
Steady and reliable, like a constant companion. Level term insurance provides a consistent coverage amount throughout the term.
2. Decreasing Term Insurance
Perfect for changing needs, like a mortgage getting smaller over time. The coverage decreases, but the assurance remains constant.
3.Renewable Term Insurance
Evergreen protection. You can renew your policy, ensuring your family’s security continues, term after term.
How to Choose the Right Term Insurance?
1 Assessing Coverage Needs
Consider this as crafting your legacy. Assess your financial obligations, and determine the coverage amount that will safeguard your family’s future.
2 Comparing Premiums
Find a plan that fits your budget. Comparing premiums ensures you get the coverage you need without breaking the bank.
3 Reading the Fine Print
In love and insurance, details matter. Reading the fine print ensures there are no surprises, and your family receives the support you intended.
4.Real-Life Example
Meet Gupta, a single mom. Term insurance became her safety net, ensuring her children’s future education and well-being even if she wasn’t there.
Benefits of Term Insurance
1 Emotional Security
Term insurance offers more than financial support; it provides emotional security, knowing that your loved ones are protected.
2 Financial Stability
It’s a tool for creating stability. Term insurance ensures that your family can navigate life’s uncertainties with financial strength.
Comparison Insurer Term Plan benefit: -
LIC e-Term
Legacy of Trust: LIC, with its e-Term plan, brings a legacy of trust. It’s a name synonymous with reliability, assuring your family’s financial security with a robust term insurance offering.
Flexible Coverage: LIC e-Term provides flexibility in coverage, allowing you to choose the amount that best suits your family’s financial needs and aspirations.
Accidental Death Benefit: In addition to the base coverage, LIC e-Term offers an accidental death benefit rider, providing an extra layer of protection in unforeseen circumstances.
Claim Settlement Reputation: LIC has a longstanding reputation for efficient and timely claim settlements, offering peace of mind to policyholders and their families.
Max Life Online Term Plan Plus
Comprehensive Coverage: Max Life’s Online Term Plan Plus offers comprehensive coverage, ensuring that your family is well-protected financially in your absence.
Flexible Payout Options: This plan provides flexibility in choosing the payout option – whether it’s a lump sum amount, monthly income, or a combination of both, based on your family’s needs.
Terminal Illness Benefit: Max Life includes a terminal illness benefit, allowing policyholders to access a portion of the coverage amount in case of a diagnosed terminal illness.
Online Convenience: Max Life’s online platform provides ease of access, making the entire process, from buying the policy to managing it, more convenient for policyholders.
Step-by-Step Guide: Getting Term Insurance
Assess Your Needs:
Identify your financial responsibilities and determine the coverage amount needed.
Research Plans:
Compare different term insurance plans, considering premiums, coverage, and flexibility.
Choose a Reputable Insurer:
Select a reliable insurance provider with a track record of customer satisfaction.
Apply for Coverage:
Fill out the application, providing accurate information about your health and lifestyle.
Undergo Medical Examination:
In some cases, a medical examination may be required to determine your health status.
Review and Confirm:
Carefully review the policy terms, and once satisfied, confirm your coverage.
What is different between Term Insurance and Life Insurance?
Term Insurance Benefit: -
Pure Life Plan.
Low Premium.
Family Security
Tax Benefit
Nominee will get Lumsum amount absent of Proposer/Insured.It’s not investment Plan and subject to Plan opted.
Life Insurance Benefit: –
Life Security with Return Premium
Higher Premium comparison to Term Insurance
Addition Add-on subject to depend plan opted
Nomine will get premium opted plan absent insured
Recommendation – IF you have financial problem then choose Term Plan IF you don’t have financial problem then choose Life Insurance
Conclusion
In conclusion, term insurance is not just a financial decision; it’s an emotional one. It’s your way of expressing love and care for your family even when you can’t be there physically. Secure their tomorrow today with the protective embrace of term insurance.
Frequently Asked Question
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specified term or duration. If the insured person passes away during this term, a death benefit is paid out to the beneficiaries
Can I Buy term insurance online ?
Term insurance tax benefit?
Yes, 80C
Lic Term Insurance Plan?
LIC Tech Term Plan:
This plan is a non-linked, pure term insurance plan that provides financial protection in the case of the policyholder’s unfortunate demise.
LIC Jeevan Amar:
Jeevan Amar is another term insurance plan by LIC that offers a higher sum assured at an affordable premium.
LIC Anmol Jeevan II:
Anmol Jeevan is a pure term insurance plan that provides financial protection to the policyholder’s family in case of the policyholder’s demise.
How Does Term Insurance Work?
In simple terms, you pay regular premiums to the insurance company, and in return, they provide coverage for a predetermined period. If the insured person dies during this period, the beneficiaries receive the death benefit.
What Makes Term Insurance Different from Other Types of Life Insurance?
Term insurance is distinct because it provides coverage for a specific term without accumulating cash value. It focuses solely on providing a death benefit, making it a more straightforward and affordable option.
How Much Coverage Do I Need?
The amount of coverage depends on various factors such as your financial responsibilities, outstanding debts, and future financial needs. Conducting a thorough assessment of these aspects will help determine the right coverage amount.
Can I Get Term Insurance Without a Medical Exam?
Yes, some insurance providers offer term insurance without a medical examination. However, the coverage amount may be limited, and premiums may be higher compared to policies with medical exams.
Is Term Insurance Renewable?
Yes, many term insurance policies offer the option of renewal at the end of the term. However, the premiums for renewed policies are usually higher and are based on the insured’s age at the time of renewal.
What Happens if I Outlive My Term Insurance Policy?
If you outlive the term of your policy, there is no payout. Term insurance is designed to provide coverage during a specified period, and if the insured person survives that period, the policy expires.
What is pure term Insurance?
Term Insurance called pure Life insurance. reason its convers life duration Policy period. its provide complete financial security to your family member absents of proposer or insured person. Policy benefit provide to nominee person which you provided in your policy number.
Term insurance without medical?
Yes, few insure provided on the age criterial and sum insured base.
Who can buy Term Insurance?
Salary and Business person or some insurer also provide proposer base cover to proposer wife on the behalf of proposer income subject to insurer policy guideline.
When to buy Term Insurance?
As soon as earlier its depend premium on age band so if you start your career in job or business you can buy early to in low premium.
Ideally once you earn from job and business you have to buy term insurance as soon as earlier its best for you reason lower premium.
Wife can take term Insurance?
Yes, some insurer provides this option but on the proposer insured sum insured or 50% as per term and contd.
Is any medical on Term Insurance?
Yes, but depend age band and sum insured basic.
Term insurance comes under 80c or 80d?
Term insurance premiums fall under Section 80C of the Income Tax Act in India. Section 80C allows individuals to claim deductions for the premiums paid for life insurance policies, including term insurance, up to a specified limit. As of my last knowledge update in September 2021, the maximum limit for deduction under Section 80C was ₹1.5 lakh.
On the other hand, Section 80D pertains to deductions for premiums paid on health insurance policies. Therefore, if you are looking for tax benefits related to term insurance, you should consider Section 80C. It’s essential to check for any updates or changes in tax laws, so it’s advisable to consult with a tax professional or refer to the latest tax regulations for the most accurate information.
Term insurance age limit?
Individuals can buy term insurance coverage starting from the age of 18 and subject to insurer and product guideline.
Which is the best term insurance plan
Smart Secure Plus – Life Cover
Sampoorna Raksha
Supreme (SRS) – Life Option
Click 2 Protect Life – Life protect
iProtect Smart
Smart Protection
Goal – Life Cover without ROP
For more details CLICK HERE FREE CONSULATON
After purchase any insurance what to do?
Keep policy bond hard copy and soft copy in digital locker. Read term and condition exclusion if any in your policy. Informed to your family member related you have purchase policy and its benefit. Join or keep insurer WhatsApp number, Mobile App, Email id etc. for follow and get update time to time from insurer
Why to Choose Term Insurance via mandatorygyan?
1. Hand Holding Support.
2. Help in Selection Right Policy for You
3. Help in Archive Policy Document E-Locker.
4. Call |WhatsApp |Email Support.
5. Instantly Response.
6. Lifelong Relationship Maintain.
7. Free Services.
8. Free E-books.
9. 50 % Course Discount After that You Will Earn.
10. Free Digital Basic Course.
11. Time to Time Policy Related Update to You.
12. Help in Claim Intimation Support.
13. Add in Private Group Member.
14. Will Guide to Group your Life
15. All in One Plate Form for You
16. Our Mission to Insured 1 Lac Lives.
17. In life, You Help someone genuine this kind return to you, it’s my trust…
