Term Insurance

Term insurance is bought to secure your family financially in case of your untimely death. It will make sure that the future of your family is settled, and all their needs are properly met.

The best age to buy term insurance is in your 20s or early 30s, as premiums are lower and you can secure a higher coverage for a longer tenure, ensuring financial protection for your family at an affordable cost.

The maximum age limit to purchase a term insurance plan varies between 18 years and 65 years, but it depends on the policy of the insurance company.

Yes, term insurance is tax-free in two ways: premiums paid are eligible for deductions under Section 80C of the Income Tax Act, and the claim amount received by the nominee is tax-free under Section 10(10D), subject to certain conditions.

The best time to buy term insurance is as early as possible, optimally when one has dependents or financial responsibilities, to benefit from low rates and long-term coverage.

The reason is it is an excellent cost-effective way of delivering substantial life insurance coverage, reducing the possibility of financial instability for your dependents.

Yes, it is generally covered under term plans unless it is specified otherwise in the terms and conditions of the policy.

Yes, you can opt for more than one term insurance policy to expand the overall sum assured, provided you disclose the existing policies to the insurance companies.

A person can buy a term insurance plan online. It is convenient. More often, it is sold with more variety and at lower premiums as compared to offline. But the choice between online and offline would again depend on your preference and comfort level.

The gender of the insured does matter in a term insurance policy, wherein the gender of the insured could affect the quantum of applicable premium, as a principle; the mortality rates for women are lesser compared to that for men. Hence, the insurance companies take into consideration gender-based mortality tables while deciding the premiums.

In a traditional term insurance plan without a return of premium feature, if the life insured does not die during the policy term, there is no maturity benefit or money refunded at the end of the term insurance policy.

Generally, if you become a Non-Resident Indian after buying a term plan, you remain covered by the policy. It is, however, extremely important to inform the insurance company of the change in the residential status to have such details recorded for smooth policy servicing.

Yes, a term plan can be used to cover financial liabilities such as loans, mortgages, or any other debt your family has to take care of. The sum insured can be used to repay the outstanding liabilities in the case of the life insured's death.

Term insurance provides coverage for a specific term or duration, typically without any savings or investment component. Life insurance, on the other hand, combines insurance coverage with a savings or investment component, offering both protection and wealth accumulation features.

The number of years you need to pay for term insurance, known as the premium payment term, depends on the policy. It can range from a limited period (e.g., 10 or 15 years) to the entire policy tenure, which is typically up to the age of 60-75 years or as chosen by you.

A term insurance premium basically depends on the factors of age, sum assured, policy tenure, and health and lifestyle of the applicant. The online premium calculators provided by the insurance companies facilitate accurate estimates.

One can pay term insurance premiums online using net banking, debit or credit cards, UPI, or any digital wallet on the website or mobile app of the insurance company.

The options in a term insurance plan could be either on an annual, semi-annual, quarterly, or monthly premium paying basis, as per the insurance company's offerings.

The term insurance premium is decided by the insurance company, taking into consideration different factors, including age, coverage, policy tenure, medical background, occupation, and lifestyle habits.

The decision to purchase a limited pay or a regular pay-term policy depends on the financial capacity and preference. Limited pay plans require higher premium payments for a shorter duration, while regular pay plans spread the premium payments over the policy term.

The tenure of a term insurance policy can vary, with options typically ranging from 10 to 40 years. The length of the policy tenure is chosen by the policyholder based on their financial needs and goals.

Most term insurance policies allow the policyholder to increase the sum assured during the term, but it may involve a change in premiums. Some policies also provide options to reduce the sum assured if your financial needs decrease.

Yes, you can cancel your term insurance policy. However, the premiums paid so far may not be refunded unless specified in the policy (in case of return-of-premium policies). It's advisable to consult your insurance provider for cancellation procedures and potential penalties.

It is an added advantage to be attached to a term insurance plan wherein the policyholder is provided with a lump sum amount if the life insured on that policy is diagnosed with any covered critical illness.

Riders with term insurance depend on your specific needs and requirements. Riders would add some features to your policy such as additional coverage of critical illnesses, accidental death, disability, and many others but they will come for an additional cost.

The premium for riders is entirely dependent on the type of rider, the sum insured, the age of the insured, and the term of the rider. Insurance companies provide specific details about rider premiums.

If you buy a rider, it increases the coverage of a basic term insurance plan by covering specific risks or requirements. It financially secures the person from critical illness, disability, and accidents, thus making the overall coverage of the rider more advantageous.

Yes, some insurers specifically provide term plans for smokers, considering the higher health risks that smoking brings to the table.

While term insurance is generally more cost-effective and provides pure life coverage, traditional life insurance plans combine insurance with savings or investing in some products. In many cases, it will depend on your needs and financial goals.

There is no compulsion to buy a rider with term insurance. It is purely optional and depends upon the needs and choice of a policyholder. Riders are add-ons that provide additional coverage and benefits in addition to the basic term insurance policy.

Yes, many insurers offer the option to add accidental death coverage as a rider to your term insurance policy. This rider provides an additional payout in the event of death due to an accident.

Term insurance does not typically cover critical illnesses by default. However, you can opt for a critical illness rider that provides a lump sum payout if you're diagnosed with a covered critical illness during the policy term.

Standard term insurance policies do not cover disability. However, disability coverage can be added through riders, such as the accidental disability rider, which provides financial support if you are disabled due to an accident.

Premiums payable towards a term insurance plan are eligible for a tax benefit under section 80C of the Income Tax Act, 1961, the maximum limit of which is governed by the income tax laws. Consult a tax professional for further details regarding the tax benefits of term insurance.

Most term insurance plans will have suicidal death covered under a policy after a certain period from the inception date of the policy, which is usually one year from the date of commencement of the policy. The policy terms can vary. Check your policy document for the specific details.

The process of claiming the term insurance will need the nominee or legal beneficiary to inform the insurance company, submit all documents that prove the incidence of death through a death certificate, policy documents, and a duly completed claim form to the insurer, and completion of assessment or investigation processes and settlement of the claim dues.

If the life assured passes away within the policy tenure, the term insurance policy will pay back the death benefit, or the sum assured, to the nominee or legal beneficiary as chosen by the policyholder.

Once the policy term is over, the coverage provided under the term plan ceases and there are no further benefits payable under the term life plan unless specially mentioned in the policy through return of premium or survival benefit feature.

If on survival the policyholder lives or sees the age of the cover end, in a pure term insurance plan there would be no benefits payable for maturity or survival except the return of premium provided on survival of the term.

In a pure-term insurance plan, usually, no amount of benefit would be payable on maturity or survival at the end of the policy term unless specifically included under the return of premium/survival benefit feature in a policy.

If the nominated person dies while holding the policy during the period the policy term is running, then the policyholder shall make a fresh nomination in favor of another person to ensure that the sum assured in case of death is paid to the appropriate beneficiary.

Yes, the term plan claim can be rejected in case the insurance company finds that the policyholder has given any wrong information or hidden some important facts, or the cause of death is under their exclusion in the policy coverage. The key to avoiding the rejection of the claim is making a disclosure of facts at the time of buying the policy.

To file a term insurance claim, the nominee must first inform the insurance company of the policyholder's death. Then, they need to submit the required documents, which typically include the death certificate, policy documents, a completed claim form, and any additional supporting documents. Once the claim is reviewed and processed, the insurer will approve the claim based on the terms of the policy.

Yes, you can change your nominee at any time during the policy term by submitting a written request to the insurance company. Ensure that the nominee update is reflected in the policy records to avoid any confusion at the time of claim settlement.

If premiums are not paid, the policy may lapse, and you may lose coverage. However, many term insurance policies offer a grace period of 30-60 days to make the payment. In case of death during the grace period, the insurer may still settle the claim. If the policy lapses, you may need to reinstate the policy by paying the overdue premiums.