Term insurance is available to provide the higher coverage benefits as compared to the premium. When it comes to securing the future of your family, it is essential to take the right decision today. For the protection of your family future, term insurance is available as your best friend now. You just need to calculate the right premium amount with Verified Policy and choose the best term insurance plan as per your future requirements.
What is Term Insurance?
Term insurance plan is life insurance that is available to provide the coverage benefits to the policyholder after a certain time period. In the cases of death of the policyholder, the nominee will be able to claim the benefits from the insurance company. Term insurance plan is available as a perfect future protection solution because you will find very affordable premium and a large amount of sum assured in these plans. The consumers will find the option to choose the plans for the period of 5 years to 40 years.
The term insurance policies are available as a very cheaper option as compared to the plans including whole life insurance policy. It is considered to provide the complete benefits for the financial protection of the policyholder. With some of the insurance companies, the policyholders will also find the claim benefits in the cases of partial or permanent disability where the income of policyholder can be interrupted due to the disability. At Verified Policy, every consumer will be able to find the complete information about all the plans, benefits, features and procedure for term insurance policies.
Why Should You Get Term Insurance Plan?
For the complete protection of future of your family, term insurance plan is available as a perfect option. You will be able to ensure the financial security for your family by choosing the right term insurance plan. Term insurance plans are an ideal option for people who want to avail the high sum assured benefits with cheap premiums as compared to other plans. If you are the only earner in your family, you never want to leave your family in a financial crisis after your life. Life can be very uncertain and you just need to find a perfect future planning for financial security for all the people who rely on you. In such cases, term insurance plans are available as the perfect choice to get rid of all kinds of stresses for the future planning of your family.
The verified policy is the perfect platform where we help you to choose the right insurance plan as per your future needs and current financial situation. If you get our services and choose the right term insurance policy available in the market, it will be beneficial in the following ways:
- Assurance of financial security:
The term insurance plans are available to provide the assurance of final security to all the family members who are dependent on the policyholder. In the situation of the death of the policyholder, the insurance company will pay the insurance amount to the nominee. It is very helpful to fulfill the short term as well as long-term financial requirements of the family members in the case of death of the policyholder.
- Flexible insurance plan:
Term insurance policies are very flexible for the consumers. It is possible to get the term insurance policy with online as well as offline method. The consumers will be able to make choice from policy tenure of 5 years to 40 years with different plans. The companies will also give the option to make choice for the sum assured amount according to your financial situation and future requirements.
- Tax benefits:
By getting the term insurance policy, the wire and nominee will also find the benefits in tax. It is possible to find the tax-related benefits under section 80C for all the premiums that you are going to pay for the insurance policy. In the same way, the nominee will also get tax-related benefits under section 10D of Income Tax Act during the claim process.
- Beneficial to handle liabilities:
If the policyholder is looking to handle the liabilities including credit card debts or loans, term insurance policy will be very beneficial in it. In such cases, it is very important that you go with term insurance plan so that your dependents can get help to clear these kinds of liabilities and loans without any kind of hassle in case of a financial emergency after you.
- Rider plans:
With the term insurance plans, there will be options to avail the additional benefits with riders. By getting these plans, the policyholders can make a choice for the rider plans as given below:
- Accidental Death Benefit Rider
- Accidental Death and Disability Benefit Rider
- Critical Illness Rider
- Waiver of Premium Rider
The policyholder will be able to enhance the coverage benefits by choosing any of these rider plans with existing or new term insurance plan.
Because of all such benefits, every family will be able to find the complete assurance of financial protection in any of emergencies in future. Just pick the right term insurance plan and that all such advantages with it.
Term Insurance Plans Available In India
India is one of the largest markets for the insurance companies. Almost every company is providing the options of term insurance policies for the consumers. If you want to get complete information regarding all the term insurance plans, the verified policy will make it easy for you in the perfect way. Just check the top term insurance plans with all details below:
|Insurers||Term Plans||Maximum Maturity||Min Sum Assured||Claim Settlement||Premium (for Cover amount 1cr.)|
|HDFC Life||3D Plus Life Option||70 years||Rs. 25 L||97%||Rs. 1073/month|
|MAX||Online Term Plus One Time Lumpsum Plan||70 years||Rs. 25 L||97%||Rs. 893/month|
|AegonReligare||iTerm||100 years||Rs. 25 L||97%||Rs. 1286/month|
|PNB Metlife||Mera Term Plan-Full Lump sum payout||99 years||Rs. 10 L||91%||Rs. 1401/month|
|BhartiAxa||online term + Lumsum||85 years||Rs. 25 L||92%||Rs. 992/month|
|SBI||PoornaSuraksha||60 years||NA||96%||Rs. 2255/month|
|LIC||eTermLumsum plan||65 years||Rs. 25 L||98%||Rs. 18920/year|
|IDBI||IDBI Federal iSurance Flexi Lump Sum Plan||80 years||Rs. 50 L||90%||Rs. 1509/month|
|ICICI||iProtect Smart Lumpsum||75 years||NA||96%||Rs. 1238/month|
|BAJAJ||eTouch Lump Sum||70 years||Rs. 50 L||91%||Rs. 1266/month|
|AVIVA||iLife Total Protect||75 years||Rs. 50 L||90%||Rs. 1114/month|
|Edelweiss Tokio||TotalSecure+ Lump sum||80 years||Rs. 25 L||93%||Rs. 12541/year|
|Birla Sun Life||BSLI Protect@Ease Lump Sum||70 years||Rs. 30 L||94%||Rs. 1070/month|
|Edelweiss Tokio||MyLife+ Lump sum||80 years||Rs. 25 L||93%||Rs. 1046/month|
|AegonReligare||Life Plus||80 years||NA||97%||Rs. 999/month|
|AegonReligare||Life & Health||80 years||NA||97%||Rs. 999/month|
|AegonReligare||Life & Health Plus||80 years||NA||97%||Rs. 999/month|
|AegonReligare||Life||80 years||NA||97%||Rs. 985/month|
|SBI||eShield||60 years||NA||96%||Rs. 943/month|
|FG||Future Generali Flexi Online Term-Lumpsum||75 years||Rs. 50 L||89%||Rs. 904/month|
|DHFL||DHFL Life||75 years||Rs. 25 L||90%||Rs. 903/month|
|KOTAK||e-Term||75 years||Rs. 25 L||91%||Rs. 872/month|
|TATA AIA||Tata SampoornaRakshaLumpsum||70 years||Rs. 50 L||96%||Rs. 865/month|
|HSBC||iSelectLumpsum||70 years||Rs. 25 L||94%||Rs. 854/month|
Types of Term Insurance Policies In India
The term insurance plans are available in different kinds for the consumers in India. Every plan comes with its advantages to fulfill the requirements of the individual. If you want to know about all types of term insurance plans in India, the complete information is available with Verified Policy:
- Standard term insurance plans:
In standard life insurance term policy, the insured person will get coverage benefits against the various kinds of risks on the certain premium payment as per the terms and conditions of the policy. It is considered as most common and perfect insurance plan where the consumers can make annual premium to avail the coverage benefits for the term insurance plan.
- Group term insurance plans:
Group term insurance plans are specially made for associations, companies, business organizations, societies and large families. It is very effective to provide the benefits to the complete family are all the members of the group. Most of the terms and conditions will be same as the individual term plans. However, there will be more overall coverage benefits in the term of illness. All of these plans are designed in a special way to meet the requirements of the group members and these policies are available Offline for the customers.
- Single and joint life term insurance policies:
Joint term insurance plans are a much cheaper option as compared to two individual plans therefore, it will be a better choice if you are planning to get to individual plans. However, all the benefits and features will be same so it will be beneficial for the couples who want different term insurance policies. You and your partner can pick up effect Joint life term insurance plan and can avail the benefits to secure the future of a child with good financial backup.
- Online and offline term insurance plans:
It is possible for the consumers to get the term insurance policies online as well as offline. With Verified Policy, it will be easier for every consumer to pick the best plan available in the market. Now, you do not have to waste your time to get complete information about various kinds of insurance plans because we are here to help you to choose the perfect one. By getting the online insurance policies, it will be beneficial to know about all the features, coverage benefits, premium and terms and conditions without any kind of inconvenience for the consumers. Visit Verified Policy and pick the right plan for you right now.
- Convertible term insurance plans:
By choosing a convertible term insurance plan, the consumer will be able to switch to the whole life insurance plan or endowment plan easily. With some of the companies, it is possible to find these benefits as rider plan with term insurance policy. The priorities of the consumers may change with time and in such cases, convertible term insurance plans maybe the perfect choice to fulfill the future requirements.
- Increasing &Decreasing term insurance:
In the decreasing term insurance policies, the sum assured will also decrease with the time at a certain percentage rate. Usually, it will be around 5% per annum. However, the premiums of the term insurance policies will be constant. These kinds of insurance plans are available as the perfect choice for people who want complete protection against the loans.
On the other hand, increasing term insurance policies are known to work in opposite direction to the decreasing policy. In these plans, the sum assured will increase with a rate of about 5% per annum. However, the premiums will be same for the policyholders. In these kinds of insurance policies, the sum assured amount will increase due to the increasing cost of expenses and Essentials for a living.
- Return of premium:
In return of premium plan, the insured person will be able to get the refund of the entire premium paid for the coverage in case of survival. These insurance plans are preferred as a popular option because the policyholders can get money that was invested to avail the benefits of insurance plan. And the standard term insurance plans, the policyholder will not be able to get the return of all the premiums paid on survival at policy end period. It is possible to avail the additional benefits by getting the rider plans with term insurance policy.
All these kinds of term insurance plans are available for the consumers in the Indian market. You can make the right choice according to your current financial situation as well as your future requirements for the better safety of the financial situation of your dependents and family members.
Eligibility Criteria to Get Term Insurance Plan
The insurance companies require some of the common eligibility criteria terms and conditions for the approval of term insurance plan. If you are planning to get a new term insurance policy to get the future benefits of the plan for your family, you must know about the terms and conditions of eligibility criteria as given below:
- The minimum age of the applicants is 18 years to avail the benefits of term insurance plan.
- The maximum age of the applicant must be between 60 years to 70 years.
- The maximum age of policyholder at maturity time is 80 years.
- The minimum sum assured in term insurance plan is around Rs.10 lakh.
- The maximum sum assured in term insurance plans is Rs.100 crore.
- Premiums need to be paid either as a single pay, monthly, quarterly, bi-annually, or annually.
With different term insurance companies, there may be different kinds of terms and conditions related to the eligibility criteria to avail the benefits of this insurance plan.
Advantages of Term Insurance Plan
Term insurance plans are available with lots of advantages for the consumers. If you are able to make choice for the best term insurance plan as per your needs and requirements, you will be able to avail the following advantages of this insurance plan:
- Financial protection:
Term insurance plan is available as a great way to get the assurance of future protection in case of any financial crisis for all your dependents. In the cases of unfortunate death of the policyholder, the company will provide the financial protection benefits with the sum assured amount for the insurance plan. To avail the benefits of additional financial protection, Riders are available as a good option for every policyholder who is availing the benefits of term insurance policy. With the help of these additional Riders, you can easily protect the future in the situations of accident disability, accidental death, critical illness or any other kind of critical situation is your life.
- Affordable insurance policy:
When it comes to knowing about one of the most affordable insurance plans to secure the financial future, you can always go within term insurance plans as the perfect option. The premium rates are very low as compared to the regular life insurance policies available in the market for consumers. It is possible to avail the benefits of bigger sum assured amount as compare to other plans with a much lower premium of your insurance plan. Because of such affordability, it is considered as a perfect option for the financial safety and your future. It is possible to get the monthly, quarterly, bi-annual, annual or one-time payment of premiums as per your financial situation.
- Online and offline availability:
It is possible for the consumers to get the perfect term insurance plan from online or offline platforms. Whether you can contact an insurance agent or you can visit the website to avail the benefits of this plan. It will be better if you are choosing the option of online term insurance plan because it will provide more options to choose from top plans of some of the best insurance companies. With online platforms, it will be possible to know about all the terms and conditions of your selected plan so you should compare all the plans before making the selection at the online platform.
- Options of various plans to choose from:
Every client has different needs and requirements, therefore, they need different kinds of plans to fulfill their future requirements. In the term insurance plans, you will be able to make choice from lots of different kinds of plans. As per your choice, there will be options of renewable, convertible, increasing and decreasing term insurance, the return of premium and many more different kinds of plans where they will provide different benefits as per your requirements.
There are many more advantages that you will avail by choosing the term insurance plans available in the market. If you are looking to avail these advantages, it is possible by choosing the right term insurance plan with us. We are always available to help the consumers to make the right choice for a perfect term insurance plan. When it comes to knowing about some of the top plans provided by the companies, you can make the choice from the term plans given below with some of the top companies:
|Term Plan||Entry Age||Maturity Age||Policy Term||Premium Payment Option||Minimum Sum Assured||Payout Type|
|ICICI Prudential iProtect Smart Plan||18 years to 65 years||23 years to 75 years||As per policy brochure||Single pay, duration of the plan or 5-year limited pay. Payments can be made monthly, half-yearly or yearly||Subject to a minimum premium of Rs.2,400 p.a. (excluding taxes)||Lump sum or monthly income for 10 years|
|HDFC Life click2Protect Plus||18 years to 65 years||28 years to 75 years||10 years to 40 years||Single pay, duration of the plan or 5-year limited pay. Payments can be made monthly, quarterly, half-yearly or yearly||Rs.25 lakh||Lump sum + optional monthly income over a period of either 10 or 15 years|
|Max Life Online Term Plan Plus||18 years to 60 years||85 years||10 years to 50 years (applicable to base plan)||Equal to plan term||Rs.25 lakh||Lump sum + optional monthly income/increasing monthly income over a period of 10 years|
|Aegon Life iTerm Plan||18 years to 65 years||100 years||5 years to 62 years (or up to the age of 100 years)||Equal to plan term. Payable monthly, half-yearly or yearly||Rs.25 lakh||Lump sum + optional monthly income for 100 months|
|PNB MetLife Mera Term Plan||18 years to 65 years||99 years for all options except the Joint Life Cover option. Maximummaturity age is 75 years for the Joint Life Cover option||81 years for all options except the Joint Life Cover option.75 years for the Joint Life Cover option||Equal to plan term||Rs.10 lakh||Lump sum + choose to receive monthly income/increasing monthly income or monthly income till child turns 21 years|
|Canara HSBC OBC iSelect Term Plan||18 years to 70 years||80 years||5 years to 40 years||Equal to plan term. Payable monthly or annually||Rs.25 lakhs||Lump sum + optional monthly income|
|LIC e-term Plan||18 years to 60 years||75 years||10 years to 35 years||Annual||Rs.25 lakhs / Rs.50 lakhs for non-smoker||Lump sum|
|SBI Life eShield Plan||18 years to 60/65 years (based on the type of cover)||75 years for Level Cover Benefit and 70 years for Increasing Cover Benefit||5 years to 30 years||Equal to policy term, payable annually||Rs.35 lakhs||Lump sum|
Top Companies to Provide Term Insurance Plans With High Claim Settlement Ratio
When it comes to getting any term insurance plan, it is always essential to know about the top companies offering the best services for term insurance policies in India. The verified policy is the perfect platform where we help the consumers to make the right choice for the best insurance company to get the reliable and trusted services for battery safety and security of future. If you do not want to face any kind of inconvenience to claim the advantages and benefits of your insurance plan, just make a research about the claim settlement ratio of the top insurance providers in India.
Claim settlement ratio is the ratio of a total number of insurance claims paid by the company and a total number of insurance claims received by the company. It is highly recommended for every consumer to compare the claim settlement ratio of insurance service providers because it will show the ability of the company to make the settlements of Claims. If you are looking for the complete information about the claim settlement ratio published by insurance regulatory and Development Authority of India, it is available at our website in the table given below:
|Insurance Provider||Claims Settlement Ratio||Claims Received||Claims Paid|
|Birla Sun Life||94.69%||6048||5727|
|Star Union Dai-ichi||84.05%||1473||1238|
|Aviva Life Insurance||90.60%||1245||1128|
How to make choice for the best term insurance plan?
From so many term insurance plans available in Indian market, it will be difficult to make the best choice to avail the best benefits. If you want to make the right decision, you will need complete help on our online platform. You may have a different financial situation and it needs and requirements as compared to other consumers so you will require a different plan for the better protection of your future.
Before making the choice for term insurance plan, you should keep the following factors in your mind:
- The amount of premium:
The benefits of sum assured amount will depend on the amount of premium paid by the consumer. First of all, it is important to consider your current income and financial situation to make the choice for the amount of premium. If you are looking to get more sum assured amount for better convenience of you are dependents and nominee after you, it is important to go with higher premium amount according to your current income and financial situation. Even if you do not have much to spend on term insurance plan, just go with a short premium to avail the future benefits.
- The policy tenure terms:
For the consumers, there will be an option to make choice from various terms of policy tenure. According to your current situation and future requirements, you should make the right choice for the time period of the policy. There will be an option to choose from 5 years to 40 years options with most of the companies. It is important to know about the policy tenure to find the complete details on it.
- The coverage amount:
All the individuals may have different future requirements for the financial safety of the family. When you want to make choice for the coverage amount for the insurance plan, it is important to keep it in mind. The coverage amount will depend on your premium and policy tenure. You should consider the future requirements of your family and nominee to make choice for the coverage amount in your insurance plan.
- The requirement of Riders:
The requirement of Rider plans will depend on your own lifestyle and requirements. If you travel too much or you are a smoker or drinker, there will be more possibility of any kind of accident or critical disease including cancer or heart problem. The rider plans are available with the term insurance plan to offer lots of additional benefits. In such cases, you will be able to make the right choice according to your future requirements and current lifestyle.
- The terms and conditions of the company:
You should always know all the details about the terms and conditions of an insurance company before making the choice. If you are looking to get a transparent plan to avail all kinds of its benefits without any kind of inconvenience, always get the complete details about the terms and conditions of an insurance company before getting the plan.
- The type of plan:
In the market, different kinds of term insurance plans are available that you can pick as well your requirements. If you need applying for your company group of family income group term insurance plans are available at good shows. For the couples, joint term insurance plans will be a better choice. If you want to switch to whole life insurance plan or any additional plan from your term insurance plan in future, it is important to go with convertible plans as a good choice. Therefore, by considering all these factors, you will be able to make the right choice for a perfect type of plan as per your needs and requirements.
If the consumer is keeping all these factors in mind, it will be very beneficial to make the right choice for the insurance plan.
How to Apply for Term Insurance Plan?
If you have decided to secure your family future by providing the financial backup with term insurance policy, you can choose to get the term insurance plan with online as well as offline method.
- Online method to apply for term insurance plan:
At the present time, you do not have to face any kind of inconvenience when you want to buy an insurance policy. It is possible for all the consumers to get the term insurance plan with online method. You just need to contact compare all the plans at verified policy platform and then you can contact the insurance company to buy the desired plan as per your needs and requirements. It is possible to submit all the required documents online and pay the premium online at the website of the insurance company. It is the most convenient way because you will find transparency to know about all the terms and conditions and you will get more options to make the perfect choice for the term insurance plan as per your needs and requirements.
- Offline method to apply for term insurance plans:
Another way to get an insurance plan is by using the online method. You can contact any insurance agent or you can visit the office of the insurance company to make choice for any of such insurance plans. With online method, you will not be able to compare other plans by other companies. An insurance agent may hide some of the terms and conditions so it is not a reliable way to get transparency. You will need the hard copies of all the required documents for an offline method to apply for term insurance plan in the market.
Documents required to Get Term Insurance Plans
If you are looking to apply for term insurance plan, you will need to provide the following kinds of documents to your insurance company:
A valid ID proof
Some of the accepted ID proofs are:
- Driving License
- Voter’s Identity Card issued by Election Commission of India
- PAN Card
- Job card issued by NREGA duly signed by an officer of the State Government
- Aadhaar Card or Letter issued by the Unique Identification Authority of India
Proof of Residence
- Utility bill (not more than two/three months old). It may be of any service provider (telephone bill, electricity bill, post-paid bills, gas or water bill)
- Bank account or Post Office savings account statement
- Property or Municipal tax receipt
- Pension or family pension payment orders (PPOs) issued to retired employees by Government Department
- Documents issued by Government departments of foreign jurisdiction and letter issued by Foreign Embassy or Mission India
- Letter of allotment of accommodation from employer issued by State or Central Government departments.
- Proof of age
- Proof of income
- Any other documents as requested by the insurance provider
How to Buy Term Insurance Plan Online?
There was a time when insurance plans were only sold by the agents. Today, everything is available online and it is possible for every consumer to search for any term insurance plan online to buy it. While searching for any term insurance plan online, the customers will be able to know about all the features, terms and conditions as well as premium options online.
At verified policy, you will get complete the right decision for the term insurance plan by comparing the best plans available in the market. If you have decided to go with any of the term insurance plans, you will need to follow the process given below to buy the insurance policy online:
- First of all, open the official website of the insurance company and click the option of online term insurance plans.
- There may be more than one term insurance plan options therefore, you will need to select the perfect one according to your needs.
- After clicking on the desired insurance plan, you will enter your details including name, contact details, premium amount, sum assured, policy tenure and much more.
- Once you filled all the details, you will find the quote for the premium for your selected policy.
- There will be the option of terms and conditions that you will read to know about the details.
- Once you have read all the terms and conditions, you will click on the option of “I agree” for the further process.
- There will be different payment methods and you can pick any of these methods to make payment for your premium.
- After that, your insurance provider will contact you back after the investigation and approval of your insurance application.
- Once they have approved your insurance application, you will receive a soft copy of the document of policy by the company.
It is very easy and quick way to apply for any term insurance plan as per your needs and requirements. You do not have to waste your time to visit anywhere transparency and flexibility to get complete details about all available term insurance plans in the market.
Best Term Insurance Plans Online in India
If you want to apply for term insurance plan with the online process, you can make a good choice from the plans given below:
|Plan Name||Age at Entry||Maximum Maturity Age||Policy Tenure||Minimum Sum Assured|
|LIC’s e-Term Plan||18-60 years||75 years||10-35 years||Aggregate Category: Rs.25 lakh|
Non-Smoker Category: Rs.50 lakh
|Max Life Online Term Plan||18-60 years||85 years||Base Plan: 10 to 50 years|
Critical Illness Cover: 10 to 40 years
|Base Plan: Rs.25 lakh|
Critical Illness Cover: Rs.5 lakh
|ICICI Prudential iProtect Smart Plan||18 – 65 years||75 years||Minimum policy term is 5 years||Subject to the minimum premium|
|SBI Life – eShield Plan||Minimum Entry Age: 18 years|
Maximum Entry Age: 65 years for the Level Cover and 60 years for the Increasing Cover
|75 years for the Level Cover|
70 years for the Increasing Cover
|Minimum Policy Term: 5 years for the Level Cover and 10 years for the Increasing Cover|
Maximum Policy Term: 30 years
|Bajaj Allianz iSecure Plan||18 – 60 years||70 years||10, 15, 20, 25, or 30 years||Rs.2,50,000 (for general category)|
Things to Keep In Mind Before Getting Term Insurance Plan
To get a term insurance plan maybe a tough decision for the consumers. It is an investment for a better future of your family so you should carefully choose the insurance plan from so many options available in the market. Choosing an insurance policy may be a tricky business for the consumers. We are here to help you to make the right decision by providing the complete guide to choose the perfect term insurance plan. Just keep the following things in your mind if you are a first-time buyer of insurance plan:
- Make research to pick the best plan:
For the consumers, term insurance plans are available in various types and lots of insurance providers are available in Indian market. Such situation, it is very important for the customers to choose the best plan by making some research. You should make the research yourself instead of getting a recommendation from an insurance agent or another friend. They may have different requirements so you should consider your requirement to pick the perfect plan.
- Save on premiums:
Yes, it is possible for the consumers to save extra on premium amount. Term insurance will be a long time investment for you so it is very important that you can find the best plan available in the market with a minimum premium option. When it comes to choosing any insurance plan, you should compare the premiums for it. With different companies and plans, you will find different quotes for the premiums. It will be better if you can know about the best plan with the premium amount. Just compare the premium quotes online and pick the perfect one in your budget. It is possible to get some of the extra discount offers on premiums so you should ask your Insurance Company if you are eligible for any of the additional discount offers with your selected plan.
- Connect the insurance policies:
In the market, lots of policies are available to protect your assets, property, health, life, and future. If you have health, life motor, and property damage insurance plans, try to get all these plans with the same company. By connecting the insurance plans with the same insurance, it is possible to find the better deals and service quality.
- Know about all terms and conditions:
You should always try to read all the terms and conditions carefully before buying the insurance policy. If you have complete knowledge about terms and conditions, you will not face any kind of inconvenience to clean the advantages and benefits of your insurance policy. The insurance agent may hide terms and conditions so it will be better to get the complete information about it online.
- Automate the premium payments:
If you do not want to skip any premium installment due to any kind of reason like your busy Lifestyle, it will be better to automate the premium payments for your insurance plan. With the automatic payments of the premium amount from your bank account, you do not have to face any kind of inconvenience due to any skipped premium payment.
If you are able to consider all these things before buying the term insurance plan, it will be beneficial for the better assurance of financial safety and requirements of your family.
Exclusions in Term Insurance Plan
Term insurance plans are available to offer the risk cover against the death of the policyholder. The nominee will be able to avail the claim benefits in case of death of the policyholder. However, like any other plan, term insurance plans also come with some exclusion. It is very important for every policyholder to know about the limitations of plans before making the choice for it.
There are some certain limitations of term insurance plans and we are here to provide this information to all the consumers. In your term insurance plan, following types of deaths will not be covered:
- Suicide: Any of the companies will not provide the claim benefits under term insurance plans in the cases of suicide of the policyholder. However, it is possible for the nominee to get the return of some amount from overall premiums paid by the policyholder during policy tenure.
- Death due to drug/alcohol abuse: In the cases of death due to the intoxication due to alcohol or drugs, the company will not offer the advantages of this insurance plan to the consumers.
- Deaths due to HIV/AIDS: In most of the term insurance plans, the companies exclude the situations of deaths due to the diseases like HIV / AIDS. If you want to get complete details about this term of term insurance plans, just check it in the policy brochure.
- Illegal/criminal activities: If the policyholder participated in any kind of illegal or criminal activities and it was the cause of death, the insurance company will not include it in the claim benefits for term insurance policy.
- Death due to adventure sports: If the policyholder died due to the participation and accident in any kind of adventure sport then Nominee will not be able to avail the benefits from his term life insurance plan. There are various kinds of sports including water sports, bungee jumping, parachute jumping, motorbike racing and much more where the company does not offer the benefits of term insurance plan to the nominee.
There may be some more exclusions according to the terms and conditions of the company. Therefore, you should always know about all the exclusion terms and conditions before choosing any Life term insurance plan with any of the companies.
Term Insurance FAQs
What is term insurance?
Term insurance is a part of life insurance plans that are considered as the simplest and cheapest form of insurance plans. It is a contract between the company and policyholder where policyholder will make payments of premium and the company will provide the sum assured benefits to the nominee in the case of death of the policyholder.
Will I get any benefits if I surrender the insurance plan?
If you are going to surrender your insurance policy, you will not be able to get any kind of cash value in term insurance plans. The company will not give the advantages if the consumer surrenders the policy. However, if you cancel the insurance policy during free look period, the company will provide a full refund of the paid premium.
How can I make a better decision for an insurance company?
Because of so many companies, the consumer may face difficulty to take the decision for the insurance company. You should consider the following things to make the better choice for insurance provider:
- Term insurance plans offered by the insurer
- The benefits and features of various plans
- History of the insurance company
- Online premium payment channels
- Claim settlement and grievances resolved ratio of the insurer
- Claim settlement process
- Customer service channels
Is it a good option to go for additional accidental Death Rider plan?
Although you will find the coverage benefits for the accidental death with term insurance plans yet, you should go with additional accidental death Rider plan to avail additional benefits. The nominee will get base sum assured with your term insurance plan in case of an accidental death. However, if you have an additional plan of accidental Death Rider, you will get additional benefits for your nominee in case of death.
Can I get the same plan for my spouse?
If you are searching for the same kinds of benefits with term insurance plan for your spouse or partner, it will be better to go with joint term insurance plans. It will be a good option if you want to save on premiums and want to find the same kinds of advantages for your spouse.
Will I get tax-related benefits with this plan?
Yes, it is possible for every policyholder to get various kinds of tax-related benefits with term insurance plan. There will be benefits on tax on all the premiums that you are going to pay for term insurance plan under an 8C section of Income Tax Act. The nominee will also get the tax-related benefits with the term insurance plans when he will claim the benefits.
What will be age limit to get term insurance plans?
If you want to get the term insurance plan benefits for any family member, it is important to know about age criteria to apply for the plan. With different companies, there will be different age limit criteria. You must have age between 18 years to 65 years as common eligibility for this term insurance plan.
What will be the amount of Premium for term insurance?
The premium of your term insurance plan will depend on your personal choice and requirements. When it comes to getting term insurance plan for the protection of your family’s financial situation, you will need to know about the amount of sum assured benefits according to the requirements of your family in future. The amount of premium will depend on the selected sum assured value under your term insurance plan. If you want to get help to know about the term insurance premium amount, you can use premium calculator tool available at our website.
I have group insurance policy coverage. Should I go with individual life term insurance plan?
Even if you are covered in a group term insurance plan, it is recommended that you go with the individual term insurance plan. The coverage advantages of group insurance plan may not be enough for the future requirements of your family. If you leave the job, you will not be able to avail the advantages of your group term insurance plan. There may be many more situations where individual Life Insurance plan will be a perfect option to match the needs and requirements of your family members in future.
What documents will be required while getting term insurance plan?
If you are going to apply for a term insurance policy with any insurance company, you will require the documents given below for it:
- Age proof (Voter’s ID card, Passport, Driving license, etc.)
- Recent passport size photographs
- Income proof (Salary slip, Form 16, ITR etc.)
- Address proof (Voter’s ID card, Passport, Utility bills, etc.)
- Photo identity proof (Passport, Voter’s ID card, PAN card, Driving license, etc.)
With some of the insurance companies, you may require some additional documents as per the terms and conditions to buy any term insurance plan.
For how long time should I get term insurance plans?
If you want to avail the benefits of the insurance plans, it is recommended that you choose the longest time period possible before it. With these insurance policies, the policyholder will be able to get the coverage till he is able to work. It will be better if you can choose the term insurance plan for the age of 60 to 65 years to avail the benefits. The time period of insurance plan may vary according to the condition and circumstance.
When will do insurance coverage benefits start?
The coverage of your life insurance plan will start after the approval of your insurance policy by the company. Once the company accepted your proposal, you will receive the confirmation in written regarding it. The company will also provide the policy kit having the details about the coverage date on it for your plan.
Is it possible to get any loan on my term insurance policy?
No, you will not be able to avail any kind of Lon on the term insurance policy. The term insurance plans are not available with maturity benefits so you will not get the benefits of any loan on your plan.
Will I get benefits with term insurance plan while traveling abroad for business or leisure purpose?
Yes, it is possible for the policyholder to avail the coverage benefits within term insurance plan even if you are traveling abroad. If you have scheduled any of such trips before getting the policy, you should mention it in the application form to get the insurance policy.
Is it possible to make any kind of changes in sum assured value?
It will not be possible for the policyholder to get any kind of features like this with term insurance plans. Once you got the term insurance plan, it is not possible to increase or decrease the value of sum assured value. However, you may find some plans in the market available with the facility of increased sum assured.
For the occasional smokers, is it important to fill smoker category?
In the term insurance forms, there will be a smoker category that should be mentioned by the policyholder while using the plan. If you want to declare yourself a non-smoker, you do not have to smoke for at least 12 months for it. If you are smoking and declared yourself a non-smoker and policy, there will be chances of rejection of the claim for non- disclosure of this information.
Why the premium amount is higher for the smokers?
For the smokers, there will be a larger risk of cancer and other health issues. Due to the higher risk, the companies ask for a higher premium for the smokers clients.
Is it beneficial to get term insurance policy online?
Yes, it is always a better option if you are getting a term insurance plan online. At the online websites, it will be possible for the customers to compare all the plans available in the market with different companies. If you visit any agent or insurance branch, you will need to pay a higher cost for the plan and there may be some hidden terms and conditions. On the other hand, if you are going to the website to get the insurance plan online, you do not have to worry about any kind of hidden terms and conditions and you will get additional discounts on premiums as compared to an offline insurance policy.
Is it important to know about claim settlement ratio of the company?
Yes, you should always compare the claim settlement ratio of the insurance service providers before making the choice for any plan. With claim settlement ratio, you will know about the ability of the company to provide better claim settlement assurance.
How can I get help with Verified Policy?
Verified Policy is the perfect online platform where you will get help to compare all the term insurance plans of various companies to make the right choice. We have to solve all the queries and concerns of consumers when you want to make the right choice for a term insurance plan for a secure future.