Sometimes term plans give better returns as compared to other life insurance plans. To know the 7 best term plans in India for 2022, read this blog further.
Term Plan that Blocks your Premium – 1st Time in the Industry
The purchase of any insurance products by a bank’s client is entirely optional and is unrelated to the availability of any other bank facility. A term insurance plan is a crucial financial companion that ensures that the family’s financial requirements are addressed even if Life Assured dies.
A term plan would pay a lump payment or recurring income at the covered occurrence of the life guaranteed. It also provides extra coverage options to ensure that you never fall short of meeting the demands of your loved ones.
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specific period, usually 10, 20, or 30 years. The death benefit pays out if the policyholder dies during the policy term.
If the policyholder does not die during the term, the policy expires and does not pay out. Term insurance online is generally less expensive than other types of life insurance, such as whole life insurance, because it does not build up cash value over time.
This insurance policy protects the insured’s family in the event of their untimely death. If the policyholder dies before the term expires, the insurers pay the claim amount.
How does Term Insurance Work?
Like other insurance programs, term insurance spreads risks and expenses among numerous policyholders. The policyholder pays the premium while still alive to benefit from the insurance coverage for their family after their death.
The insured may pay in monthly, annual, or one-time payments. It gives payment flexibility. This insurance covers the dependent family via a one-time payout or through a preset rate of recurring payments for a certain length of time.
As long as the policyholder survives, there are no advantages. Term insurance is primarily a life insurance policy, not a savings or investment strategy. Also, if they outlive the policy’s term, neither the policyholder nor their family gets any benefit. The insurance has no maturity date and only provides coverage to the insured’s family after their death.
The age of eligibility or admission to purchase term insurance is as low as 18 years. As a result, an increasing number of young people can get term insurance. Buying a term policy early allows you to get a substantial lump sum of insurance at affordable costs.
Benefits of Term Insurance
The family is having a difficult time dealing with the death. But it’s even worse when the family’s sole earner or breadwinner dies. As a result, term insurance can provide financial security for your family in your absence. The advantages are as follows:
- It can handle daily expenses as well as short-term and long-term goals.
- Term insurance proceeds can be used to make up for missed payments. If you owe money on a loan, a credit card bill, or any other type of debt. The dependent family, which has already lost an earning member, will bear an additional burden. The bereaved family will suffer even worse if they do not have insurance.
- Term insurance is a type of life insurance that provides tax benefits under Section 80C of the Income Tax Act of 1961. As a result, you are tax-free up to Rs. 1.5 lakh per year.
- Even though term insurance is not an investment or savings plan, it can help with lifestyle and health issues later in life. Not all term insurance policies pay for specific illness diagnoses, but some do.
- It is reasonably priced and serves as a standard insurance instrument. It is because you can accumulate a sizable insurance corpus by paying small premium amounts.
7 Best Term Plans in India
Here is a list of the top 7 term plans in India from some of the best term insurance providers in the country, along with their key features, for you to select and purchase.
1. Canara HSBC Life iSelect Smart360 Term Plan
Canara HSBC Life Insurance has launched new term insurance online, the iSelect Smart360 Term Plan, which provides comprehensive coverage. It is a versatile term plan that can be tailored to a buyer’s life stage and needs. It includes optional built-in-into-the-system features such as Block Premium Benefit, coverage against 40 listed Critical Illnesses, options to augment coverage by opting for Accidental Death/Disability, Terminal Illness benefit, Child Care Benefit, Early Exit Benefit, and so on. It is India’s first and only term plan that allows you to block your premium.
Block Your Premium (BYP) is optional in-built insurance that is only available with the Life Secure plan option. The premium rate of the base death benefit is stopped for a period of 5 years under the Block Your Premium feature, during which the Life Assured/Spouse can request an increase in benefit amount up to 100 per cent of the Sum Assured set at policy initiation.
Suppose you want to block your premium rate then this feature allows you to do the same for the first 5 years and during that period you can choose to increase your life cover up to 100% of the base sum assured at the same block rate without any additional underwriting.
2. Max Life Smart Secure Plus Plan
Max Life Insurance’s Smart Secure Plus Plan allows you to personalize comprehensive protection at a low cost by providing two different death benefit options. It also offers many payout choices to fit the insured’s needs, including a lump-sum payment, monthly income payment, and payment in part as a lump sum and part as monthly income. Furthermore, it provides terminal illness coverage and restores all premiums paid at policy maturity.
3. Aditya Birla Sun Life Insurance Life Shield Plan
Aditya Birla’s term plan Sun Life Insurance provides 8 distinct coverage choices from which customers can select to fulfil the individual needs of their family members. It assures that the insured’s family members are financially secure in the event of the life assured’s untimely death within the policy term. This plan also includes terminal disease benefits and the opportunity to expand life coverage by adding riders.
4. SBI Life-eShield
The policy provides four plan options, from which you may select the best one based on your needs. It is the greatest term life insurance coverage for your family, and you can apply for it online without any hassle. This insurance provides features like renewability, a minimum sum promised of 20 lakhs, surrendering capability, a free-look time, and so on.
5. Bajaj Allianz Smart Protect Goal Term Plan
This plan provides death benefits at low premiums as well as maturity benefits by repaying premiums paid at the policy’s maturity. It also offers financial support if you are diagnosed with any of the plan’s serious diseases.
6. Tata AIA Maha Raksha Supreme
Maha Raksha Supreme by Tata AIA Life Insurance has an accelerator that offers up to a 50% sum guaranteed payout upon the diagnosis of any terminal disease. This plan also allows you to select from a variety of premium payment plans and riders.
7. HDFC Click2Protect Plus
This comprehensive term plan provides three cover choices for the policyholder to choose from: Life and CI Rebalance, Life Protect, and Income Plus. It has a feature that automatically adjusts death and critical illness benefits as you become older and provides entire life coverage.
Wrapping It Up
Term insurance online plans are frequently regarded as the most basic and intuitive life insurance policy. It is a coverage that has a relatively low premium rate. In these policies, many insurers frequently provide life insurance coverage up to the age of 99.
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