Does an ideal term insurance even exist? Find out!

Rohan Mathew

Updated on:

If you die untimely, term life insurance provides your family with a lump sum benefit to help them pay their debts. If you don’t purchase the coverage diligently, your family may have financial difficulties even with your best efforts.

This article will discuss term life insurance, its benefits, and the best plans available in the market.

What is term life insurance?

Life insurance policies with a term provide coverage for a set amount of time (the policy’s coverage period). A death benefit is given to the insured individual’s nominees if the insured individual dies while the policy is active.

Plans like Return on Premium, a basic type of term insurance policy, do not have a cash value, which means the policy will not be worth anything if the insured survives the policy’s duration. You can buy a term insurance policy that will deliver a specified amount of money to your dependents in the event of your death. Thanks to the sum assured provided by life insurance; they can maintain their current lifestyle or pay off their existing debts without sacrificing their aspirations.

How Does a Term life insurance Work?

In the event of the policyholder’s death, your family will receive a lump sum payment. The benefits of term insurance can be accepted as a regular monthly income or as a lump sum payment, depending on your preference.

Riders can be added to a basic term insurance policy for better benefits in the event of an accident, disability, or severe illness at a low cost.

Benefits of term insurance 

Life insurance that protects against death is known as term life insurance. The policy only pays benefits if you die during the term or length of the policy’s coverage. If you live beyond your policy’s term, no benefits are paid.

Term life insurance can help protect your loved ones from financial difficulties in the event of your untimely death. The benefits of term life insurance are numerous if you want to provide for the needs of your family if you pass away unexpectedly.

  • High-quality coverage at a low cost – Term insurance is essential for your financial portfolio since it provides a death benefit to your family at a low price.
  • Financial Security –   In case of the policyholder’s untimely death, the family receives a lump sum death benefit. In the future, they can use this amount to secure their child’s future or pay off any loans that might become liabilities.
  • Long-Term Insurance Coverage – Term insurance provides long-term coverage that can last anywhere from 5 to 75 years. You must purchase term insurance when you are young because the premiums are lower and longer range.
  • Tax saving – Section 80C of the Internal Revenue Code exempts all term insurance premiums, and Section 10 exempts the death benefit (10D).
  • Major Illness Coverage – Critical illnesses such as cancer, brain tumours, blindness, and limb loss can be devastating emotionally and financially for the sufferer and their family. 
  • Disability Insurance – Any disability might result in a loss of income for an extended period. It becomes tough to manage financial commitments in such situations.
  • Premium Payment Flexibility – You can choose premium payment alternatives based on your needs and financial obligations. Premiums are available on a monthly and yearly basis. If you have a more extensive investment portfolio, you can choose the limited pay premium option.
  • Protect Yourself from Accidental Death – Over the last few years, accidents have been one of the leading causes of human death. It is preferable to purchase accidental death insurance so that your family will be financially secure even if you die. 

Life insurance quote –

Premiums for life insurance often rise as you get older, so starting the procedure sooner rather than later may save you money if you’re considering getting coverage. Obtaining a life insurance quote is a good approach to figuring out how much you’ll have to pay for coverage. Keep your personal preferences in mind when looking for the best life insurance coverage for your needs and budget.    You will have fewer choices of life insurance if you know what type of policy you want and how much you want to spend in advance.

How to compare life insurance quotes?

While the high degree of engagement makes it simple to calculate insurance premium quotations, there are a few things to keep in mind while calculating and comparing premiums online.

A step-by-step approach to comparing life insurance quotes online may be found here:

  • Type in the amount you’re confident you’re looking for.
  • Type in the policy’s duration.
  • Decide on the premium payment term: one-time, equal to the insurance term, or less than the policy term.
  • Make a list of the premiums for each insurance.
  • Compare premiums but don’t make a hasty decision; speak with an insurance representative about why particular quotations are high or low.

Best term insurance available in the market

The market offers a wide variety of term life insurance plans. The most challenging part is choosing the plan that is right for you and your family.  

Here is the list of best term insurance plans available right now –

  • Aditya Birla Sun Life Insurance Life Shield Plan
  • Canara HSBC Life Insurance iSelect Smart360 Term Plan
  • HDFC Click2Protect Plus
  • ICICI Prudential iProtect Smart Term Plan
  • Bajaj Allianz Smart Protect Goal Term Plan
  • Kotak e-Term Plan

Conclusion –

The most sensible investment in your portfolio is term life insurance. It’s a smart way to ensure that your family is cared for if something terrible happens to you. Term life insurance provides a death benefit paid upon your death. To select the best term insurance plan that caters to your family’s needs, make sure you go through different plans and compare their life insurance quote to make the best decision possible.