Term insurance is the purest form of life insurance policy that offers comprehensive financial protection to your family members against life’s uncertainties. Depending on the term insurance plan you buy, your family will get life cover or sum assured in case of your untimely demise within the policy period. Let us know more about what is term insurance and the features and benefits it offers.
What are the Key Features of Term Insurance Plans?
Now that you are aware of what is term insurance plan, you should check features and benefits of term insurance plans. Following are some of the primary term insurance benefits & features:
If you are the sole breadwinner of your family, you can help secure your loved ones against any financial setback they might have to face in your absence through a term insurance policy. The policy enables you to support a worry-free financial future for your family. You can easily take a significant life cover for a relatively small premium payable under these term insurance plans.
For example, if you are a 25-year old, non-smoker female, you can buy a Max Life term insurance plan with Rs.50 lakh life cover and pay for next 35 years, your premium will be Rs. 4,484 per annum approximately (inclusive of tax). Furthermore, you can use online term insurance premium calculators to see how your premium liability varies according to your age.
Term Insurance Riders
Once you know what is term insurance and choose one to buy, you can add riders to your term insurance plan. Riders will help you extend your policy benefits by paying additional premium. Term insurance riders are optional and you can opt for them easily. With Max Life Insurance, you can opt for Max Life Accidental Death and Dismemberment Rider [104B027V03; Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider] & Max Life Waiver of Premium Plus Rider [UIN: 104B029V03; Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider].
Cover for Critical Illnesses
In your 20s and 30s, you may think that you will never suffer from a critical illness such as cancer or kidney failure. However, if it happens, not only will your health deteriorate, but you may lose your hard-earned savings to get the necessary treatment. Although the plain-vanilla term insurance plans offer a death benefit, you can increase their coverage with a critical illness rider.
As the name suggests, a critical illness rider provides additional benefits when attached with your term insurance policy i.e. if you get diagnosed with an illness covered under the rider, a lump sum amount is paid to you to avoid any financial setback that your family might have to face for getting the treatment.
Cover for Accidental Death or Disability
Accidents can happen anytime and anywhere. Depending on the severity, you may need a significant amount of money for the incurred medical expenses and compensate for the loss of income. Popular term insurance plans help you tackle such situations with accidental death or disability rider.
Max Life Insurance offers a Comprehensive Accident Benefit Rider (UIN: 104B025V03) with their term insurance plans. The rider provides extended financial protection to your family by also covering you for accidental dismemberment and death.
Tax Benefits
With Term Insurance plans you can avail tax benefits on premiums paid under Section 80C of the Income Tax Act, 1961. You can avail tax benefits up to Rs.1.5 lakh on the premium paid. Not only this, with the critical illness cover, you can also avail additional tax benefits on premium paid under Section 80D of the Income Tax Act, 1961.
Multiple Payout Options
If you feel your family members do not have the necessary know-how of handling large amounts of money as they may find it challenging to utilize a lump sum amount they receive under your term insurance policy, you can choose from multiple payout options available with Max Life’s term insurance plan.
For instance, you can opt for term insurance plans that offer to pay a lump sum immediately on death and a fixed amount every month to your family. This way, your term insurance policy will work as a source of regular income for your family.
