Know about term life insurance

Term Life Insurance

• Term Life insurance provides coverage for a fixed period of time at a fixed premium rate.
• In case of death of the life insured during the policy term , the beneficiaries of the life insured gets the Total Payout/Benefit. Based on preference the benefit will be paid out as a lump sum payout or a combination of Lump sum and Monthly payout or only as a Monthly payout.
• Therefore Term insurance plans are said to be one of the protection plans which ensures financial stability of the beneficiaries in case of untimely death of the life insured.

Term Life Insurance benefits

• Death Benefit: In the event of death of life insured during policy term, the beneficiaries shall receive the Total Payout as a Lump sum amount.
• Immediate financial liabilities can be met with the Lump sum amount
• Monthly income to sustain the family livelihood and lifestyle.
• Tax Benefit: The premiums paid for Term Life Insurance are Tax free under section 80(C) upto an amount of Rs 1,50,000.
• Rider Benefits: Rider is an important addition to the basic plan offering and will provide an option to customize the coverage to the life insured based on its need.
• An additional sum assured over the base plan offering in case death occurs due to an accident with Accidental Death Benefit rider 

Key Terms when comparing Term Life insurance plans

• Total Payout of each plan
• Premium amount paid for desired Total Payout
• Policy term offered
• High claim settlement ratio
• Riders offered with the plan