Term Insurance !

Term Insurance: The First Step of Life Planning

In today’s hectic life, financial security has become a great need but when it comes to getting insurance, people get worried as to what to take? Why to take? Which policy should be taken? Which plan will be right? So today we will talk about term insurance which is a simple and effective way to make your family financially secure.

What is Term Insurance?

Term Insurance is a life insurance policy which provides financial support to the family of a person after his death in the form of a fixed amount (sun assured). This is a type of protection plan in which maturity benefit is not available but a sum assured amount after death is given to the family of the policy holder if the death of the policy holder occurs during the tenure.

And its main purpose is also to provide financial support to your loved ones in the event of your demise.

Why is Term Insurance necessary?

1. Financial Protection: Term insurance works like a net for your family if you die unexpectedly and if there is an earning member in your family then your family depends on you.
2. Affordable Premiums: The premium of term life insurance is quite affordable which can give your family the benefit of lakhs at a low premium.
3. No Exam Life Insurance: Nowadays many insurance companies provide insurance without medical or health checkup.
4. Tax Benefits: Tax benefits are available on both terminsurance premiums and death benefits under Section 80C and 10(10D).
5. Debt Clearance: If you have any kind of loans or liabilities, terminsurance does not let the burden of these come on your family during your absence.
   How does terminsurance work?
6. Policy Purchase: You have to choose a plan and decide the sum assured on the basis of your age, income and financial needs. We can consider reliable options like Ethos term life insurance.
7. Premium Payment: Premium has to be paid on monthly, quarterly, or yearly basis. This premium is fixed for the policy tenure. In level term life insurance plans, the premium remains the same for the entire policy tenure.
8. Claim: In case of death of the policyholder during the policy tenure, the sum assured is given to the nominee.
9. Policy Expiry: If the policyholder remains alive during the tenure, the policy lapses and there is no payout.

Tips to Choose a Term Insurance Plan

1. Adequate Coverage: Sum assured should be 10-15 times your current income. If your annual income is 10 lakh, then the coverage should be at least 1-1.5 crore.
2. Right Tenure: The tenure of the policy should be till your retirement age. If you are 30, then 20 year term life insurance would be ideal.
3. Cheapest Life Insurance Plans: If you want a cheap and effective option, then explore the cheapest life insurance no medical exam plans.
4. Claim Settlement Ratio (CSR): It is important to check the CSR of the insurance company. Choose a company with high CSR as it shows how efficient the company is in the claims process.
5. Add-ons and Riders: You can make your policy stronger by adding riders like accidental death benefit, critical illness rider, waiver of premium.

Common Myths About Term Insurance

1. “Maturity Benefit Nahi Hai, Isliye Waste Hai”
   Reality: The purpose of terminsurance is protection. If you want maturity benefit, then the premiums will be quite high.
2. “Young Age Mein Nahi Jarurat”
   Reality: Premiums are low in young age. If you start early, you will get more coverage at affordable rates.
3. “Employer-Provided Insurance Is Sufficient”
   Reality: Employer insurance is temporary. It will not be valid after job change or retirement.
4. “No Exam Life Insurance Is Reliable”
   Reality: No exam term life insurance plans are quite reliable if you take them from trusted providers.

Best Term Insurance Plans in India 2025

1. LIC Tech Term Plan: Trusted name, flexible premium payment options.
2. HDFC Click 2 Protect Life: High claim settlement ratio, multiple customization options.
3. ICICI Pru iProtect Smart: Covers 34 critical illnesses.
4. Max Life Smart Term Plan: Offers return of premium option.
5. SBI Life eShield Next: Affordable premiums, multiple add-ons.
6. Bajaj Allianze: – Highlighting their reliable coverage, good claim settlement ratio (around 99%)
   (Plans details may change over time. Always check for updated information.)

Selling Term Life Insurance Policy

Nowadays selling term life insurance policies has also become an option if you do not need the policy. You can get back the benefit of your premiums by selling the policy in the secondary markets.

Conclusion

Terminsurance is an essential financial tool that secures your family’s life, even after you are gone. With affordable term life insurance and high coverage, it’s a no-brainer investment. Create a strong financial backup for your family by choosing the right term plan today. Get terminsurance to protect yourself and your loved ones and stay one step ahead in planning every small and big moment of life.