What is Term Insurance?

Term insurance is a kind of life insurance policy that provides coverage for a limited duration, or a particular ‘term’ period. If the policy holder dies during the active years of the policy, then the family of the deceased is entitled to receive a death benefit from the insurance provider . It is less expensive compared to a permanent life insurance policy when taken at an early age. Also, a term insurance plan generally has no surrender or maturity value for the policyholder or the insured, unlike the permanent life insurance that pays the surviving policy holder.

What are the criteria that matter while buying a term insurance?

Every insurance plan operates on a premium, and term insurance plans , like most life insurance plans, charge premiums by evaluating criteria like the policy holder’s in the event of the death of policy holder, and .

Above all these factors, buying a term insurance plan varies according to the stage of your life. Each stage of your life throws up a new set of responsibilities and needs, in the form of family and kids’ future. The risk-taking abilities in your 20s and 50s differ. As you age, the count of your dependents rises, and your risk-taking abilities wither away since you look for security. Taking these into consideration, insurance companies are now devising a variety of term insurance plans tailored for every age group to meet their futuristic needs. Generali Central Care Plus Term Insurance plan provides an excellent option to protect your family against your loans and liabilities, when you are not around. It ensures financial security to your family by offering a high cover up to a minimum of Rs. 25,00,000 at a low premium.

What are the additional benefits or riders attached to a term insurance plan?

Traditional term insurance policies have no surrender value, and the premiums paid by the policy holder go waste if he/she outlives the policy term. This has the potential to deter people from buying a term insurance cover given rise in life expectancy rates. In order to deal with such scenarios, insurance providers are currently offering term insurance plans with an exclusive benefit that assures return of premium if you survive beyond the policy’ term. Depending on the chosen protection cover – or , Also, the premiums paid by you towards your term insurance plan are eligible for tax benefits under Section 80c of the Indian Income Tax Act, 1961.

Merely having a basic life cover may not be sufficient. A policy holder may become disabled due to an accident or otherwise, thus impacting his/her earning capacity. An add-on insurance plan like , attached to your basic term insurance policy, at an additional nominal premium can further strengthen your family’s financial security, in case of accidental death resulting from an unfortunate accident.

Conclusion

Choosing a term insurance plan to cover your family’s financial needs in your absence can be tedious. It would be a wise move to carefully analyse your family’s futuristic financial needs before opting for a term insurance plan. You might be in a haste to buy a term insurance cover, but it is better late than never!