Given growing prices, changing lifestyles, and an increase in critical-illness cases, knowing what term insurance is should be the first step towards financial preparation for everybody. You may wonder how this helps.
Finding the right term life insurance plan is critical since it will provide financial security in the event of your untimely death. You should seek insurers with strong claim settlement histories since it indicates your family will get the compensation amount quickly.
To better comprehend this, let us first define the term life insurance plan and explain how it works.
What is a Term Insurance Plan?
A term life insurance plan is a kind of life insurance that provides just basic protection. A pure term insurance policy pays out a large amount of money to your nominees if you die during the policy period.
The insurance’s financial advantage is the death benefit, which you may choose as the amount guaranteed when you acquire the policy. In case of an untimely death, the term life insurance policy will pay out a considerable quantity of money to the beneficiaries, allowing them to:
- Take care of their monthly living expenditures.
- Pay off whatever financial obligations you have, such as a vehicle loan or a mortgage.
- Invest money in crucial life objectives such as their children’s education and marriage, as well as a retirement fund for their spouses.
Benefits of Buying a Term Insurance Plan
Protect yourself and your family by purchasing the greatest term insurance coverage. It is never too late to protect your financial interests by purchasing the plan.
1. Financial Protection
Term insurance might assist your loved ones in remaining financially secure in the event of your untimely demise. Your dependents will profit since the death benefit obtained might be utilized to bridge the gap in expenditures.
2. Protection against Critical Illnesses
It provides extra reimbursements in the event of a catastrophic disease such as renal failure, heart attack, cancer, and so on. Term life insurance plans have a variety of benefits that you may customise to meet your specific financial needs and objectives. Check to see whether the plan covers terminal or critical diseases before purchasing the finest term insurance coverage.
3. High Coverage at Affordable Premiums
In the event of your untimely death, your family will need 10 to 15 times your yearly income to sustain their lifestyle and accomplish their financial objectives. You may get this kind of life insurance at a low cost with investment plans. Term insurance products are well-known for their low rates. Start early, though, to pay a lower premium.
4. Financial Support for Disability
You may supplement your term life insurance with accidental total and permanent disability coverage. This add-on coverage assists you financially if you suffer a life-long handicap as a result of an accident. It may also provide a premium waiver for the basic life insurance option, so that your life insurance is untouched even if impairment reduces your earning potential.
5. Survival Benefit
Investment plans with a return of premium option or a term plan with a regular income option beyond the age of 60 provide you with a survival benefit.
If you choose the return of premium option, you will get the whole amount paid as a premium for the insurance when it expires if you live. Term life insurance plans with a regular income beyond 60 begin paying monthly income promised once you reach the age of 60.
6. Tax Advantages
A term insurance plan gives tax advantages and extra tax savings under sections 80D and 80C. Any payment received at the maturity of a Life Insurance Policy is tax-free under Section 10(10D).
This exemption, however, does not apply to the following items: the amount received under Section 80DDA(3) or 80DD(3), maturity benefits received under a Keyman Insurance Policy, and the sum received under any insurance policy issued on or after April 1, 2003, during the term in which the premium paid exceeds 20% of the sum assured.
Canara HSBC Life Insurance – iSelect Smart360 Term Plan
The iSelect Smart360 Term Plan is an online term insurance plan that offers expanded protection alternatives to help you achieve your life objectives. The term plan would pay either a lump sum or periodic income. It also offers extra coverage alternatives, so you never have to worry about covering your loved ones’ requirements.
This is a Non-Linked, Non-Participating, Individual, Pure Risk Premium Life Insurance Plan that is an all-in-one policy that allows you to personalize your coverage to match your individual requirements while also ensuring that the aspirations of your loved ones are not threatened.
The following are the advantages of the iSelect Smart360 Term plan:
1. Block your Premium
For the first five years, the policyholder may freeze the premium. During this time, the Life Assured or their spouse may raise the Base Sum Assured on the Initial Sum Assured without any extra underwriting.
2. Steady Income Benefit
Under the Life Secure with Income option, you may receive a consistent income after reaching the age of 60. From the age of 60 until death or the end of the Policy Term, a monthly survival income equal to 0.1% of the Sum Assured will be paid to you.
3. Critical Illness Cover
Option to add expedited Terminal Illness or extra Critical Illness coverage. The iSelect Smart360 Term Plan covers 40 Critical Illnesses (CI). For Life Assured/Working Spouse, the CI benefit amount is only payable once throughout the Policy Term (as applicable).
4. Special Exit Value
Special Departure Value returns the whole premiums paid on voluntary exit. If the Policyholder surrenders their Policy, the Total Premiums Paid, except additional underwriting premiums and premiums paid for Optional In-Built Covers (if any), will be reimbursed to them.
5. Increasing Cover
The iSelect Smart360 Term Plan gives you complete control over your premiums and coverage. Your obligations grow with you. You need greater facilities and coverage to address diseases or accidents associated with aging.
6. Tax Benefits
Investment plans function in two ways. On the one hand, a smart term plan provides tax advantages under sections 80C and 80D, while term life insurance plans provide lifelong protection even after your death.
Wrapping It Up
The best time to get term life insurance coverage is when you receive your first paycheck. Purchasing term life insurance early saves you money.
You may enhance your plan as your life advances with term life insurance plans like the iSelect Smart360 Term Plan. The iSelect Smart360 Term Plan insurance coverage lets you enhance your sum guaranteed when you marry, have a kid, or buy your first home.
You can increase your term cover without having to buy a new term plan and keep the safety umbrella growing with your family’s safety needs.