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Features And Benefits Of Term Insurance

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Features Of Term Insurance Policies

Term life insurance policies provide financial security to the family members that are dependent on the policy. The policy offers life insurance for the life assured and also provides with financial security for the family members of the person assured. There are a few key aspects of a term insurance policy one should know about:

Death BenefitThe lump sum of money known as the death benefit is paid to the loved ones of the life insured in the event in the event of an unexpected death of the life insured during the tenure of the policy.

Maturity BenefitNot all kinds of term insurance policies provide maturity benefits but in terms of insurance that has a return of premium policies, an amount of maturity is offered to the person who is insured in the event that the policy holder survives the whole duration of the policy.

Tax BenefitTax advantages are provided in all kinds terms of life insurance.

RidersSeveral Riders such as the Accidental Death Benefit Critical Illness Rider Permanent and Total Disability eyc. can be added to any kinds of term insurance policies.

premium payment options:Under term insurance policies three premium options are offered, which include Regular, Limited and Single Pay.

Paying Premium FrequencyOne may choose to make payments for for premiums on a year-round half-yearly, quarterly, or per month basis.

Optional Death Benefit Payment OptionsUnder terms insurance policies it is possible to select options for death benefits are available. The options for death benefits available under a term insurance policy include lump sum and lump sum with regular payments, regular payouts and lump sum with an increasing monthly payout.

Sum AssuredMinimum sum assured is Rs. $50,000 and is the maximum amount that can be assured is unlimited.

The benefits of Term Insurance

Term insurance is a type in life insurance policy that offers life insurance for the life insured at a reasonable cost. It is the simplest kind of life insurance one can avail. It will provide that you have financial security for those you love in the event something unexpected happens in the duration of the policy since this type of policy will provide the death benefit in the event in the event of sudden death of the insured during the duration of the policy. Certain term plans also offer maturities in the event that the insured survives the whole duration of the policy which will allow the person insured to meet their financial goals. Term insurance may also help to save on taxes and offer you with tranquility.

  • Death BenefitTerm insurance pays an assured death benefit (death benefits) to the beneficiary for the eventuality of a sudden loss of life of the insured during the term of the policy. This will help your family to remain financially secure during times of emotional pain and helps to pay financial obligations, if they exist.
  • Peace of MindTerm Insurance plans help you keep your mind at ease by safeguarding your loved ones financially in the event of your departure. They provide you with the confidence that the standard of living for your family members and their goals will not be harmed while you’re away.
  • Financial StabilityA term insurance policy can help you ensure financial stability for your family members in the event the untimely death of your loved ones. If you choose for a term insurance plan that includes the option of a return on premiums (TROP) then you’re entitled to a lump sum guaranteed upon plan completion in the event that you live through the entire period of the policy.
  • Tax BenefitsLife insurance premiums are eligible as tax deductions in accordance with Section 80C under the Income Tax Act. Additionally, under Section 10(10D) of the Income Tax Act, the amount assured (SA) at the time of the date of death or plan maturity can be tax-free as long as the amount paid is up at least 10% of SA or SA is at minimum 10X of the premium amount.
  • Pocket FriendlyThese types of insurance are renowned for their high coverage with affordable rates. They can help secure your family’s financial future by offering amounts of Rs. 10 Crore or more in minimal premiums. The affordability of term plans, makes them an ideal option.
  • Whole Life Insurance Coverage BenefitSome life insurance companies provide an entire life insurance policy in their regular term plans. This allows you to take advantage of the advantages of a life insurance policy up to 99 years old. This will give you confidence and lets you live live to your fullest, without stress.
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