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Term Insurance Benefits – Freehuts

Term Insurance Benefits

Know more about the various benefits of buying a term insurance.

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Top 8 Benefits Why choose term insurance Max Life Term Plan Premium How to choose the right plan

 

Term insurance helps to financially secure your family in case you die. Term insurance is considered to be one of the most important types of life insurance that should be carried by every individual in today’s time. Term insurance not only provides financial protection to your family in the most unfortunate events but also gives you tax benefits. Not only this, you can get various other benefits available with the term plan. Check out the benefits of term insurance given below.

What are the benefits of term insurance?

Here is a list of benefits that a term insurance policy can offer you:

  • High Sum Assured at an affordable premium (High Sum Assured)
  • Easy to understand
  • Multiple Death Benefit Payout Option (Option)
  • Additional Riders
  • Income Tax Benefit
  • Critical Illness (Critical Illness) Coverage
  • Accidental Death Benefit (Accidental Death Benefit) Coverage
  • Option to Refund Premium

Let us discuss the above mentioned term insurance benefits in detail.

1. High Sum Assured / High Sum Assured

Term Insurance plan at an affordable premium is an easy variant of life insurance. One of the major benefits of term insurance is its affordable cost. A term insurance plan is available at a premium that you can easily afford as compared to other life insurance policies. Another important advantage of term insurance is that the earlier you buy term insurance, the lower the premium.

Not only this, when you buy term insurance online, its premium can be lower as compared to offline. In other words, the cost savings at the insurer’s end are passed on to you as a benefit of the term insurance plan. You can also check term insurance benefits online instantly.

 

2. Easy to understand

While buying a life cover, you may find it difficult to understand the term insurance specific to various life insurance policies. One of the key features of term insurance is that they are quite easy to understand.

As a pure life cover, there is no investment component in a term insurance plan. You pay the premium and the insurer (insurer) covers your life for a specified period of time to offer term insurance benefits.

3. Multiple Death Benefit Payout Option

You will be paying the EMI for your new home, car, or personal loan taken. In your absence, your financial obligations may fall on your family members. This is where the various payout options of term insurance play an important role.

In case of your unfortunate death, your dependents can get a lump sum amount and this lump sum amount will help them to manage their financial obligations as mentioned above.

Some term insurance policies also offer the option of receiving a monthly income along with a lump sum amount as a death benefit. With this monthly income, it can be easy for your family to manage for regular expenses.

4. Additional riders to strengthen the policy

Term insurance plans come with multiple riders that you can choose from to enhance the basic term insurance benefit. You can add these riders to your term insurance plan by paying a very nominal premium.

For example, Max Life Waiver of Premium Plus Rider [UIN: 104B029V03] of Max Life Insurance will pay you in case of dismemberment (amputation) and if you are diagnosed with any of the critical illnesses as shown below. Waives the payment of premium. This means that your life cover will continue even when you are not able to pay the premiums of your policy.

5. Income Tax Benefit

Term insurance plans also offer tax benefits. While the premium you pay for a term insurance plan is tax deductible, the payouts are also exempt from tax as per the current tax law.

Also read: Term Insurance Tax Benefits

Term Insurance Benefit Under Section 80C Term Insurance Benefit Under Section 80C of

Income Tax Act 1961 On the premium paid by you for buying a term insurance up to Rs. Exempted up to the limit of 1.5 lakhs. You can avail maximum term insurance tax benefits by purchasing a plan for the maximum coverage offered under this section based on your age and health.

Term Insurance Benefit under

Section 10(10D) The death benefit (death benefit) of term insurance is fully exempted as per the provisions under section 10(10D) of the Income Tax Act 1961.

6. Critical Illness Coverage

You can suffer from critical illness at any point in your life and you can lose all your savings in getting the necessary treatment. Even though the major benefits of a term insurance plan offer only life cover, you can get coverage for critical illnesses by opting for add ons/riders.

With two variants of term insurance plans – Max Life Online Term Plan Plus (UIN: 104N092V04, Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan) and Max Life Smart Term Plan (UIN: 104N113V03, Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan) Max Life Insurance offers critical illness riders. Under the Critical Illness cover, you will receive a lump sum amount if you are found to be suffering from a critical illness covered by the policy.

With this cover, you can pay for the treatment you need without spending your savings.

Term insurance plan with critical illness cover

7. Accidental Death Benefit (Accidental Death Benefit) Coverage

Accident can happen at any time and can lead to death or amputation. Hence you can add additional cover using Max Life Accidental Death and Dismemberment Rider (UIN: 104B027V03; Non Linked Non Participating Individual Pure Risk Premium Health Insurance Rider).

Max Life Accidental Death and Dismemberment Rider (UIN: 104B027V03; Non Linked Non Participating Individual Pure Risk Premium Health Insurance Rider) from Max Life Insurance in case of accidental death or dismemberment (amputation) to your family’s financial future protects. You can add this rider to your term insurance policy to provide additional term insurance benefits or cover in case of accidental death or amputation.[2] Term insurance benefits as per the contract. Assured means the sum assured is payable in lump sum to the beneficiary. You can add Max Life Accidental Death and Dismemberment rider at any time provided the remaining policy term of the original policy is at least 5 years.

You can add this rider at the time of purchase or even after buying this policy to avail the benefits of term insurance with Accidental Death Rider. Along with this, you should understand the coverage benefits of different riders before including them in a term insurance plan.

8. Premium Refund Option

A pure term insurance plan provides only life cover to the beneficiary in case of accidental death of the life insured. It does not provide any benefit after maturity. However, you can get the maturity benefit under a term insurance plan if you choose to pay the premium. This option requires you to pay a higher premium under a term insurance plan but it returns the total premium paid by you if you survive the term of the policy. However, the total premium amount to be refunded shall not include any taxes, charges, rider premium and modal amount paid on the premium.

the premium for a term insurance plan with or without maturity benefit online term plan calculator . This will help you take a smart decision based on your financial needs.

Why choose a term insurance plan?

Depending on the kind of lifestyle you live, you may feel that no uncertain events will happen to you. However, there is always a risk of untimely death due to external factors like accident or illness etc. which are not under your control. A term insurance plan is important as it will help reduce the financial stress that your family may face in case of your absence.

 

Estimated Premium of Max Life Term Insurance Plan at different ages

 

Non Smoker (Non Smoker), Male Rs. Premium for Life Cover of 50,00,000 (per annum)*

 

Age**

Max Life Online Term Plan plus

with Refund of Premium

Rs.25

. 4,130

Rs. 7,838

30

Rs. 4,720

Rs. 9,614

35

Rs. 5,723

Rs. 12,906

40

Rs. 7,198

Rs. 19,072

*The premium calculation above is based on certain assumptions. The premium amount stated is inclusive of GST and is payable annually till the age of 60 years. Life cover of 50 years is also there till the age of 60 years. Annual income is taken less than 5 lakhs.

**Age as on January 1, 2020.

It is important to choose the right

term insurance plan. You will find different types of term insurance plans with different benefits available in the market. However, while considering term insurance benefits, it is better if you do not take a ‘one way for all’ approach.

Depending on your financial obligations, you should take an adequate life cover and choose the appropriate add-on according to the type of coverage you are looking for. Before buying a term insurance plan online or offline, keep in mind that you know and understand the various aspects involved in buying it.

Term insurance plan with critical illness cover

Also read: Things To Keep In Mind When Buying A Term Insurance Policy

empirical rule, buy a term insurance plan with a cover that is at least 8 or 10 times your annual income. For example, if you currently earn Rs 5 lakh a year, you need to spend around Rs. One should choose a life cover of 40-50 lakhs or more.

To calculate term insurance premium for you, use our online term insurance calculator.

 

 

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