It is never too early to start thinking about insurance. Especially when it comes to life insurance, it is best to begin as early as possible! Now, if you are considering getting insurance, you must have surely heard of term insuranceRead more
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Even though it deviates from the conventional life insurance, it is one of the best investment options when it comes to protecting the future of your loved ones.
Let’s take a detailed look about all the aspects of best term insurance policies!
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
A term insurance policy is a type of life insurance that provides coverage during a fixed period of time. To avail the policy, you have to make periodic premium payments at a fixed rate (according to what the policy demands), spanning the period of tenure of the insurance policy.
Since life insurance is all about providing protection for your loved ones and securing their future, term insurance provides you the assurance.
However, in the case of term insurance policies, when the policy period ends, there is no guarantee of the premium rates. You can either choose to extend the policy coverage with new premium rates or forego the policy.
Thinking about getting a term policy? Know the important facts about it!
Before getting any investment it is crucial to know every little detail about it. It doesn’t do well to decide on a policy without deliberation and then have regrets later. That is why, it is imperative that you do all the necessary research about the term insurance policy of your choice.
So let’s take an overview of some of the most important factors related to term policy:
These points explain the basics of the policy. But when is it the right time for you to get the term insurance policy? Let’s find out!
Life is unpredictable. That is why it is not wise to assume that no harm can befall you. Therefore, to ensure that your family members don’t suffer financially in your absence, it is wise to make a term insurance policy.
The features of the policy include:
These term insurance policies have excellent tax benefits under the Income Tax Act 1961. You become eligible for tax benefits under Section 80C and Section 10(10D). Additionally, you can also claim benefits for the premium of Critical Illness Benefit under Section 80D of the Act.
With this policy, you can choose to invest in a single life basis plan or a joint life basis plan. In a single life basis plan the term insurance policy will cover the death of only one person (generally the bread winner of the family). In a joint life basis plan, the policy covers the death of two people (for instance, both the husband and wife).
But make sure to read up on what the specific term insurance policy offers. Most policies offer the plan on a first claim basis. That is, on the death of wither the husband or the wife. Some of the term insurance policies offer payment on the death of both the policyholders.
For term insurance, the term of the policy can range from 5 years minimum, to a maximum of 25 years to the lifetime of the insured person with monthly premium payments. However, in the case of single term policies, the term can span between 5 to 15 years. The insured person has the liberty to choose the term most convenient for them.
The minimum age of eligibility for this term insurance policy is 18 years while the maximum age is 65 years. With this plan, the premium increases with the age of the insured person. Therefore, to enjoy its maximum benefits, you should consider investing at an early age itself.
Pure life insurance policies only provide life cover and no survival or maturity benefits. You have to forego of the premium when the period of the policy expires. However, many companies due to the demand of investors have launched survival benefits for the pure life insurance policies as well.
Term Return of Premium (TROP) plan option returns the premium to the investors after the expiry of the term even if they survive. Even though these term insurance plans with survival and other benefits have higher premium rates than pure insurance plans, the promise of getting back the premium makes them popular.
Therefore with so many favourable features, the term insurance policy has gained a lot of popularity in a very short period of time.
Accidents cannot be forecasted. A tragedy can befall you and your family at any given moment. That is why it is never too early to invest on a term insurance policy. To ensure that your family’s future is secure after you pass, it is best to make plans as soon as possible.
Thus it is crucial that you know which term insurances will work the best at your age!
We, as policyholders, have very specific needs in each stage of our lives. Your priorities certainly will change from what they were in your twenties, when you are in your thirties. Thus you should get a term insurance policy that meets your goals and satisfies your needs at that specific age.
Also, there is a change in term insurance rates by age.
So when is it the right time to get a term insurance policy?
Is it in your twenties?
The twenties are a time when you are starting your life. There are fewer responsibilities, but the pressure of building your career is paramount. Following are the few factors you should consider before choosing to invest on a term insurance:
The cheapest policies you can avail in your twenties-
For the age of thirty and below there are a few term insurance plans that are both beneficial and easy on the pockets. For instance-
These are few of the cheapest term insurance rates. You can also go for higher rates according to your requirements.
Are your thirties the right time to get a term life insurance?
The thirties are time when your responsibility increases manifold. Most people get married and have children during this time. Also, the thirties are a period when people tend to take house loans, car loans etc. which require long term planning on your part.
Since people can invest more into their term insurance policies in their thirties, here are a few options that can fit their requirements, without being too extravagant:
These are few of the best term insurance plans that you can opt for in your thirties.
Is it in your forties?
The forties are a time when most people have settled their loans and other long time payments. However, this is the time to save up for your children’s education, think about retirement and other medical emergencies that might occur.
Cheapest policies to avail in your forties:
Even though affordability of the insurance takes a back seat during your forties, it is always best to get maximum benefits with reasonable investment. Some of the cheapest term life insurance you can get in your forties is:
With most people opting to go for a term insurance policy in their forties, there are several plans to choose from.
For fifty years and above!
Even though it is best to invest in a term insurance policy as early as possible, it is never too late as well.
However, it is important to consider investing on a term insurance even after you reach your fifties. Especially if you are the only earning member of your family and have debts to take care of!
If you are considering getting a term insurance, it is best to get one immediately. You can wait around and keep planning, but as you age, the stakes will certainly get higher.
So to ensure that your family can lead a secure life, it is crucial that you start investing in a term insurance as early as possible.
But make sure to conduct proper research and compare all the term insurance policies and terms to avail the best one! With so many options available in the market, you can get confused with which one will be perfect for you!
So take some time, know about the premium, plan coverage and all additional benefits of each plan to avail the best one possible!