Why Opt for a 35 Year Term Insurance Policy?

What is a 35 Year Term Insurance Plan?

A 35 year term life insurance policy is a term insurance cover that provides financial protection for 35 years. During this period, if the policyholder passes away, the nominee receives the death benefit. These plans do not offer any maturity benefit unless you opt for the Return of Premium (ROP) variant, which refunds the paid premiums if the policyholder survives the tenure. With these plans, you can ensure that your family remains financially stable in your absence and is able to maintain their current quality of life.

Who Should Buy a 35 Year Term Life Insurance Plan?

How Does a 35-Year Term Insurance Policy Work? 

If the policyholder opts for a term insurance policy with a 35-year duration, it is important for them to pay premiums regularly to avail the plan benefits. In such cases, a death benefit is provided if the life assured dies during the policy term. In case the health of the policyholder deteriorates, the plan continues until premiums are paid. Term plan offers no maturity benefits through the policy term, unless a term plan with a return of premium (TROP) is opted for. This TROP enables the policyholder to receive maturity benefits in case of surviving the entire policy term. 

What are the Benefits of a 35 Year Term Insurance Policy?

Following are the term insurance benefits of 35 year policy term in India:

• Long-Term Protection: Since 35 years is a long tenure, the policy will ensure the financial security of your loved ones until most of your financial liabilities are over.

• Higher Sum Assured at Lower Premiums: The earlier you buy 35 year term life insurance, the lower your premiums will be for a large life cover. This is because the premiums increase with age for the same cover amount.

• Fulfill Financial Goals: The death benefit can help your family take care of their financial needs, like paying for the child’s higher education, their potential wedding, or funding their business endeavours.

• Secure Spouse’s Retirement: The payout from a 35 year term policy, can help you financially secure your dependent spouse and ensure their financial independence in your absence.

• Peace of Mind: With 35 year term insurance, you get the peace of mind knowing that your family will be financially protected in the event of your unfortunate demise for the 35 year policy term.

How to Choose the Best 35 Year Term Insurance Plan?

The following are the factors you should consider before choosing the best 35 year term life insurance in India:

• Understand your financial goals: Before selecting the best term insurance plan, evaluate your current income, future obligations, existing liabilities, and family’s needs. Your coverage should ideally be 10–15 times your annual income.

• Compare plans online: Look for plans that offer a good claim settlement ratio, robust customer service, and additional features such as riders. Don’t base your decision only on the lowest premium.

• Look for a reliable insurer: Choose insurers with a consistent claim settlement ratio above 95%. This ensures that your family’s claim is likely to be honoured without hassle.

• Check the availability of riders: Term insurance riders such as critical illness, accidental death benefit, and waiver of premium enhance the coverage and offer comprehensive protection.

• Decide on payout options: Some insurers allow you to choose between a lump sum payout, monthly income, or a mix of both. Choose the option that aligns with your family’s lifestyle.

• Select a payment frequency that suits you: Premiums can be paid monthly, quarterly, half-yearly, or annually based on your cash flow preferences.

• Opt for Return of Premium if needed: If you're looking for a maturity benefit at the end of the term insurance policy tenure, consider the TROP or the term insurance with return of premium variant, where your premiums are returned (excluding taxes and rider charges) if you outlive the policy term.

How Are Premiums Calculated for a 35 Year Term Plan?

Term insurance premiums are calculated based on age, gender, annual income, sum assured, policy term, medical history, lifestyle habits like smoking or drinking, and overall risk profile. A healthy, non-smoking individual in their 20s or early 30s can get significantly lower premiums for a 35-year term policy. You can use the term insurance premium calculator to check the premiums applicable for your profile.

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