This is the basic life insurance policy that offers death benefit in case of the demise of the insured.
Term Insurance for Family: An Overview
People can’t predict their future but definitely could safeguard their family's future by leaving behind some monetary relief through the savings and investing in life insurance or term insurance. If a person is a sole earner in the family, it is indispensable for him to purchase term insurance for the family.
Term insurance for family protects the life insured's family by covering their life during the tenure of the policy. If the life insured dies during the policy term, the beneficiary or the nominee of the life insured is paid a lump-sum amount or amount as monthly payouts. This is based upon the option chosen by the life insured. Some providers offer maturity benefits on term insurance for family under TROP option.
Features of Term Insurance for Families
Term insurances provide a death benefit to the beneficiary in the event of the demise of the life insured. The coverage is valid only during the policy’s tenure, and if the policy lapses, no benefit is paid out.
Some insurance providers do offer maturity benefits for term insurances for families. These plans are referred to as Term Insurance with Return of Premiums (TROP), wherein all the premiums paid by the policyholder are returned upon maturity of the policy. TROP is one of the most common types of policy that people tend to purchase as the investment in the policy does not go to vain even after maturity of the policy.
A few of the other salient features of term insurance for families are the low premium rate, flexibility to surrender the policy efficiently and seamlessly, unlike the conventional life insurance, and tax benefits to the life insured under the Income Tax Act's provisions Section 80C. A person also has options to pay premiums in various payment-paying terms and choose a rider for additional protection if applicable for the term insurance they desire to purchase.
Benefits of Term Insurance for Family
Each term insurance policy for a family provided by the various insurance providers has different benefits. These benefits may be the same, or they may not be. At the end of the day, the buyer must weigh the pros and cons of term insurance and purchase the one that suits his lifestyle and is most beneficial for his family. Some term insurances have premium option as low as Rs 4000 plus taxes, while some have up to Rs 10,000. The death benefits may remain the same with some additional benefits.
Listed below are a few companies that provide term insurance for family and their benefits:
- Aviva Term Insurance plan
- Bajaj Allianz Term Insurance Plan
- Bharti AXA Term Insurance Plan
- Canara HSBC Term Insurance Plan
- Edelweiss Tokio Term Insurance Plan
- Exide Life Term Insurance Plan
- Future Generali Term Insurance Plan
- ICICI Prudential Term Insurance Plan
- IDBI Federal Term Insurance Plan
- IndiaFirst Term Insurance Plan
- Kotak Life Term Insurance Plan
- Max Life Term Insurance Plan
- PNB Metlife term Plan
- Pramerica Life Term Plan
- SBI Life Term Plan
- Sahara Life Term Plan
- Shriram Life Term Plan
- Star Union Term Plan
- TATA AIA Term Plan
*Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer
The aforementioned are the available term insurance options, which you can consider for yourself and your family. These policies can be availed online and offline at an affordable price. However, don’t forget to compare these term insurance for family plans basis on their offerings and premium rates.