Term Insurance Plan – A cushion to your financial loss
These plans are designed to protect against the risk of a sudden passing of an individual, the loss of the primary breadwinner, or the transfer of substantial liabilities to an insurance company.
It is preferred as a temporary fix for major dangers.
When a death occurs during the term, only the term policy is activated.
Term Life Insurance is like buying a safety net for your family. You pay a small amount of money (premium) every month or year for a certain number of years (policy term) to keep this safety net active. If something happens to you, the insurance company pays your family a significant sum of money (Sum Assured). This money can help them pay bills and manage household expenses. But if nothing happens to you during the policy term, you get nothing back. It’s a way to ensure your family is safe if the unexpected happens.
Silent Features
Secure Financial's Recommendation:
Term Insurance
| Title | Description |
|---|---|
| Details | Term plan is the simplest and purest form of life insurance. It provides financial protections to your family at the most affordable rates. With term plans, you can get large amount of life cove at a relatively low premium rate. The benefit is paid out to the nominee in case of death of the person insured during the term of the policy. |
| Death Benefit | On unexpected demise of the policy holder, his/her nominee will receive death benefit from the Insurance Company. |
| Survival Benefit | There is no Maturity benefit in term plans |
Features and Conditions
Minimum & Maximum age at Entry: Varies from company to company.
Minimum & Maximum Term: Varies from company to company.
Minimum & Maximum Sum Assured: Varies from company to company.
Conditions varies from company to company.
Tax Benefits
Tax Benefits for Individuals: As per Government & Regulatory body’s Guidelines. As per Income Tax Slabs.
Tax Benefits for Corporates: As per Government & Regulatory body’s Guideline. Mostly treated as an expense.
Example: A person aged 21 buy a Term policy of 25-year term.
Age At Entry 21
In Case of Death at 40
Maturity at 46
| DEATH BENEFITS | MATURITY BENEFITS |
|---|---|
| If there happens an unexpected demise of policy holder in the policy term, nominee gets the death benefit. Benefits are tax free. | No Maturity benefits are given in term plans. |
