insurance || life insurance || term plan || term insurance plan || Types of Term Insurance Plans || Eligibility for term insurance plan || Why should you buy term insurance || Benefits of term insurance plan || What is a term plan
What is a term plan?
Term insurance plan is a type of life insurance contract according to which if the policyholder dies during the policy term, the beneficiary (the family member named by the policyholder to whom all the policy benefits are paid after the death of the holder) will be paid in a lump sum. the amount is paid. This insurance policy is called term insurance because it covers the life of the holder for a specified period.
Also, the term plan does not offer any maturity value if the holder survives the policy term safely. This is the reason why term insurance is so cheap.
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Types of Term Insurance Plans
Pure Term Plan:
This type of
term insurance plan covers the basic risk related to death. In case of
an accident with the policyholder, the family gets the entire sum
assured. The premium amount in pure term insurance plans is usually
less. Your cover starts as soon as you buy a term plan.
TROP (Term Return of Premium):
The
best part of this plan is that it assures maturity benefits. It is paid
only after the end of the policy term. This policy proves to be
beneficial if the life insured survives after the policy term. In some
plans, additional returns are also available but the premium of these
policies is slightly higher as compared to basic term insurance.
Convertible Term Insurance Plans:
This
policy offers several add-on benefits over the term insurance plan you
have. You can get additional security through add-ons.
Single Term Life Insurance Plan:
This
is a general plan in which only one person is covered. If the
policyholder's age ends, the claimant gets the full sum assured.
However, there a several of risks that can be compounded according to
this plan. But they will all belong to the insured who is covered in the
plan.
Joint Term Life Insurance Plans:
This term plan is the
basic plan, in which two persons are covered instead of one. In this
type of joint life insurance, both the individuals pay a single premium
for a fixed term.
Increasing Term Insurance Policy:
Increasing
term insurance policy means, the cover increases every year. This
scheme has been launched keeping in mind the rising rate of inflation.
Generally, it keeps on increasing till it becomes 1.5 times the Basic
Sum Assured.
Decreasing Term Insurance Policy:
In a reducing
plan, both the premium and the sum assured decrease over time. This type
of scheme is usually issued to banks to recover loans. With the
interest amount decreasing, the risk of paying off the loan can be
managed.
Group Term Insurance:
Group term life insurance is
suitable for companies or institutions with more than 50 people. Large
communities can take advantage of this type of insurance. The rate of
premium in this type of insurance may vary from year to year. This type
of plan is usually taken up by corporations or large institutions.
Eligibility for term insurance plan
Any individual who draws a salary of Rs 2 lakh and above is eligible to get term insurance. For this the minimum age of investment should be minimum 18 years and maximum age should be 70 years. The Sum Assured is directly proportional to your income.
Why should you buy term insurance?
Emergency and unfortunate circumstances like the death of the breadwinner in the family can financially backward the rest of the family. At the same time, their future can also be put in danger. By taking term insurance, you can ensure that your family continues to get financial support even after you so that they can maintain a dignified lifestyle.
Benefits of term insurance plan
Term insurance benefits not only the person buying the policy and their family but also the society at large:
Monthly payments to meet basic needs like food, rent, bills etc.
Financial security to meet the needs of children like future, their school fees, and higher education.
Relief from tax under section 10(10D) on death benefit (as per existing tax laws)
to society
Comprehensive protection of bereaved families.
Freedom from the burden of providing financial support to the family of the deceased.
Key Features of Max Life Online Term Plus Insurance Plan
Minimum age to buy the plan - 18 years.
Maximum age to buy the plan - up to 60 years.
· Option to receive regular payments.
Convenience to pay premiums for a shorter tenure.
Benefits such as protection against death or disability due to accident, waiver of premium, and cover against critical illnesses (for this you have to pay an additional premium.)
Monthly, quarterly, half-yearly, and yearly interval options for premium payment.
· “Free Look” period for 30 days (Only for those purchasing the plan online.)
15 days for regular premium payment in monthly mode and 30 days another mode.
Life insurance covers a maximum of 85 years for the holder on taking a term plan.
The process to buy a term plan online
It is very easy to get a term plan online.
Select your Sum Assured and Term
While buying a term plan online, first calculate the premium according to your desired sum insured and tenure on the online term insurance calculator.
Note: The ideal benefit amount for a term plan is 10 to 15 times your annual income.
choose rider
You can opt for a rider to get additional benefits on your base cover. By doing this you can increase your financial security in case of unfortunate situations like disability or critical illness. However, you have to pay an additional premium for these optional features.
You can choose from the following riders under Max Life Online Term Plus plan:
* Critical illness cover which protects you from 40 serious diseases.
* Accidental death and disability benefit.
*Premium waiver benefit in case of critical illness.
premium payment
After calculating the benefits and Sum Assured of the term insurance plan, you can fill in your details and pay the premium. You will need to provide the following information before making a payment:
* Income, occupation, and educational qualification.
* Beneficiary information.
* Present Address (Your medical examination will be done at this address.)
After doing all this, you can pay the premium online by using a Debit or Credit Card or NetBanking.
Complete the offer form
The proposal form is a detailed version of your life insurance application form. In this form, you mention all the information which may affect your insurance claim in the future. The essential parts of the proposal form are as follows:
Business information.
Health information of family members.
Mention habits such as drinking or smoking.
medical examination
Most insurance companies order a medical examination in selected cases so that they can assess your life risk. This test is ordered only if required, after filling in all the required documents and performance.