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Which Term Life Insurance Is The Most Popular One?

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Term Life Insurance is the most basic and inexpensive form of life insurance that provides pure risk coverage to beneficiaries of the policyholder in the event of their death. It is ideal for someone looking to protect the financial interests of the dependants at low cost (premium).

The concept of the term plan can be summarised through the below-mentioned points:

  1. a) It is the simplest form of life insurance policy with the policy term ranging from 5 to 30 years.
  2. b) Unlike other variants, the term policy does not offer any maturity benefit to the policyholder on survival.
  3. c) The main feature of the term life insurance plan is the death benefit given in the form of the entire sum assured to the beneficiaries of the policyholder.

The most popular term life insurance plans of 2018 include:

1. HDFC Life Click 2 Protect 3D plus Term Life Plan

Minimum entry age: 18 years

Maximum term: 40 years

Minimum sum assured: 10 lacs

Maximum sum assured: no limit

Riders: available

2. ICICI Pru iProtect Smart Term Life Plan

Minimum entry age: 18 years

Maximum term: 40 years

Minimum sum assured: subject to premium

Maximum sum assured: no limit

Riders: available

3. Aegon iTerm Plan

Minimum entry age: 18 years

Maximum term: 62 years

Minimum sum assured: 25 lacs

Maximum sum assured: no limit

Riders: available

Are You Aware Of The Facts Relating To Term Life Insurance?

Some of the facts relating to term life insurance that you should know about include:

a) Excellent planning tool

One of the most basic forms of insurance available in the market, a term life insurance policy is an excellent financial planning tool to secure the future of your loved ones. This form of life insurance is inexpensive and provides a security of sum assured to your family in the event of the death of the policyholder

Reputed online aggregator sites such as Coverfox.com allow the benefit of comparing premium and other policy benefits from multiple top life insurance service providers before finalising the best term insurance policy to suit your customised needs.

b) Coverage in case of term plans is for a fixed period of time

In case of term life insurance plans, you get the coverage by paying a particular amount of premium for a fixed period of time such as 10, 20, or 30 years. In the unfortunate event of death during this fixed term, the beneficiaries are eligible to get the death benefit from the insurance company.

c) There is an option of getting term premiums back in some cases

One of the other lesser known facts about the term life insurance is the Return of Premium (TROP) feature. There are a few term policies that allow you to opt for this feature where you get 100% premium back in case you live the entire term of the policy.

Things You Cannot Miss About Term Life Insurance

Buying a term life insurance often comes with certain ambiguity and doubts. The common things in the mind of the buyers regarding term plans include coverage details, tax-benefits, claim settlement process, the validity of the term plan, and many more. If you’re also confused, there are certain things that you cannot miss about term life insurance.

a) Advantages of Term Life Plans

Unlike the popular notion that term plans offer no other benefits than the basic coverage, some of the additional advantages of such plans are:

  • Availability of death benefit either as monthly pay-outs or lump-sum amount or both.
  • The benefit of various additional riders that allows you to enhance the basic coverage amount as per customised requirements.
  • Additionally, you are also allowed to choose the variants of term plans which offer maturity benefits to the policyholder. One of the examples of this is Max Life’s term plan variant that offers basic life cover (100% sum assured) along with regular monthly income (0.4% of the sum assured per month for a period of 10 years) to the beneficiaries.

b) Offer tax-free death benefit

Apart from the affordability, term life insurance plans also offer a tax advantage to the policyholders. There is no tax liability towards the nominee during the time of claiming death benefits as the same gets adjusted during the premium payments.

c) The benefit of high Sum Assured

With term life insurance, you enjoy the advantage of opting for an unlimited sum assured subject to financial underwriting norms of the insurer. This allows you to choose the coverage ranging from 10 lakh to even 10 crores to meet the financial liabilities of your dependants in the event of death.

Enjoy the Benefit of Excellent Term Insurance Plan

When you’re looking to find a pure protection life insurance plan in the form of popular term life insurance policy, Coverfox.com is the ideal place to access and compare the options from different insurance companies before making the final choice.

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