Term insurance

What is Term insurance? and its types

 

Term insurance is a type of Life insurance, which offers financial compensation to your family after your death. By going for riders/addons, you can get coverage for unexpected incidents like accidents, diseases, and disability. Term insurance is generally considered the best plan to provide financial benefits to your family after your death

The term insurance policies can also be a tool for achieving any goals. Among the life insurance policies, term insurances provide maximum coverage and benefits. 

What are the benefits of Term insurance?

Premium Amount 

People can buy term insurance at better premium rates. The premium payment can be paid monthly, half-yearly, and Annually. The payment cycle is entirely chosen by the policyholder. 

Tax benefits

The money invested in the term insurance policy and the returns are eligible for tax exemptions. For the money invested in the term insurance plan, the policyholder can enjoy a tax exemption of up to Rs 1.5 Lakhs. The returns received by the beneficiary is also eligible for tax exemption according to Section 10 (10D)  

Better coverage 

The benefits of a term insurance policy are much better while comparing the investment made. The sum assured in term insurance is much bigger than the other type of life insurance policies. There are some insurance firms that provide maturity benefits on survival. 

Fixed premium 

The premium amount is fixed throughout the term. That is, your very first premium amount and the last premium amount are the same. Thus experts recommend people to buy a term insurance policy as early as possible. 

Types of Term Insurance 

Level Term Plan – The simplest of term insurance, where the sum assured remains unchanged. The benefit is settled with the beneficiary after the demise of the policyholder. 

Standard Term insurance Plan – It is term insurance where the policyholder enjoys benefits against one part of the premium paid. 

Term Return of Premium Plan – In this term insurance plan, the premium paid is returned if the policyholder survives during the policy term. 

Group term insurance – It is a plan that provides coverage to a group of people. The plan is much suited for companies, associations, and families.

Increasing term insurance plan – In this plan, the premium and the coverage increases subsequently over the period of time. 

Decreasing term insurance plan- It is a renewable plan, in which the sum assured decreases by a specific rate every year during the policy term. 

Convertible Term insurance plan – This type of term insurance plan can be changed from one plan to another during the term of the policy. 

Head on to IVA Insurance site to buy the best term insurance plan that’ll match your requirements!

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