What is Term Insurance?
Term insurance stands for an agreement between the insurer and the insured under which the insurer pays a death benefit to the beneficiary either in parts or lump sum. It refers to the sum assured to the family in case of any unfortunate demise (natural or accidental) of the policyholder at the time of policy term.
Cover360 helps to choose the right term insurance with affordable premiums that can be easily opted as per the lifestyle and financial needs of your family. The policy can be for a minimum of 5 years to a maximum of 50 years.
You can now opt for best term insurance plan in India with just a few clicks- With Cover360, you get the below mentioned benefits of term insurance:
1. Term Insurance offers high life covers with lower premiums
High Life Insurance Amount- It offers a larger insurance cover for a small premium. Term insurance is comparatively cheap; it is low cost. The monthly premium comes down if you buy it early, meaning the earlier you opt for it, the lower the premiums get.
- Due to a great competition among insurers- you get to pay small premiums for bigger benefits in regards to the term insurance plan.
- Regular premium payments can be made during the term: single, annual, monthly, and semi-annually.
- Premium rates are offered separately for smokers and non-smokers; the non-smokers enjoy a lower premium.
Note- The charged premium depends on- the age of the insured person; whether a smoker or non-smoker; other major health issues or conditions; and the term duration.
2. Protects your family from any unexpected incident
In case of loss of income due to any critical illness or accidental disability, it helps offers a supplementary income to sustain the financial needs. A term insurance plan is opted by an individual to secure the future of the family. In such an agreement, the insured pays a particular premium to the insurer to get covered. To explain in its simplest form, this plan gives financial protection to your family in your absence.
3. Covers your financial liabilities at the most affordable prices
During a lifetime, you get a hold on liabilities- either to buy a home or a new car, etc which are mostly paid gradually. Now if in case something unfortunate happens to you, the entire burden to repay for the liabilities falls down on your family unless you have opted for term insurance. It safeguards your dependents to manage unforeseen financial problems.
4. Save Money! Provides tax benefits on- premiums paid & the received payout
It gives you a tax benefit on premiums up to Rs. 1.5 lakh per annum under section 80C & under section 10(10D) of the Income Tax Act. Both the payouts and premiums provide benefits as per the ongoing tax law. This is eligible for the premiums paid for your spouse and children as well.
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