Term Insurance
In today’s world, one of the primary focus areas of every individual, irrespective of location, is financial security for themselves and their family members. We at The Eklavya understand your needs and offer the perfect solution to relieve all financial stress through the right knowledge of Term Insurance plans.
While on one hand, people are spending thousands every year on streaming apps and coffee, clearly, Mr. Sunil made a good decision to secure a good life for himself and his family. So, if you also want to get rid of financial stress in the future, spending right is very important, and taking term insurance is one of the best options. Remember, life is nothing but a roller-coaster ride, and by making the right choice, you can enjoy it fully.
Term Insurance
Mr. Sunil, who recently got married is a 25-year old, is also the only breadwinner of the family. He recently purchased a term insurance plan of Rs. 1 crore with a very affordable monthly premium. As nominee, he appointed his wife Mrs. Ratna, which means she is entitled to the death benefit of the plan as Mr. Sunil has opted fora Term Insurance. In fact, Mr. Sunil will receive up to 105% premium-back if he withdraws the money after the full-term of the policy. It was therefore a very wise decision on his part to make an investment that will not just support his family after him, but also be a source of income so that he can enjoy life after retirement.
While on one hand, people are spending thousands every year on streaming apps and coffee, clearly, Mr. Sunil made a good decision to secure a good life for himself and his family. So, if you also want to get rid of financial stress in the future, spending right is very important, and taking term insurance is one of the best options. Remember, life is nothing but a roller-coaster ride, and by making the right choice, you can enjoy it fully.
Understanding Term Insurance Plan
Which is the best term insurance you should spend on?
Flexible protection plan
Note that
- Referring to the policy document for detailed terms and conditions is essential.
- Receiving the Payer Accelerator Benefit is subject to the confirmation of a terminal illness diagnosis.
High maturity/death benefit
Benefits of
a Term Insurance Plan
Check out these benefits of a term plan when you opt for an ‘Option Plus’ policy to know why it is a wise idea.
Flexible protection plan
High maturity/death benefit
Note that
Employed Youngsters
If you are someone who has bagged a new job, a term insurance policy can be your first step towards financial stability and security. It also means that you and your family can live a decent life in the long term.
If a person has taken a big step, such as buying a home, loans and mortgages may be some of the financial responsibilities on their shoulders. Selecting a term policy by spending just 0.5% to 1% of the Sum Assured ensures that their family will not have to bear the burden of such loans in case of the policyholder’s death.
If you are the sole earning member of your family, there is a major financial responsibility on you. Choosing a term insurance policy will also offer you the much-required financial stability and peace of mind.
Getting married or becoming a parent means you also have to take up more responsibilities for the well-being of people who are dependent on you. That’s why taking a term policy can be an excellent way to ensure long-term financial stability.
Homeowners with Loans
Sole Breadwinners
Newlyweds and Young Parents
Who is eligible for a term insurance plan?
Taxpayers
Spending in term insurance policy offers financial security and an excellent tax planning tool. This is because any taxpayer who pays the policy’s premium is eligible for all Section 80C deductions and IT exemption under Sections 10 and 10(D).
Retirement Planning
A person about to retire in a few years should also choose a term insurance policy as part of their retirement plan. It acts as a safety net, guaranteeing financial security for all dependents after the policyholder’s retirement.
Women
Entrepreneurs and Business Owners
If a person has various income sources, such as investors who earn returns from several ventures, term insurance will still add value to them. In this case, a long-term policy with a range of benefits can complement their existing financial plans to assure that older investments do not require liquidation.
Investors
Taking a term life insurance plan is highly beneficial if you have aging parents at home. It ensures financial security and gives you peace of mind that your elderly parents have enough means to meet all their needs.
Individuals with Dependent Elderly Parents
As an entrepreneur or business owner, you can buy a term policy to ensure that in a situation of debt, your family still has financial security, and there are fewer chances of you going bankrupt. On the other hand, freelancers, consultants, and other self-employed individuals can also benefit from the financial protection that term insurance assures in the long run.
Term insurance is equally essential for women who are earning members of their families. Whether single, married, or mothers, women can utilize term insurance to provide financial protection for their loved ones. The same policy applies to homemakers, too.
Who is eligible for a term insurance plan?
Employed Youngsters
If you are someone who has bagged a new job, a term insurance policy can be your first step towards financial stability and security. It also means that you and your family can live a decent life in the long term.
Newlyweds and Young Parents
Getting married or becoming a parent means you also have to take up more responsibilities for the well-being of people who are dependent on you. That’s why taking a term policy can be an excellent way to ensure long-term financial stability.
Sole Breadwinners
If you are the sole earning member of your family, there is a major financial responsibility on you. Choosing a term insurance policy will also offer you the much-required financial stability and peace of mind.
Homeowners with Loans
If a person has taken a big step, such as buying a home, loans and mortgages may be some of the financial responsibilities on their shoulders. Selecting a term policy by spending just 0.5% to 1% of the Sum Assured ensures that their family will not have to bear the burden of such loans in case of the policyholder’s death.
Entrepreneurs and Business Owners
As an entrepreneur or business owner, you can buy a term policy to ensure that in a situation of debt, your family still has financial security, and there are fewer chances of you going bankrupt. On the other hand, freelancers, consultants, and other self-employed individuals can also benefit from the financial protection that term insurance assures in the long run.
Investors
If a person has various income sources, such as investors who earn returns from several ventures, term insurance will still add value to them. In this case, a long-term policy with a range of benefits can complement their existing financial plans to assure that older investments do not require liquidation.
Individuals with Dependent Elderly Parents
Taking a term life insurance plan is highly beneficial if you have aging parents at home. It ensures financial security and gives you peace of mind that your elderly parents have enough means to meet all their needs.
Retirement Planning
A person about to retire in a few years should also choose a term insurance policy as part of their retirement plan. It acts as a safety net, guaranteeing financial security for all dependents after the policyholder’s retirement.
Women
Term insurance is equally essential for women who are earning members of their families. Whether single, married, or mothers, women can utilize term insurance to provide financial protection for their loved ones. The same policy applies to homemakers, too.
Taxpayers
Spending in a term insurance policy offers financial security and an excellent tax planning tool. This is because any taxpayer who pays the policy’s premium is eligible for all Section 80C deductions and IT exemption under Sections 10 and 10(D).
Additional eligibility criteria:
- You are only eligible to purchase a term insurance policy if you are 18 to 65 years old.
- You must have Indian citizenship to be eligible to buy a term insurance plan. But don’t worry because your policy will not get canceled if you move to another country for higher studies or work.
- For policy approval, you must submit authentic medical history and reports. You may also have to undergo a few medical tests if needed.
Why should you invest in a Term Insurance Policy?
While financial security is one of the primary reasons why you should choose a term insurance, there are a few other reasons that will convince you too:
Customized policy terms
With a term insurance policy, you have the flexibility to modify various terms such as amount of Sum Assured, mode of payment, payment frequency, and more to suit your specific needs. You can also opt for additional benefits for critical illnesses, and more.
Flexible protection plan
Under the Term Option Plus Plan, one can either select the BSA (Basic Sum Assured) or the PAB (Payer Accelerator Benefit) of up to 50% of the basic value in case of an emergency as well. Policyholders can also opt for “Life Stage” or “Top-Up SA” options that allow periodic increases in life cover based on financial needs.
Loan security
Have you recently taken up a loan, and lost sleep over it? Don’t worry because our term insurance solution has got you covered. The term policy will serve as a shield protecting your family from the burden of your loans in future.
Financial security
Whenever you think of insurance, the first reason that will pop up in your mind is financial security. Especially, with our plans, you can secure a stable future for loved ones in your absence.
Lower rates of premium
Source of income
Are you the only earning member of your family, and worried if your salary is enough to cover the growing expenses of your family in the long run? If yes, then taking our term insurance policy is a good idea as it will serve as a source of income after a few years, or when you are no longer working.
Why should you invest in a Term Insurance Policy?
While financial security is one of the primary reasons why you should choose a term insurance, there are a few other reasons that will convince you too:
Financial security
Whenever you think of insurance, the first reason that will pop up in your mind is financial security. Especially, with our plans, you can invest in a stable future of loved ones in your absence.
Lower rates of premium
If you make a comparison with other insurance plans, term policy requires you to pay very affordable premiums even for a high sum assured. So, you can enjoy higher returns without burning a hole in your pocket.
Loan Security
Have you recently taken up a loan, and lost sleep over it? Don’t worry because our term insurance policy has got you covered. The term policy will serve as a shield protecting your family from the burden of your loans in future.
Source of income
Are you the only earning member of your family, and worried if your salary is enough to cover the growing expenses of your family in the long run? If yes, then investing in our term insurance policy is a good idea as it will serve as a source of income after a few years, or when you are no longer working.
Customized policy terms
How do we determine the right coverage?
- One of the easiest ways to determine the right coverage is to ensure that the amount is at least 15 to 20 times more than your current income.
- You can also determine the right coverage by calculating your Human Life Value (HLV), which is an analysis based on the value of your current earnings after a specific number of years. If you think this value is decent enough to fulfill your family’s needs when you no longer earn, select it as the proper coverage. You can discuss the process with an insurance advisor to know more.
Frequently Asked Questions
01. What happens if the policyholder dies while their term insurance policy remains active?
If the policyholder, unfortunately, dies before the maturity of his term insurance policy, the death benefits (After due exclusions and deductions) go to the nominee appointed by the former as per the original policy document.
02. What are the primary factors that determine the rate of your insurance premium?
If the policyholder, unfortunately, dies before the maturity of his term insurance policy, the death benefits (After due exclusions and deductions) go to the nominee appointed by the former as per the original policy document.
03. How do you know about the best term insurance?
If the policyholder, unfortunately, dies before the maturity of his term insurance policy, the death benefits (After due exclusions and deductions) go to the nominee appointed by the former as per the original policy document.
Disclaimer :
The information provided here is for general informational purposes only. The names and terms of policies, as well as the rates and amounts of interests and premiums, are subject to change. It is advisable for customers to verify all details and consult with our advisors before making any investment decisions. The Eklavya shall not be held liable for any inaccuracies or discrepancies arising from changes in policy terms and conditions.