Term Life Insurance
Death is uncertain, and if the breadwinner dies prematurely, the family suffers considerable financial losses. Secure these losses with a Term Insurance plan at affordable premiums.
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The risk of premature death is covered under a Term Insurance policy. If the insured dies during the policy term, the sum insured is paid to the nominee. A Term Insurance plan is, therefore, a pure protection policy. It covers you against the risk of premature death and offers coverage for a policy period ranging from 5 years to 80 years. A Term Insurance cover is inexpensive and, hence, one of the most affordable Life Insurance products available in the market. The idea behind buying Term Insurance is to provide financial protection to your loved ones in the event of your untimely demise.
Term Life Vs 1-year Term Life Insurance
While both 1-year and Term Insurance plans cover the risk of premature death during the policy tenure, both plans are different on various parameters. Have a look -
Coverage Tenure
The coverage tenure is one year under a 1-year term plan. However, regular term plans offer longer coverage tenures going up to 80 years. Some plans can also provide the whole life protection option.
Premiums
Premiums are different. Premiums might differ every time you renew the 1-year policy, whereas term plans have fixed premiums that never change during policy period.
Medical Underwriting
Usually, no medical underwriting is done for 1-Year Term Life Insurance plans. The same cannot be said for regular term plans.
Coverage Tenure
The coverage tenure is one year under a 1-year term plan. However, regular term plans offer longer coverage tenures going up to 80 years. Some plans can also provide the whole life protection option.
Premiums
Premiums are different. Premiums might differ every time you renew the 1-year policy, whereas term plans have fixed premiums that never change during policy period.
Medical Underwriting
Usually, no medical underwriting is done for 1-Year Term Life Insurance plans. The same cannot be said for regular term plans.
Term Life Insurance Benefits
While you may choose to allocate your money in various investment options, nothing beats Term Insurance when it comes to securing the future of your loved ones. Here’s why:
Available at affordable prices
One of the most distinctive benefits of Term Insurance is its affordability. Compared to other Life Insurance products with a savings and bonus component added, pure Term Insurance promises a substantial lump sum coverage at affordable premiums.
Offers flexible coverage
Term plans provide the flexibility to choose the duration of coverage between 5 years - 80 years. Some insurance companies also offer longer durations to the extent of allowing you to remain covered until you turn 99 or 100 years of age.
Replaces lost income
Some Term Insurance plans offer the option to provide the sum assured monthly. This enables the family to receive financial assistance every month, replicating the family’s monthly income stream through the life assured.
Provides tax benefits*
Buying Term Insurance helps you avail the following tax benefits in India: Under Section 80C of the Income Tax Act, 1961, Term Insurance premiums are eligible for tax deduction every year. The Term plan payout one receives from the policyholder’s death is entirely exempt from tax under Section 10(10D) of the Income Tax Act 1961.
Promises financial security to your family
Think of a financial solution that promises a lump sum to your family members in the event of your death. Term plans do just that. The lump sum that your family receives on your death enables them to manage everyday expenses without making any compromises.
*Tax benefits are subject to changes in tax laws
Why a Term Insurance plan?
Here are the benefits of buying the term plan with us -
Choose from an array of options
With access to multiple insurance companies, you can choose an insurance plan with a high sum assured best suited to your needs.
Enjoy a seamless digital experience
We offer you an exceptional online experience with a large variety of plans and brands you can choose from. You can complete the entire insurance purchase process in a matter of minutes on the go!
Pay affordable premiums
We enable you to buy a higher cover amount at lower premiums. A Term Insurance plan on the platform starts at just Rs. 6/day*
*Premium: Rs 6/day is for 18 year old female for Rs. 25 lakh Sum assured and a term of 7 years
Choose from an array of options
With access to multiple insurance companies, you can choose an insurance plan with a high sum assured best suited to your needs.
Enjoy a seamless digital experience
We offer you an exceptional online experience with a large variety of plans and brands you can choose from. You can complete the entire insurance purchase process in a matter of minutes on the go!
Pay affordable premiums
We enable you to buy a higher cover amount at lower premiums. A Term Insurance plan on the platform starts at just Rs. 6/day*
*Premium: Rs 6/day is for 18 year old female for Rs. 25 lakh Sum assured and a term of 7 years
Inclusions in Term Insurance*
A Term Insurance plan covers the following types of deaths
Death due to an illness
Natural death, i.e., death due to natural causes
Death due to a natural calamity or disaster
Accidental death, i.e., death due to an accident
*Read policy documents for more details since all the above listed items are subjective in nature.
Exclusions in Term Insurance*
The term plan does not cover death due to suicide within a year of buying or reviving a policy. If the insured commits suicide within a year of buying the policy, the premium is refunded. On the other hand, if the insured commits suicide within a year of revival, more than 80% of the premiums paid or the surrender value is refunded. So, understand the concept of Term Insurance and the benefits that you can get. Note that suicide is not the only exclusion. Please read the policy document for more details.
*Coverage, terms and exclusions may differ from insurer to insurer. Please read respective product’s terms and conditions carefully before concluding a sale.
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Got questions?
Read on to find out more!
What should I check before buying Term Insurance?
Is accidental death covered in Term Insurance?
Is a salary slip required for Term Insurance?
Do premiums remain same for the entire policy period?
Is a medical test mandatory for Term Insurance?
PhonePe Insurance Broking Services Private Limited. IRDAI Direct Broker (Life & General)
Reg. 766 and Broker Registration Code IRDA/DB 822/20 Valid till 10/08/2024.
Regd. office - Office-2, Floor 4,5,6,7, Wing A, Block A,Salarpuria Softzone, Service Road,
Green Glen Layout, Bellandur, Bengaluru, Karnataka-KA, Pin- 560103
CIN: U66000KA2020FTC132814