Term insurance provides coverage for a specific time period or term. This type of life insurance pays out if the insured dies during the policy term. Term insurance offers high coverage at low premiums. Example: 1 crore term insurance premiums as low as 475* p.m. Fixed premiums can be paid once, at regular intervals, or for a limited time. The buyer’s payment method affects the premium amount.
Benefits Of Term Insurance
Features Of Term Insurance
Low entry age
Only 18 years of age is required to enrol in term insurance plans. As soon as you reach adulthood, you can purchase a term plan to protect your loved ones.
The term plan provides lengthy policy tenures of up to 40 years, allowing you to safeguard your family for a longer period of time.
Easy premium payment option
Term insurance plans provide flexible premium payment options, including monthly, quarterly, or yearly payments.
The sum assured of a term insurance policy can be used to protect your family from liabilities like loan repayment and ensure their financial stability.
Comparison Between Term Insurance & Life Insurance
|Difference||Term Insurance||Life Insurance|
|Coverage||It covers only premature death.||Covers both premature death and survival until the policy tenure.|
|Premiums||Low and affordable premiums.||Higher rates of premium than term plans.|
|Maturity benefit||Usually not payable.||Payable under most plans.|
|Death benefit||Payable||Payable under all plans.|
|Term||Ranges from 10-35 years.||Ranges from 5-35 years.|
|Flexibility||Not very flexible.||Very flexible.|