Which Is The Best Term Life Insurance?

Term life insurance is a life insurance which protects your family financially in case of your unexpected demise. The nominee chosen by you will receive the death benefit amount of the life insurance policy acquired by you. However, if in case you outlive the insurance policy term, there are no maturity benefits or other associated benefits with term life insurance.

5 Best Term Life Insurance

Policy Name Minimum Term Maximum Term Minimum Age Maximum Age Maximum Maturity Age Minimum Sum Assured Maximum Sum Assured Rider Allowed
LIC e-Term 10 years 35 years 18 years 60 years 75 years INR 50 Lakh No limit No
HDFC Life Click 2 Protect 3D Plus 5 years 40 years 18 years 65 years 75 years INR 10 Lakh No limit Yes
Max Life Term Plan Plus 10 years 40 years 18 years 60 years 75 years INR 25 Lakh INR 100 crore Yes
ICICI Pru iProtect Smart 5 years 40 years 18 years 65 years 75 years Dependent on premium No limit Yes
Aegon iTerm Plan 5 years 62 years 18 years 65 years 100 years INR 25 Lakh No limit Yes

Why Is It Important To Buy Term Life Insurance?

Term life insurance saves your family members from your acquired liabilities after you pass away. If one or more members of your family are dependent on you, then it is required to have a term insurance policy to save them from financial burden in your absence.

1. Cost-Effective Rates

The yearly premium of life term insurance policy is comparatively lower than other cash value life insurance plans. A person in early or late 30s can easily buy a 20-year term plan in just INR 3,000 yearly premium amount. The assured sum of this term plan would round up to more or less INR 10 Lakhs.

2. Tax Advantage

While it is generally believed that only cash value life insurance plans or endowment policies can earn 80C tax benefits, term insurance plans are also liable for income tax benefits under section 80C. However, since the premium amount of term insurance policies is less, the tax benefits are accordingly calculated.

3. Flexible Policy Terms

If you decide to step out of a cash value life insurance plan, you may be at the risk of losing your savings factor or you may even have to pay some fine. On the other hand, term insurance plans are easy to quit. Once you stop paying the premium amount every year, your policy ceases and you will no longer be covered under that plan. Since there is no savings benefit, you can easily step out of term insurance.

4. Simple to Understand

Cash value policies are comparatively complicated, as you have to understand the savings factor and the risk associated with it. Further, you have to understand how and in what way the cash value policy will cover your family in case of your demise. Additionally, you also need to figure out the exclusions and terms and conditions of this policy. But, term insurance plans are rather simple and straightforward. You pay a premium amount and your beneficiaries get the assured maturity sum for it when the unfortunate happens.

Do’s and Don’ts before Buying Term Life Insurance

Do’s

  • Review your policy cover to remove the coverage you don’t need, add the coverage you require, check the assured sum and deductions, and evaluate the terms and conditions.
  • Analyse the period of your term insurance to reap maximum benefits. For this, calculate the difference of years between the age of your youngest child and for how long he or she will be dependent on you.
  • If you need automatically renewable coverage option, check whether the company provides it or not.

Don’ts

  • Don’t allow any third party to fill your form. Allowing anyone else to fill your form leaves scope for mistakes, glitches, and sometimes even fraud. Do it yourself.
  • Don’t lie in the form or misstate any information as it may raise disputes when it’s time to claim the assured sum. The company can also refuse to clear the claim if there are discrepancies in the details.
  • Don’t wait too long to purchase a term insurance. Your 30s is the best age, allowing you to be able to protect your dependent children from your liabilities.

Best Term Insurance: Compare for Optimum Offer

To purchase the best term insurance plan, visit Coverfox.com and compare various policies from top life insurance companies. Check the terms and conditions of the favourable plans and select the one with cost-effective premium and higher benefits.