Know These 8 Key Benefits of Term Insurance Plans


With rising inflation, changing lifestyles and increasing cases of critical illnesses, buying a term insurance plan is the first step towards financial planning. Term insurance is a contract between the insurer and the insured for a fixed period where the insurer pays a predetermined sum insured to the nominee in the event of the unfortunate death of the insured. In return, the insured must regularly pay the insurer a certain fixed amount called the premium.

Term insurance is a protection plan that provides high coverage at low premiums. It is a type of life insurance plan that provides financial coverage to the applicant if the insurer dies and the policy is still active. This plan can help your loved ones manage their regular expenses if something happens to you and you’re not there to earn a salary.

Benefits of a Term Insurance Plan in India

The best term insurance plans in India offer many benefits. Let’s look at 8 key benefits offered by a term insurance plan:

High amount insured at low premium

Term insurance is the simplest form of life insurance. The most important advantage of this plan is its affordable premium cost. Plus, the sooner you buy term insurance, the lower your premium rates will be. If you buy term insurance online, the premium may be lower than for offline premiums.

· Easy to understand

The conditions and specifications of the various insurance plans may seem difficult to understand. On the other hand, term insurance plans are quite easy to understand. Term insurance is pure life coverage and has no investment element. You only have to pay the premiums regularly and the insurer will cover your life for a fixed period.

Multiple payment options

In your absence, the term insurance plan helps your family manage regular expenses and financial liabilities such as IMEs for home, car, or loan payments. Some insurance policies offer multiple payment options. The candidate can choose to get a lump sum or receive a monthly income as a death benefit. Choosing the monthly or regular income option can make it easier to manage your family’s expenses.


Riders refer to additions to the term insurance plan. You will have to pay an additional premium amount to add them. Endorsements can include accidental death or disability, critical illness, etc.

· Fiscal advantages

You can enjoy tax benefits under the best term insurance scheme in India. The premium paid for a term insurance scheme is tax deductible under Section 80C of the Income Tax Act of India. In addition, the death benefit is fully exempt under Section 10(10D) of the Income Tax Act 1961.

Critical illness cover

Critical illnesses can be contracted at any stage of life, and the cost of treating them can cost you dearly. You can choose a critical illness insurance rider to complement the regular term insurance plan. Your emergency hospitalization can be emotionally and financially stressful for your family.

Term insurance with critical illness coverage can act as protection against rising medical inflation and provide you and your family with peace of mind.

Coverage in the event of accidental death

You can also add accidental death coverage as a rider to your term insurance plan. It helps secure your family’s financial future in the event of accidental death. The sum insured is paid to the candidate in a lump sum according to the terms of the policy.

You can even add the accidental death rider after purchasing the term insurance policy. Be sure to read the policy documents before adding a rider to the term insurance plan.

Premium refund option

A term insurance plan provides life coverage to the policyholder in the event of the unfortunate death of the insured, but it provides no benefit at maturity.

However, you can benefit from the advantage at maturity by choosing the return of premium option. You will have to pay higher premiums if you choose this option, but the total premiums paid by you will be refunded if you are alive at the end of the policy term. However, the returned amount will not include taxes, rider premium, levies and modal amount.

The best term insurance plan in India can act as a safety net to secure your family’s financial future. Therefore, purchasing a term insurance plan may be in your best interest. You can consider getting term insurance from a trusted brand like Max Life Insurance. The plan offered by them is affordable and has many benefits.

Authors biography :

Vinod Gill is a writer specializing in writing content on insurance and finance topics. He is a digital marketing consultant, blogger and co-founder of Journalreporter.


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