Term Plan

Term Plan

A term plan is a type of life insurance that provides financial protection for a specific period—typically 10, 20, or 30 years. If the policyholder passes away during this term, the nominee receives a lump sum payout known as the death benefit. If the policyholder survives the term, there’s usually no payout (unless it’s a return-of-premium plan).

  • Purpose: Pure life cover to secure your family’s future
  • Affordability: Lower premiums compared to other life insurance types
  • Flexibility: Choose coverage amount and term based on your needs
  • Tax Benefits: Premiums qualify for deductions under Section 80C; death benefit is tax-free under Section 10(10D)

What Is a Term Plan?

A term insurance plan provides a fixed sum assured to your nominee in case of your demise during the policy term. It’s purely risk-cover—no maturity benefits if you survive the term.

Key Features

  • High Coverage, Low Premium: Ideal for securing financial stability for dependents.
  • Flexible Tenure: Usually ranges from 5 to 40 years.
  • Customizable Riders:
    • Accidental Death Benefit
    • Waiver of Premium
    • Critical Illness Cover
  • Tax Benefits: Premiums qualify under Section 80C, payouts under Section 10(10D).

Ideal For

Situation Why It Fits
Sole earning member Ensures family’s financial security
Planning major loans or children’s education Covers liabilities in your absence
Business owners Protects financial interests and succession plans
Professionals with high commitments Affordable safety net for income replacement
  • Tips to Choose the Right Plan
    • Select coverage that’s at least 10–15× your annual income
    • Prioritize insurers with high Claim Settlement Ratios
    • Consider policies with flexible payout options (lump sum, staggered, etc.)
    • Check premium stability—some plans offer level premiums till maturity

    If you’d like, I can help shortlist plans from IRDAI-approved insurers or compare options based on age, income, and family structure. Or, we can explore how to integrate it into your existing financial planning framework. Let me know how deep you’d like to go.

It’s ideal for individuals who want to ensure their family’s financial stability in case of an untimely demise—especially if they have dependents, loans, or long-term responsibilities.

Term Plan Available Companies:

  • Bajaj Allianz Life
  • ICICI Prudential Life
  • HDFC Life
  • TATA AIA Life

Traditional Saving Plan Companies

  • Bajaj Life
  • ICICI Prudential Life
  • HDFC Life
  • TATA AIA Life
  • Axis Max Life

Secure Your Family’s Future Today

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