What is a Term Insurance Policy and How Does It Work?
A term insurance policy is purely a safety net for the family’s financial future in the event of unforeseen circumstances such as death, terminal illness, incapacity, and so on. Unlike other investment products, however, these plans do not pay out any returns on premiums paid at the end of the policy term.
So, if you’re looking to buy a term plan, you’ll need to know the dangers you face in your life, the number of dependents you have, and how much money they’ll need to live the same standard of life they have today after you die.
There are numerous insurance firms on the market, each offering a diverse selection of coverage. It is surely a difficult process to choose the best term plan from such a long selection, but you must devote time and effort to the task because it will provide you with peace of mind and a stress-free future for your family.
1. The LIC Technology Term Plan
It’s a standard term plan that pays out money to the insured’s family in the event of his or her untimely death. This term plan has several important features, including two death benefit options: Level Sum Assured and Increasing Sum Assured, a policy term of 10-40 years, and a maturity age of 80 years.
2. HDFC Click2Protect Plus is a second-generation HDFC Click2Protect product.
This complete term plan has three cover options: Life and CI Rebalance, Life Protect, and Income Plus, which the policyholder can choose from depending on their needs. It has a feature that automatically adjusts death and critical illness benefits as you become older, as well as whole life coverage.
3. Smart Secure Plus Plan from Max Life
Max Life Insurance’s Smart Secure Plus Plan allows you to personalize comprehensive protection at a low cost by giving two death benefit covers to pick from. It also offers a variety of payout alternatives to meet the needs of the insured, including a lump-sum payment, monthly income payment, and a combination of both lump sum and monthly income. It also offers terminal disease coverage and reimburses all premiums paid at the end of the policy’s term.
4. SBI Life-eShield (SBI Life-eShield)
The policy comes with four plan alternatives from which you can choose the best one for your needs. It’s the greatest term life insurance coverage for your family, and you can apply for it online without having to fill out a lot of paperwork. Renewal, a minimum sum promised of 20 lakhs, relinquishing, and a free-look time is just a few of the features included in this policy.
5. Tata AIA Supreme Maha Raksha
On diagnosis of any terminal illness, Maha Raksha Supreme from Tata AIA Life Insurance has an in-built accelerator that gives up to a 50% sum assured payout. This plan also gives you the option of selecting from a variety of premium payment arrangements and riders.
6. ICICI Prudential iProtect Smart Term Plan (ICICI Prudential iProtect Smart Term Plan)
This strategy comes in three flavors, and you can pick the best one after conducting the thorough study. Death coverage, terminal disease coverage, premium waiver benefit, accidental death benefit, tax benefits, surrender benefits, and so on are some of the policy’s features.
7. Bajaj Allianz Smart Protect Goal Term Plan (Bajaj Allianz Smart Protect Goal Term Plan)
This plan provides reasonable death benefits as well as maturity benefits, which include the return of premiums paid at the policy’s maturity. It also offers financial support if you are diagnosed with one of the plan’s essential illnesses.
8. Canara HSBC OBC iSelect Star Term Plan (Canara HSBC OBC iSelect Star Term Plan)
This term plan includes a whole life cover option and gives you the freedom to increase your life insurance as your circumstances change. It also has a premium refund option, spouse coverage, and built-in protection. It also provides a variety of death benefit payout options, such as a lump sum, monthly income, or a lump sum plus monthly income.
9. PNB is number nine. Mera Term Plan Plus by MetLife
This term plan provides extensive coverage at a reasonable price. It also allows you to choose between protection against terminal sickness, critical illness, disability, and death, as well as different life insurance alternatives including spouse coverage and full life cover.
10. Kotak’s e-Term Plan is number ten.
It is a pure protection plan that may be purchased by anyone aged 18 to 50 years (for limited pay-pay until 60 years) or 65 years (except for limited pay-pay until 60 years). This plan’s minimum sum promised is Rs 25 lakhs. Monthly, yearly, half-yearly, and quarterly premium payment options are available with the Kotak e-Term plan. It also includes three pay-out options: immediate payout, level recurring payout, and growing recurring payout. It also includes the Kotak Permanent Disability Benefit Rider and Kotak Critical Illness Plus Benefit Rider, which provide further protection.
11. Aditya Birla Sun Life Insurance’s term plan has eight distinct coverage options from which policyholders can select to satisfy the individual needs of their family members. It assures that the insured’s family is financially secure in the event of the life assured’s untimely death within the policy’s term. This plan also includes terminal disease benefits and the ability to add riders to boost life coverage.