Financial planning to secure future financial expenses to accommodate your desires and family responsibility is important. And, if you are the sole earning member of your family, you have to plan and accumulate a fund to serve their financial expenses in your absence.

So, purchasing a term insurance plan becomes an ideal option. First, however, you should ensure to have a long policy term to accumulate the necessary funds with the required features and financial demands. And here is where the 5-year term life insurance policy gets significant. So, let us get started to understand their features and benefits.

Before we get to the features, let us understand what a 5-year term life insurance policy means.

What is a 5-year Term Policy?

A 5-year term insurance plan refers to a term plan with a policy term of 5 years. It will provide the death benefit to your family in case of your unexpected demise during the 5-year policy term. There are several customisable features to maximise the financial benefits for your family. You must understand these features, compare different solutions and choose the right insurance provider to ascertain the necessary benefits when you are in extreme need.

Key Features of Term Insurance for 5 Years

Different features help you benefit from a 5-year term life insurance policy. Here is a detail about it.

• Low premium term plan - 5 years is reasonably a long policy term. When the policy term is longer, the premium for the term insurance policy gets lower. The premium cost is based on the amount of risk borne by your insurance provider. So, if you require a huge sum assured and the policy term is very short, you will experience an increased cost.
  
  

  On the other hand, if you opt for a longer policy term, you can benefit from a low premium with the required sum assured. Also, if you plan to buy a term insurance for 5 years at a younger age, you can purchase it at an even lower premium cost. The reason is that at that age, your bodily health complications are almost negligible. Therefore, the death risk is low, and the premium gets more affordable for the 5-year policy term. You can include it as part of your financial plan to earn and invest effortlessly.
  
  

• Death Benefit - Term insurance for 5 years will certainly ascertain the death benefit to your family members in your absence during that policy term. Your family can utilise it to manage routine financial expenses, clear off debts and pay for any family financial commitments, such as your child's marriage, education, etc. If you feel your family cannot utilise the lump sum death benefit wisely, you can also choose to make the payout as a regular income for a certain defined income period. It will provide the payout regularly for optimal usage.
  
  

• Add-on Riders^# - Add-on rider^# options provide additional financial benefits apart from the regular death benefit to handle specific scenarios during the 5-year policy term. There are different rider^# options associated with the term life insurance plan.
  
  

  For example, if you choose Tata AIA Non-Linked Comprehensive Protection Rider(A Non-Linked, Non- Participating Individual Health rider, UIN: 110B033V02) , you will get the sum insured if you get affected due to a critical illness, terminal illness, etc. You can customise the plan by choosing to receive the benefit under the rider^# as a combination of lump sum and fixed income, regular income until your partner's survival, etc. While the riders^# are available at an additional cost, it is worth the investment.
  
  

• Tax* Benefits - You will get tax* exemption and deduction benefits when you invest in a term policy. So, the premium you pay for 5 years and the payout if it happens during the policy term will qualify for a tax* deduction under Section 80C and a tax* exemption under Section 10(10D) of the Income Tax Act 1961, subject to certain tax* provisions. You can read and understand the provisions and make the investment accordingly or take expert advice.
  
  

  For instance, when you purchase our Tata AIA term policy, you can get the necessary guidance from our customer service executive team and customise the solution to satisfy your financial needs and benefit maximally.
  
  

• Additional features - We have introduced several features to make it comfortable to purchase and manage your term policy account. You can read through our products, compare different solutions and choose the best option to suit your financial needs.
  
  

  And, for a policy term of 5 years, you can estimate the approximate premium you need to pay based on the sum assured using our online premium calculator. It is comfortable, user-friendly, and highly cost-efficient to utilise these features. You need not travel to the nearest branch every time to get a service done. You can chat online, call over the phone or send an email to get clarified on the queries you have.

  
  
  

Conclusion

Term life insurance plan can help you and your family manage a financial crisis when you are in extreme need. Therefore, choosing a longer-term such as a 5-year term life insurance plan will be an affordable solution for your financial needs. In addition, you will get the necessary sum assured at a lower premium, benefit from the tax provisions, get an additional sum insured based on riders^#, and transact online. So, you must choose the right term policy for your family and financial needs and stay invested through the 5-year policy term to maximise the benefits based on the policy features!

L&C/Advt/2022/Jul/1644