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20 Year Term Life Insurance

Life is a dynamic journey filled with aspirations, milestones, and unforeseen circumstances. While we can't control everything, we can always prepare for the unanticipated. As we diligently pursue our personal and professional goals, it is equally crucial to engage in proactive planning to ensure the well-being of those we care about. This is what a 20 year term life insurance can provide.

Let us guide you through the intricacies of 20-year term life insurance and discover how it can contribute to your comprehensive financial security plan.

Tata AIA

Sampoorna Raksha Promise

Key benefits:

Get 1 Crore Life cover at Rs. 501/month*
Upto 18.5% discount on first year premium¹⁴
Get 100% premium back^~

Calculate Premium Know More

A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V05)

Tata AIA

Maha Raksha Supreme Select

Key benefits:

Get ₹ 2 Cr Life Cover at ₹ 768/month^#
Enhance protection with Education Secure for your children
Upto 18.5% discount on first year premium^

Calculate Premium Know More

Non-Linked, Non-Participating, Individual Life Insurance Product (UIN: 110N171V08)

A 20 year term life insurance plan is a sophisticated solution to safeguard the financial security of your loved ones in the face of unexpected events. This strategically designed plan provides comprehensive coverage for a specified period, typically 20 years, ensuring that your beneficiaries receive a designated payout in the unfortunate event of your demise.

In simpler terms, it acts as a financial safety net, ensuring your loved ones have the resources they need to maintain their financial stability and achieve their life goals, even in your absence. By considering 20 year term life insurance, you're not just making a prudent financial decision, but you are demonstrating foresight and unwavering commitment to the well-being of your family. It ensures that you can embark on your future endeavours with a sense of confidence and tranquillity.

Why Should You Choose a 20 Year Term Insurance Plan?

Here are a few reasons why you should choose a 20 Year Term Insurance Plan:

Affordable: Protects your loved ones for 10 years at a lower cost than whole life insurance.
Peace of Mind: Provides financial security for your family in case of your passing.Life stage coverage: Ideal for young families with growing financial obligations (loans, kids).
Flexibility: Reassess your needs after 10 years and convert or renew the policy.
No Cash Value: Focuses purely on the death benefit, making it a simpler, more affordable option.

What Benefits Does a 20 Year Term Life Insurance Provide?

A 20 year term life insurance offers a blend of affordability, simplicity, and security, making it a popular choice among individuals looking to protect their family's financial future. It provides several benefits, such as:

Affordable Coverage

Compared to other types of life insurance, 20 year term life insurance policies are generally the most affordable option. This is because premiums are locked in for a shorter term. This makes them a good choice for young individuals, families starting out, or anyone looking for affordable coverage.

Guaranteed Death Benefit

If the policyholder passes away during the 20 year term, the beneficiaries receive a guaranteed death benefit. This lump sum payout can be used to cover various expenses, such as:

Loan Payments: Ensuring the family home remains secure.
Living Expenses: Providing financial stability for everyday needs.
Education Costs: Helping children achieve their educational goals.
Debt Repayment: Eliminating any outstanding debts, offering financial freedom to the beneficiaries.

Flexibility

While the coverage period is 20 years, some 20 year term policies offer the option to convert to a permanent life insurance policy at a later date. This can be beneficial if your financial situation changes and you need permanent coverage beyond the 20 year term.

Tax Advantages

Premiums paid towards a 20 year term life insurance policy are eligible for tax+ deduction under Section 80C of the Income Tax+ Act. Individuals can claim a deduction of up to ₹1.5 lakh per annum for the premiums paid for themselves, their spouse, and their children. This deduction can substantially reduce the taxable income of the policyholder, leading to significant tax+ savings. Furthermore, the death benefit received by the nominees or beneficiaries is also tax-free under Section 10(10D) of the IT Act.

How is the Premium Calculated for 20 Year Term Life Insurance?

The premium for a 20-year term life insurance policy is determined by factors that assess risk.
These broadly include:

Age^^ (younger is typically cheaper)
Health (excellent health qualifies for lower rates)
Lifestyle habits (smoking or risky hobbies may increase costs)
Desired coverage amount.

Applying For a 20 Year Term Life Insurance: A Step-By-Step Guide

Applying for a 20 year term life insurance policy is a straightforward process, but it requires careful consideration and planning to ensure you get the right coverage for your needs. Here's a step-by-step guide to help you through the process:

01

Assess Your Insurance Needs

Consider your financial obligations, debts, and the standard of living you wish to provide for your dependents. Tools like online insurance calculators can help estimate the amount of coverage you might need.
02

Get Quotes

Online calculators offer instant online quotes after you input basic information about your age^^, health status, desired coverage amount, and term length. For more personalised service or if you have specific needs, consider speaking directly with insurance experts.
03

Choose the Right Policy

Based on the quotes and your research, select the policy that best matches your needs and budget. Decide if you need any riders^##, such as critical illness cover, disability rider, or waiver of premium rider, and understand how they affect your premium.
04

Complete the Application

Provide detailed and accurate information about your personal details, health history, occupation, and lifestyle. Designate a nominee(s) who will receive the death benefit in case of your demise during the policy term.
05

Undergo Medical Examination (if required)

Depending on your age^^, health status, and amount of coverage, the insurer may require a medical examination.
06

Policy Review and Payment

Once your application is approved, you will receive policy documents. Review them carefully to ensure all details are correct and that you understand the terms. Your coverage starts once you pay the first premium. Set up a payment schedule that aligns with your financial planning, whether it's monthly, quarterly, semi-annually, or annually.

What is a 20 year term life insurance?

A 20 year term life insurance provides coverage for a specified period of 20 years. If the insured individual passes away during the coverage period, the policy pays out a tax+-free death benefit to the designated beneficiaries.

How much does a 20 year term life insurance cost?

The cost of 20 year term life insurance varies depending on factors such as the insured individual's age, health status, coverage amount, and policy term. Generally, younger and healthier individuals can expect lower premiums, while older or less healthy individuals may pay higher rates.

Can I get a 20 year return of premium life insurance policy?

Yes, some insurance providers offer 20 year return of premium life insurance policies. With an ROP policy, if the insured individual outlives the 20 year term, they receive a refund of all the premiums paid over the policy's term. This option provides both death benefit protection and the potential for a return of premiums if no claim is made.

Disclaimers
- Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V06)
- Tata AIA Maha Raksha Supreme Select - Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V08)
- *Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for ₹ 1 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) under Life Promise Option with first year premium discount for digital purchase and salaried person. Please refer Benefit Illustration for more details. Premium is subject to applicable taxes, cesses & levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.
- ⁺Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess, if any will be charged extra as per prevailing rates. The Tax-Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
- ¹⁴This product offers first year digital discount of 10% and first year Salaried discount of 8.5% for Limited Pay/Regular Pay. For Single Pay, 1% digital discount and 1% salaried discount will be provided in the first year
- ^#Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for 2 Cr. Sum Assured with Policy Term of 15 yrs. (Regular Pay) with Life Secure plan option. Please refer Benefit Illustration for more details. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.
- ^##Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.
- ^~Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier
- ²Individual Death Claim Settlement Ratio is 99.13% for FY 2023-24 as per the latest annual audited figures.
- ⁸Tata AIA Sampoorna Raksha Promise offers first year digital discount of 1% for Single Pay, 10% for Limited Pay/Regular Pay.
- ¹¹This product offers first year discount of 5% for Limited Pay/Regular Pay and 1% for Single Pay to salaried customers.
- This product is underwritten by Tata AIA Life Insurance Company Ltd.
- The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.
- Insurance cover is available under this product.
- For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.
- Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
- In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
- In case of POS variant, the product is available with/without medical underwriting as per BAUP (Board Approved Underwriting Policy)
- Premium will vary depending on the option chosen
- L&C/Advt/2025/Mar/1096