No relevant search results found.
Call us
Financial security is an important part of everyone’s life. And in most cases, securing your family’s financial needs and future takes precedence. And the simplest way to offer comprehensive financial protection to your family is through a term insurance plan. Though term plans have been a popular life insurance choice for years, COVID-19 further emphasized why securing your family is important. There are a number of term plan benefits that one can reap, depending on their insurance as well as financial goals. Understanding term plans and their benefits can be essential when purchasing term insurance.
Life Cover
Regular Investment
Financial Protection
Sum Assured
Debt Repayment
Financial Security
Maturity Benefits
Optional Riders
Tax Benefits
Online Purchase
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03)
Tata AIA
Lower Premiums
The main benefit of buying a term plan early is availing of lower premiums since the risk on one’s life is low at a young age. Buying a term plan at a later stage in life can lead to paying higher premiums.
Longer Coverage Period
Your term plan can provide life cover for more years when purchased early in life. Hence, you can enjoy life cover for a greater period which ensures better security for your loved ones.
Higher Sum Assured
A higher sum assured is not readily available if you purchase a term plan later in life. However, when young, choosing a high sum assured is much easier, subject to policy terms and conditions.
During the COVID-19 pandemic, the importance of financially securing one’s family grew multifold due to increased uncertainties. Without adequate financial support, many people faced financial hardships. In the face of such adversities, a term plan effectively safeguards your family’s future.
Out of the several reasons for which one may buy a term insurance plan, here are a few important ones:
Your family receives the protection of a pure life cover throughout the policy term. In your absence, the life cover offers the death benefit to them, which secures their financial needs for life.
Term plans are well known for offering low premiums even with a high sum assured. If you compare a few term plans, you can easily choose to secure your family with a life cover without any financial burdens.
Be it the term policy, the premium payment options, or the choice of riders^, term plans can be quite flexible. This ensures that a simple term plan can fulfil the different needs of different policyholders.
Your family can receive the death benefit, either as a lump sum, a regular income, or a combination of both, as per their needs. You can determine the payout mode as per their potential future needs.
With several term plans available online, picking the most suitable policy for your needs can take some time. However, with the help of the below parameters, getting adequate term insurance coverage can be simple:
Check the lower and higher limit of different policies for the term plan’s sum assured. This offers greater flexibility when choosing adequate coverage for your family’s security.
Find a term plan that offers flexible policy terms. You should be able to choose a life cover for 15 years or for 40 years, for as long as you need to protect your family. Some term plans also offer whole life cover up to 100 years of age.
Though term plan premiums are affordable, the amount can vary from plan to plan. By comparing term plans, you can understand which policy offers affordable premiums so that you are not financially burdened.
The term insurance provider should have a credible and high claim settlement ratio. This factor indicates that the insurer will settle the death claim when needed, right on time and without any hassle.
Your term plan should offer a range of optional riders^. Hence, you can choose against what risks or events, such as critical illness or hospitalisation costs, you need additional coverage.
Go for a term plan that can be easily purchased online. Apart from being able to access the policy brochure with one click, you should be able to customize the plan from your digital device and pay the premiums online.
Our experts are happy to help you!
Can I purchase multiple term insurance plans?
You can purchase multiple term plans if needed. For some people, the sum assured they require may be high and not be fulfilled by one term plan.
However, with a Tata AIA Life Insurance term plan, you can choose a higher coverage as per your needs and secure your whole family under a single term plan. One term plan with greater life insurance coverage can be easier to manage without the hassle of multiple premiums.
What happens if the policyholder survives the policy period?
In a pure term plan, if the policyholder survives the policy period, the plan coverage will terminate at the end of the term, but no benefits will be payable. In a term plan with a return of premium, a maturity benefit comprising a total of all the policy premiums paid will be offered to the policyholder.
What are the optional term plans benefits?
Riders are an additional and optional benefit that you can add to your term insurance plan. These riders^ cover specific risks and emergencies that your base term policy cannot cover. At an additional but affordable premium, you can choose one or more riders to secure yourself and your family against critical illnesses, accidental death, accidental disability, hospitalisation costs and more.
Can I extend my term insurance to ensure critical illness coverage?
Yes, some term insurance plans can include critical illness coverage - if you choose a critical illness rider^ - at an additional premium. The rider offers a sum over and above the base policy’s sum assured and is paid out if the policyholder is diagnosed with a critical illness.
How should I decide on the required term insurance coverage?
To determine the term insurance coverage needed for your family in your absence, you should consider the following factors:
What is the best age to purchase a term plan?
The best age to buy a term plan would be as soon as you are eligible to purchase a term plan. Buying a term plan early in life can ensure you pay low premiums and avail a longer policy tenure.
What is the difference between the benefits of term insurance and life insurance?
Term insurance benefits are different from life insurance benefits in some ways. For one, term insurance offers a simple life cover that can be as extensive as you want. With other life insurance plans, components like savings and investments take precedence over the life cover, which can be quite limited.
Term plans also offer a greater degree of flexibility since their sole purpose is to offer financial protection to your beneficiaries in the event of your death. Hence, the policy term, premium paying terms, sum assured, and other aspects of a term plan can be customized as per individual needs.
What are the term insurance tax benefits?
The premiums paid on a term plan are eligible for tax# deductions under Section 80C of the Income Tax Act. Under Section 10(10D) of the Income Tax Act, the death benefit offered after the policyholder’s death is completely exempt from tax.
Does a term insurance plan give maturity benefits?
If you opt for a term plan with a return of premiums, you can receive maturity benefits at the end of the policy term. This is, however, subject to the policyholder’s survival until policy maturity. The maturity benefit is a total of all the policy premiums paid to date, excluding taxes.
Can I withdraw funds from my term insurance plan?
No, term insurance plans are not savings plans and do not allow you to withdraw funds from the policy during the policy term. However, after the policyholder’s death, the death benefit sum assured is paid out to the beneficiaries either as a lump sum or a regular income to secure their financial needs.
What are the benefits of purchasing term insurance online?
Buying a term plan online can save you some time, money, and effort. You can visit the Tata AIA Life Insurance website and check the various term plans and their features on one platform to find the right plan option for you. Once you finalize the policy, you can also add riders^ to the term plan online with a simple click and then pay the premiums through any of the digital payment channels in a matter of minutes.
Disclaimer