Term Insurance Benefits

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.

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.

Riders are an additional and optional benefit that you can add to your term insurance plan. These riders⁶ 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.

Yes, some term insurance plans can include critical illness coverage - if you choose a critical illness rider⁶ - 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.

To determine the term insurance coverage needed for your family in your absence, you should consider the following factors:

• Your Family’s Future Needs
• Their Financial Goals and Commitments
• Any Emergency Needs
• Unpaid Loans and Debts

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.

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.

The premiums paid on a term plan are eligible for tax⁵ 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.

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.

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.

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 riders⁶ 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.

The primary advantage of term insurance is its ability to provide substantial life coverage at an affordable premium. It ensures financial protection for the loved ones in case of the policyholder's untimely demise.