When you’re out there on the road, the number of risks you move past are countless. An insurance policy for the automobile and yourself, indemnify both against any harm which might come your way. However, if the scale of misfortune is terrible, how do you ensure that the future of those you love is secured even after you depart? That’s where a Term Insurance policy comes to your rescue.
It is a form of life cover which provides coverage for a defined period of time, and if the insured person expires during the term of the policy, then a death benefit is payable to the nominee. The benefits of term insurance are tailored to secure the needs of your family, as it provides a specific amount of coverage for a specific period of time, based on the policy you select and the premium you pay.
The premium for a term insurance policy is one of the lowest among all types of life insurance plans, as there is no investment component and the entire premium goes towards covering the risk. Usually, there are no maturity benefits once the policy term expires. However, some plans could offer to return the premiums paid by the policyholder if he/she continues to live after the expiry of the policy.
The eligibility criterion for term insurance plan varies according to the insurers. The minimum age of entry is 18 years and the maximum age limit is 65 years. However, some companies like Aegon Life offer a term insurance plan which provides you coverage up to 80 years of age. This makes it one of the plans with the longest tenure. Their term policy benefits also charge a lower premium for women and those who do not smoke. Further, there are a variety of inbuilt and additional benefits one may select from. Some of them include cover for critical illnesses.
You may also choose how the benefits are paid out to your loved ones after you’ve left. You may select a payout which makes a lump sum payment in one go or divides it as a stipulated amount of fixed monthly income for 100 months. You may also choose a combination of the first and the second option. Aegon Life’s term policies also allow you to increase the amount of life coverage, depending on the different stages of life you are in. All it requires is an approval by the insurer.
Premiums paid for all life insurance policies are exempted from tax up to a maximum of Rs 1 lakh under Section 80C of the Income Tax Act, 1961. Further, the claim amount received by the beneficiaries or bonus in the hands of the policyholder is tax-free under Section 10 (10D) of the Income Tax Act. Life is unpredictable and there is no way for us to see what the future holds for us. But a term insurance policy can secure it for the ones we love, even in our absence.
About Aegon Life:
Aegon Life Insurance Company Limited launched its pan-India operations in July 2008 with a vision to be the most recommended new age life insurance Company. The fulfilment of this vision is based on having a complete product suite, superior technology, providing customized advice and enhancing the overall customer experience. This joint venture adopts a local approach with the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions to customers and to prioritize their needs. Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management and Bennett, Coleman & Company, India’s leading media conglomerate, have come together to launch Aegon Life Insurance.
About Term Plans:
If your insurance needs are specific and time-bound, term insurance plans are perfect for you. These plans are ideal for policy holders looking for life insurance cover with benefits for a specified period that can be availed by paying a small amount of premium. Term plans are economical, and offer high life coverage. They are also designed to take care of your loved ones in case of disability or any critical illnesses.
*This is a sponsored story