What Is Term Insurance?
Term insurance is a life insurance product that provides financial protection to your family in case of an untimely death. It is an affordable way to secure your family’s future financial needs. In a term plan, you pay a fixed premium for a specific period, and in case of your unfortunate demise during the policy term, your nominee receives the sum assured. Here are some of the key features of term insurance:
|Features of Term Insurance||Description|
|Affordability||Term insurance policies are affordable, with premiums much lower than other life insurance policies.|
|Age of Entry||You can get term plans early in life, with the minimum eligibility age of 18 years.|
|Policy Term||Term insurance provides coverage for a specified number of years, known as the policy term.|
|Maturity Benefit||Term insurance does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure.|
|Flexibility in Premium Payments||You can pay your term plan premiums as per your convenience, with regular or one-time, lump sum premium payments.|
|Life Cover||Term plans provide life cover of your choice at affordable premiums, with the payout helping your family avoid compromising with the lifestyle you want for them in your absence.|
|Additional Add-ons||You can add riders or add-on benefits to your term insurance policy to extend the scope of your base coverage at a nominal cost.|
Calculating your Human Life Value (HLV) can help you determine how much life insurance cover you need. HLV is an easy-to-use numeric method of calculating the amount of Life Cover^ that you may need. The basic thumb rule that can be used to find out your HLV is as follows:
HLV = Annual Income x Number of Working Years Left
For example, if a 32-year-old man has an annual income of 5 lakh, the ideal Life Cover^ for him would be 25 x 5 lakh = 1.25 crore.
Use our free online calculator to help you determine how much life insurance cover you need to keep you and your family secure.