Term insurance is a type of life insurance that provides financial coverage for a specified period or ‘term’. If the insured person passes away during the policy term, the nominee receives the sum assured. This ensures that your family can meet ongoing expenses, repay debts, and maintain their standard of living without financial burden.
- Types of Term Insurance : Different people have different needs. Here are the major types of term insurance plans:
- Level Term Plan : The most basic and commonly chosen plan. The sum assured remains fixed throughout the policy term.
- Increasing Term Plan : In this plan, the sum assured increases at a fixed rate every year to match inflation and rising financial responsibilities.
- Decreasing Term Plan : Ideal for loan repayments. The sum assured decreases over time, typically in line with the outstanding loan amount.
- Return of Premium Plan : If the insured survives the policy term, all premiums paid are returned, making it a popular option for those who want maturity benefits.
- Convertible Term Plan : Offers the flexibility to convert the policy into another type of life insurance plan (such as endowment or whole life) in the future.
Key Features of Term Insurance
- High Coverage, Low Premium : Term plans offer a large life cover at an affordable premium, making it accessible to all.
- Flexible Policy Term : Choose the policy duration based on your financial goals—typically from 5 to 40 years.
- Tax Benefits : Premiums paid are eligible for tax deductions under prevailing income tax laws.
- Riders for Enhanced Protection : Additional benefits like critical illness cover, accidental death benefit, and waiver of premium can be added.
- Simple Claim Process :Hassle-free and quick settlement process ensures timely support for your family.
Term insurance is more than just a policy—it’s peace of mind. It ensures your family’s future remains stable, even if life takes an unexpected turn. At Aksaek Financial Services, we help you choose the right term plan based on your needs and responsibilities.