TERM LIFE INSURANCE

A Term Life Insurance Policy is an Insurance Policy which reimburses the Insured Person’s Nominee in the event of the Insured Person’s Death. Term Insurance Policies pay a benefit only if the Insured Person dies during the Policy Period. There is no Maturity Benefit payable under a Term Life Insurance Policy.

A Term Life Insurance Policy provides High Life Insurance Cover at Reasonable Premium and is a must have in order to provide financial protection for your family.

• Secure the Financial Well-Being of your Family:

  An Adequate Term Life Insurance Cover will secure the financial protection of your family. The money from the Term Insurance Policy can be used to accomplish the family member’s goals such as a kid’s marriage expenses or an education abroad. It helps replace the Insured Person’s Income that is lost on account of Death.

• Repayment of Loans:

  The proceeds from Term Insurance can be used to repay a Home Loan or a Business Loan that an Insured Person might have.

Some Term Insurance Plans offer additional benefits like the following:

• Permanent Disability Benefit:

  All Future Premiums are waived off in case of Permanent Disability due to Accident while the Death Cover continues as before.

• Terminal Illness Benefit:

  This benefit pays the Life Cover Amount on diagnosis of Terminal Illness like AIDS or Cancer of Specified Severity even before Death.

Most Term Insurance Plans have the below mentioned Add-On Covers that an Insured Person can opt for:

• Accidental Death Benefit:

  This Add-On Cover pays the Accidental Death Benefit Sum Assured in addition to the Base Sum Assured of the Term Life Policy in case of Death of an Insured Person due to an Accident.

• Critical Illness Benefit:

  This Add-On Cover reimburses the Critical Illness Sum Assured if the Insured Person is diagnosed with the Specified Critical Illnesses. This Add-On Cover provides financial support to treat serious ailments like Cancer or Bypass Surgery which require expensive medical treatments.

Most Term Insurance Plans provide Cover upto 85 years of Age. There are also Whole Life Plans which provide Cover till 99 years of Age though they have Higher Premiums.

Choosing the right Sum Insured is one of the most important factors in selecting a Term Insurance Policy. A general thumb rule is to select a Sum Insured equal to 15-20 times your Current Annual Income which should be sufficient to provide security for dependents.

However, the Applicant must also keep in mind the future financial goals and commitments while selecting a Sum Insured for a Term Life Policy.

Following documents are required to purchase a Term Life Insurance Policy:

1. Duly Filled and Signed Proposal Form
2. Photo Identification Proof and Address Proof of the Insured Person
3. Income Tax Return and Computation of Income for the last 3 years for people in business OR last 3 months’ Salary Slips and last 3 months’ Bank Statements for people working in a Job
4. Medical Reports if required by the Insurance Company

The most important reason for purchasing a Term Insurance Policy is to ensure financial security for your family in your absence. However, on your Death, your Creditors or Relatives may claim the amount received from the Term Life Insurance Policy.

You can ensure that the proceeds from the Term Life Policy are protected by buying a Term Insurance Policy under Married Women’s Protection Act. This implies that the Proceeds from the Insurance Claim will go only to the Wife or the Children and cannot be used to settle the Loans that the Insured Person has availed from Banks or Relatives.