Insurance

What is Term Insurance – Term Insurance Definition & Meaning | ICICI Prulife

When you understand the features of a term plan, you can have a clearer idea of ​​the meaning and benefits of term insurance. Some of the distinctive features of term plans include the following:

Affordability: Term insurance policies are some of the most affordable life insurance products. The premiums you have to pay for term plans are usually much lower than other life insurance policies. you can get up to ₹1 crore life cover for a monthly premium as low as ₹485/-*.

Reading: What is a term insurance plan

Entry age: With the minimum eligibility age of 18, you can get term plans early in life. Buying a term plan at a young age helps you get substantial coverage at very reasonable premiums.

Policy Term: Term insurance provides coverage for a specified number of years, known as the term of the policy. In the event of an unfortunate event during this period, your designee will receive the sum insured on your policy.

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The term insurance tenure can start as early as age 5 and extend until age 99 if you choose the whole life insurance option. Depending on how long your loved ones may need your financial support, you can select the right policy term for your needs.

maturity benefit: term insurance provides financial protection for your family in the event of an eventuality. it is not intended to be used as an investment instrument. therefore, it offers no return on the premium you pay in the lucky event that you outlive the term of the policy.

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however, the very absence of this investment component makes term plans so affordable. One of the unique features of term insurance is that your entire premium goes toward securing your insurance coverage. none of it is deducted for investment purposes. therefore, you can get substantial coverage, enough to cover the current and future expenses of your loved ones at affordable premiums.

In addition, you can opt for term insurance with a return-of-premium feature if you want some benefits on maturity. once the policy expires, you will recover the total premium you had paid during the term of the policy with said plans.

Premium flexibility: You can pay your term plan premiums at your convenience. annual, semi-annual, quarterly or monthly premiums are some of the premium payment frequencies you can choose from. Such regular premium payments are ideal for salaried people with stable income.

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You can also choose a one-time lump-sum premium payment if you have some unused excess funds. alternatively, you can opt for a limited payment option and pay your premiums within the first few years of the policy. your life coverage remains active for the entire term plan tenure.

so if you’re self-employed, with variable cash inflows, you can take advantage of such lump sum or limited payment options and keep your loved ones financially protected against life’s uncertainties.

Life Coverage: A term plan keeps your family safe from financial challenges if an unfortunate event occurs. provides life coverage of your choice at affordable premiums. With this life coverage, your loved ones obtain an insured sum in the event of an unwanted incident during the term of the policy. the payment can help your family avoid committing to the lifestyle you want for them in your absence.

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Add-ons: You can add additional riders or benefits to your term insurance policy to extend the scope of your basic coverage at a nominal cost.

There are several types of riders available with term plans, such as:

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