Term Insurance Calculator

After the demise of the primary earner of the family, the burden of financial liabilities falls on family members. Unpaid EMIs related to home, car, or personal loans start adding up. This is where the option of multiple payouts comes in handy.

While the dependent may get a one-time amount after the demise of the policyholder, some insurance policies offer the option to receive a monthly income along with the lump sum amount in the form of a death benefit. The monthly income acts as a salary and is likely to make it easier to manage everyday expenses.

Term insurance plans offer you the option to add riders to your term insurance policy at a nominal fee. A critical illness rider will offer financial protection in case you suffer from certain illnesses during your life.

Similarly, you can add a rider to provide additional term insurance benefits in case of an accident leading to death or dismemberment. The sum assured is paid to the beneficiary, as per the policy terms.

Term insurance plans provide tax benefits on the premium you pay towards your policy as well as the payouts. Under Section 80C² of the Income Tax Act 1961¹, the premium you pay to buy a term insurance plan is exempt up to ₹1.5 lakhs annually. You can avail of the maximum tax benefit by opting for a plan with maximum coverage based on your age and health status. Besides, the death benefit received under term insurance plans is fully exempt as per proviso to Section 10 (10D)³ of the Income Tax Act 1961¹.

The beneficiary of the policyholder receives the life cover only in case the insured dies. There is no benefit one receives at the maturity of the policy. However, you can get a maturity benefit if you opt for a return of the premium option. You will have to pay a higher premium, but you will get all the premiums paid to you if you survive the policy term.