- Webpages
- Documents
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
For Online Policy Purchase
(New and Ongoing Applications)
-
Call (All Days & Toll free)
-
Whatsapp
-
Call (For NRI customers, All Days, Local charges apply)
-
Email
-
Request call back (Missed Call)
Branch Locator
-
Locate a branch
For Existing Customers
(Issued Policy)
-
Whatsapp
-
Call (Mon to Sat, from 10 am to 7 pm, Local charges apply)
-
Call (Mon to Sat, from 10 am to 7 pm, STD charges apply)
-
Email
-
NRI-Email
Fund Performance Check
-
Call (Missed Call)
What do you want to do?
5 Reasons Why You Should Not Underrate Term Insurance

Understanding term insurance
As the name suggests, term insurance plans offer coverage for a fixed term. In case of your demise during the term of the policy, your beneficiary is entitled to receive the sum assured as per the provisions of the insurance plan. This amount provides financial security to your loved ones and helps them meet their financial obligations even in your absence.
The entire premium amount is allocated towards providing insurance coverage. Hence, in case of survival upon maturity, no survival or maturity benefits are provided. Many individuals, therefore, underrate term plans and chose not to purchase such a type of life insurance policy. However, term plans offer insurance coverage along with a plethora of other benefits.
Following are five major advantages of term insurance policies.
1. Coverage against uncertainties
Life is uncertain. The risk of an untimely death cannot be ruled out. In order to cover the financial losses arising out of such a risk, it is recommended to invest in a term insurance policy. Your insurance provider will pay the sum assured to your family members, thus providing a high degree of financial security when you are no longer around.
2. Benefit of additional riders
You may enjoy the benefit of comprehensive coverage by opting for riders with your existing term insurance plan. Though riders come at an additional cost, they provide a higher level of protection. Many insurance providers offer add-ons covering accidents or critical illnesses such as end-stage liver disease, benign brain tumor, permanent paralysis of the limbs, and major surgery of aorta, among others.
3. Income replacement
In case you are the breadwinner of the family, your loved ones will be financially impaired and would find it difficult to make ends meet in case of your absence. The death benefit provided in a term insurance plan, therefore, acts as an income replacement.
4. Lower premiums
One of the major advantages of a term insurance plan is affordability. Such plans come with a low premium along with a high level of insurance cover. This is because term insurance is a pure risk plan with no returns. You may also consider buying a term plan through the Internet. Purchasing such a policy through the insurer's website will help you benefit from lower premiums as the cost of paperwork and commission is eliminated.
5. Tax benefits
Another reason not to underestimate a term plan is the tax benefits it has to offer. Premiums paid towards term plans are eligible for tax deductions up to INR 1.5 lakh under Section 80C of the Income Tax Act, 1961. You may also avail of tax benefits on the death benefit amount under Section 10(10D) of the Income Tax Act, 1961.
A term insurance plan, therefore, cannot be underrated as it offers a lot of benefits. It is the minimum level of protection required to provide financial security to your loved ones in case of your sudden demise. You may, therefore, invest in a term plan and enjoy peace of mind knowing that your dependents will be taken care of when you are not around.
Tax Articles
Subscribe to get the latest articles directly in your inbox
Life & Term Articles
Investment Articles
Calculators
Popular & Recent Articles
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.
BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS/FRAUDULENT OFFERS
|

Popular Searches
- term insurance plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- long term savings plan
- fixed maturity plan
- monthly income advantage plan
- income tax calculator
- pension calculator
- bmi calculator
- compound interest calculator
- term insurance calculator
- income tax
- tax saving investment options
- best investment plans
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- tax planning for salaried employees
- how to choose best child insurance plan
- tips for buying retirement plan
- 1 crore term insurance
- importance of saving
- short term saving plans
- types of investment in india
- investment declaration