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Benefits of Term Insurance Plans You Must Know

May 24, 2019
Life is full of unseen circumstances and as such, we all must strive to remain financially prepared for the same at all times. Insurance plans serve as extremely crucial hedges against such risks and protect your loved ones from the unforeseen circumstances of life. Term insurance plans are insurance plans that offer guaranteed benefits in the shape of total sum assured along with various bonuses to the policy holder upon the maturity of the term of the plan or to the nominee(s) of the policy holder in the event of her/his demise before the term maturity. Although traditional term plans do not offer any maturity proceeds in the event of survival of the policy holder, yet being very economical, term plans form an integral part of any successful financial portfolio. Following are the important benefits of term plans that you must know about:
  1. Death benefits:

    Term plans are unique in the sense that the these plans guarantee the payment of benefits as they entitle the policy holder's nominee(s) to receive the sum assured in the event of the policy holder's demise during the plan term. Therefore, a term insurance plan covers the basic requirement of financial security and safety of the future requirements of your loved ones.
  2. Additional riders:

    Generally, term insurance plans come with additional riders that can be purchased optionally and offer extra-coverage together with the main plan benefits that exist already. This means that the policy holder can purchase additional coverage for factors like critical illness, accidental disability etc. This enhances the existing benefits of the plan.
  3. Premium-payment frequency:

    Generally the insurers offering term plans offer quite flexible premium-payment terms. This means that the policy holder can pay the premium in a frequency chosen as per her/his convenience. The frequency can be monthly, bi-annual, annual or even a one-time lump sum payment.
  4. Flexibility in cover:

    The coverage, when chosen after due deliberation and after considering all the parameters like financial goals, payable premiums, frequency of payment etc, should be sufficient for meeting all the desired aspirations for you and your family. In one's absence, the loved ones must be able to maintain the lifestyle that covers their financial future. Thus, it is essential that the plan that you choose offers specific benefits.
  5. Income Tax benefit:

    A term plan comes with tax benefits because the payable premiums as well as the main plan benefits (sum assured and the maturity proceeds) are eligible for tax-exemption under Sections 80C and 10D of the Income Tax Act, 1961.

HDFC Life offers HDFC Life Click 2 Protect 3D Plus an online plan that offers coverage against death, disability and disease.

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Benefits of Term Insurance Plans You Must Know

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.

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