What is 25 Year Term Insurance Policy?

 

Term insurance may have become a buzzword in recent times, but there’s a big reason behind it. We’ve always known how life can take sharp turns, but the COVID-19 pandemic reinforced this fact. It was almost overnight that things turned around and we lost some of our precious people. Although everything isn’t under our control, it’s always possible to take certain steps to safeguard our families from all kinds of emergencies.

This is the purpose of a term insurance policy. Wondering which one to opt for? We suggest going for a  term insurance plan with a 25-year tenure, if you and your family have certain goals and expectations to meet in the future. In case you are the breadwinner and under unfortunate circumstances, you lose your life, your family won’t have to drop the ball on their dreams.

How does a 25-year term policy work?

If you’ve decided to go for a term insurance policy with a tenure of 25 years, the next step is to be regular about paying premiums as per the decided frequency. If you are particular about this, your family will be offered the death benefit, if you lose your life during the policy tenure. But here’s something you need to remember – there’s no maturity benefit that’s extended, if you survive through the tenure. Of course, if you have purchased a term plan that offer Return of Premium option, you can avail of the maturity benefits once you have survived the entire tenure of the policy.

The benefits of a 25-year term insurance policy

If you’re planning to purchase a term insurance policy that covers you for 25 years, here are a few benefits you should be aware of:  

• Risk protection for 25 years to the policyholder’s family, offering peace of mind
• Death benefit offered to the family; in case  of death of the life assured during the policy term. It could be natural death, death by accident, or death due to critical illness
• Helps in planning future financial needs like child’s education, marriage, or buying a house
• Income tax benefit under Section 80C of the Income Tax Act*
• Offers option to add riders for an added layer of security, including disability, critical illness, or accident cover
• Affordable premiums to ensure coverage, without emptying the pockets of the policyholder
• Availing loans against term life insurance policies

Is there any way to calculate 25-year term life insurance premiums?

Of course, several factors are taken into consideration, including the age of the policyholder, annual income, sum assured, medical history, habits like smoking, drinking and chewing tobacco, or any other major health risks, to calculate the premium. Don’t be surprised if your premium is higher, in case you face several health risks.

FAQs

1. Can anyone avail the 25-year term insurance plan?

Anyone who falls under the bracket of 18-65 years can go for this policy.

2. Can the death benefit be extended after the tenure of the 25-year term plan?

No. The benefits are applicable only until the tenure of the policy.

3. Does the policyholder enjoy the policy benefits, in the case of failure to pay premiums?

Every insurance provider has a different set of rules. While most offer a grace period, the benefits will lapse if you fail to pay the premium within that time. 

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