Term Insurance Plans

Life is rarely certain and unwanted events can create havoc with the best laid plans. The absence of a family member causes extreme turmoil - physically, emotionally and financially. Your life is precious, especially if you are the breadwinner of the family. A term insurance policy takes care of the monetary needs of your family even when you are not around. It helps your family settle unpaid debts & loans, fund the child’s education and deal with day to day living expenses.

Buying the term insurance plan online is really simple – just make a note of the following documents you need to attach with your application form:

• Age proof
• ID proof
• income proof

Please check whether your insurer offers the following benefits before buying a term plan:

• Claim Settlement Ratio- The higher the ratio, the more efficient the insurance provider is with settling insurance claims. Aviva had a high claim settlement ratio of 96.06% last year.
• Sum Assured- This is the amount of money that the plan will pay in case of the insured’s demise during the plan tenure. It is important to opt for appropriate sum assured such that your family is taken care of financially in your absence.
• Flexible Payout- The insurer may offer flexibility with respect to payment of claims. The claims can either be paid as a lump sum or at regular intervals i.e. monthly, quarterly or yearly.
• Tax Benefits- The term insurance premiums fetch you tax benefits under Sec 80C of the Income Tax Act, 1961.

Aviva term plan offers you the best term insurance plan with the multiple benefits:

• Term plans provide high sum assured at affordable premiums
• Help cover financial liabilities of the family
• Offer flexibility of payout as lump sum or regular income
• Offers riders which provide coverage against critical illness and disability at nominal cost
• Provide tax benefits on premium paid as per tax law

There is no defined formula to identify the amount of life cover you should opt for; it varies from person to person.
The table below gives broad guidelines which can be used as a rule of thumb.

Age Band	Cover
20 – 25 years (single)	8-10 times the annual income plus any outstanding liabilities
25 – 30 years (newly married)	12 – 15 times the annual income plus any outstanding liabilities
30 – 45 years (with young kids)	15 – 20 times the annual income plus any outstanding liabilities
45 – 55 years (post responsibilities)	8-10 times the annual income plus any outstanding liabilities

A term plan is the most elementary form of life insurance. By purchasing a term insurance policy, you, as the ‘policyholder pay a nominal amount as ‘premium’ for a certain period or tenure. The earlier you purchase a term plan, the lesser will be the premium (per year) you have to pay. In case, you meet an unfortunate incident resulting in loss of your life, your family or ‘nominee’ is given the ‘sum assured’ or ‘cover’ - large lump sum amount to meet your financial liabilities. In case you wish to have a additional coverage beyond just life cover, you can choose riders, such as critical illness and disability.

Like all life insurance products, term insurance also offers tax benefits. Primarily, you get tax rebates for the premiums paid under your policy. Premium paid for a term plan will offer tax benefits under sec 80C of the Income Tax Act. Any payout made to the beneficiaries is tax free.

Death cover under all circumstances except the following:

• Death due to any pre-existing medical condition not mentioned in the policy term
• Death due to any illegal activity
• Suicide within the first year of policy tenure

Term life insurance is the simplest form of life insurance that protects your family and dependents against financial crisis even when you are not around. Term insurance plans offer high assured sums at low-cost premiums. The sum assured is paid to the nominee in case of the demise of the person insured during the tenure of the term insurance policy.

The coverage or sum assured of term life insurance depends on various factors. These factors include: ● The number of dependents you have ● The kind of lifestyle you will want to provide to your loved ones in case of your untimely demise ● Your savings, expenses, as well as investment needs ● Term insurance premium you can afford to pay ● The amount needed for your children’s education, your family’s needs, medical and emergency expenses, as well as increasing inflation rate However, you can use a term insurance calculator to calculate the term policy coverage as well as the premium amount you will have to pay for certain tenure. We recommend you ensure term policy coverage 15-20 times your annual income to accumulate enough coverage. If you start early, you will have to pay low premiums for the same amount of coverage.

The best term insurance is one that offers the best ‘value for money.’ Choosing the best term insurance in India is essential to provide financial security to your family even when you are not around. The term insurance premium of your term plan, however, depends on three basic things - your age, term period, as well as the assured sum you choose.

Yes, you can buy as many term insurance plans as you need or want to invest in. You can buy all the term plans online either from one insurer or multiple insurers. With age, expenses, as well as responsibilities, grow. Thus, it makes sense if you are thinking of buying multiple term life insurance plans. While buying multiple term insurance policies, you have to consider two important points: ● Disclose all your existing policies to your insurer while buying the new one. ● Read all the term insurance related documents carefully and understand all the features, benefits, inclusions as well as exclusions.

The age limit to buy term insurance varies based on the plan you choose. However, you can buy term life insurance online or offline if you are at least 18 years old.