Term Insurance plan offers a substantial amount of coverage for an affordable premium amount.
It provides a financial benefit to the nominee in case of the unfortunate demise of the insured, during the policy term provided the policy is active, or “in force,”
This sum assured is paid based on the payout option (one-time lump sum or regular monthly payments) as chosen by the policyholder.
Here fixed premium amount is to be paid by the life assured.
Premiums can be paid at once or at regular intervals for the entire policy term or for a limited period. Premium amount varies basis the type of the premium payment method opted by the buyer.
Financial Stability
Providing peace of mind, term insurance safeguards your loved one's financial well-being. In the unfortunate event of your absence, it ensures that your family can maintain their lifestyle and meet essential expenses. This commitment to financial security is a valuable aspect of term insurance coverage.
Affordable Premiums for High Sum Assured
Term insurance offers a straightforward life insurance solution with the key advantage of being budget-friendly. Compared to other policies, term insurance provides coverage at an easily manageable premium. The sooner you secure term insurance, the lower your premium will be.
Simplified Understanding
Understanding insurance jargon can be challenging when selecting a life cover. Term insurance plans stand out for their simplicity. These plans, purely focused on life coverage, lack an investment component. You pay premiums, and the insurer provides coverage for a specified duration, ensuring straightforward term insurance benefits.
Diverse Death Benefit Choices for Financial Security
When you're handling EMIs for your home, car, or personal loan, your family could face financial burdens if something happens to you. In the event of your unfortunate demise, your dependents can receive a lump sum, aiding them in managing your outstanding financial responsibilities with term life insurance.
Enhance Your Policy with Additional Riders
Term insurance plans offer optional riders to bolster the basic benefits. By paying a nominal extra premium, you can incorporate these riders into your term insurance plan.
Tax Advantages
Term insurance plans offer tax benefits. The premiums paid for a term insurance plan are eligible for tax deduction, and the payouts also enjoy tax exemptions by tax laws.
Purchase Early for Cost Savings
Premiums are more affordable for younger individuals, and in a Term Insurance plan, they remain consistent throughout the policy duration. It is recommended to buy early, ensuring lower fixed payments for the entire term insurance policy duration.
Flexibility in Decision-Making
Many term insurance policies provide policyholders with the freedom to choose the policy term and select the premium payment frequency (annually, half-yearly, quarterly, or monthly), catering to their individual needs and convenience.
Options for Payout Selection
Multiple payout choices are available, including a lump-sum payment, regular income, or a combination of both, allowing you to tailor the payout to your preferences.
Income Substitution
As the main provider for your family, term insurance serves as a substitute for your income, aiding in covering living expenses, education, and other financial obligations. In case of a tragic event, rather than a single payment, dependent nominees may receive periodic payments such as monthly or quarterly, providing ongoing support.
Term insurance plans in Kolkata are designed to provide financial safety to your loved ones as per your unique needs. Different types of Term Plans available are:
The fundamental and straightforward variant of term life insurance is known as a level term plan. With this plan, the chosen sum assured at the policy's beginning remains constant throughout the policy term. After the policyholder's demise, the death benefit is paid to the nominees.
It allows policyholders to raise the sum assured at specific life milestones, addressing inflation concerns. Although this flexibility comes with a slightly higher premium, it ensures sufficient funds.
Decreasing term insurance features a decreasing sum assured as the policyholder ages, aligning with reduced liabilities. This plan is suitable for individuals expecting to pay off loans or mortgages shortly, reflecting the decreasing need for a higher sum assured.
This is for couples. Both spouses may be insured under the same policy. If any of them dies, the surviving spouse receives the benefit. It's a strategy to provide financial stability for the family.
This plan provides flexibility to switch to another insurance type. Ideal for those anticipating evolving financial priorities, it allows adjustments to meet changing circumstances, such as converting to a whole life plan when needed.
This term insurance refunds all premiums paid if the policyholder outlives the term, provided no claims are made during the policy term.
This form of term plan is typically adopted by the employer. Employers provide this as part of the employee benefits package. It insures a group of people under a single policy, and the premium is reduced.
Anyone with financial dependents, such as married couples, parents, business people, self-employed individuals, SIP investors, young professionals with dependent parents, and sometimes retirees, should consider Term Insurance. It offers the triple benefit of life protection, tax saving and affordability with low premiums.
Therefore, people with any financial dependence on their income should invest in term life insurance.
Parents, as the primary financial support for their children, must safeguard their future. From school fees to university expenses, children rely on their parents. To prevent potential financial setbacks due to unforeseen events, parents should invest in a term insurance policy. This ensures a lump sum and/or income to cover their children's expenses in case of any mishap.
Roses, chocolates, and movie tickets are nice, but here's a truly lasting gift for your spouse: term insurance. This gift will provide your spouse more than just delight; it will safeguard their future. A term insurance policy provides financial support to the spouse in the event of an accident involving the insured person and should be bought as soon as feasible by married couples.
Modern working women are on par with men in managing finances and providing for their families. To ensure the financial security of your loved ones in your absence, consider a Term Insurance plan. This coverage guarantees financial support for your parents, spouse, and children, preserving their lifestyle and goals. Additionally, the sum assured can cover outstanding liabilities like home loans and education loans.
Young professionals, just commencing their careers, often start without marriage or financial dependents. However, this is expected to change as they marry or provide support to parents and relatives. In contemporary times, many young professionals carry student loans, and the unfortunate event of something happening to them could burden their loved ones with these loans. Buying a term insurance plan in Kolkata at a young age is a prudent move to alleviate this financial concern. Not only are the premiums lower during youth, but they also remain consistent throughout the entire duration of the term plan, ensuring stability and financial planning for the salaried employees for the future.
A self-employed person, faces many challenges. Unlike salaried individuals, He doesn’t have a fixed monthly income. He might have also taken a business or personal loan from creditors, banks, or even your family and friends. Hence, buying a term insurance plan to secure his family becomes even more important.
Buying term life insurance in Kolkata can also be used to leave an inheritance for their families and ensure that the spouse has a financially independent existence after the death of the insured. Additionally, having a term plan can prevent the weight of any liability from being passed on to the family.
