Term Insurance

A cushion to your financial loss

These plans are focused to cover the risk of unexpected early demise of an individual or a main bread-winner or transferring huge liabilities to the Insurance Company.

It is preferred as a short-term solution for huge risks.

If death happens during the term, then only term policy is triggered.

SILENT FEATURES

  • Economical and constant premium.
  • Additional cover strengthens the portfolio.
  • One can add rider benefits depending upon their need.
  • Conditions vary across companies.
  • Given to people above age 18.
  • Mostly half-yearly and yearly premium modes are payable.

Sanghavi’s Recommendation:

  • Term Insurance is a must-have for bread-winners, people with huge liabilities or dependents.
  • Extremely good for individuals who have just started earning.
  • Helps corporates cover key people or mitigate huge liabilities like loans.
Term Insurance
Title Description
Details Term plan is the simplest and purest form of life insurance. It provides financial protection to your family at affordable rates. With term plans, you get high life cover at relatively low premium rates. The benefit is paid to the nominee in case of death during the term of the policy.
Death Benefit On unexpected demise of the policy holder, his/her nominee will receive death benefit from the Insurance Company.
Survival Benefit There is no maturity benefit in term plans.


Features and Conditions
  • Minimum & Maximum age at entry varies from company to company.
  • Minimum & Maximum term varies from company to company.
  • Minimum & Maximum sum assured varies from company to company.
  • Conditions vary from company to company.
Tax Benefits
  • Tax benefits for individuals as per Government & regulatory guidelines and income tax slabs.
  • Tax benefits for corporates as per Government & regulatory guidelines, mostly treated as an expense.


Example: A person aged 21 buys a Term policy of 25-year term

Age At Entry 21 In Case of Death at 40 Maturity at 46

Death Benefits Maturity Benefits
If there happens an unexpected demise of policy holder during the policy term, nominee gets the death benefit. Benefits are tax-free. No maturity benefits are given in term plans.