Term Insurance

What Is Term Life Insurance?

Term insurance is a type of life insurance that offers the coverage to the insurer for a specific period of time. This type of life insurance pays a financial benefit to the nominee if the insured dies unexpectedly during the policy term. Term insurance policies provide comprehensive life insurance coverage at a low cost.

• Claim Settlement Ratio

  Claim Resolution Rate (CSR) is the ratio of the total number of claims made in a year to the number of claims resolved by an insurer in a year. The higher the number, the less likely the family’s application will be rejected, and thus the more credible the insurance company.

• Term Insurance Premium

  This is the money you pay the insurance company in exchange for a financial guarantee. Contributions can be paid in monthly, semi-annual, or yearly instalments. Insurance premiums tend to increase with age.

• Add-on Plans

  To improve your plan coverage, you can add additional benefits to your plan, such as

• Sum Assured

  This is the amount the nominee will receive in the event of any mishap. This also affects the premium amount for term plans.

• Death Benefits

  This is equivalent to insurance money and is paid to the nominee in case of any unforeseen event.

Who Should Buy Term Life Insurance?

Term insurance is a kind of product that protects your dependents from any sort of financial sufferings caused by unforeseen events like sudden death or disability or illness. Anyone with financial dependents could buy such insurance for the financial security of their loved ones.

• Parents

  Parents generally are sole breadwinner for the family and if any mishap take place then it could jeopardise the future and deprive the children from basic needs of life to get fulfilled. But by buying a term insurance policy, parents may ensure that this situation does not occur.

• Newlywed Couple

  A term insurance plan doesn’t limit to provide financial security till your parents and children but also it includes wife in the absence of husband. In case you are not present with your wife because of any unfortunate event. Term insurance plans not only provides the financial coverage of the nominee but also take cares of the liabilities.

• Young Professionals

  The soon you begin working, the sooner you should obtain a term insurance coverage. It would be wise and advisable to get the term insurance policy at the right age, the younger the age of the insurer, the lower the term insurance premium will be. Term insurance policy premium gets higher with your age

• Tax Payers

  Premiums paid for term insurance may be deducted from taxable income under Section 80C of the Income Tax Act 1961. Term insurance payments that are due are also tax exempt subject to the terms of Section 10(10D). Therefore, taxpayers can take advantage of term life insurance to significantly reduce their tax burden.

• Working Women

  For working women, balancing work and household chores can be difficult. But you can always cover them by taking out term life insurance to protect your loved one from financial crisis that might occur in your absence or you can get return of your premium if you survive till maturity of policy

• Retirees Pensioner

  There is no age bar as such to buy term insurance, Retirees should purchase term life insurance if they have a dependent spouse or family member. Buying term life insurance can also be a way to leave a legacy to your family. This is because term life insurance pays out to the insured in the event of an accident with the insured. Term insurance payments are also tax exempt subject to the conditions laid down in Section 10(10D) of the Income Tax Act 1961.

Why Do You Need Term Insurance

Term insurance is a kind of product that protects your dependents from any sort of financial sufferings caused by unforeseen events like sudden death or disability or illness. Anyone with financial dependents could buy such insurance for the financial security of their loved ones.

• Your family depends on you

  Term insurance can be used for important purposes such as your family’s monthly living expenses and children’s education.

• Your assets needs protection

  You can rent assets such as houses and cars. But if something happens to you, your significant other may be forced to pay off the loan. In such cases, you can use the term insurance money your family receives to pay off the outstanding loan.

• Lifestyle Risk

  Modern lifestyle problems can lead to various diseases. Some term life policies provide lifelong protection by not only protecting your family financially in the event of an accident, but also by providing protection against serious illness. This feature is useful in diagnosing certain serious diseases such as cancer and heart attacks.

When Should You Buy Term Insurance?

If you decide to take term insurance, we recommend that you start as soon as possible. Term insurance premiums increase with age. Therefore, to get the most out of your subscription, we recommend purchasing your subscription early. The table below will help you understand how term insurance premiums increase with age. Examples refer to non-smokers.

How Long Should Be The Term Insurance Policy Period?

Contract terms offered by most life insurance companies range from 5 to 75 years. Depending on your retirement age, you should always determine the length of your contract. In India, 60 is the common retirement age. Term insurance until age 60 will pay off all financial liabilities and liabilities up to age 60. If she or he has many dependents and wants to be covered for the rest of her life, the policyholder can purchase life insurance for her up to age 99

Benefits Of Term Insurance Plan?

• Affordable Premium Life Insurance

  Premium of Term insurance plans is substantially lower than traditional plans, insured get higher life cover at much low premiums. Buying Term insurance through ADFPOLICY can give additional upto 20% discount

• Coverage against Critical Diseases

  In addition to offering life insurance, a new-age term plan. Insurer displayed at ADFPOLICY provide coverage against medical disorders. Medical disorders Cover provides lump sum pay-outs when a vital sickness such as a heart attack, cancer, renal failure, or any other critical illness is initially identified for a minimal additional cost. It covers approx. 64 critical illness and protect insured from such illnesses

• Protection from debts and liabilities

  Term life insurance plans offer substantial amounts of life insurance at low premiums. This insurance can cover many years of lost revenue.

Types Of Term Insurance

ADFPOLICY offers different term plan options to meet different needs. Below are the variants you can choose from:

• Basic Term Insurance Plan

  The death benefit is provided in lump sum at a low premium rate.

• Term Life Plan with Monthly Income

  Combined with the death benefit, it provides a stable, fixed income for the family.

• Term Insurance with Return of Premium

  Repayment of all premiums paid by the due date and death benefits during the contract period.

• Group Term Insurance

  This plan provides life insurance to a group of people under a single policy.

When Is The Right Time To Buy a Term Insurance Plan?

The best time to buy term insurance is as soon as feasible. The probability of getting lifestyle diseases rises with age, and so do insurance costs. You may obtain insurance at low costs by investing in a term plan from a young age. As a result, it may be prudent to acquire term insurance at a young age. This will save you a significant amount of money in the long term. Furthermore, it gives prolonged protection and financial security to you and your loved ones from a young age.

What are the Variants of Term Insurance Plan?

The best time to buy term insurance is as soon as feasible. The probability of getting lifestyle diseases rises with age, and so do insurance costs. You may obtain insurance at low costs by investing in a term plan from a young age. As a result, it may be prudent to acquire term insurance at a young age. This will save you a significant amount of money in the long term. Furthermore, it gives prolonged protection and financial security to you and your loved ones from a young age.

What Are The Pay-out Options In Term Life Insurance?

A term life insurance policy is a protection-only policy that offers policyholders with life insurance in exchange for regular premium payments. When you get term insurance, you will be asked to choose an nominee . This might be a loved one such as a kid, spouse, parent, sibling, or other family member. In the case of an unforeseeable incident, the specified insured amount will be paid to the beneficiary using the payment method of choice. This is how it works:

• Lump Sum

  In the case of an unforeseen circumstances, this method offers applicants. Beneficiary with a one-time pay-out. This money is solely up to the beneficiary that how they want to use.

• Income

  Therefore, in the event of an accident, the nominee will receive an equal monthly income. This serves as a substitute in your absence.

• A combination of both

  Part of the insurance amount will be paid as a lump sum, and the rest will be paid as a monthly income equal amount. This can help families with different financial needs.

• Increasing income

  This option allows beneficiaries to receive monthly instalments for 10 years. Income increases at a simple rate of 10% each year until the insured amount is paid in fulfil.

The Best Price

ADFPOLICY provides comparative quotes from 25 plus insurance companies, you can select any plan with minimum or lowest premium , in addition to lower premium and higher cover you get an online discount of up to 20% when you buy online. You also get 50% discount with limited pay option. You will not get a better price anywhere else.

Certified Expert

ADFPOLICY is regulated by IRDAI and will always act in the policyholder’s interest.

• 100% calls on Recorded Lines

• Every call happens on recorded lines to ensure unbiased advice & No misselling. We believe in transparency & honest selling.

• One Click Easy Refund

• In case you aren’t happy with your purchase, you can cancel your policy from My Account hassle-free at the click of a button.

Factors That Affects Term Insurance Premium

Term insurance premiums are calculated based on a number of factors. Various aspects of health and lifestyle are considered before determining premium amounts, including gender, age, habits, past or current medical conditions, genetic conditions that may be affected, and other aspects increase.

Here are some things that determine the value of your term insurance premium:

• AGE

  Age plays an important role in term insurance plans. Term insurance premiums are generally lower for younger people and higher as you get older. The younger you are, the less likely you are to contract an illness that can lead to an unfortunate event, and the less risk to your company. That’s why financial experts often advise people to take out term life insurance as early in life as possible. The longer you wait, the more money you have to pay to secure your plan.

• GENDER

  As a result, if an accident occurs, the nominee will get an equivalent monthly income. In your absence, this will serve as a stand-in.

• MEDICAL HISTORY

  An analysis of past health conditions and family health conditions is often used to determine the premium rate for a term plan. Diseases such as stroke, heart attack, kidney failure, and cancer can be hereditary and passed on to the next generation. If you or a relative, such as your parents or grandparents, has these conditions, your plan will have a relatively high premium.

• CURRENT HEALTH CONDITIONS

  Factors such as weight, diet, and general health can affect term life insurance premiums. If you have high blood pressure, diabetes, fluctuating sugars, thyroid, or other health conditions, your premium may be higher. Insurance premiums will be higher.

• SMOKING & DRINKING ALCOHOL

  Smoking, alcohol consumption, and similar habits such as tobacco and drug use can adversely affect health. This makes them even more likely to get sick or contract a life-threatening disease. Therefore, indulging in any of these may result in you being asked to pay a higher premium. On the other hand, if you follow a healthy lifestyle, term plans can have relatively low premiums.

• LIFESTYLE HABITS

  Higher awards may be required if you are interested in adventure sports such as mountaineering, skydiving, scuba diving or other adventure sports. These activities put your life at risk, so your insurance premiums will be higher.

• PROFESSION

  Your job can also play a central role in your health. Those who have dangerous jobs such as pilots, sailors, soldiers, and other similar jobs can they are also more likely to suffer serious illnesses due to the demanding nature of their careers.

Documents Required For Term Insurance

The documents required to complete the application of a Term policy are:

• PHOTOGRAPH

  A recent photograph of the policyholder

• PAN

  Copy of PAN

• Address proof

  This can be any of the following: Aadhaar – front & back/ Driving License/ Passport – front & back

• Income proof

  Do note, your income proof should match with your declared annual income. Also for salaried applicants: Last 3 month’s salary slip/ Form 16/ Last 3 years ITR/ Last 6 months’ bank statement where salary gets credited. For non-salaried applicants: Last 3 years ITR with computation of income.