Worried about the financial security of your loved ones? Get yourself a term insurance plan. If you ask, "What is term insurance?" here is a definition that helps: A term insurance plan is a pure protection plan that ensures that your loved ones are taken care of in the unfortunate event of your demise during the policy term. A term insurance plan ensures that your family members get death benefit in such unforeseen circumstances.
Term insurance gets its name because it is valid for a specific period or term, and this coverage period can vary, depending on the plan chosen. A term insurance plan helps your family meet their life goals even in your absence as a breadwinner. The payout they get will ensure that their savings or wealth will not be depleted in your absence and their lifestyle can be maintained without any hassles.
You can pay premium for your term insurance on monthly, quarterly, half-yearly or annual basis, depending on your convenience and as per the product terms and conditions.
Term insurance premium is affordable as compared to other life insurance plans. What’s more, you can also claim tax exemption on premiums paid for term insurance under Section 80C of the Income Tax Act, 1961, for up to Rs 1.5 lakh per annum. You also have the option of buying riders or additional covers at a nominal extra cost. One of the variant of term insurance is return of premium (TROP), wherein the term insurance premium you have paid through the policy term will be returned at the time of maturity if the life insured survives the policy term. The death and survival benefit under return of premium variant comes with tax benefits under Section 10 (10D) of the Income Tax Act, 1961. The premiums paid for return of premium variant are eligible for tax exemption of up to Rs 1.5 lakh a year as per Section 80C of the Income Tax Act. Tax benefits are subject to provisions contained in the Income Tax Act, which may be amended from time to time.