Notifications10

  • Get Life Cover worth Rs.1 Crore at Rs.17 per day2 – Bajaj Allianz Life Smart Protection Goal

    CALCULATE NOW
  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

    WATCH VIDEO
  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

    KNOW MORE
  • Here's a Comprehensive Tool To Plan Your Child's Future

    START NOW
  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

    WATCH VIDEO
  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

    KNOW MORE
  • Paying your Renewal Premium is Quick and Easy!

    PAY NOW
  • Know the right amount of Insurance you need in just a few steps!

    START NOW
  • Avail Term Insurance Tax Benefits under Section 80D

    READ MORE
  • Know how to invest money during the covid-19 pandemic!

    READ MORE

Thanks for showing your interest. A representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead

X

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

banne-img banne-img

Upto 11% Discount* on first year premium

calci-img

Calculate Premium

icon-img

*,6 T&C apply | BJAZ-WB-EC-04303/23

×

*5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. | 5% Discount for salaried customers, applicable only on first year’s premium. | 1% Discount on online purchase is available for regular premium payment and limited premium payment frequency.

6Term plan is a category of Life Insurance

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116.

×

*5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. | 5% Discount for salaried customers, applicable only on first year’s premium. | 1% Discount on online purchase is available for regular premium payment and limited premium payment frequency.

6Term plan is a category of Life Insurance

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Short-Term Insurance - All You Need To Know

A term insurance plan fulfills the basic goal of protecting your family in case something untoward happens to you. It helps you be prepared for any uncertainties that may crop up later in life. And the coverage offered by a term insurance plan is typically valid for a specified period, as mentioned in the terms and conditions of the policy.

This period is generally around 20 to 30 years or longer. However, what if you have a temporary need for insurance coverage? Here is where a short-term plan can be highly relevant. Check out the details of what short term insurance plans are, and what you should know about them.

 

What is Short-Term Insurance?

 

Short term insurance, as the name indicates, is simply a term insurance cover that lasts for a shorter period of time than the duration of cover offered by regular term insurance plans. It can be as short as 1 year, or a little longer, such as 5 years. If you have any significant financial liabilities that need to be fulfilled in the near future, and if something untoward happens to you over the short term, your family may not be adequately equipped to meet these debts.

Short term insurance plans can help you protect your family from this kind of financial stress, since they offer adequate coverage for such requirements. If this sounds like something that you would benefit from, then it is best to know all about short term insurance before you apply for a short-term cover. Check out the key details below.

 

Things to Know About Short-Term Insurance

 

There are a few essential things that you should know about short term insurance plans before you invest in them. Here are some key aspects to be aware of.

● Tax benefits

Short term insurance also offers tax benefits, just like long-term term insurance plans. The premiums you pay for your term insurance plan are eligible for deduction under section 80C of the Income Tax Act, 1961, up to Rs. 1.5 lakhs. Similarly, the death benefits offered under the plan are exempt from tax under section 10(10D) of the Income Tax Act, 1961. The above-mentioned tax benefits will be subject to the provisions mentioned in the Income Tax Act, 1961

● Affordable premiums

Short term insurance plans may be more affordable than long term covers since the premiums are lower. So, you can meet any temporary need for life insurance without taking on any additional financial burden.

● Add-on riders

Short term insurance plans also offer you the option to enhance the protection offered under the base plan with the help of add-on riders by paying nominal extra premium. You can select the rider term to be the same as the duration of the short-term insurance plan, so you can enjoy the additional cover as long as the base life cover lasts.

● Death benefits

Short term insurance coverage is primarily to give your family the advantage of death benefits in case of your demise during the policy term. If something untoward were to happen to you during the short term over which the policy is valid, the insurer will pay out the death benefits to your nominee subject to policy terms & conditions.

 

How to Calculate Your Term Insurance Premium?

 

You can make use of a term insurance calculator to check what the premium for your insurance policy will be. Here is a step-by-step guide to use the calculator.

  • Enter the required personal details like your date of birth, gender, marital status, annual income, and smoking habits.
  • Fill in the amount of coverage you need. This is essentially the sum assured under the plan.
  • Enter other policy related features like the policy term, the premium payment term and the premium payment frequency.

That’s it! Once you enter these details, the insurance calculator will show you the amount of term insurance premium that you will have to pay.

 

Conclusion

 

This should give you a good idea of what short-term term insurance plans are all about, and how you can calculate the term insurance premium for the same. Remember that a short-term insurance plan may not give you enough long-term protection. So, always supplement your short-term insurance cover with an adequate long-term policy.

BJAZ-WEB-EC-01165/22

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.