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Articles » Term Insurance » Advantages & Benefits Of Term Insurance

Q. What is Term Insurance?

There are huge advantages and benefits of term insurance.

Term insurance is a life insurance plan that gives money related inclusion to the recipient of the safeguarded individual for a characterised time frame.

In the case of the death of term insurance policyholder during the policy term, the recipient can guarantee passing advantages from the insurance organization.

The passing advantage is payable to the chosen one or recipient who is typically a relative.

You can get a lump-sum amount or a mix of single amount and month to month sum according to your prerequisite.

Some Insurance Companies additionally cover perpetual or halfway handicap wherein the policyholder’s customary pay is disturbed.

1) Term insurance policy consists of life cover/death cover.
2) This is not an investment policy.

So there are no returns on the paid premiums.

Term Insurance Advantages & Benefits
Term Insurance Advantages & Benefits

Example 1:

If a person is in his 30s and has an income of Rs. 3 lakh per year who is retiring in his 60s, he has worked for 30 years in his life; then his ‘Human Life Value’ or ‘Appropriate Life Cover’ is of Rs. 90 lakh in a lifetime.

He can also have Rs. 20 lakh home loan as during his term insurance.

Also read: Term Insurance advantage & Benefits

Example 2:

If a car of Rs. 10 lakh has insurance of Rs. 1 lakh gets stolen.

Then he gets a theft cover of Rs.2lakh.

He faces a loss of Rs.8lakh if he has car insurance.

The next important point is the lifestyle or liabilities of the family can be maintained if he/she has his appropriate life cover.

Term Insurance is the cheapest insurance as compared to any other insurance.

HDFC Life Insurance is also a well known company in term insurance.

Example 3:

If a non-smoker of age 30 can have term insurance of 30-40 years.

Hence the person can get online term insurance of Rs. 8,000- Rs. 10,000 per year premium if he/she has a credit card.

Lowest premium is present only in term insurance.

Family’s needs can also be protected by using an appropriate life cover of Rs. 1 crore, 2 crores or 5 crores.

Term insurance is the best life insurance policy.

Term insurance in India should be taken on a serious level so as to secure the liabilities and lifestyle of the family.

Insurance calculator of term can be used to calculate the human life value of the person and according to that best term insurance plan can be provided to the buyer.

Term insurance comparison can be done between various different policies on our website.

In case anything goes wrong with a person, his family’s lifestyle or liabilities or future must be secured.

Term plan calculator can also be used for term plan comparison.

Term insurance is the best amongst other insurances.

He/she can also tax benefits under section 80D if and only if he/she has term insurance.

Life insurance quotes give more information about term insurance.

Term plan premium calculator can also be very beneficial in term insurance.

There are various term insurance plans which provides huge benefits.

Max Life Insurance has less premium for online term insurance plans.

Compare your term insurance-

Term Insurance Plans

There are three types of term insurance plans:

1) Level Life Cover Plan:

In this plan, if the person has bought Rs. 1 crore plan then the person has the same cover in his lifetime.

2) Increasing Life Cover Plan:

In this plan, coverage increases every 5 years.


For example:

If a person has bought a 20 years term insurance plan, then after every 5 years 25% coverage increases as income of the person increases.

There is no need of acquiring new insurance plan if the person has term insurance.

This term insurance plan is the best term insurance plan amongst other term insurance plans.

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3) Decreasing Life Cover Plan:

The coverage goes on decreasing every five years in this plan.

This plan is not as popular as the other two plans.

Hence it is not used.

Premium in term insurance remains the same as there is growth in the age of a person.

Normally mortality charges increase as the age of a person increases.

Term Insurance Advantages & Benefits
Term Insurance Advantages & Benefits

Example 4:

If the term insurance has a premium of Rs.10,000 initially, then premium remains the same after 10 years.

Hence the cost of term insurance is less.

These term plans play an important role in term insurance.

Using only one term insurance, the person can get an appropriate life cover as well as he/she can also get the protection of his/her family.

Investments can be done in mutual funds or SIP (Systematic Investment Plans) or through ULIP plan in which insurance cover is less as compared to other insurance plans.

SIP value can also be increased & term insurance can be acquired.

You can get your separate SIP and insurance and have well-prepared financial planning.

The person has to buy his/her term insurance online as it is cheaper than buying it offline.

Term insurance calculator can be used to calculate the term insurance of any other insurance.

There are no difficulties in online buying of the plan.

Term insurance is easily available insurance as compared to other insurance plans.

You must buy cheap term insurance.

You must also buy a branded term insurance plan.

Also read our blog on Term Insurance.

Compare your term insurance-

Following companies provide term insurance policy:

  1. Canara HSBC OBC Life Insurance
  2. HDFC Life Insurance
  3. Max Life Insurance
  4. DHFL Pramerica
  5. SBI Life Insurance
  6. Edelweiss Tokio Life
  7. Aviva Life Insurance
  8. Kotak Life Insurance

The term insurance policy is basically a one-time investment plan.

But term insurance with return of premium is also a plan in which money can be returned back.

Visit our website for more details:

Term Insurance Advantages & Benefits

Also read: HDFC Life Insurance

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