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Term Insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. With term insurance, you can get a large amount of life cover^ (i.e. sum assured) at a relatively low premium rate. The benefit amount is paid out to the nominee in case of the death of the person insured during the term of the policy.

Why do you need Term Insurance?

Financial security for your family:

If you are the primary earner, buying a term plan would take care of the monthly financial needs of your family in your absence.

Secure your Assets:

You might have taken a loan like an education loan, home loan, personal loan, or vehicle loan. The repayment of these loans can financially weigh down your family in your absence. The proceeds from your term insurance plan pay off your loans and ensure that the financial burden does not fall upon your family.

Risks related to lifestyle:

The probability of developing a lifestyle disease increases with age#. Some term insurance plans offer critical illness protection which not only protects your family in case of uncertain eventualities but also during your lifetime. Critical illness2 benefit provides you financial security against various life-threatening health conditions such as cancer & heart attack.

                                                                     Features of Term Insurance

When you understand the features of a term plan, you can have a clearer idea of the meaning and benefits of term insurance. Some of the hallmark features of term plans include the following:

Affordability:

Term insurance policies are some of the most affordable life insurance products. The premiums you have to pay for term plans are usually much lower than other life insurance policies. You can get life cover^ up to ₹ 1 crore for a monthly premium as low as ₹ 378/-*.

Age of entry:

With the minimum eligibility age of 18 years, you can get term plans early in life. Buying a term plan at a young age helps you get sizeable coverage at very reasonable premiums.

Policy Term:

Term insurance provides coverage for a specified number of years, known as the policy term. In case of an unfortunate event during this period, your nominee will receive the sum assured in your policy.

Term insurance tenures can start from 5 years and extend up to your 99th birthday if you choose the whole life insurance option. Depending upon how long your loved ones might need your financial support, you can select the right policy term for your needs.

Maturity Benefit:

Term insurance provides financial protection to your family in case of an eventuality. It is not meant to be used as an investment instrument. Thus, it does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure.

However, the very absence of this investment component makes term plans so affordable. One of the unique features of term insurance is that your entire premium goes into securing your insurance cover. No part of it is deducted for investment purposes. Thus, you can get substantial coverage, enough to cover the current and future expenses of your loved ones at pocket-friendly premiums.

Also, you can opt for term insurance with a return of premium feature if you want some maturity benefits. After the policy matures, you will get back the entire premium you had paid throughout the policy tenure with such plans.

Flexibility in Premium Payments:

You can pay your term plan premiums as per your convenience. Annual, semi-annual, quarterly, or monthly premiums are some of the premium payment frequencies you can choose. Such regular premium payments are ideal for salaried individuals with a stable income.

You can also go for a one-time, lump sum premium payment if you have some surplus funds lying unused. Alternatively, you can go for a limited pay option and pay off your premiums within the initial few policy years. Your life cover^ remains active for the entire term plan tenure.

Thus, if you are self-employed, with variable cash inflows, you can take advantage of such single pay or limited pay options and keep your loved ones financially protected against life’s uncertainties.

Life cover:

A term plan keeps your family secure from financial challenges if an unfortunate event occurs. It provides a life cover^ of your choice at affordable premiums. With this life cover^, your loved ones get an assured sum in case of an unwanted incident during the policy period. The payout can help your family avoid compromising with the lifestyle you want for them in your absence.

Retirement plans are financial policies that enable you to plan for the future, even when you no longer have a steady income. There are two types of plans:

Pension Plans: These investment plans allow you to systematically save money over the years so that you can enjoy a steady income once you retire. With a pension plan, you can maintain your financial independence, even when your income stops post retirement. Most importantly, a pension plan in India allows you to deal with inflation without compromising on your standard of living.

Annuity Plans: An annuity plan helps you secure your financial future with regular income payments for the rest of your life. With a pension policy, you have something called an accumulation phase. During this time, you put money into the policy periodically. When you choose to retire, you can purchase an annuity with these accumulated funds. The annuity then provides you with regular payments as per the terms and conditions of the plan you purchased. 

Depending on when you’d like to start receiving the annuity benefits, you can select between two types of annuity plans:

1. Immediate Annuity: Immediate annuity plans start providing payouts on a monthly basis right after you purchase the plan. These plans benefit individuals who have just retired and have a corpus to purchase the annuity plan.

2. Deferred Annuity: A deferred annuity plan, on the other hand, has an accumulation phase first. Individuals can purchase an annuity and put funds into it regularly. The amount gets invested by the insurance company to grow the corpus. You can then select a date to start receiving payouts from the accumulated corpus. Since the payments happen after a period of time, it’s known as a deferred annuity.

What are the Types of Child Insurance Plans?

Child insurance plans help parents accumulate money for their child's future by investing in different funds on their behalf. There are three types of child insurance plans as follows: 

Traditional Endowment Plan: The traditional investment plan extends insurance for a child's future by providing various bonuses. These bonuses are added to the sum assured of the term insurance at the end of the term of the policy. You can opt for a way to receive a bonus.

Child Unit Linked Insurance Plans: Child’s Unit linked insurance plans or ULIP provide triangulated advantages. These plans include insurance cover, investment in the equity market, and disciplined investment. This ensures that the nominee of the policy will receive the death benefit after the death of the policyholder and the maturity corpus will come after the maturity period. After the death of the insured parent future premiums are usually waived off. Some insurers allow policyholders to choose between their preferred investment funds. Some dynamic ULIP insurance plans invest in both equity as well as debt instruments

NRI Investment Plans in India offer a robust way for Non-Resident Indians to secure their financial future through diverse and strategic investments. These plans allow NRIs to take advantage of India's dynamic economy and higher interest rates, providing options like ULIPs, savings, and retirement plans. They cater to varied financial goals, from building a retirement corpus to ensuring family security, all while offering significant tax benefits and compliance with Indian investment regulations.

Every professional understands the importance of investing for a safe and secure future. Several Non-Resident Indians (NRIs) have chosen to build an investment portfolio in India since it has one of the fastest-growing economies in the world. Additionally, NRIs can diversify their portfolio and enjoy good returns and various tax benefits when they invest here. While investing, NRIs must follow the investment guidelines outlined by the Securities and Exchange Board of India (SEBI), the Foreign Exchange Management Act (FEMA), Insurance Regulatory and Development Authority of India (IRDAI), and the Reserve Bank of India (RBI).