In Maslow’s Hierarchy of Needs,’ safety and security come under the shelf of basic needs. If you don’t feel safe and secure, you fail to weave a rocky and lasting foundation for you or your loved ones.
Many youngsters and freshers who entered the working class think that work-life balance is the ultimatum in life, but only a chunk think about savings and return on investment (ROI).
This blog will give you a chance to introspect your own life. And help in paving the way for a more organized and crisis-managed life.
What is Life Insurance and how will it benefit me?
Happiness is staying with your loved ones and seeing them grow. But, life isn’t a bed of roses and is filled with unexpected happenings that could turn the tables for you. This is where life insurance comes into play. Life insurance is nothing but a safe boat that keeps your family protected even if you are not present.
Life insurance provides financial security for you and your loved ones. It assures that you and your loved ones are constantly financially supported.
Life insurance may be broadly classified into various forms, each of which is targeted to a certain set of needs such as – Term Insurance, Unit Linked Insurance Plans, Savings Plan, Retirement and Pension Plan, Endowment Plan, and many more.
This blog will guide you in picking the best by serving you with the top options in the insurance world and one of the best you could own is none other than a ‘Term Insurance Plan’.
Let us get down to dissect what term insurance is and what are the best ones that could hold up your family even in your absence.
What is a Term Insurance Plan?
Term insurance is an insurance policy covering you for a set amount of time or number of years. A death benefit will be paid if the insured dies during the period stated in the Policy and the Policy are active or in effect.
When compared to permanent life insurance, term insurance is substantially less expensive. Term insurance, unlike most other forms of insurance, has no financial value. In other words, the sole value is the Policy’s guaranteed death payment.
A term insurance policy’s advantages are not restricted to death compensation. Some insurance companies provide coverage for the policyholder’s permanent or partial incapacity. The cash insured might be obtained in a single sum or as a mix of lump sum and monthly payments.
If you believe a term plan may benefit you, the next step is to learn about India’s many types of term insurance plans.
Top Term Insurance Plans in India
You should always give your best whatever you do because your ROI won’t upset you when you give your 100%.
And if you, too, are stuck with a common dilemma of “Which Term Insurance should I buy in India?”
Then, we bring you the best term insurance plans one must consider based on their eligibility and the attached benefits.
The top term insurance plans to consider in India are as follows:
Aditya Birla Sun Life Insurance Life Shield Plan
This highly fruitful insurance come with:
- 8 Plan options to suit your different protection needs
- Joint Life Protection: You can use this benefit to club your wife. The relevant Sum Assured for your spouse will be equal to 50% of your applicable Sum Assured.
- Return of Premium option: This benefit says that the amount of all premiums paid will be repaid to you on the policy maturity date if you live to see the end of the policy term (depends upon the Option plan you opt).
- Inbuilt terminal illness benefit: It means, if you are diagnosed with a terminal disease during your selected policy term, 50% of the appropriate Sum Assured on Death, up to Rs. 2.5 crore will be paid immediately, and the remaining premiums on your Policy will be waived.
- Enhanced life stage protection: This benefit allows you to enhance your coverage upon the occurrence of each of the events (marriage and children) without having to pass any medical examination.
- Waiver of Premium: All future premiums will be waived if the life insured suffers from complete and permanent incapacity or severe illness during the policy period. The Policy’s death benefit will remain untouched.
Read more to know about other attached benefits to ABSLI Life Shield Plan.
ABSLI DigiShield Plan
This top-term insurance plan comes with 10 options that suit your varied protection needs based on age and other tangents.
If Almighty has manufactured for 100 years, this could seal the deal insurance moment for you. Some of the additional benefits attached to this typical insurance plan are as follows:
- Survival Benefit: This beneficial feature guarantees a monthly Survival Benefit of 0.12% of the Sum Assured is paid beginning with the first Policy Month Anniversary following the event and continuing for each Policy Month Anniversary until the end of the Policy Term or death the Life Insured, whichever comes first (read through your opted Option plan).
- Terminal Illness Benefit: If you are diagnosed with a terminal illness during the Policy Term, up to the age of 80, and the policy is still in existence, 50 percent of the relevant Payment Assured on Death, up to a maximum of Rs. 2 crores, will be paid as a lump sum and all future premiums would be annulled.
- Enhanced Life Stage Protection: If you choose this benefit at the start of your policy, you can choose to enhance your life cover (Sum Assured) in the case of any of the mentioned occurrences without having to undergo a new medical examination. It includes marriage, childbirth (two), and house loan.
- Death Benefit: The Death Benefit shall be given to the Nominee (s)/legal heir(s) as per the Plan Option chosen by the Policyholder in the event of the Life Insured’s untimely death within the Policy Term.
Read more to know the nitty-gritty about the ABSLI DigiShield Plan.
ABSLI Saral Jeevan Bima
Death Benefit: We shall pay the Death Benefit to the Nominee (s)/legal heir(s)/assignee as follows in the event of the Life Insured’s untimely death during the Waiting Period under an Inforce Policy:
- In the event of death due to causes other than an accident, the Death Benefit will be equivalent to 100% of all premiums paid, less any applicable taxes.
- Death Benefit will be equivalent to Sum Assured on Death in the event of an accident.
Whereas if the unfortunate demise of the Life Insured occurs post the expiry and during the Policy Term, We shall pay the Sum Assured on Death to the Nominee (s)/legal heir(s)/assignee as Death Benefit.
Sum Assured in the Event of Death
In the case of the Limited Pay and Regular Pay Policies, the highest of:
- Annualized premium multiplied by ten
- a total of 105% of all premiums paid up to the date of death
- Amount guaranteed to be paid in the event of death
Unfortunately, this term insurance plan is deficient in Maturity and Survival benefits.
Click here to read more by google searching ABSLI Saral Jeevan Bima Yojana.
SBI Life eShield
You can get this term life insurance if you’re between 18 and 70 (Level cover and level cover with accidental death benefit: 65 years; Increasing cover and increasing cover with accidental death benefit: 60 years).
SBI eShield provides four types of cover options, and they are –
- Level Cover
- Level Cover with Accidental Benefit
- Increasing Cover
- Increasing Cover with Accidental Benefit
If all premiums are paid on time while the insurance is in place, the death benefit will be paid. After the period, no survivor benefits are available.
And, in the Accidental death benefit, if the base sum assured is less than Rs. 50 lakhs, the accidental death benefit will be equivalent to that amount.
We have listed down the best four-term insurance plan you can avail yourself of right from the age you hit your adulthood. Parents won’t always be there to look after you, like they did their bit, do yours by securing your future.
Things to consider while buying a term insurance plan?
When you buy the right term insurance plan, it could help you mend your life in a better monetary manner (even in the hour of an unexpected crisis).
Therefore, while purchasing a term insurance plan, you should have some points, or else you would be creating a hole in your pocket. And, the points to consider are as follows:
- Do the eligibility and benefits meet your necessity?
- Look through the Policy duration and type.
- Look through the needed tangents such as – payout mode, the issuer details, and many more.
Buying a term insurance plan is like planting a seed. You won’t see an immediate result, but it shall indeed have an impactful and visible effect in terms of monetary help for oneself and family.
Have detailed research, take your time, understand your needs and finalize accordingly.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.