What is Term Insurance?

Date 07 Jul 2021
Time 5 mins
2
Rated by 1 readers
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg

Get Guaranteed Returns After a Month^

Unlock the Power of Smart Investment!

*Min 3 characters
+91
*Please enter a valid 10 digit Mobile No.
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg
/Assets/Project/ABCL/images/Icon-Filled.svg

I agree to the Terms of Usage and Privacy Policy. By submitting my contact details here, I override my NDNC registration and authorize ABSLI to contact me by phone/e-mail/SMS/WhatsApp. Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license. BEWARE OF SPURIOUS / FRAUD PHONE CALLS! IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint. ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V05)

/Assets/Project/ABCL/images/Icon-Filled.svg

Thank you

for your details.

We will reach out to you shortly.

Term insurance, or temporary insurance as it is also known, provides coverage for a specific term. In case of any unfortunate event during this term, the person who is nominated for the receipt of fund also known as the nominee receives the sum for which the insured is covered. The policy expires at the end of the term.

Term life insurance is the simplest type of insurance. The money you pay as premiums does not go towards any kind of investment, but is used for providing cover. Only a small amount is deducted to cover the insurance company's costs. Hence, it is also the least expensive type of insurance.

Say you buy a term insurance plan for a sum assured of Rs 20 lakh for 10 years. You will have to pay a small amount annually as the premium. In case of an unfortunate event during these 10 years, your nominee will receive Rs 20 lakh. However, in case you outlive this tenure, the life insurance policy will expire. You will hence not receive any return on the premiums paid over the 10 years.

Why term insurance?

It is important to ensure that your loved ones are taken care of in case of an unfortunate event. Buying a term life insurance policy is one of the simplest and least expensive methods of doing this.

Paying for term insurance also has some tax benefits. Premium of up to Rs 1,00,000 is deductable from your taxable income under Section 80C of the Income Tax Act, 1961

Quick Facts

  • Term insurance provides coverage for a specific term

  • It is an easy and affordable way of ensuring the financial security of your loved ones

  • In case of an unfortunate event, your nominee gets the amount of coverage

  • The policy expires at the end of the selected tenure

How much helpful you found this article?
Star
2
Rated by 1 readers
2 / 5 ( 1 reviews )
Not Helpful
Somewhat Helpful
Helpful
Good
Best
Rating

Thank you for your feedback

Don't forget to share helpful information in your circle

About Author

Author

Thank you for your details. We will reach out to you shortly.

Thank you for your details. We will reach out to you shortly.

Buy ₹ 1 Cr Term Cover @Rs.492/month
for Salaried Individuals¹
*Min 3 characters
+91 phone
*Please enter a valid 10 digit Mobile No.
*This field is required.
Buy ₹1 Crore Term Cover @ @Rs.492/month for Salaried Individuals¹
ABSLI Salaried Term Plan
Exclusively For Salaried Individuals
4 Plan Options
Life Cover upto 70 years
Optional Accelerated Critical Illness benefit
Inbuilt Terminal Illness Benefit
Life Cover
₹1 crore
Premium:
₹492/month¹
  • Disclaimer

    ABSLI Salaried Term Plan (UIN:109N141V01) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
    1LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Annual Premium: ₹ 5900/- ( which is ₹ 491.66/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.

Subscribe to our Newsletter

Get the latest product updates, company news, and special offers delivered right to your inbox

Thank you for Subscribing

Stay connected for tips on insurance and investments

*Please enter a valid Email.