Term Insurance by Aditya Birla Sun Life Insurance


Term insurance is the most cost effective form of life insurance which offers you a substantial life cover at a nominal premium for a specific period chosen by you. A term insurance plan provides financial protection to the nominee in case the life insured dies during the policy term.

Why do you need a term insurance plan?


Term insurance plans are the only life insurance plans that are designed for the sole purpose of giving you large life cover (For e.g. A cover of Rs. 1 Crore) with ABSLI Life Shield Plan at a comparatively low premium (Rs. 10372 p.a. to be paid regularly) at the age 30 (male, non- smoker) for a policy term of 30 years and hence, helps in protecting your family’s financial needs & lifestyle in your absence.

Additionally, it has the below benefits-

  • Financially secures your family’s future in your absence
  • Reduces burden of liabilities on your family in your absence
  • Provides you tax benefits1 u/s 80C & 10 (10D)

Term Products

ABSLI Life Shield Plan

A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V04

  • Choice of 8 plan options
  • Cover your spouse under the same policy
  • Longer Life cover till age 85

ABSLI DigiShield Plan

PROTECTING multiple life needs with one plan is now possible. UIN 109N108V05

  • 10 Plan Options to suit your varied protection needs
  • Flexible death benefit pay-out options
  • Life insurance cover for 1 year or till age 100 yrs

ABSLI Saral Jeevan Bima

A simple plan to protect your family’s financial future (UIN 109N128V01)

  • Simple & affordable plan
  • Flexible premium paying terms
  • Enhance insurance cover with rider

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Benefits of the Term Plan

Financial security to the family

It provides financial protection to the family in case of the unfortunate death of the insured, who might be the sole breadwinner of the family. The sum received from his/her life insurance policy helps to take care of the family’s household expenses, loan liabilities and secure the future financial goals.

High life cover at lower premiums

It offers high value life cover at affordable premium amount. For eg. ABSLI Life Shield Plan offers a 30 year old male, non-smoker a life cover of Rs. 1 Crore for a premium of just Rs. 933.5 per month to be paid regularly for a policy term of 30 years. Additionally, the premiums are lower when you buy it at a young age.

Longer Life Cover

Term insurance plans offer substantially longer coverage. ABSLI Life Shield Plan offers life cover up to age 85years

Flexibility to choose pay-out options

With the term plans, you have the flexibility of choosing the payout options. The payout of sum assured on the death of life insured can be in the form of lumpsum or as an income that is either monthly or annual.

This helps the family manage regular expenses and other financial needs in the absence of the life insured.

Helps to take care of the liabilities

If you have been prudent in choosing an adequate life cover, a term insurance plan arms your dependents to pay off the liabilities like home loan, car loan, education loan, etc with the claim amount received.

The simplicity of Term Plans

Term life insurance plans are the purest form of insurance and are extremely simple to understand. There is no investment component in these plans.

Tax Benefits

Premiums paid towards a term plan qualify for deduction under Sec 80C of the Income Tax Act, 19611 upto a maximum of Rs. 1.5 lakh. Also, claim amount received from the termpolicy (on death) is exempted fromtax under Sec10(10D) of the Income Tax Act, 19611.

Human Life Value Calculator

Know how much life cover you would need to secure your family’s future

Tips to choose the best term plan

  • Premium Payment term

    Look out for a plan that provides you flexibility in choosing the payment term. For example, you may decide to pay premium in lumpsum amount or in monthly/yearly instalments

  • Premium you are required to pay

    Do evaluate a term plan from a company who has a legacy of trust and then identify the maximum coverage that you can get at an affordable cost

  • Insurer’s solvency ratio

    As per IRDAI, every life insurance provider should have a solvency ratio of 1.5, which tells if the company will be financially capable of settling your claim, should such a requirement arise.

  • Additional coverage (riders) being offered

    These are helpful additional features that you can check out like include waiver of premium, accidental death benefits, etc.

  • Features offered by the plan

    Some important features to look out for will be flexibility in enhancing the cover as per your need, covers critical illnesses or covers all your protection needs.

  • Insurer’s claim settlement ratio

    The higher and more consistent the claim settlement ratio, the quicker and more robust is the company in its claim settlement process.

Riders

  • ABSLI Accidental Death Benefit Rider Plus (UIN: 109B023V02)

    Get additional protection for accident leading to death at a nominal cost.

  • ABSLI Accidental Death and Disability Rider (UIN: 109B018V03)

    Get additional protection for accident leading to death or disability at a nominal cost.

  • ABSLI Critical Illness Rider (UIN: 109B019VO3)

    Get benefit amount as a lumpsum upon diagnosis of any of the 4 specified critical illnesses.

  • ABSLI Hospital Care Rider (UIN: 109B016V03)

    Get daily cash benefit, additional ICU benefit and lumpsum recuperating benefit upon hospitalization

  • ABSLI Surgical Care Rider (UIN: 109B015V03)

    Get lump sum benefit amount to cover surgical expenses

  • ABSLI Waiver of Premium Rider (UIN: 109B017V02)

    All future premiums waived in case of permanent disability, death or 4 specified major illness

FAQs

  • At what age can you purchase a term insurance plan?

    You can buy a term insurance plan anytime between 18 years to 65 years of age. As one’s age increases, the premium for the policy increases too. Hence, it is better to start early and in good health.

  • How can you buy term insurance?

    Buying a term insurance plan is very easy. You can buy it online or offline. If you wish to buy term insurance online:

    •    Go to the website of your chosen insurance provider. Select the plan that meet your requirements.
    •    Fill up personal details such as name, gender, date of birth, policy term, smoking habit, city of residence, sum assured, mobile number, email id, etc
    •    The insurer would generate a quote based on the details which will let you know about the monthly/annual premium to be paid to get the term cover
    •    If you are satisfied with the quote, you would need to provide additional details such as nominee’s name, health and employment details, among others
    •    Make payment online through any of the digital payment modes
    •    Upload scanned copy of KYC documents and others as required
    •    The soft copy of the insurance policy will be mailed to your registered email id

    In case you get stuck, you can call the customer care who will provide the necessary assistance. Also, most insurers have chatbots on their website to guide you with the entire process.

    On the other hand, if you wish to buy term insurance offline, you can do so from an insurance advisor. Fill up the proposal form and submit the relevant documents. Whether you buy term insurance online or offline, make sure to provide accurate details, particularly related to your health. Hiding information may lead to a claim rejection.

    Also, before policy issuance, you may need to undergo a medical examination. Insurers do so for better risk assessment. Make sure not to skip it as it may reveal conditions that you aren’t aware of.

  • Why buy term insurance online?

    Buying a term insurance plan online can be a cost effective and smarter way to buy insurance as it saves not only your time, but your money too.
  • Do term insurance plans offer any tax benefits?

    Yes, the premiums paid for the term plan as well as the pay-out received offer tax benefits. The premium that you pay for any life cover policy is eligible for deduction under section 80C of the Income Tax Act, 1961 up to a maximum of Rs 1,50,000. Moreover, the claim amount received from the life insurance policy (in the event of death) is exempted from the income tax under section 10(10D) of the Income Tax Act, 1961.1

    1Tax benefits are subjected to changes in tax laws. You are advised to consult your tax advisor for the same

  • Does term insurance expire?

    The term plans do not expire till the end of the policy term or if the claim is received, whichever comes earlier. However, to keep the existing policy in force, one must continue to pay premiums regularly.

  • How is the premium for a term policy arrived at?

    Premium for a term plan depends on multiple factors including your age, gender, occupation and lifestyle habits, among others. Note that premium increases with age, and therefore it’s advisable to buy a term policy when you are young and healthy. Online term insurance calculators are available which help you compute the applicable premium.

  • Is your company cover enough? Do you need a term plan?

    The coverage that you get from the company may not be enough to meet the financial needs of the entire family in your absence. Also, one loses the life coverage in case of a job change or job loss. Calculate the ideal cover and then take additional cover to financially secure your loved ones.

    For example, if the cover provided by your employer is Rs 10 Lakh, that may not be enough to keep your family secure for even a year. Hence, you may need to buy 75-80 % of your life insurance coverage personally through a term plan and ensure you & your family are covered under all conditions.

  • How will my loved ones get the term money?

    Talk to your parents and partner about the term insurance plan you have taken and how it benefits them. More importantly, describe the claim settlement process and how they must file the term plan claim when the time comes. One of your family members would have to intimate the insurance company about your death through a sales officer by providing them with a written intimation & a copy of the death certificate issued by the concerned government organisation. Keep the insurance documents in a safe place that these family members can access when needed.

  • How long should be the term plan?

    The policy term offered by most of the term insurance plans ranges between 10 to 55 years. One must opt for the term of a policy according to his/her retirement age. The retirement age would differ from person to person basis the occupation. If a person purchases term insurance plan till age 60 years, then by that age most of his/her liabilities & responsibilities are cleared. You need term insurance to secure your family's lifestyle, until your dependents become financially independent. That means in your absence, they are still able to afford the rent, school / college fees, pay off the loans, and live a comfortable life.

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1Tax benefits are subjected to changes in tax laws. You are advised to consult your tax advisor for the same

Disclaimer

For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding the sales

ADV/9/20-21/1042

Need help with life insurance?

+91
I agree to the Terms of Usage and Privacy Policy and authorize Aditya Birla Sun Life Insurance Company Limited and its associates to call/SMS/Email/WhatsApp me.

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

1800-270-7000 or reach out to us on this number.

Thank you for your details. Currently we are facing issue in our system.

1800-270-7000 or reach out to us on this number.