Term Insurance

What is Term Insurance Plan?

A Term Insurance Plan or Term Life Insurance is a financial coverage provided to the term policy holder for a specific time period. It is a financial backup provided to the policy holder's family in case of the insured person's untimely demise.

Term Insurance plans are one of the best ways to secure one's life and provide a financial independence to the loved ones of the insured individual. This policy is a need of the hour and can be easily purchased at lower premiums too. The premiums can be paid monthly, quarterly, semi-annually or annually as per the policy holder's convenience.

How can Term Insurance Plan Help?

Term insurance is one of the best ways to ensure financial stability for your loved ones in your presence or absence. It is a form of protection that everyone should have in this world of uncertainty.

The base plan is applicable for riders in case of critical illness or disability.
A lump sum amount is credited to the family of the term policy holder in case of mishap.
One can receive the benefits in the form of monthly income along with the lump sum amount.

Term Insurance Plans By ABSLI

Term Plan

ABSLI Life Shield Plan

Every family is different and so are their protection needs. One policy may not match all of them. Be it Joint life protection with your spouse, increasing or decreasing term assurance option, waiver of premium benefit in case of disability or disease or return of premium... KNOW MORE

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Term Plan

ABSLI Income Shield Plan

We all wish for the goodwill of our family and the people we love. To make sure they are taken care of in the most critical stages of life you need a plan. Designed for salaried professionals and entrepreneurs alike, Aditya Birla Sun Life Insurance Income Shield Plan provides the financial support needed to protect your... KNOW MORE

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Tax benefit:
Tax benefit might not be on your mind while insuring life but it is certainly an added bonus. The premiums and the payouts both offer tax benefits and exemptions as per the existing tax laws of section 80C and section 10(10D).
Affordability:
One can choose the desired life cover as per their needs. The premiums can be paid as per the term policy holder's ease. It can be paid monthly, quarterly or yearly.
Financial liability:
In case of the policy holder's death, the lump sum amount received by the family can be used to clear out the existing debts or loans.
Death benefit:
In case of the policy holder's death, the lump sum amount received by the family can be used to clear out the existing debts or loans.
Critical illness:
In case the policy holder is diagnosed with some critical illness he/ she can receive a lumpsum amount or receive a supplementary monthly income.

How Term Insurance Plan works?

Term plan in lucid language means securing/ protecting one's life by paying a fixed premium at a fixed frequency (annually, semi-annually, quarterly or monthly). Term insurance is the simplest form of life insurance product. It offers a big amount of cover at a minimum premium amount.

In case of a sudden natural or accidental death of the policy holder the cover is given to the nominee mentioned in the policy. It can either be given as a lump sum amount, monthly income amount or the two combined together as chosen by the insurer at the time of purchase.

The core purpose of opting for a term insurance is to provide financial independence to your family, be it in your presence or absence. Here are some important key factors that one needs to consider before finalizing on a term policy:

Policy Tenure:
One can choose the number of years he/she wants their life to be covered under the tenure. While choosing a term it is better to choose the one that would cover your retirement as it would provide additional benefits.
Claim settlement ratio:
The proportion explains the number of settlements that have been done per 100 claims. The higher the ratio better it is. ABSLI has a 97.15% claim settlement ratio.
Cover amount:
Generally the cover amount is decided as per the individual’s income and his/her existing debts/outstanding loans.
Term insurance premium:
Based on an individual’s age and lifestyle, one needs to pay a small premium amount to build the life cover. Hence, the premium amount differs from one policy holder to the other.
Inflation factor:
The rising price is one of the direct effects of inflation. In order to maintain your standard of living, it is wise to get a term insurance plan to secure your tomorrow.

A Term Insurance Plan covers all the needs that one might have at key milestones of their life. It is always best to be well aware about the features of your Term Insurance as it helps you to keep a close eye on every minute detail.

Policy Term:
The minimum eligibility age is 18 and maximum limit is 65 with additional benefits. As ones age increases the premium for the policy increases too. Hence, it is better to start early.
Age of entry:
The minimum policy term is 5 years and can vary from 10,15,20,25 years. It is always wise to opt for longer terms as it covers all the milestones and provides a financial aid in an hour of crisis.
Additional rider benefits:
Additional benefits such as critical illness or permanent disability are also available. These benefits can be added and the term plan can be customized by paying an additional premium amount. ABSLI offers:
- ABSLI Accidental Death Benefit Rider Plus
- ABSLI Accidental Death and Disability Rider
- ABSLI Critical Illness Rider
- ABSLI Surgical Care Rider
- ABSLI Hospital Care Rider
Premium payment term:
As per the policy holder’s convenience, he/she can choose the premium paying term. The term can be either single pay, limited pay or regular pay.