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Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
Why Should You Buy a Term Insurance Plan?
Purchasing a term insurance plan is one of the most responsible financial decisions you can make. In a world of uncertainties, this small investment can make a world of difference when it matters most. Here’s why a term plan life insurance is important:
Financial Security for Your Family:
A term insurance plan acts as a financial safety net, ensuring that your family can maintain their standard of living and meet their long-term goals in your absence. Whether it’s funding your child’s education, supporting a family member’s marriage, or covering daily household expenses, the payout from a term plan provides much-needed financial stability. This protection ensures your loved ones won’t face undue financial hardship during difficult times.
Affordable Premiums:
Term insurance plans are one of the most cost-effective ways to secure high coverage. They offer significantly lower premiums compared to traditional life insurance policies such as endowment or whole life plans. This affordability means that even young professionals or those with tight budgets can enjoy robust financial protection without compromising other financial priorities. By purchasing a term plan early in life, you can lock in lower premium rates and save more in the long run.
Debt Protection:
In addition to securing your family’s daily needs, term insurance plays a vital role in protecting them from financial liabilities. The payout can help clear outstanding loans such as a home loan, car loan, or personal debt, ensuring that your family isn’t left burdened with repayments. This debt protection is particularly important for individuals with significant financial obligations, as it prevents creditors from placing additional stress on your loved ones.
Critical Illness Coverage:
Modern term insurance plans often include optional add-ons, such as critical illness riders, that provide financial support during medical emergencies. These riders offer a lump-sum payout upon the diagnosis of critical illnesses such as cancer, heart disease, or kidney failure. This payout can help cover treatment costs, hospitalisation expenses, and other medical bills, easing the financial strain on your family during challenging times.
Tax Benefits*:
One of the significant advantages of term insurance is its tax efficiency. The premiums you pay are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to the maximum limit. Additionally, the death benefit received by your nominee is generally exempt from taxes under Section 10(10D)**. These benefits make term insurance a dual-purpose solution, offering both financial protection and tax savings.
Peace of Mind:
Beyond the tangible financial benefits, a term insurance plan brings peace of mind. Knowing that your family’s future is secured allows you to focus on your career, personal growth, and life goals without constant worry about unforeseen events. This sense of security is invaluable, giving you the confidence to take on life’s challenges knowing your loved ones are protected.
By investing in a term insurance plan, you’re taking a proactive step towards safeguarding your family’s financial independence, even in uncertain times.
Who Should Buy Term Insurance?
A Term Insurance Plan is suitable for anyone who wants to secure their family’s financial future. Here’s who should consider buying one:
Sole Breadwinners:
If you are the primary income earner in your family, securing a term insurance plan is essential. Your income supports household expenses, children’s education, and even long-term goals like buying a home or planning for retirement. In your absence, the payout from the term life insurance plans acts as a financial lifeline for your family, helping them maintain their standard of living and fulfil their dreams without falling into financial distress.
Young Professionals:
For young professionals just starting their careers, buying a term insurance plan early is a smart move. Early investment allows you to secure higher coverage at significantly lower premiums due to your age and relatively better health. It also helps build a strong financial foundation, ensuring that your family is protected right from the start of your professional journey. Moreover, starting early means you can enjoy long-term financial security while focusing on building wealth.
Parents:
Parents often carry the responsibility of securing their children’s future. A term insurance plan ensures that your children’s education, extracurricular activities, and other life goals remain unaffected by financial constraints, even in your absence. The policy payout can also support long-term aspirations, such as higher education abroad or funding their entrepreneurial ventures, providing peace of mind that their dreams won’t be compromised.
Individuals with Loans or Debts:
For those with financial obligations like home loans, car loans, or credit card debts, a term insurance plan is crucial. The policy ensures that your outstanding debts are cleared, preventing your family from bearing the burden of repayments. This is particularly important for high-value loans, as it protects your family’s assets and prevents financial institutions from seizing properties or other possessions in the event of non-payment.
Stay-at-Home Spouses:
While stay-at-home spouses may not contribute an income, their role is invaluable in managing the household and supporting the family. A term insurance plan for homemakers can provide financial security in case of their demise, covering additional support expenses such as childcare, domestic help, or other essential services. It ensures the family can maintain stability and continuity during a difficult time.
Business Owners:
For entrepreneurs and business owners, a term insurance plan offers dual protection. It ensures that any business-related debts or liabilities are cleared, safeguarding your family from financial repercussions. Additionally, it protects your business partners by providing the necessary funds to maintain business operations or buy out your share, ensuring the continuity of your business even in your absence.
In essence, term insurance is for anyone who values financial security and wants to leave behind a legacy of stability for their loved ones. Whether you’re a sole breadwinner, a young professional, a parent, or a business owner, a term insurance plan provides a safety net that ensures your family’s future remains secure even when life takes an unexpected turn.
Term Insurance Plans
ABSLI Super Term Plan
Term plan designed for salaried individual.
Instant Payment on Claim
100% return of premium
Special 10% Discount on First-Year Premium for Salaried Customers and Female Lives
Health Management Services Worth
₹ 74000
Life Cover
₹1 crorePremium:
₹575/month3
ABSLI Income Suraksha Plan
Flexible term plan designed to live worry free.
2 plan options
Life cover upto 70 years
Flexibility to opt for Limited or Regular Premium Payment Term
Increasing Income Protection Option
Sum Assured
₹1.20 crPremium:
₹ 21.72 k/year for 10 years4How Does a Term Plan Work?
Term Insurance works on a simple and straightforward principle of financial protection. Here’s how it functions:
Choose the Plan :
The first step in purchasing the best term life insurance is selecting a policy that aligns with your financial needs and long-term goals. You decide on the coverage amount, also known as the sum assured, which should be sufficient to meet your family’s expenses, including daily needs, outstanding debts, and future aspirations. You also choose the policy term, which is the duration for which the insurance coverage will be active. Most people opt for a term that matches their working years or until major financial responsibilities, such as paying off a home loan, are completed.
Pay Premiums :
Once you choose the plan, you start paying premiums to keep the policy active. Premium payment options are flexible, allowing you to pay monthly, quarterly, half-yearly, yearly, or even as a single lump sum payment, depending on your preference. Premium amounts depend on factors like your age, health, sum assured, policy term, and any additional riders you select. Paying premiums on time is crucial to ensure that your coverage remains active and your loved ones are protected.
Coverage Period :
The coverage period is the duration during which the insurer provides financial protection. If you pass away during this policy term, your nominee becomes eligible to receive the sum assured as a death benefit. This payout helps your family meet financial obligations, maintain their standard of living, and achieve long-term goals, even in your absence.
Death Benefit Payout :
The death benefit, also called the sum assured, is paid to your nominee as per the payout option you selected while purchasing the policy. You can opt for:
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Lump Sum: The entire sum assured is paid as a one-time amount, offering immediate financial support.
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Monthly Income: The payout is distributed as regular monthly income, ensuring a steady flow of funds for ongoing expenses.
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Combination: Part of the sum assured is paid as a lump sum, and the rest is distributed as monthly income, balancing immediate and long-term needs.
This flexibility ensures that your family’s financial requirements are met effectively, based on their specific situation.
No Maturity Benefit :
Unlike other life insurance plans, term insurance does not offer a maturity benefit if you survive the policy term. However, some plans provide an optional Return of Premium (ROP) feature, where all the premiums you paid are refunded at the end of the policy term. While this feature adds to the premium cost, it appeals to those who want some returns on their investment if no claims are made during the policy term.
A term plan ensures that your loved ones are financially supported in your absence, covering essential needs like household expenses, children’s education, and outstanding liabilities. It’s a cost-effective way to secure their future while you focus on living worry-free.
Features Of A Term Insurance Policy
Term insurance combines affordability, flexibility, and comprehensive protection, making it a reliable choice for securing your family’s financial future. By understanding its features, you can select a plan that best fits your needs and provides peace of mind for you and your loved ones. Some of the features of term insurance policies are:
High Sum Assured at Low Cost:
Term insurance plans are known for providing substantial life coverage at a minimal cost. This affordability makes them an ideal choice for individuals seeking financial protection without stretching their budget. For example, with a nominal premium, you can secure a sum assured that is 10-20 times your annual income, ensuring your family’s financial needs are met in your absence. This cost-effective nature makes term plans accessible to a wide audience, including young professionals and families.
Flexible Policy Terms:
Term insurance offers the flexibility to choose a policy term that suits your financial goals and responsibilities. You can opt for coverage ranging from 10 to 40 years or select a policy that extends until a specific age, such as 60, 70, or even 80 years. This flexibility allows you to align your insurance coverage with key milestones like paying off a home loan, funding your child’s education, or ensuring retirement security for your spouse.
Customisable Add-Ons (Riders):
Enhancing your term insurance policy with riders allows you to create a comprehensive protection plan tailored to your specific needs. Riders such as critical illness cover provide financial support during severe medical conditions, while an accidental death benefit ensures additional payout in case of accidental demise. The waiver of premium rider continues your policy coverage without requiring premium payments in case of disability or critical illness. With options like income benefit riders, you can ensure a steady monthly income for your family, offering them added financial stability.
Tax Advantages:
Term insurance policies come with significant tax benefits. The premiums you pay are eligible for deductions under Section 80C of the Income Tax Act, 1961, allowing you to save on your taxable income. Additionally, the death benefit received by your nominee is exempt from taxes under Section 10(10D)**, ensuring your family gets the full financial benefit without deductions. These tax advantages make term insurance not only a protective measure but also a tax-efficient financial tool.
Flexible Payout Options:
To cater to different family needs, term insurance policies offer multiple payout options for the death benefit. You can choose:
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Lump Sum: A one-time payout to address immediate financial obligations such as clearing debts, paying medical bills, or funding major expenses.
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Monthly Income: A regular income stream to cover ongoing household expenses and maintain your family’s standard of living.
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Combination of Both: A mix of lump sum and regular income, providing immediate funds while ensuring long-term financial stability. This flexibility helps customise the financial support your family receives, based on their requirements.
No Savings Component:
Unlike traditional life insurance plans, term insurance focuses purely on protection without a savings or investment component. This simplicity ensures that the entire premium goes towards providing life cover, making it more affordable and straightforward. For those who prioritise cost-effective financial protection over wealth creation, term insurance is the ideal choice.
Coverage for Critical Illness:
Many term insurance plans now include inbuilt or optional coverage for critical illnesses. This feature provides a lump-sum payout upon the diagnosis of specified illnesses like cancer, heart attack, or kidney failure. The payout helps cover treatment costs, manage household expenses during recovery, or replace lost income, ensuring you and your family are financially secure during health crises.
Conversion and Renewal Options:
Certain term insurance policies offer conversion options, allowing you to switch your term plan into another type of policy, such as a whole life plan or endowment plan, based on your evolving needs. Additionally, some policies provide renewal options, enabling you to extend coverage at the end of the term. These features offer added flexibility, ensuring your policy remains relevant to your changing life stages and goals.
No Medical Check-Ups for Specific Policies:
For individuals concerned about undergoing extensive medical tests, some term insurance plans offer coverage without requiring medical check-ups. These policies are particularly beneficial for younger applicants or those opting for lower coverage amounts, making the application process faster and hassle-free.
Global Coverage:
Most term insurance plans provide worldwide coverage, ensuring your loved ones are financially protected no matter where you are. Whether you travel frequently or reside abroad, the policy remains active, giving you peace of mind that your family will be supported in case of an unforeseen event.
These features ensure that a term insurance policy provides the financial protection and flexibility needed to secure your family’s future against uncertainties.
Benefits of Buying Term Insurance from ABSLI
Choosing a term insurance plan from Aditya Birla Sun Life Insurance (ABSLI) offers unique advantages that ensure comprehensive coverage and peace of mind:
High Coverage at Affordable Premiums :
Aditya Birla Sun Life Insurance (ABSLI) stands out by offering extensive life insurance coverage at competitive premiums. This means you can secure a high sum assured for your family without putting undue pressure on your budget. The affordable premiums ensure that individuals across income brackets can access financial protection, making it an ideal choice for those looking for cost-effective insurance solutions.
Customisable Plans :
ABSLI understands that every individual’s needs are unique. That’s why their term insurance plans are customisable with a range of add-ons and riders. You can enhance your policy with options like critical illness cover to protect against life-threatening health conditions, accidental death benefit to provide additional coverage in case of accidental demise, or waiver of premium to ensure the policy continues without premium payments in case of disability. These features allow you to tailor the plan to suit your specific lifestyle, financial responsibilities, and future goals.
Flexible Premium Payment Options :
Flexibility is a key feature of ABSLI term insurance plans. You can choose from multiple premium payment modes, such as monthly, quarterly, half-yearly, yearly, or even a one-time single premium payment. This flexibility ensures that the payment schedule aligns with your financial situation, making it convenient to keep your policy active without disrupting your cash flow.
Multiple Death Benefit Payout Options :
ABSLI provides flexibility in how the death benefit is paid to your nominee. You can choose from options such as:
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Lump Sum: A one-time payout to address immediate financial needs, such as paying off debts or funding major expenses.
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Regular Income: A steady income stream to cover day-to-day expenses, providing financial stability over time.
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Combination: A blend of lump sum and regular income to strike a balance between immediate and ongoing financial support. These options ensure your family’s financial needs are met in the most suitable manner, giving them the security they need during challenging times.
Critical Illness Coverage :
Health emergencies can have a significant financial impact. ABSLI term plans allow you to include critical illness riders, which provide a lump-sum payout upon diagnosis of specified life-threatening illnesses like cancer, heart attack, or kidney failure. This benefit helps cover medical expenses, treatment costs, and even lost income during recovery, offering you and your family financial relief during difficult times.
Tax Benefits* :
ABSLI term insurance plans offer substantial tax advantages. The premiums you pay are eligible for deductions under Section 80C of the Income Tax Act, 1961, reducing your taxable income. Additionally, the death benefit received by your family is generally exempt from taxes under Section 10(10D)**, ensuring they receive the full benefit without any deductions. These tax savings make term insurance a financially efficient way to secure your family’s future.
Trusted Brand Assurance :
As a trusted name in the insurance industry, ABSLI brings decades of expertise and a customer-first approach to its offerings. Their transparent policies, prompt claim settlements, and dedicated customer support ensure reliability and peace of mind. Choosing ABSLI means partnering with a brand that prioritises your family’s financial security.
Digital Ease :
ABSLI makes the insurance process seamless with its digital-first approach. From comparing plans and applying for policies to paying premiums and filing claims, every step can be completed online. This convenience saves time and effort, allowing you to manage your insurance needs from the comfort of your home.
With ABSLI, you’re not just buying a term insurance plan; you’re investing in your family’s financial security with a trusted partner. The combination of affordability, customisation, and ease of access makes ABSLI term insurance plans a comprehensive solution for modern financial protection.
Why choose ABSLI Term life insurance plan?
Choosing a term life insurance plan from Aditya Birla Sun Life Insurance (ABSLI) offers several compelling benefits that ensure comprehensive financial protection for your loved ones:
Diverse Plan Options:
ABSLI offers a range of term insurance plans tailored to meet the unique needs of individuals and families. For example, the ABSLI DigiShield Plan provides flexible coverage options, allowing you to choose the ideal policy that aligns with your financial goals and lifestyle. These diverse offerings cater to various scenarios, ensuring that whether you’re a young professional, a parent, or a business owner, there’s a plan that fits your requirements perfectly.
High Coverage at Affordable Premiums:
One of the standout benefits of ABSLI term insurance plans is their ability to provide substantial life cover at competitive premiums. You can secure financial stability for your family without straining your budget, making these plans accessible to individuals across different income levels. By opting for ABSLI, you ensure maximum protection at a cost-effective rate, offering peace of mind and value for money.
Flexible Payout Options:
ABSLI understands that every family’s financial needs are different, which is why it offers multiple payout options:
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Lump-Sum Payment: Ideal for covering immediate expenses like clearing debts or funding major life goals.
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Staggered Payments with Fixed Annual Income: Provides a steady income stream, ensuring your family’s daily needs are met over time.
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Staggered Payments with Increasing Annual Income: Offers a growing income stream to keep pace with inflation and rising expenses. These options enable you to tailor the death benefit payout structure based on your family’s financial preferences and requirements.
Comprehensive Rider Options:
ABSLI allows you to enhance your policy with a variety of optional riders, adding an extra layer of financial protection. These include:
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Accidental Death and Disability Rider: Offers additional benefits in case of accidental death or permanent disability.
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Critical Illness Rider: Provides a lump-sum payout upon diagnosis of specified critical illnesses like cancer or heart attack.
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Surgical Care and Hospital Care Riders: Cover hospitalisation and surgical expenses, reducing the financial burden during medical emergencies. These riders ensure that your policy is robust, addressing multiple risks and providing comprehensive coverage for life’s uncertainties.
Joint Life Protection:
Certain ABSLI term plans offer the option of joint life coverage, allowing you to insure both yourself and your spouse under a single policy. This feature ensures comprehensive family protection, offering financial security to both partners and reducing the need for multiple policies. It’s a convenient and cost-effective way to safeguard your family’s future.
Return of Premium Option:
For individuals who prefer to combine protection with savings, ABSLI offers term plans with a return of premium (ROP) feature. If you outlive the policy term, the insurer refunds all the premiums you’ve paid. This option provides the dual benefit of financial protection during the policy term and savings at the end, making it an attractive choice for many policyholders.
Enhanced Life Stage Protection:
Life responsibilities evolve over time, and so should your insurance coverage. ABSLI term plans include the option for Enhanced Life Stage Protection, allowing you to increase your life cover at significant milestones like marriage or the birth of a child. This feature ensures that your policy grows with your responsibilities, providing adequate protection for your loved ones at every stage of life.
*Tax Benefits:**
ABSLI term insurance plans also offer substantial tax savings.
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Section 80C: Premiums paid towards the policy are eligible for deductions up to ₹1.5 lakh annually, reducing your taxable income.
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Section 10(10D):** The death benefit paid to your nominee is generally tax-exempt, ensuring your family receives the full financial benefit without deductions.
These tax benefits make ABSLI term insurance a financially prudent choice, combining protection with significant tax savings.
By choosing an buy term life insurance plan from ABSLI, you ensure a robust financial safety net for your family, tailoured to your specific needs and life stages. You can buy term insurance online or through offline means. So what are you waiting for? Get your term insurance quote and buy term plan online today!
Term Insurance FAQs
An accelerated death benefit rider in term insurance allows the policyholder to receive a portion of the death benefit while still alive if diagnosed with a terminal illness. This can provide financial relief for medical expenses or other needs during a difficult time. The amount received is typically deducted from the death benefit that will be paid out to the beneficiaries upon the policyholder's death.
Yes, the premiums paid towards term insurance are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakhs. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D)****, subject to certain conditions.
The best time to buy a term insurance plan is as early as possible. Premiums are lower when you are young and healthy. Starting early also ensures longer coverage and can provide financial security for your family when they need it the most. It's advisable to buy term insurance when you start earning or have financial dependents.
A medical exam is not always required to obtain term insurance. Some insurance companies offer "simplified issue" or "guaranteed# issue" term insurance policies that do not require a medical exam. However, these policies may have higher premiums or lower coverage amounts compared to policies that do require a medical exam. For traditional term insurance policies, a medical exam is often required to assess the applicant's health and determine the premium rate.
Your term insurance premium is calculated based on several factors including your age, health condition, lifestyle (such as smoking status), the sum assured you opt for, the policy term, and any additional riders you choose. Younger, healthier individuals typically pay lower premiums. High-risk factors, like smoking or pre-existing health conditions, may increase the premium.
Yes, buying term insurance is a wise decision for most people. It offers high coverage at affordable premiums, ensuring financial security for your family at a minimal cost. Moreover, it provides peace of mind knowing your loved ones will be financially taken care of in case something happens to you.
While there's no statutory time limit for filing a death claim, it's advisable to do so as soon as possible after the policyholder's death. Delay in filing a claim could complicate the process, requiring additional documents or investigations. Early intimation helps in smoother and faster claim processing. Insurers usually provide a grace period for late filing, but the terms and conditions vary, so it's best to check with the specific insurer.
The grace period is the time allowed after the due date of a premium payment, during which the policy remains in force, and the policyholder can pay the premium without any penalty. The grace period is typically 15 to 30 days, depending on the insurer and the policy terms. If the premium is not paid within the grace period, the policy may lapse.
Many term insurance plans offer the flexibility to increase the coverage amount during certain life stages, such as marriage or the birth of a child, without the need for medical examination. However, this feature varies by insurer and plan, so it's important to check the specific terms of your policy.
Smokers are considered higher-risk individuals due to the increased likelihood of health issues and shorter life expectancy. This results in higher premiums to account for the additional risk
Smoking is considered a health risk, and smokers generally pay higher premiums for term insurance compared to non-smokers. Insurers categorize smokers as higher risk because of the increased likelihood of health issues and a shorter life expectancy, which increases the likelihood of a claim being made during the term of the policy.
Common exclusions include death due to suicide within the first year of the policy, death caused by involvement in illegal activities, substance abuse, and certain pre-existing health conditions not disclosed at the time of policy purchase. Policies may also exclude deaths due to certain risky activities unless specifically covered.
If the nominee is unaware of the term insurance policy, they might not claim the death benefit. It's important for policyholders to inform their nominees about the policy, its details, and where the documents are stored. However, if the insurer finds out about the death of a policyholder, they are obligated to reach out to the nominee if possible, but this depends on the insurer having up-to-date contact information.
The claim settlement ratio is the percentage of insurance claims that an insurer has settled compared to the total number of claims received in a particular period. It is an important indicator of the insurer's reliability and efficiency in settling claims. A higher claim settlement ratio suggests that the insurer is more likely to pay out claims, making it a crucial factor to consider when choosing a term insurance provider.
The nominee should inform the insurance company as soon as possible after the policyholder's death. They will need to submit a claim form, along with the policy document, death certificate, and any other documents the insurer requires, such as a post-mortem report if applicable. The insurer will review the claim and, if approved, disburse the death benefit to the nominee.
The time taken to process a term insurance claim can vary by insurer, but as per regulatory guidelines, insurers are typically required to settle or reject a claim within 30 days of receiving all necessary documents. In cases where an investigation is needed, this period may be extended but usually does not exceed 90 days from the date of claim intimation.
Yes, you can buy multiple term insurance policies based on your coverage needs. People often buy additional policies to increase coverage due to changes in income, financial liabilities, or family size. Each policy's premium will be based on your age, health, and coverage amount at the time of purchase.
The underwriting process for term insurance can vary depending on the insurance company and the complexity of the applicant's health and financial situation. On average, it can take anywhere from a few days to several weeks. Simplified issue policies may have a quicker underwriting process, while policies that require a medical exam and more detailed underwriting may take longer.
Yes, a claim can be rejected if the policyholder failed to disclose significant medical conditions or lifestyle habits (like smoking) at the time of policy purchase. Insurers consider this non-disclosure or misrepresentation of facts, which can affect the policy's validity. It's crucial to provide accurate and complete information during the application process to avoid issues during claim settlement.
Term insurance can be cancelled by the insurer if the policyholder fails to pay the premiums within the grace period, or if there was fraud or misrepresentation on the application. However, as long as premiums are paid on time and all information provided is accurate, the insurer cannot cancel the policy before the end of the term.
Yes, you can purchase term insurance for your business partners. This is commonly done through a buy-sell agreement, where each partner takes out a term insurance policy on the other partners. In the event of a partner's death, the death benefit can be used to buy out the deceased partner's share of the business, ensuring continuity and financial stability.
If your term insurance needs change, you should contact your insurance provider to discuss your options. Depending on your policy, you may be able to increase or decrease your coverage amount, add or remove riders, or convert your term policy into a permanent policy. It's important to regularly review your insurance coverage to ensure it aligns with your current financial situation and future goals.
Yes, non-working spouses can obtain term insurance. Insurers recognize the economic value of the contributions made by non-working spouses, such as homemaking and caregiving, and offer term insurance policies to provide financial protection for their families in the event of their untimely death. The coverage amount and premium rates may be based on the working spouse's income and the overall financial situation of the family.
In many countries, term insurance proceeds are not subject to income taxes but may be subject to estate taxes if the total value of the deceased's estate exceeds a certain threshold. The specifics can vary based on the tax laws of the country or state in which the policyholder resides. It's important to consult with a tax advisor or estate planning professional to understand the potential tax implications of term insurance proceeds.
A convertible term insurance policy is a type of term insurance that offers the policyholder the option to convert the policy into a permanent life insurance policy, such as whole life or universal life, without undergoing a new medical examination. This feature provides flexibility, allowing the policyholder to adjust their coverage as their needs change over time, such as increasing financial responsibilities or changing health conditions.
Typically, term insurance premiums are fixed and do not change during the policy term. Once the premium rate is set at the beginning of the policy, it remains constant throughout the term. However, there are some types of term insurance policies, such as increasing term insurance, where the premium may increase at predetermined intervals to provide increasing coverage. It's important to understand the terms of your policy to know whether your premiums can change during the policy term.
Underwriting in the context of term insurance is the process used by insurers to assess the risk associated with insuring an individual. This involves evaluating factors such as age, health, lifestyle, occupation, and medical history to determine the premium rate and coverage terms. The underwriting process helps insurers to price the policy appropriately based on the risk profile of the applicant.
To decrease the cost of your term insurance premium, consider the following strategies:
● Buy Early: The younger you are when you purchase the policy, the lower the premium will be.
● Choose the Right Term: Opt for a policy term that best suits your needs without being unnecessarily long.
● Maintain a Healthy Lifestyle: Non-smokers and individuals with a healthy BMI typically enjoy lower premiums.
● Opt for Annual Payments: Paying premiums annually instead of monthly or quarterly can result in lower overall costs.
● Compare Policies: Shop around and compare different policies to find the most cost-effective option.
● Avoid Unnecessary Riders: Only add riders that are essential to your needs to avoid increasing the premium.
Yes, it is possible to nominate multiple beneficiaries in a term insurance policy. You can specify the percentage of the death benefit that each beneficiary will receive in the event of your death. It's important to clearly designate the beneficiaries and their respective shares to avoid any confusion or disputes during the claim settlement process. You can also change the beneficiaries during the policy term, subject to the terms and conditions of the policy.
If you miss paying your term insurance premium within the grace period, your policy will lapse, and the coverage will cease. This means that in the event of your death after the policy has lapsed, your beneficiaries will not receive the death benefit. Some insurers may offer a reinstatement period during which you can pay the overdue premium along with any interest or penalties to reinstate the lapsed policy. However, the terms for reinstatement vary among insurers, and there may be additional conditions, such as providing evidence of insurability.
Yes, term insurance policies can cover critical illnesses and disabilities through additional riders or endorsements that can be added to the base policy, usually at an extra cost. A critical illness rider provides a lump sum benefit if the policyholder is diagnosed with one of the specified critical illnesses, such as cancer, heart attack, or stroke. A disability rider typically offers financial protection by waiving future premiums or providing a regular income in case of total and permanent disability. It's important to read the terms and conditions of these riders carefully to understand the coverage and exclusions.
Yes, there are term insurance plans known as "Return of Premium" (ROP) plans, where the premiums paid are returned to the policyholder if they survive the policy term. These plans typically have higher premiums compared to regular term insurance policies due to the added benefit of premium return.
In most cases, once a term insurance policy has been issued, the coverage amount cannot be adjusted. However, some insurers may offer flexible policies that allow you to increase or decrease your coverage under certain conditions, such as major life events (e.g., marriage, childbirth). It's important to check the specific terms and conditions of your policy or consult with your insurance provider to understand your options.
Yes, you can have multiple term insurance policies. This can be useful if you want to increase your coverage at different stages of your life or if you want to have policies with different terms and benefits. The total coverage from all your policies should align with your financial needs and goals.
The minimum age to purchase a term insurance policy is typically 18 years, while the maximum age varies between 60-65 years, depending on the insurer and the plan.
The age limit to purchase term insurance ranges from 18 to 65 years, while the maximum maturity age can go up to 75-100 years, depending on the insurer.
The primary purpose of term life insurance is to provide financial security to your family in the event of your untimely demise, ensuring they can maintain their lifestyle and meet financial goals.
In a standard term insurance plan, there is no maturity benefit. However, with a Return of Premium (ROP) term plan, you get back the premiums paid if you outlive the policy term.
● No Savings Component: Pure term plans do not build cash value or savings.
● No Maturity Benefit: Unless you opt for a return of premium plan, you won't receive any money if you survive the policy term.
● Premium Increases with Age: Delaying purchase leads to higher premiums.
In a standard term insurance policy, no. However, Return of Premium plans refund the total premiums paid if you survive the policy term.
● Limited Pay: Allows you to pay premiums for a shorter period (e.g., 5 or 10 years), ideal if you want to finish payments early while maintaining coverage.
● Regular Pay: Spreads premium payments across the policy term, offering affordability and flexibility.
Choose based on your financial stability and preferences.
Select a term length that covers your financial obligations, such as your working years, loan repayment period, or until your dependents become financially independent.
Many term insurance policies offer a renewal option that allows you to extend your coverage without undergoing a new medical examination. However, the premiums for the renewed policy may be higher, reflecting your older age and any changes in your health status. It's important to check the specific terms and conditions of your policy regarding renewal.
If you outlive your term insurance policy, the coverage ends, and you do not receive any payout. Term insurance is designed to provide financial protection for a specific period. If you wish to continue having coverage, you may need to consider renewing your policy, converting it to a whole life policy (if applicable), or purchasing a new policy.
In most cases, the death benefit received from a term insurance policy is tax-free for the beneficiaries under Section 10(10D)**** of the Income Tax Act, 1961. However, there are certain exceptions, such as policies where the premium exceeds 10% of the sum assured for policies issued after April 1, 2012. It's advisable to consult a tax professional for specific tax implications based on your policy and personal circumstances.
A term insurance rider is an additional benefit that can be added to your term insurance policy for extra coverage or specific protections. Riders typically come with an additional cost and can include options like critical illness coverage, accidental death benefit, waiver of premium, and income benefit rider, among others. For example, if you add a critical illness rider to your term insurance policy, you may receive a lump sum payment if you are diagnosed with a covered critical illness.
Yes, some term insurance policies offer a conversion option that allows you to convert your term policy into a whole life policy without undergoing a new medical examination. However, this option is subject to the terms and conditions of the policy, and there may be a deadline for conversion. It's important to check with your insurance provider for specific details.
● Age and Gender: Younger individuals and women generally pay lower premiums.
● Health Condition: Pre-existing illnesses or habits like smoking increase premiums.
● Coverage Amount: Higher sum assured leads to higher premiums.
● Policy Term: Longer policy terms typically have higher premiums.
● Lifestyle Choices: Risky hobbies or occupations may increase premiums.
● Term Insurance: Provides coverage for a fixed period and focuses on protection.
● Whole Life Insurance: Offers lifetime coverage and includes a savings component.
Yes, term insurance is a wise financial decision to secure your family’s future. It offers high coverage at affordable premiums, making it an essential part of financial planning.
● Compare plans based on coverage, premiums, and claim settlement ratios.
● Evaluate add-ons like critical illness cover and payout flexibility.
● Choose a trusted insurer with a strong track record.
● Standard Term Plan: Offers only death benefits without maturity benefits.
● Return of Premium Plan (ROP): Refunds all premiums paid if you survive the policy term.
● High sum assured at low premiums.
● Flexible policy terms and premium payment options.
● Add-ons for enhanced protection.
● Tax benefits* under Section 80C and Section 10(10D)**.
● No maturity benefit (in standard plans).
● Financial security for your family.
● Debt protection for loans and liabilities.
● Affordable premiums.
● Tax advantages.
● Sole breadwinners.
● Young professionals starting financial planning.
● Parents securing their children’s future.
● Individuals with loans or liabilities.
Yes, term insurance provides essential financial protection for your family at an affordable cost, making it one of the most valuable investments for peace of mind.
ABSLI offers excellent term plans like ABSLI DigiShield Plan and ABSLI Life Shield Plan with customisable options to suit your needs.
● Assess your financial goals and liabilities.
● Choose adequate coverage and policy term.
● Compare premiums, features, and add-ons.
● Select a trusted insurer with a high claim settlement ratio.
The ABSLI DigiShield Plan and ABSLI Life Shield Plan are top choices, offering flexibility, high coverage, and optional riders to meet diverse needs.
The ideal age to buy term insurance is in your 20s or early 30s, as premiums are significantly lower, and you can secure coverage for a longer term.
In many countries, term insurance proceeds are not subject to income taxes but may be subject to estate taxes if the total value of the deceased's estate exceeds a certain threshold. The specifics can vary based on the tax laws of the country or state in which the policyholder resides. It's important to consult with a tax advisor or estate planning professional to understand the potential tax implications of term insurance proceeds.
Yes, the premiums paid towards term insurance are eligible for tax deductions subject to Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakhs. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D)**, subject to certain conditions.
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The endorsement of ABSLI Super Term Plan by the celebrity is intended solely for promotional purposes. The views expressed by the celebrity do not constitute financial, legal, or insurance advice. The endorsement does not imply any guarantee or assurance about the performance or suitability of the insurance product. Customers are encouraged to carefully review all policy documents and consult with a licensed insurance advisor or financial professional before making any insurance purchase decision. The terms and conditions of the policy shall prevail over any promotional content.
** Sec 10(10D) benefit is available subject to fulfilment of conditions specified therein
*Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details.
$Our life insurance policies cover COVID -19 claims under life insurance claims, subject to applicable terms & conditions of policy contract and extant regulatory framework.
1ABSLI Salaried Term Plan, Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹1 Cr., PT: 10 years, Annual Premium: ₹ 6700 /- ( which is ₹ 558/month), 1 Cr SA is paid and the policy terminates.
2ABSLI DigiShield Plan scenario: Scenario for Female, Non Smoker, Age: 21 years, Plan Option: Level Cover, Premium paying Term: Regular pay, Policy Term: 25 years, Pay Frequency: Annual, Premiums are exclusive of GST. (Annual Premium of Rs. 6900/12 months(On Average Rs.575/month) (offline premium)
³LI Age 21, Male, Salaried Non Smoker, Option 1: Level Cover, PPT: Regular Pay, SA: ₹1 Cr., PT: 10 years, Premium paying term: 10 years, Death Benefit Payout as Lumpsum. Annual Premium: ₹6900/- ( which is ₹575/month), 1 Cr SA is paid and the policy terminates.
4ABSLI Income Suraksha Plan, Age 35, Male, Non Smoker, Option 1: Fixed Income Protection, PT: 30 years, Premium paying term: Regular pay, Monthly Income Chosen: Rs. 1,00,000 Annual Premium: Rs. 21,720 p.a., Rs. 1,810 p.m. Premiums exclusive of GST.
Monthly Income payable to the nominee in case of death of the life insured for the remaining policy term or Minimum 10 years.
5ABSLI Poorna Suraksha Kawach scenario - Age 35, Male, Non Smoker, Option 1: Level Cover, PPT: Regular Pay, SA: 1 Cr., PT: Up to Age 85 (50 years), Annual Premium: Rs. 22,800 p.a, Monthly premium: Rs. 2052 p.m. Premiums exclusive of GST.
6ABSLI Saral Jeevan Bima scenario: Male, Entry age: 30. Policy term: 40 years. sum assured: ₹25,00,000. Regular premium payment, Premium: ₹2490.47/month (excluding GST)
ABSLI DigiShield Plan (UIN: 109N108V13) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 9 (Level Cover with Survival Benefit) and Plan Option 10 (Return of Premium [ROP]) this product shall be a non-linked non-participating individual life savings insurance plan. All terms & conditions are guaranteed throughout the Policy Term. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws.
ABSLI Income Suraksha Plan (UIN: 109N146V02) is a non-linked non-participating individual life pure risk premium plan.
ABSLI Super Term Plan - This Policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non-participating individual pure risk premium life insurance plan; (UIN:109N153V02) upon Policyholder’s selection of Plan Option 3 (Level Cover with Return of Premium) this product shall be a non-linked non-participating individual savings life insurance plan.
ABSLI Salaried Term Plan (UIN:109N141V04) 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.
ABSLI Poorna Suraksha Kawach UIN: 109N138V05 is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Return of Premium Option [ROP]) and Plan Option 3 (Early Return of Premium [EROP]) this product shall be a non-linked non-participating individual savings life insurance plan.
ABSLI Saral Jeevan Bima is a Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan. UIN:109N128V01
