Term Insurance

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.

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.

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.

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.

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.

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.

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

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.