The duration of your term life insurance should align with your long-term financial goals and responsibilities. Here’s how to decide:
Match Your Liabilities
● Loan Coverage: Ensure your term extends until major financial responsibilities, like home loans or children’s education, are fulfilled. This ensures your family is protected from unexpected financial burdens.
● Example: If your home loan is for 20 years, choose a term of at least 20 years to cover the repayment period. Selecting the best term insurance plan ensures you are adequately protected during this time.
Cover Your Working Years
● Income Replacement: A term policy should ideally last until your planned retirement age, typically 60–65 years. This provides a financial safety net throughout your earning years, ensuring income replacement for your family.
Account for Dependents’ Needs
● Milestone Coverage: If you have young children, select a policy term that covers their education and milestones until they become financially independent. For instance, a term plan lasting 25 years may cover your child’s higher education and marriage expenses.
Consider Future Inflation
● Inflation Protection: Choose a policy term that accounts for rising costs over time, ensuring your family’s financial stability. Opting for a higher sum assured within the best term insurance in India can help combat inflation.
Selecting the ideal term length for your term insurance plan is crucial for ensuring comprehensive protection. Here are detailed factors to consider:
Assess Your Current Age:
● Younger Age Advantage: Younger policyholders benefit from longer terms at lower premiums. This is a cost-effective way to secure long-term coverage.
● Example: A 25-year-old can secure a 40-year term for affordable rates, ensuring coverage until age 65. This approach locks in favourable rates for an extended period.
Align with Financial Milestones:
● Milestone Matching: Identify milestones like paying off debts, children’s education, or retirement to determine the necessary term length. For example, if your youngest child is 5 years old, a 20-year term can ensure financial protection until they graduate.
Evaluate Your Financial Obligations:
● Liability Coverage: Choose a term that matches your liabilities. For instance, a 15-year term is suitable for a short-term loan, while a 30-year term can cover a long-term mortgage. The best term insurance plan should cater to your specific financial needs.
Plan for Changing Needs:
● Flexible Plans: Consider flexible plans that allow you to adjust coverage as your financial situation evolves over time. This ensures you remain adequately insured without overpaying for unnecessary coverage.
Making term life insurance affordable doesn’t mean compromising on coverage. Here are practical strategies:
Start Early: Purchase a policy in your 20s or 30s to lock in lower premiums and maximise coverage.
Choose Online Plans: Digital plans often come with reduced operational costs, translating to lower premiums.
Customise Your Plan: Opt for essential riders only and avoid unnecessary add-ons that inflate costs.
Maintain a Healthy Lifestyle: Quit smoking and avoid risky habits to reduce premium rates significantly.
Pay Premiums Annually: Annual premium payments often cost less than monthly instalments, saving you money in the long run.
A term insurance plan ensures your family’s financial well-being in your absence. Here’s how:
Covers Liabilities: Pays off significant debts like home loans, business loans, or personal loans, ensuring your family isn’t burdened with repayments.
Education Security: Funds children’s education, allowing them to pursue their aspirations without financial obstacles.
Maintains Lifestyle: Provides a lump sum or regular income to maintain your family’s standard of living, even in your absence.
Legacy Planning: Enables you to leave behind a financial legacy for your loved ones, ensuring their long-term security.
Tax Benefits*: Offers savings through deductions under Section 80C and tax-free payouts under Section 10(10D)**, making it a tax-efficient financial tool.
This comprehensive coverage makes term life insurance an indispensable part of financial planning for individuals across all life stages.
Purchasing a term insurance plan is one of the most responsible financial decisions you can make. Here’s why it’s important:
Financial Security for Your Family: Ensures that your loved ones can maintain their lifestyle and meet financial goals like education, marriage, and daily expenses in your absence.
Affordable Premiums: Term plans offer high coverage at significantly lower premiums compared to other life insurance policies.
Debt Protection: Helps your family pay off outstanding loans or liabilities, ensuring they aren’t burdened with financial stress.
Critical Illness Coverage: Some term plans offer add-ons for critical illness coverage, providing financial support during serious medical conditions.
Tax Benefits*: Premiums paid towards term insurance are eligible for tax deductions under Section 80C, and the death benefit is tax-exempt subject to Section 10(10D)**.
Peace of Mind: Knowing that your family’s future is secured brings immense peace of mind, letting you focus on achieving your life goals.
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, term insurance ensures your family is financially secure in your absence.
Young Professionals: Starting early allows you to get higher coverage at lower premiums while building a solid financial foundation.
Parents: Term insurance helps safeguard your children’s future, ensuring their education and other life goals are unaffected by financial constraints.
Individuals with Loans or Debts: A term plan ensures your loved ones are not burdened with liabilities like home loans, personal loans, or credit card debts.
Stay-at-Home Spouses: Term insurance can provide a financial cushion to the family in case of the homemaker’s demise, covering additional support expenses.
Business Owners: Ensures that your business debts are cleared and your family or partners are financially protected.
Term Insurance works on a simple and straightforward principle of financial protection. Here’s how it functions:
Choose the Plan : You select a term insurance policy with the desired coverage amount (sum assured) and policy term.
Pay Premiums : You pay premiums regularly (monthly, quarterly, yearly) or as a single lump sum payment, depending on your chosen option.
Coverage Period : During the policy term, if you pass away, the insurer pays the sum assured to your nominee as a death benefit.
Death Benefit Payout : The death benefit can be paid as a lump sum, monthly income, or a combination of both, depending on your plan.
No Maturity Benefit : If you survive the policy term, there is no payout unless the plan includes a return of premium feature (optional).
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.
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 : ABSLI offers extensive life cover at competitive rates, ensuring maximum protection for your family without straining your budget.
Customisable Plans : Tailor your policy with options like critical illness cover, accidental death benefit, or waiver of premium to suit your specific needs.
Flexible Premium Payment Options : Choose from monthly, quarterly, half-yearly, yearly, or single premium payment modes for added convenience.
Multiple Death Benefit Payout Options : Opt for lump sum, regular income, or a combination of both to ensure your family receives financial support in the manner they need.
Critical Illness Coverage : Enhance your plan with critical illness riders to get financial assistance in case of life-threatening illnesses.
Tax Benefits* : Enjoy tax deductions on premiums paid subject to Section 80C and exemption on the death benefit subject to Section 10(10D)** of the Income Tax Act, 1961.
Trusted Brand Assurance : ABSLI’s strong reputation and customer-centric approach ensure reliability and prompt claim settlement for your peace of mind.
Digital Ease : Easy online application, payment, and claims processes for a seamless experience.
Term Insurance Policies come with various features that make them a reliable choice for financial protection:
Get significant life cover for a nominal premium, making term insurance one of the most cost-effective protection plans.
Choose a policy term that aligns with your financial goals, ranging from 10 to 40 years or up to a specific age like 80 years.
Enhance your coverage with add-ons like critical illness cover, accidental death benefit, waiver of premium, and income benefits.
Premiums paid towards term insurance are eligible for tax deductions under Section 80C, and the death benefit is tax-exempt subject to Section 10(10D)**.
Opt for lump sum, monthly income, or a combination of both for the death benefit, ensuring your family’s financial needs are met effectively.
As a pure protection plan, term insurance focuses solely on life cover, ensuring affordability and simplicity.
Some term plans offer inbuilt or optional coverage for critical illnesses, providing financial support during health crises.
Certain policies allow you to convert your term plan into another type of policy or renew it at the end of the term.
Some term plans offer coverage without requiring extensive medical tests, depending on the sum assured and applicant’s age.
Most term insurance policies provide worldwide coverage, ensuring protection no matter where you are.
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
₹60 LakhsPremium:
₹ 24.38 k/year for 10 years4ABSLI Salaried Term Plan
Term plan designed for salaried individual.
4 Plan Options
Life Cover upto 75 years
Option to Choose Death Benefit Payout – lumpsum or monthly
Inbuilt Terminal Illness Benefit
Life Cover
₹1 crorePremium:
₹833/month3Yes, 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.
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.
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, 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.
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.
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.
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.
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.
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.
** 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: ₹ 6100/- ( which is ₹ 508.33/month) Premium exclusive of GST. On death, 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)
3ABSLI Salaried Term Plan, Age 25, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: 1 Cr., PT: Up to Age 70 (45 years), Premium paying term: 45 years, Annual Premium: ₹ 10,000/- ( which is ₹ 833.33/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
4ABSLI Income Suraksha Plan, Age 35, Male, Non Smoker, Option 1: Fixed Income, SA: ₹ 50,000/ month, PT: 35 years, Premium paying term: 10 years, Annual Premium: ₹ 24,385/- Premium exclusive of GST (including 1st year discount). On death, Rs 50k/month is paid till the policy term and then the policy terminates.
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: 109N146V01) is a non-linked non-participating individual life pure risk premium plan.
ABSLI Salaried Term Plan (UIN:109N141V03) 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: 109N138V04 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
ADV/4/25-26/15
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