5 Year Term Life Insurance Policy in India

As a responsible citizen and a breadwinner of the family, you would surely want to secure the future of your dependent family members, isn’t it? But how to achieve this? Well, you can buy a term life insurance plan.As the name suggests, a term life insurance policy provides protection against the uncertainties of life for a fixed duration. In the event of your demise, before the policy term ends, the insurer will pay a death benefit to the appointed nominee. Thus, it helps you secure the financial future of your family.Today, the insurance companies in India offer a variety of term insurance plans, and one of the most popular types is the 5-year term life insurance policy. Let us look at the features and benefits of the 5-year term plan.

• Death Benefit In the event of your unfortunate demise before the policy term, the nominee will receive a death benefit (equal to the sum assured of the policy), which is usually higher than the death benefit offered by the regular life insurance plans .
• Income tax benefit You can avail tax benefit on the premium paid towards the plan under Section 80C of the Indian Income Tax Act. Also, the death benefit received by the beneficiary is exempted from tax under Section10 (10D).
• Surrender benefit Another significant benefit of a 5-year term life insurance policy is that you are entitled to get surrender benefit if you surrender the policy before maturity.
• Additional riders You can purchase additional coverage options, which are known as riders by paying an additional premium and get coverage for your specific needs.
• Affordable premium The 5-year term life insurance plans come with an affordable premium. The premium you pay depends on your age; as a thumb rule, the insurance companies levy a higher premium for old-aged buyers and vice-versa. Also, most insurers in India provide flexible payment options that make premium payment easy for all.

Who can buy a 5-year term life insurance policy?

• The 5-year term plan is best suited for those who feel that their untimely demise can cause financial hardship to their family.
• Individuals who are approaching their retirement age. The policy can give their family additional financial security.
• The 5-year term plan is also an ideal investment for those who have various financial obligations like child education or marriage, home loan , etc. The death benefit can help the family meet the expenses.
• Individuals who have a limited income source; the lower premium makes the policy affordable.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.