Term Insurance Plans: Best Option to Safeguard You and Your Family's Future
TABLE OF CONTENT

Introduction to Term Insurance

In a world where uncertainty and unpredictability seem to be the only constants, term insurance is a crucial component of financial planning to ensure financial security for our loved ones in the event of an unexpected death. Term insurance is often considered one of the most straightforward and cost-effective forms of life insurance. It provides a death benefit for a specified period in exchange for regular premium payments.

However, navigating the world of life insurance can be daunting, with a wide range of policy types and coverage options. The problem is that many people need help understanding the importance of term life insurance and end up making costly mistakes when purchasing a policy.

In this blog, we'll explore the ins and outs of term life insurance, explore the importance of term life insurance, the various types of policies available, and how to select the right term plan. We will also bust myths surrounding term insurance and mistakes people make when purchasing life insurance and provide tips to help you make an informed decision.

By the end of this blog, you will have a better understanding of term life insurance and be able to make a sound financial decision that will protect your loved ones in the event of a tragedy.

The problem that term life insurance resolves is the financial security of one's dependents or loved ones in the event of the policyholder's premature death. If a person who is the family's primary breadwinner dies abruptly, it can have devastating financial consequences for their dependents.

How Term Insurance Solve Financial Problems?

Term insurance provides financial protection to the policyholder's family in case of an unfortunate event by providing a death benefit that can help cover expenses such as outstanding debts and living expenses for a specified period. The term insurance plan has several benefits such as tax benefits, high sum assured, and flexibility to choose the policy term and coverage amount.

It is a cost-effective way to secure the future of your loved ones and provide them with financial security.

What is Term Life Insurance?

Term insurance is a type of life insurance policy that provides a death benefit for a specified period, typically one to thirty years. Unlike permanent life insurance policies, such as whole life or universal life insurance, term life insurance doesn't accumulate cash value over time. Instead, it's the most affordable way to protect your loved ones who depend on you in the event of your premature death.

During this time, the policyholder pays regular premiums in exchange for a death benefit paid out to their beneficiaries if they were to pass away during the policy term.

Once the term plan ends, the coverage also ends unless it is renewed or converted to a permanent life insurance policy. Term life insurance is often considered the simplest form of life insurance. Term life insurance policies typically offer high coverage amounts at relatively low premiums, making them an attractive option for many people.

Types of Term Insurance

There are several types of term life insurance policies, each with its own unique features and benefits. Here are some of the most common types of term life insurance:

  • Level Term Life Insurance:

    • This is the most basic and commonly purchased type of term insurance. Level term life insurance is the most standard term life insurance policy type. With a level term policy, the death benefit and premium payments remain the same throughout the policy's term. The premium is usually fixed for the duration of the policy term, making it easy to budget for. This policy is ideal for ensuring that their loved ones are financially secure in the event of their death.

    Mr. Sharma buys a level term insurance policy for 20 years with a coverage amount of Rs. 50 lakhs. The premium for the policy is Rs. 5,000 per year, and the coverage amount remains the same for the entire policy term.

  • Decreasing Term Life Insurance:

    • Decreasing term life insurance is a term insurance policy in which the death benefit drops over time. This type of policy is often used to cover specific debts, such as a mortgage or a car loan. As the debt is paid off over time, the amount of coverage needed decreases.

    This policy usually covers the outstanding loan amount, where the coverage amount decreases in line with the reduction in the outstanding loan amount.
    The main benefit of decreasing term life insurance is that it can be a cost-effective way to provide coverage for a specific financial obligation. Additionally, decreasing term life insurance can be helpful for individuals who have a specific financial obligation or debt, such as a business loan or a child's college tuition payments.

    If you have a 40-year mortgage, you might purchase a decreasing term life insurance policy with a death benefit that matches the outstanding balance of your mortgage. As you pay off your mortgage over time, your policy's death benefit will decrease. The coverage amount decreases yearly in line with the reduction in the outstanding loan amount.

  • Increasing Term Insurance:

    • In this type of policy, the coverage amount increases over time to keep up with inflation. This type of policy is often used by individuals who anticipate a significant increase in financial obligations in the future, such as a growing family or a mortgage payment that will increase over time.

    One advantage of increasing term insurance is that it provides additional coverage over time without requiring the policyholder to purchase additional policies.

    Overall, increasing term insurance offers a valuable benefit for those anticipating a significant increase in financial obligations over time, providing additional security and peace of mind.
    Mr. Singh takes an increasing term insurance policy for 20 years with a coverage amount of Rs. 50 lakhs. The coverage amount increases every year by 5% to keep up with inflation.

  • Return of Premium Term Insurance:

    • In this type of policy, the premium paid is returned to the policyholder at the end of the policy term, if they survive the policy term. This policy is more expensive than other types of term insurance, but it provides the policyholder with the added benefit of getting back the premium paid at the end of the policy term.

    Additionally, if the policyholder cancels the policy before the end of the term, they may not receive the full amount of premiums paid.

    : Mr Kumar takes a return of premium term insurance policy for 20 years with a coverage amount of Rs. 50 lakhs. The amount of money required to pay for the policy is Rs. 10,000 per year, and if he survives the policy term, he will receive Rs. 2 lakhs (i.e., the total premium paid during the policy term).

  • Renewable Term Life Insurance:

    • Renewable term life insurance is a type of term life insurance policy that allows you to renew your policy at the end of its term without going through the underwriting process again. This means that if you develop a health condition during your policy term, you can still renew your policy at the end of the term, even if your health has deteriorated. However, the premium for a renewed policy may be higher than the premium for the original term plan.

    , Let's say Mr. Chaudhary purchases a 10-year renewable term life insurance policy when he is 30. The policy provides a death benefit of ₹500,000, and the premiums are fixed for the entire 10-year term. At the end of the 10-year term, he can renew his coverage for another year by paying the premium for the renewed coverage. He can continue his coverage annually until the policy reaches its maximum age limit, which is usually around 80 years.

    One advantage of renewable term life insurance is that the policyholder can choose to renew their coverage if they still have dependents or financial obligations that require life insurance coverage. This can be especially beneficial if the policyholder's health has deteriorated over time, as they can continue their coverage.

  • Convertible Term Life Insurance:

    • Convertible term life insurance is a type of term life insurance policy that allows the policyholder to convert a term plan into a permanent life insurance policy. This means that the policyholder can convert their term life insurance policy into a permanent policy without undergoing a medical examination or proving insurability.

    This can be helpful if your financial situation changes, and you want a permanent life insurance policy accumulating cash value over time. Convertible term life insurance policies typically have higher premiums than regular term life insurance policies due to the added benefit of converting the policy into a permanent one.

    One advantage of convertible term life insurance is that it allows the policyholder to lock in their insurability at a younger age, which can be beneficial if they develop health issues later in life that could affect their ability to get life insurance coverage. Additionally, it offers peace of mind knowing that the policyholder can convert their policy without undergoing a medical examination or proving insurability, which can be especially important if their health has deteriorated over time.

What Are The Benefits Of A Term Insurance Plan?

Buying a term plan is an affordable and effective way to ensure the financial security of your loved ones in case of your untimely demise. Buying a term plan has several benefits, making it an essential financial tool for individuals and families. Here are some of the key benefits of buying a term plan:

  1. Financial security: The primary benefit of a term plan is that it provides financial security to your loved ones in case of your untimely demise. The death benefit paid out by the policy can be used to pay off outstanding debts, cover daily living expenses, and meet other financial obligations.

  2. Affordable premiums: Term insurance plans have relatively low premiums compared to other life insurance policies, such as whole life or universal life insurance. This makes term plans affordable for individuals who want to protect their loved ones without burdening their budget.

  3. Flexibility: Term plans offer a high degree of flexibility regarding coverage amount and policy duration. Policyholders can choose the coverage amount and policy term based on their individual needs and budget.

  4. Tax benefits: Term plans offer tax benefits under Section 80C of the Income Tax Act, 1961. Premiums paid towards a term plan are eligible for a tax deduction of up to Rs. 1.5 lakh per year. The death benefit paid out by the policy is tax-free under Section 10(10D) of the Income Tax Act, 1961. The death benefit is generally tax-free for the beneficiary on the term insurance. Consult with a tax professional to ensure you maximize your potential tax savings.

  5. Peace of mind: Buying a term plan provides peace of mind to the policyholder and their loved ones. Knowing that your family will be financially secure in case of your untimely demise can help alleviate the stress and worry associated with such a situation.

  6. High Sum Assured: Term insurance policies come with a high sum assured, which ensures that your family is financially secure in case of your untimely death.
Also Read:4 Questions You Should Definitely Ask Your Life Insurance Advisor

Things to Consider Before Buying a Best Term Insurance Plan

Buying a term life insurance is a challenging job. In order to decide on the best-suited term plan for yourself, you must consider the following points.

  1. Coverage Amount: The coverage amount should be based on your current income, future expenses, and liabilities. Ensure the coverage amount is sufficient to cover your family's potential future expenditures. Calculate potential financial obligations and emergency expenses per the family's needs before deciding the coverage amount.

  2. Policy Term: The policy term should be based on age, income, and future expenses. It is recommended to adopt a policy term that covers your family's future expenses until the age of retirement. Generally, a family depends on a person till his retirement age. Afterwards, family members can ensure the responsibility of the family.

  3. Premium Amount: The premium amount should be affordable and should not put a strain on your finances. You should also ensure the premium amount is fixed for the entire policy term. The premium amount must not take a dig at your other financial & investment plans.

  4. Insurance Company: You should choose a reputable insurance company with a good track record for settling claims. Assess the insurance provider's claim settlement ratio. Also, connect with pre-existing customers to better understand the insurance provider.

  5. Riders: Riders are add-ons that provide additional benefits to the policyholder. You should consider adding riders like accidental death benefit, critical illness rider, etc., based on your needs and lifestyle.

  6. Compare policies and premiums: To get the best deal on your term plan, compare policies and premiums from different insurance providers. Look for policies offering the right coverage amount and duration at a reasonable premium. Do a bit of research before deciding on any plan.

  7. Disclose and review all information: When applying for a term plan, disclose all information truthfully and accurately. Any misrepresentations or omissions could result in the denial of a claim in the future. Also, before signing up for a term plan, review the policy document carefully to understand the coverage terms and conditions, exclusions, and other important details. It's better to review and verify all the information with someone expert & trusted before signing.
Considering these tips before buying a term insurance plan, you can choose the right term plan. That meets your coverage needs and provides financial security to your loved ones in emergencies.

Determining the Sum Assured of a Term Plan

The sum assured of a term plan should be decided based on your current income, future expenses, and liabilities. Here is a step-by-step process to determine the sum assured of a term plan:

Step 1: Calculate your current annual income.
Example:Mr. Sharma's annual income is Rs. 10 lakhs.

Step 2: Calculate your future expenses.
Example:Mr. Sharma's future expenses include his children's education expenses of Rs. 20 lakhs, his retirement expenses of Rs. 1 crore, and his outstanding home loan of Rs. 50 lakhs.

Step 3: Calculate your liabilities and other fixed financial obligations.
Example:Mr. Sharma's liabilities include his outstanding home loan of Rs. 50 lakhs and his outstanding car loan of Rs. 5 lakhs.

Step 4: Add your future expenses and liabilities to get the total amount required.
Example:Mr. Sharma's total amount required is Rs. 1.75 crores (Rs. 20 lakhs + Rs. 1 crore + Rs. 50 lakhs + Rs. 5 lakhs).

Step 5: Subtract your savings and investments from the total amount required to ensure the sum.
Example:Mr. Sharma's current savings and investments are Rs. 50 lakhs. Therefore, his sum assured should be Rs. 1.25 crore (Rs. 1.75 crore - Rs. 50 lakhs).

“The above-given method doesn't include inflation.”

Thumb Rule to Calculate The Term Insurance Cover

Other than the method mentioned above, there are a few thumb rules to calculate the coverage amount.

  • Individuals between 25 and 35 years calculate the cover by adding their outstanding loans to 15 to 18 times their current annual income.

  • Individuals aged between 35 and 45 years are advised to calculate the term insurance cover by adding up their outstanding loans to 10-15 times the current annual income they are earning.

  • Income replacement: One way to determine your income replacement value is by multiplying your current annual income by the number of years left until retirement. This will give you the insurance cover amount needed.
Also Read:Life Insurance: An Essential Companion for An Entrepreneurial Journey

Myths Associated with Term Life Insurance

There are several common myths associated with term life insurance that can lead to misconceptions about its value and usefulness. Here is the reality behind the most common myths about term life insurance:

  1. Term insurance plan is too expensive: Many people believe that term life insurance is costly and unaffordable. However, term plans are often more affordable than life insurance policies like whole life or universal life insurance.

  2. Term insurance plan is unnecessary for young and healthy individuals: It is a common misconception that only older or unhealthy individuals need life insurance. However, life is unpredictable, and anyone can experience unexpected accidents or illnesses. Buying a term plan early can help ensure financial security for your loved ones in case of your untimely demise.

  3. Term life insurance only covers death due to natural causes: Another myth is that it only covers death due to natural causes, such as illness or old age. However, term plans typically cover death due to any cause, including accidents or acts of violence.

  4. Term insurance is only for individuals with dependents: While term plans are often purchased by individuals with dependents, they can also be useful for single individuals or those without children. The death benefit can be used to cover outstanding debts or other financial obligations.

  5. Term insurance is a waste of money if the policyholder outlives the policy term: Some people believe that if they outlive the policy term, their term plan will have been a waste of money. However, the peace of mind that comes from knowing your loved ones are financially secure during the policy term can be invaluable.
By understanding and dispelling these common myths about term life insurance, individuals can make informed decisions about their financial security and choose the right life insurance policy to meet their needs.

Final Word

Term life insurance is a powerful tool that can provide financial security to your loved ones in case of your untimely demise. It is a simple and affordable type of life insurance that offers a range of benefits, including tax benefits, flexibility, and a high coverage amount for a low premium. With different types of term plans available in the market, you can choose the one that best suits your coverage needs, budget, and lifestyle.

Before purchasing a term plan, it's essential to do your research, compare policies, and consider your coverage needs carefully. By following the tips mentioned in this blog, you can make an informed decision and choose a term plan that provides financial protection for you and your loved ones.

Remember, buying a term insurance plan is not just a financial decision. It's a decision that can bring peace of mind and ensure the well-being of your loved ones, even in your absence.

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FA

  • How much does term insurance cost ?

    The cost of term life insurance varies based on factors such as the policyholder's age, health, and coverage amount. Typically younger, and healthier individuals will pay lower premiums than older or less healthy individuals. Premiums can range from a few hundred dollars per year to several thousand, depending on the coverage amount and term length.

  • What happens if I outlive my term insurance plan ?

    If you outlive your term life insurance policy, the coverage will expire, and you will not receive any benefits. However, some term life insurance policies allow you to convert them to permanent life insurance policies, which offer lifelong coverage and can build cash value over time.

  • Can I cancel my term life insurance policy ?

    Yes, you can typically cancel your term life insurance policy at any time. However, you may be subject to surrender fees or other penalties if you cancel before the end of the term. It's important to review your policy terms and consult with your insurance provider before canceling your policy.

  • How much coverage do I need with a term insurance plan ?

    The amount of coverage you need with a term life insurance policy depends on factors such as your income, debts, and financial obligations. As a rule, many financial experts recommend purchasing a policy with coverage equal to 10-12 times your annual income.

  • How much coverage do I need with a term insurance plan ?

    The length of your term insurance plan should align with your financial goals and life circumstances. For example, if you have young children and a mortgage, a 20- or 30-year term may be appropriate. If you're nearing retirement and have fewer financial obligations, a 10-year term may be sufficient.

  • How do I choose a term life insurance provider ?

    When choosing a term life insurance provider, it's important to research different companies, compare policies and premiums, and read customer reviews. Additionally, you may want to consider factors such as the provider's financial stability, customer service, and claims process. A licensed insurance agent can also provide guidance and help you find the right policy for your needs.

  • What is the difference between life insurance and term insurance ?

    Life insurance typically refers to a broad category of insurance policies that provide financial protection for your beneficiaries in the event of your death, while term life insurance is a specific type of life insurance that provides coverage for a specified term or period of time, typically with lower premiums than other types of life insurance.

 

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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.

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No Liability

This Website is provided to you on an "as is" and "where-is" basis, without any warranty. ABCL, for itself and any ABC Companies and third party providing information, Materials (defined later), facilities, or content to this Website, makes no representations or warranties, either express, implied, statutory or otherwise of merchantability, fitness for a particular purpose, or non-infringement of third party rights, with respect to the website, the information or any products or facilities to which the information refers. ABCL will not be liable to you or any third party for any damages of any kind, including but not limited to, direct, indirect, incidental, consequential or punitive damages, arising from or connected with the site, including but not limited to, your use of this site or your inability to use the site, even if ABCL has previously been advised of the possibility of such damages. Any access to information hosted on third party websites of billers/banks/merchants/ABC Companies etc. is not intended and shall not be treated as an offer to sell or the solicitation of an offer to buy any product/offering of these ABC Companies or third parties.

The Facilities Provider or ABCL or ABC Companies shall have absolutely no liability in connection with the information and Material posted on this Website including any liability for damage to your computer hardware, data, information, materials, or business resulting from the information and/or Material or the lack of information and/or Material available on the Website. In no event shall ABCL or ABC Companies shall be liable for any for any special, incidental, consequential, exemplary or punitive damages for any loss, arising out of or in connection with (a) the use, misuse or the inability to use this Website; (b) unauthorized access to or alteration of your transmissions or data; (c) statements or conduct of any third party on the site; or (d) any other matter whatever nature relating to this Website.

Further, the Facilities Provider cannot always foresee or anticipate technical or other difficulties. The facilities may contain errors, bugs, or other problems. These difficulties may result in loss of data, personalization settings or other facilities interruptions. The Website does not assume responsibility for the timeliness, deletion, mis-delivery, or failure to store any user data, communications, or personalization settings.

The Facilities Provider, ABCL, ABC Companies and the providers of information shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorized access to, alteration of, or use of information contained at this Website.

Manner of Use of Personal Information

All Personal Information including Sensitive Personal Information provided/related to you, shall be stored/used/processed/transmitted expressly for the Purpose or facilities indicated thereon at the time of collection and in accordance with the Privacy Policy. Other than those otherwise indicated and agreed by You, this Website do not collect or store or share your Personal Information. Aditya Birla Capital is the brand and accordingly all products and facilities are provided by respective ABC Companies as applicable. Therefore, for any of these Purposes, the Website will use ABC Companies their authorized third party vendors, agents, contractors, consultants or facilities providers (individually a ‘Third Party Service Provider’ and collectively, the “Third Party Service Providers”) and to that extent you understand and authorize the Facilities Provider to share/transmit such information to Third Party Service Providers. Such sharing of information will be solely for the purpose to fulfill / complete / authenticate your specific requests/transaction execution and for providing information about any ABC Companies product or facilities or services or for data analytics or to deliver to you any administrative notices, alerts or communications relevant to your Purpose (and which may include sending promotional emails or SMS or calls or any other mode permitted under law) or to analyze the usage and improve the facilities/solutions offered or for any research or troubleshooting problems, detecting and protecting against errors or to improve features, tailor the facilities on the Website to your interests, and to get in touch with you whenever necessary.

Except in the manner as stated in the Privacy Policy, the Website will not disclose your Personal Information with any affiliated or unaffiliated third parties,

You may receive e-mails /communications/notifications from the Third Party Services Providers regarding facilities updates, information/promotional e-mails/SMS and/or update on new product announcements/services in such mode as permitted under law.

Use of Website in India

This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.

Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.

In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.

You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

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