Life Insurance is a formal contract between an individual and an insurance company where the individual pays regular payments, while the insurance company promises to pay a pre-determined amount to the person's dependents in case he is no longer there. Life insurance companies offer several types of insurance plans. One of the most popular and cost-effective type of life insurance is term insurance.
A -Term plans are life insurance policies that can be availed for a fixed term, generally ranging from 10-40 years. The key feature that differentiates term insurance from other types of life insurance policies is that you can get high amount of life cover at a comparatively smaller premium.
Term insurance is a highly cost-effective option as it is a pure protection plan, which means that if the life insured dies during the policy term, his/her loved ones receive a cover amount as a one-time whole payment. However, there are no maturity benefits.
A - There are 5 broad reasons why you should buy a term plan:
A - As discussed, term insurance plans are highly cost-effective. The primary benefit of a term plan is protection to your family from the financial uncertainties they could face in your absence. Let us understand this with an example:
A 28-year old non-smoking male can get a life cover of Rs. 1 Crore for a 30-year term, at justRs. 6400 a year*. This means you get a life cover which is almost 42 times of the total premium paid. Sounds like a great deal, doesn't it? You can also add a rider which will provide you additional coverage against accidental death etc.
A - Yes, you can buy a term plan online. You can begin by getting a quick premium quote basis your insurance need. A general rule of thumb to follow is that life cover should be at least 10 times your current annual income. In case you aren't sure how much cover you need, use our Insurance calculator to find out.
Once, you have generated a quote, you need to fill in your details in the proposal form (Basic, Lifestyle, Health, etc.) and make the payment. All this can be done in one go, or during multiple sessions as per your convenience.
*(Exclusive of all taxes & cess as applicable)
MAX LIFE ONLINE TERM PLAN PLUS (UIN - 104N092V02 ). A Non-Participating, Non-Linked, Pure Term Insurance Plan.
Life Insurance coverage is available in this product. This plan is a pure term insurance plan that provides only death benefit and no maturity or surrender benefit. Insurance is a subject matter of the solicitation.