Why Do I Need a Term Insurance?

Term insurance is basic life insurance that provides death coverage at fixed rate of payments for a fixed duration or term (ranging from 5-30 years) in return of a specific premium. If the Insured dies within the term the nominee mentioned in the policy, receive the Death Benefit of the policy.

No cash value is built and if the insured outlives the term, the Policy gets terminated; further coverage with different payments or conditions is then recommended.

Basics of Term Insurance Policy

  • With a low-cost policy, you enjoy the high-Risk cover
  • Your income gets replaced in case of an eventuality
  • Your family remain self-sustaining in your absence
  • The fixed term varies from 5, 10, 15, 20 and 30 years or up to the maximum specified renewal age
  • Coverage till the time you maintain the insurance
  • Insurance policy ceases if you outlive the term
  • Cash value acquired only with a return of Premium condition attached.

Right Time to Buy Term Insurance

Insurance gets expensive with age. The younger you are the lesser the premium amount you pay. Life is risky, so if you have dependent family members, you can start early. Your insurance policy will keep your family away from financial disaster if you die. Without paying a large premium, you get a good sum assured. It covers your fixed goals that may disappear over time.


  • Low premium: Policy premium is low compared to other life insurance plans. Term plan allows you to get higher levels of coverage at low cost
  • Secured family: If you have dependent family members, the policy will take care of them if something happens to you. They will not face a financial burden in your absence
  • Price guarantee: You enjoy guaranteed rates in terms of high sum assured.
  • Term flexibility: Duration of term insurance ranges from 5, 10, 15 to 20, 25 or 30 years; the flexibility to choose term according to age and preferences
  • Safeguard against liability: Loans took if any and the repayment that happens over time are taken care of in your absence
  • Cover for a short term needs: Temporary obligations such as mortgages get covered
  • Simple and Easy: The insurance policy is easy to understand; it is pure death protection
  • Conversion option: You can exchange your term plan for a more permanent policy without proof of health
  • Tax benefits: You enjoy tax benefits as per u/s 80C & u/s 10(10D) of the Income Tax Act

Policy Premium and Sum Assured

The policy premium varies according to age. Younger the age, lower is the policy premium. Policy premium is also affected by smokers/non-smokers, sex of the insured, medical conditions, and unhealthy habits.

Sum Assured is the risk cover, the amount to be paid to the insured’s nominee. It is pre-determined. The Sum Assured is determined according to your annual income.

Visit your chosen insurance aggregator’s website, get quotes, and buy the right term insurance policy.