Term insurance is a type of life insurance that provides financial cover against death for a specific duration. In case the policy holder unfortunately passes away in this duration, their nominee gets the amount of the cover. Thus term insurance secures the financial future of the policy holder’s nominee/family with an adequate life cover at an affordable rate.

For example, a healthy 25-year-old non-smoker male has to pay Rs.780 per month over 30 years for a term insurance plan of Rs. 1 crore.

What is Term Insurance?

Term Insurance is a life insurance policy that offers coverage for a fixed number of years - the “term” of the policy. If the insured individual dies when the policy is active, a death benefit is paid to the nominees of the insured individual.

A basic variant of term insurance plan has no cash value which means, if the insured person survives the term of the policy, the policy does not return any value, with the exceptions of plans like Term Insurance with Return of Premium etc.

You can buy term insurance policy which can provide a certain corpus to your dependents in event of your demise, they would be able to sustain the same lifestyle or pay off existing liabilities without compromising on their dreams thanks to the sum assured which they would receive from life insurance.

Why Buy Term Insurance Online?

Here are some benefits of purchasing a term insurance plan:

High protection at low premiums: People can easily buy term insurance as it is highly accessible and offers large cover at low premiums. The earlier in life you purchase term insurance, the lower the premium.

Add ons: Term insurance plans often come with riders and add-ons to boost insurance coverage. Some such add-ons include critical illness coverage and accidental disability riders.

Financial security: A term insurance plan offers instant financial security in the event of the death of the insured. The payout, often received as a lump sum, helps beneficiaries meet their immediate living expenses.

Convenience: Buying term plan online is convenient and easy vis-à-vis buying offline. Without repeated visits, the online process is streamlined and fast.

Affordability: Online term insurance plans are more cost-effective as they bypass intermediaries, resulting in competitive rates and affordable options for policyholders.

Simplicity: Term insurance buying is a straightforward, quick and user-friendly process. Simply go to the insurer's website, fill in your details, choose a suitable term plan, pay, and activate the policy.

Comprehensive Features: Online term insurance plans offer a range of features, such as death benefits, maturity benefits, tax advantages, and flexible premium payment options. These features provide optimal coverage, ensuring financial security.

How Does a Term Plan Work ?

Term insurance plan work like limited life insurance policies. They provide life cover for a specific time. To enjoy the life cover, you must pay premiums at regular intervals. If anything happens to you, the policyholder, during the policy tenure, your nominee receives the promised sum assured as the policy payout. To enhance your family’s financial protection, you can choose to purchase riders or add-ons.